Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 9824-KE

STAFF APPRAISAL REPORT

KENY'A

UNIVERSITIES INVESTMENT PROJECT

OCTOBER 7, 1991

Population and Human Resources DivisionEaste-^n Africa Department

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

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KENYA: LNIVERSITIES INVESTMENT PROJECT

Currency Equivalents

Currency Unit = Kenya Shilling (KSh)US$1.00 = KSh 28 (June 1991)US$1.00 = SDR 0.750672 (August 31, 1991)

Measures

Metric System

Government Fiscal Year

July 1 - June 30

Abbreviations and Acronyms

CHE Commission for Higher EducationCVC Committee of Vice-ChancellorsEDSAC Education Sector Adjustment CreditGDP Gross Domestic ProductGOK Government of KenyaJAB Joint Admissions BoardJICA Japanese International Cooperation AgencyJKUCAT Jomo Kenyatta University College of Agriculture and TechnologyKCPE Kenya Certificate of Primary EducationKCSE Kenya Certificate of Secondary EducationODA Overseas Development Administration (United Kingdom)PIU Project Implementation Unit (Ministry of Education)SOE Statement of ExpenditureUNESCO United Nations Educational, Scientific and Cultural OrganizationUSAID United States Agency for International Develoriment

This report is based on the findings of an appraisal mission which visited Kenya inMay/June 1991, comprising Nicholas Burnett (senior economist and mission leader),Josephine Hykin (science and technology expert), James McCabe (principal educationspecialist), Gordon Hunting (education specialist/consultant), James Kamunge (educationspecialist/consultant) and Maureen Woodhall (student loan expert/consultant). ChristineAllison (economist) led earlier preparation missions for the project, in conjunction with thosefor the Education Sector Adjustment Credit (2295-KE) approved by the Board on September3, 1991. Raju Laburam provided secretarial assistance in the preparation of the report. JamilSalmi and William Saint are the lead advisers, Dennis Mahar the managing division chief andCallisto Madavo the managing department director for the operation.

FOR OFFICIAL USE ONLY

)KENYA: UIIVERSITIES INVESTMEN:T PROJECT

TABLE OF CONTENTS

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

I. IUNIVERSITIES IN KENYAA. The Education Sector .1B. The Universities. 2C. Sectoral Issues and Government Strategy. 6D. External Assistance ................................ 10

II. THE PROJECTA. Objectives ...................................... 12B. Summary Description ............................... 12C. Detailed Description of Components ..................... 12

C.1 Central Components .......................... 12C. 1.1 Strengthening the Commission for Higher Education 12C.1.2 Reforming the Student Loan Scheme .... .... 15C.1.3 Studies .......... ................. 16C.1.4 Support for Applied Research .... ......... 16C. 1.5 Project Implementation ..... ............ 17

C.2 University Components. ............... '1C.2. 1 Subproject Selection and Phasing .... ....... 17C.2.2 Subprojects by Function ..... ........... 19C.2.3 Phase I Subprojects by University .... ...... 21

III. PROJECT COSTS AND FINANCINGA. Costs .......................................... 25B. Financing Plan .......... ......................... 28C. Procurement .......... .......................... 28D. Disbursements .......... ......................... 31E. Accounts and Audits ............................... 32

IV. PROJECT IMPLEMENTATIONA. Status of Project Preparation .......................... 33B. Organization and Management ......................... 33C. Monitoring, Reporting and Evaluation .......... .......... 34D. Environmental Impact ........................... 35

V. PROJECT BENEFITS, JUSIFICATION AND RISKSA. Benefits and Justification .......... .................. 36B. Risks ...................................... 36

VI. ASSURANCES AND RECOMMENDATION ...... ............... 38

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

TABLES

2.1 University Components by Functional Category ................ 202.2 Phase I Packages by Functional Category .................... 213.1 Project Costs by Expenditure Category ...................... 263.2 Project Costs by Component ........... I ................ 273.3 Proposed Project Financing ............................. 283.4 Procurement ............. ......................... 29

ANNEXES

1. Letter of Education Sector Policy ......... .................. 412. Public University Admissions and Cost Data ..................... 533. Interim Task Group and Secretariat: Structure and Staffing .... ........ 574. Strengthening CHE: Schedule of Subcomponents and Outputs .... ...... 585. Studies: Outline Terms of Reference .......................... 606. Support for Applied Research: Criteria for Funding ................. 617. University Subproject Selection Criteria and Operational Indicators .... ... 628. University Components: Implementation Schedule .................. 659. Phase I Packages: Typical Subprojects ......................... 6610. Phase I Packzges: Summary List of Subprojects ................... 6811. Detailed Project Costs ................................... 7512. Technical Assistance Requirements ..... .................... 8313. Estimated IDA Disbursement Schedule ........................ 8414. Implementation Responsibilities of CHE and PIU .................. 8515. IDA Supervision Plan ................................... 8716. Documents in the Project File .............................. 88

MAP

IBRD No. 23076: Kenya Universities

KENYA: UNIVERSITINVEsTMENT PROECT

Credit and Project Summary

lorrower: Republic of Kenya.

Beneficaries: Ministry of Education, Commission for Higher Education, StudentLoan Scheme body, and six public university institutions.

AigmWt: SDR 41.3 million (US$55.0 million equivalent).

Terms: Standard IDA terms with 40-year maturity.

Onlending Terms: Grant.

I Qkect Objectives: Support the government's program to consolidate and develop theuniversities by (a) rationalizing and strengthening the institutionalframework for higher education, in both the public and the privatesectors; (b) limiting the growth of government budgetary resourcesdevoted to the public universities by promoting cost sharing andimproved investment planning; and (c) improving the quality of theteaching and research delivered at the public universities. The projectis directly complementary to the Education Sector Adjustment Credit(EDSAC), approved by the Board on September 5, 1991 (Credit No.2295-KE), building on the higher education adjustment policiessupported by EDSAC.

Project Description: Central Components: strengthening the Commission for HigherEducation, reforming the Student Loan Scheme, carrying out relevantstudies, supporting applied research, and implementing the project.University Components, at the six public university institutions:strengthening institutional development (especially administration andfinance), staff development in key areas, and the supply of teachingand related equipment. This will be done in three phases, Phase Ihaving been selected at appraisal and Phases II and IH to be appraisedand selected by the strengthened CHE as part of institution building.

Benefsits: The project, together with EDSAC, will have three principal benefits.First, it will set in place an institutional framework for thecoordination, planning, programming, budgeting and financing ofKenya's public universities. The project is designed to supportinstitution building through the progressive adoption of new functionsby the Commission for Higher Education, specifically throughpreparing a universities development plan for 1993-99 and throughtaking responsibility for subproject appraisal and selection underPhases II and m of the University Components. This is the keybenefit, and is also supported by EDSAC. Second, the project willhelp to control the government's education budget, stabilizing therapidly escalating university share of the recurrent budget for

education at around 20 percent. Recurrent spending by the rapidlyexpanding universities has been one ot the two main factors drivingthe education sector budget, which in turn has been a major force indriving overall government expenditure and resulting in the fiscaldeficit. The adoption of an institutional framework for financinguniversities, limits on student admissions, and the reform of theStudent Loan Scheme will together bring university expenditure undercontrol. Third, the bulk of the project funding will be used to provideequipment and materials to improve the quality of the teaching andresearch that the universities deliver. In time, the concentration ofboth teaching and research quality improvements on those science andengineering disciplines most critical for Kenya's development will alsobenefit the economy as a whole.

The project has two risks. The first - and most serious - risk is thatthe policy framework put in place by EDSAC, which provides thecontext for and is extended over time by this project, may not hold ifgovernment support falters in the face of public opposition to variousreform measures. Restricting student numbers, and increasing cost-sharing, both direct and deferred, ire two examples of measurespotentially unpopular with student. and their parents, while givingCHE far reaching financial controls is potentially unpopular with theuniversity Vice-Chancellors, even though they sit, and will continue tosit, on the Commission of CHE. However, the preparation of bothEDSAC and this Project have involved extensive consensus buildingthrough ad hoc task groups, and indeed the ones established for thisproject are now being formalized and will evetntually become part ofCHE. This consensus building appears to have paid off in terms ofthe initial policy steps that the government has already taken: limitingstudent admissions, stating that CHE will be revamped and appointinga Coordinator, and announcing reforms to the Student Loan Scheme.Tackling these issues in the context of EDSAC (where they areconditions of tranche release) as well as in this project (where they arethe subject of covenants), not to mention their inclusion in the IMFEnhanced Structural Adjustment Facility approved on August 2, 1991,provides a powerful external stimulus to stay the course.

A second risk, specific to the project, is that CHE will take time todevelop the capacity to coordinate university development in general,and to appraise subprojects in particular, and that this will impedeimplementation. This risk has already been reduced, however, by theextensive manner in which the Phase I subprojects were reviewedjointly by the Bank and the government at appraisal, which establishedconsensus on both procedures and criteria, and subsequentlyconfirmed at negotiations. Moreover, the risk is justified in theinterest of institution building and will be mitigated by the conditionsof disbursement on Phases I and III and will also be the subject ofspecific attention during the two major project reviews.

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Summary of Project Costs and Financing Plan (US$ million):

Lncal Foreign IQ1al

Estimated CostsL'

Cent-al Components 5.3 4.2 9.4University Components 2.6 43.0 45 5

Total Base Cost 7.9 ' 7.2 55.1

Price Contingencies 2.1 3.9 6.0

Total Project Cost 10.0 51.1 61.1

Financing Plan

Government 6.1 - 6.1IDA 3.9 51.1 55.0

Total Project 10.0 51.1 61.1

a/ Net of taxes

Estimated Credit Disbursements by IDA Fiscal Year (US$ million)

FY92 FY93 FY94 EF9 FY96

Annual 8.4 15.1 10.5 10.5 10.5

Cumulative 8.4 23.5 34.0 44.5 55.0

Rate of Mleurn: Not applicable.

MU: IBRD No. 23076.

I. UNIVE SITIES IN KENYA

A. The Edtication Sector

1.1 Kenya's education system has expandei dramarically in the three decadessince Independence in 1963. Rapid growzh has been driven by demographic pressure fromone of the highest population growth rates in the world, the desire to offset the unequaldistribution of educational resources and opportunities inherited from the colonial period, therecognition that human capital accumulation is essential for economic growth and for bothnational and individual development, and the belief that education is an important vehicle fornational integration. The number of primary school students has grown from about 890,000in 1963 to over 5,000,000 today, and the gross enroIlmtnt ratio has increased from about 50percent to over 90 percent. Secondary school student numbers have risen fiom about 30,000to over 600,000, and university students from 600 to 50,000, of whom 10,000 are atuniversities abroad. Adult literacy rates are estimated to be above 60 percent for males and40 percent for females. Generally, Kenya's educational enrollment ratios, its femaleparticipation rate, and its achievements in adult literacy compare very favorably with othersub-Saharan African countries.

1.2 Such high standards of educational achievement for a rapidly growingpopulation have not come without cost. Unlike many sub-Saharan African countries, Kenyahas invested heavily in its education system, and levels of both public and private expenditureare high by world standards. Central government expenditure on education now accounts forover a fifth of all Government expenditure and over six percent of GDP. Developmentexpenditure represents only a small proportion of these outlays, largely because parents andcommunities provide the bulk of the investment needs in primary and secondary school. Bycontrast, public recurrent expenditure on education is very high and has risen steeply sinceIndependence. By 1989/90 it accounted for 36 percent of the country's total voted recurrentbudget compared to 15 percent at Independence and 30 percent in 1980. The proportion ofparental and community financing varies widely by level of education and is inversely relatedto the adequacy of government financial support. At primary and secondary levels, privatecontriburions are substantial; they support learning materials and recurrent boarding costs inaddition to virtually all investment needs. Government expenditure is essentially for teachers'salaries. At the tertiary level, government shoulders the financial burden of both investmentand recurrent costs.

1.3 An important structural change was introduced in the mid-1980s when theformer 7:4:2:3 British-type education system was replaced with a North American 8:4:4model. In essence, a year was added to primary education which now culminates with theKenya Certificate of Primary Education (KCPE) after eight years, the terminal year of formaleducation for about 50 percent of children; the former four year "O" level and two year "A"level secondary courses were merged into a four year cycle which terminates in the KenyaCertificate of Secondary Education (KCSE); and a year was added to the undergraduatedegree program so that a Bachelor's degree now takes at least four years of study. Thisstructural change has been accompanied by a qualitative change at all levels. By adding moresubjects, including practical subjects in upper primary and secondary education, the newcurriculum aims to expose children to a broad range of experiences in preparation both forlife and for further study.

1.4 Kenya has reviewed periodically the philosophy and objectives of its educationsystem. The most recent, the 1988 review by the Presidential Working Party on Education

and Manpower Training for the Next Decade and Beyond, called for increased access toeducation and training and enhanced quality at all levels, while recognizing the reality ofKenya's macroeconomic and financial constraints. Issues of cost effectiveness, internal andexternal efficiency, as well as educational quality, access and equity, were therefore deemedcritical. The Working Party's recommendations were largely adopted by the government inSessional Paper No. 6 of 1988, also titled Education and Manpower Training for the NextDecade and Beyond. Implementation of the Sessional Paper has begun; the government'sLetter of Sectoral Policy of July 29, 1991 (Annex 1) sets out the principal measures thegovernment will adopt over 1991-93 to tackle these issues systematically. Chief among themare limits on the growth of primary and secondary school teachers, lims on universityadmissions, and reform of the university student loan scheme, all of whicn will halt theunsustainable rapid growth in the education recurrent budget, ard the preparation of a sectoralinvestment plan to guide development expenditures. In addition, important qualitative reformsare included, notably some public sector provision of textbooks to primary schools, revisionsto primary and secondary curricula, a study of falling primary participation ratios and highwastage, the strengthening of the Ministry of Education's planning and statistics capacity, andthe establishment of an institutional framework for the public universities. The programdescribed in thz government's Letter is being supported by IDA through' the Education vectorAdjustment Credit (EDSAC), approved by the Board on September 5, 1991(Credit No. 2295-KE). Those measures affecting universities are described further in thischapter1/.

B. The Universtiesc

1.5 Post-Secondarv Institutions. Post-secondary education in Kenya consists of 17university level and about 160 other institutions:

* Four public universities and two university colleges (with 41,000 students,including 39,000 undergraduates and 2,000 postgraduates);

* Eleven private universities (with 2,000 students);

* Eighteen public teacher training colleges (15 primary, with seven more underconstruction, and three secondary, with 19,000 students);

* Three private primary teacher training colleges (with 300 students);

* Three public national polytechnics (with 5,000 students);

o Other public training institutions, run by various government ministries (52,with 13,000 students);

* Private training institutions (325, with 16,000 students).

In addition, there are approximately 10,000 Kenyan students attending post-secondaryinstitutions abroad, mainly in Britain, Canada, India and the United States.

I/ The full program is described in Report P-5571-KE for EDSAC.

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1.6 There is great diversity in the facilities, equipment, courses and standards oftraining offered by these institutions. In 1985, the government established the Commissionfor Higher Education (CHE), to be responsible under the Universities Act of 1985 for thepromotion and development of all post-secondary institutions (including universities), thecoordination of their curricula, and their inspection and accreditation. CHE has published afirst ever directory of "Post Secondary School Institutions and Courses in Kenya" (excludinguniversities) but has otherwise been largely preoccupied with accrediting the existing privateuniveisities and guiding the planning of new ones. It has not as yet played a major role withregard to the public universities. While public universities and teacher training colleges comeunder the aegis of the Ministry of Education, the national polytechnics are under the recentlyestablished Ministry of Technical Training and Applied Technology; other public traininginstitutions are the responsibility of specific ;ine ministries, e.g. the Ministry of Health runsthe schools of nursing.

1.7 The Changing Role of Universities. Kenya's universities have gone throughthree periods of development. The first, from 1956-84, was characterized by the planned andcontrolled expansion of a single university institution. The second, from 1985-90, saw adramatic increase in the numbers of both university institutions and students, with theuniversities being one of the main driving forces behind the rapidly rising, and unsustainable,recurrent budget for education, and with the quality of university education being seriouslyjeopardized. The third, which has just begun in 1991, is a renewed period of controlledgrowth, with the emphasis on planned development, expenditure control, cost-sharing andimproving the quality of teaching ana research. Both the EDSAC and this project aredesigned to support the government's efforts during this new period.

1.8 From 1956 until 1984 there was only one public university, the University ofNairobi, with a relatively small eurollment (8,900 in 1984), the bulk of the students pursuingdegrees in liberal arts, medicine, agriculture, engineering and education. Its graduates, andalso those few Kenyans who then went abroad for their degrees, were largely recruited intothe public service. Indeed, the principal role of the university was to supply a very smalleducated elite to staff the public service. With the government's desire to indigenize the civilservice following Independence in 1963, university education was essentially free to thoseenrolled and employment in the public sector was guaranteed upon graduation. Following therecommendation of a Presidential Working Party on a Second University, Moi University wasestablished in 1984.

1.9 The next five years, from 1985-90, were ones of dramatic change for Kenya'spublic university system. Two former constituent colleges of the University of Nairobibecame universities in their own right: Kenyatta University in 1985 and Egerton University in1987. From 1987-90, there was a huge increase in the number of public universities andstudents, all largely unplanned and far in excess of the numbers anticipated when universityexpansion was being planned in the early 1980s. Following an earlier closure, 1987witnessed a "double-intake" of 8,500 students, compared to 3,500 in 1986. Subsequentadmissions in 1988 and 198' remained high, above 7,000 each year. But even against thisbackground, 1990 stands as an extraordinary yeor in which 21,450 students were admitted,bringing total enrollments to about 41,000 (39,000 undergraduates and 2,000 postgraduates).

1.10 Four principal factors account for the dramatic growth between 1985--90, andparticularly since 1987:

a) The role of the universities changed from that of preparing students to ;,e-omepublic servants into that of training high level manpower for the ecovomy as awhole; this policy that the universities are expected to meet nationaldevelopment objectives and to respond to emerging socioeconomic needs wasdefined in various government policy statements, and was most recentlyreaffirmed in Sessional Paper No. 6 of 1988.

b) Continued high levels of population growth expanded the absolute numbers ofsec3ndary school leavers, increasing the pressure for more university studentplaces.

c) The 8-44 system arrived at the door of the universities in 1990. Thisstructural change in Kenya's education system (para. 1.3) reflected theg,wernment's desire to make education more relevant for development and toincrease equity by exp.nding educational access at all .evels. The year 1990had two groups of school leavers. It was the last year in which "A" levelschool leavers could seek university admission for 3-year degrees and also thefirst year in which KCSE school leavers from the new secondary school cyclewere due to start the new 4-year university cycle. The government admittedboth groups at the same time, taking in 12,243 "A" level holdets and 9,205KCSE school leavers.

d) The private demand for university places grew rapidly, reflecting theparticularly high value Kenyans place on education in general, and onuniversity education in particular. This is largely because university educationhas been essentially without private costs, while yielding very high privatereturns.

1.11 The Current Public University System. The events of 1990 required theconversion of a number of other tertiary institutions into university facilities such that thepublic sector now has four full universities, two constituent university colleges and eightcampus colleges spread over 14 different sites. Full universities are autonomous financiallyand grant their own degrees. Constituent university colleges are affiliated with fulluniversities and may in time become full universities themselves; they have financialautonomy but do not grant their own degrees. Campus colleges are parts of full universitiesat different physical locations. It is government policy that different universities concentrateon certain disciplines, through their designation as national centers of excellence. Theuniversities have agreed on these specializations in general terms and will further refine themin the future.

1.12 The public university institutions are shown on the Map and consist of:

The University of Nairobi, with a 1990/91 enrollr.- nt of 13,740undergraduates and 1,600 postgraduates (total 15,340 students). Establishedin 1956 as the Royal Technical College, an affiliate of the University ofLondon in Britain, it became Nairobi University College, a constituent college

of the University of East Africa, in 1963 and a full university in 1970. Inaddition to arts graduates for the general civil service, it developed programsafter Independere to meet specialized public service needs for those qualifiedin medicine, architecture, law, engineering, veterinary sciences, commerce,education, population, meteorology, surveying and photograrnmetry. TheUniversity of Nairobi has six campus colleges spread over eight sites, and isthe only major postgraduate university. It also has a site at Kibwezi forteaching and research on arid and semi-arid lands.

Mol University, with 6,620 undergraduates and 70 postgraduates (total 6,690students). Established in 1984 as Kenya's second full university, it specializesin the fields of science and technology, medicine, environmental sciences,forestry, library and information sciences. It has one campus college atChepkollel, formerly Moi Diploma Teachers College.

* Kenyatta University, with 8,650 undergraduates and 340 postgraduates (total8,990 students). A constituent college of the University of Nairobi since1972, it became a full university in 1985 and specializes in education, musicand home science.

* Egerton University, with 6,890 undergraduates and 500 diploma students(total 7,390 students). Established as an Agricultural College in 1939, itbecame a constituent college of the University of Nairobi in 1986 and a fulluniversity in 1987. It specializes in agriculture, has one campus college atLaikipia (temporarily housed in Naivasha), and has sites at Baringo and Lamu.In the past it ran a large number of vocationally oriented diploma courses.These are now being phased out and replaced by degree courses.

-- Jomo Kenyatta University College of Agriculture and Technology(JKUCAT), a constituent college of Kenyatta University, with 1,350undergraduates and 700 diploma students (total 2,050 students). Establishedas a diploma college i 1981, it became a constituent college in 1988 andspecializes in agricultural engineering, food science and horticu.ture.

* Maseno University College, a constituent college of Moi University, with1,600 undergraduates. Establishel iP 1990 in premises formerly occupied bySiriba Diploma Teachers College and Government Training Institute, Masenooffers degree programs in education.

1.13 Each public university is established by an Act of Parliament which sets up aCouneil to govern it, a Senate responsible for all academic matters, and Teaching Facultiesand Departments; it also makes provision for university statutes to regulate the university'smanagement and administration. The head of each of the six university institutions is theChancellor, who is also the President of the Republic of Kenya, and who appoints theChairmen of Councils, the Vice-Chancellors and other senior university officers, inconsultation with the Council and the Minister of Education. Although CHE was intended,among other functions, to coordinate the activities of the public universities, it did not initiallyplay that role. The informal Committee of Vice-Chancellors (CVC), established in 1985,meets monthly under the chairmanship of one of the Vice-Chancellors and discusses issues ofcommon concern. A notable achievement of the CVC has been the establishment in 19%6 of a

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Joint Admissions Board (JAB), responsible for processing applications to all the publicuniversities.

1.14 Private Universities. The government has encouraged private universities inorder to reduce pressure on the public universities and to offer local private education tostudents who would otherwise have attended private universities abroad. There are 11 privateuniversities, 10 affiliated with religious organizations, as shown on the Map. Before CHEwas established in 1985, they were registered under the Company Act and affiliated withforeign universities for the award of degrees. They are now registered under the UniversitiesAct and CHE is now in the process of inspecting and accrediting them, in order to awardthem charters and thereby enable them to grant degrees themselves. The first charter, to theUniversity of Eastern Africa, was awauied in 1991 and others are expected to follow in thenext few years. Total current enrollments are fairly small at about 2,000 students but severalprivate universities have expansion plans, notably the University of Eastern Africa (600students at present), Daystar University Col:ege (500), United States International University(400) and the Catholic Higher Institute of Eastern Africa (300). Growth of the fee-chargingprivate universities has been constrained by their inability to compete aggressively with theessentially free public universities.

C. Sectoral Issues and Government StrateLy

1.15 The rapid expansion of universities and student numbers and the changing roleof the universities have resulted in a series of interlinked problems that the government is inthe process of resolving, with IDA's support through both EDSAC and this project. Chiefamong these problems are the institutional framework within which un ;ersities operate; theoverall rate of university expansion; the balance among different degree and diploma coursesand the relevance of curricula; the financing of universities; and their management andstaffing. The overall strategy of the government is to consolidate the university sectorthrough controlled and well planned future growth, emphasizing subjects of most importanceto national development, and ensuring that different universities specialize in different areas.

1.16 Institutional Framework. The need is critical for an institutional frameworkfor the effective planning, financing and coordination of the universities, especially in thepublic sector. At present, each university acts autonomously, according to its individual Actof Parliament. Its budget, both recurrent and development, is not subject to systematicscrutiny, both in and of itself and in the context of the university system as a whole. Thisframework was appropriate when there were only one or two universities, but can no longerbe relied upon in the era of consolidation, rationalization, and fiscal restraint that theexpanded number of universities now faces. Systematic attention is now required to suchimportant functions as long zerm planning, budget review, staffing norms, program/courserationalization, and forging closer links between the universities and the world of work.

1.17 The Universities Act of 1985 which established CHE envisaged that CHEwould take on this function of planning, financing and coordinating the public universities. Ithas not done so, in part because of a lack of expertise and in part because the Vice-Chancellors, though themselves members of the Commission of CHE, have understandablybeen reluctant to give up their autonomy. Where they have recognized the need to cooperate,as with the establishment of the CVC and the JAB, they have done so well. Under thesecircumstances, CHE has concentrated on those of its functions under the Universities Act

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which it has found feasible to perform, principally the promotion and accreditation of theprivate universities, which it has done in an effective manner.

1.18 Largely in the context of the development of EDSAC, the governmentrecognized in mid-1990 that there was a critical need to update the institutional framework forthe public universities. The government's initial thinking was that a new institution wouldneed to be established. Moreover, it would take time to build consensus on the need for suchan institution. A target date was set that the new institution should be functional by January1, 1993. As a precursor, the government set up a Task Group responsible for thecoordination and planning, programming and budgeting of the public universities, and for thepreparation of this project. The intention was that the Task Group would in time be mergedinto the new institution. In the process of building consensus, however, the government cameto realize that there was in fact no need for a new institution, but rather that CHE could berevamped to take on the responsibilities that were originally intended for it. In May, 1991,therefore, the government determined that CHE would take on these responsibilities.Recognizing, however, that this will take as much Lr.e for a revamped CHE as for a newinstitution, the government determined to continu'. with the Task Group structure but to placeit administratively tinder CHE, although it reports directly to the Permanent Secretary of theMinistry of Education. The Task Group is chaired by a full-time Coordinator, appointed inJuly 1991, who also heads an interim secretariat within CHE. This is administrativelyconvenient, will ensure a smoother revamping of CHE, and permits the existing staff of CHEto continue their important work with regard to the private universities. CHE will thereforebe revamped by January 1993 and, by the end of 1993, it will have assumed certain keyfunctions, notably the preparation of universities financing and investment plans, theallocation of grants from the public sector to the universities, and the coordination of donorassistance. This forms part of the education sector adjustment program that both EDSAC andthis project support. In addition, CHE will in time provide a central university admissionsservice and will further assist in the process of defining universities' specializations.

1.19 University Expansion. Not only has the number of public universityinstitutions growth from one to six, but admissions have increased dramatically in recentyears, far faster than anticipated when the university expansion scheme was drawn up. Withthe 1990 undergraduate admission of 21,450 students adding to three former years of highadmissions, bringing total enrollments to over 40,000, the system has been stretched beyondits limit (Annex 2, Table 1). Facilities and staff alike are over-extended, classes are heldthroughout the year on a shift-system and often comprise more than 200-300 students, andjobs for graduates are increasingly difficult to find. Recognizing that this situation is notsustainable, the government has in 1991 admitted only 10,000 new undergraduates and willlimit future growth to 3 percent per annum (Annex 2, Table 2). During negotiations.assurances were obtained that undergraduate admissions will not exceed 10.300 in 1992.10.61Q in 1993. 10.930 in 1994. 11,260 in 1995 and 11.600 in 1996 (para. 6.3(a)). This isalso a key element of the EDSAC program. This limitation means that a declining proportionof secondary school leavers will attend university. This in turn will make an important partof CHE's future work the determination of policy toward non-degree tertiary education ingeneral, including the future of diploma courses (para. 1.20).

1.20 Balance mong Cours. The huge enrollments of recent years have frustratedthe government's policy to expand science-based courses in order that the universities willcontribute to national development. A shortage of laboratories and equipment and the heavypreponderance of students with qualifications in arts-based subjects has resulted in all

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universities, except JKUCAT, channelling a large proportion of new admissions into degreecourses in Arts and Education. The result is that science students now represent only 30percent of 1990 admissions, compared to over 50 percent in 1985 (Annex 2, Table 2). It isgovernment policy to increase the proportion of science student admissions to 40 percent by1992 and then further to 50 percent by 2015. In the past, some of the present universityinstitutions played an important role in producing diploma and technician level manpower.With recent pressures on the universities to accommodate large numbers of degree levelstudents, many diploma courses have been squeezed out. This trend is projected to continuethroughout the 1990s, with only JKUCAT remaining as a major diploma level universityinstitution. The effect of this policy, together with the conversion of Moi, Siriba and Laikipiateachers colleges from diploma level institutions into university facilities in 1990, has been afurther exaggeration in the already unbalanced ratio of middle-level manpower to graduates.Tlhis is an issue that CHE is addressing. A related problem is the general absence of aninterface between the universities and the world of work. Non-public sector employers havefrom time to time complained of university graduates' lack of preparation for employment -in terms of subject content, exposure to various equipment and techniques, and disposition.Holders of diplomas, on the other hand, have been highly regarded.

1.21 Financing. The rapid expansion of universities has set off a train ofunsustainable financial events. First, as already noted (para. 1.4), overall spending on alllevels of education has to be curtailed for overall fiscal reasons. Recurrent spending onhigher education has been rising even faster than that on education as a whole and is thereforeone of the main factors driving the overall education budget. Higher education accounts foralmost the entire development budget of the education sector, as the government scrambles toimprove physical facilities to accommodate enlarged student numbers. In terms of recurrentexpenditure, it costs the government 75 times more to educate a university student than aprimary school student for a year, and 25 times more than a secondary student. Yet, as notedabove, there has been almost no direct cost sharing at university level, in stark contrast to thevery considerable cost sharing that occurs at primary and secondary levels of education in thepublic sector. Second, despite increased overall spending, real expenditure per universitystudent has declined by about 30 percent in real terms during the past five years, withcorresponding deterioration in the quality of education. Third, development spending hasbeen concentrated on the provision of buildings to teach and house students; government hasnot had sufficient funds to equip libraries and science and engineering laboratories and to trainsufficient academic staff to teach the students. Fourth, it is not feasible for universities toremain totally dependent on the public purse for their financing, and they will increasinglyhave to seek additional sources of income.

1.22 Given that goverment spending on the universities cannot contiwue toincrease, the government has decided both to limit student numbers (para. 1.19) and toincrease cost sharing, both direct and deferred. Starting in 1991, students are to pay a directannual charge to the universities on registration of KSh 6,000. A bursary scheme will alsooperate to assist financially needy students to pay this direct charge; no more than 20 percentof students will receive bursaries.

1.23 In addition, deferred cost sharing, in the form of the Student Loan Schemeadministered by the Ministry of Education, will be drastically revamped. Since 1974, thisloan program has enabled students to meet the costs of board, lodging, books and personalexpenses. Although originally intended to support only needy students, all university studentshave in practice received loans regardless of family income. Moreover, even though the loan

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has carried a heavily subsidized rate of interest of only 2 percent, only 15 percent ofgraduates have serviced the loans after receiving their degrees. Furthermore the componentof the loan which has been paid to the universities for food and accommodation has beeninadequate to cover costs, requiring the universities to subsidize student subsistence at theexpense of academic programs. In future, the student loan will be capped at KSh 21,500, thecomponent for personal expenses will be phased out by 1993, the component for board andlodging payable directly to the universities will be increased, a book element of KSh 3,500will be provided (available only as a credit at the university bookstores), and the tuitioncomponent will be increased to KSh 5,000 in 1991. The amount directly payable to theuniversities for tuition, board and lodging will thus rise from KSh 13,000 in 1991 to KSh18,000 by 1993. Thus students will increasing!y have to pay directly for their personalexpenses and the loan proceeds will increasingly go to the universities. In addition, followinga review currently underway, the loan scheme will be revised to carry a realistic rate ofinterest and recovery will be stepped up (see paras 2.12-2.14). A condition of effectiveness isthe collection in academic year 1991/92 of the direct charge of KSh 6.000. the operation ofthe bursary scheme for needy students (not to exceed 20% of student enrollment), and thelimiting of the loan to KSh 21.500. with no more than KSh 5.000 available for personalexpense (para. 6.1(a)). At negotiations. assurances were obtained that the student loan willbe capped at KSh 21.500 through 1993 and at a level satisfactory to IDA during 1994-96. thatthe personal element will be eliminated by 1993. and that the direct charge will be maintainedat least at KSh. 6. (para. 6.3(b)). These are also contained in the program that EDSACsupports.

1.24 Direct and deferred cost sharing at the public universities will combine withlimits on undergraduate admissions to hold constant the univers.ties' share of the totalrecurrent budget for education at about 20 percent (Annex 2, T.ible 3). It will also increasecompetition within the university subsector, reducing the bias against the private universities.

1.25 Management and Staffing. The rapid expansion of the universities has leftthem without adequate numbers of senior administrators and teaching staff. There is anurgent need to train university administrators in management and finance and there is a severeshortage of academic staff. Retention and recruitment of academic staff is increasinglydifficult, in +he face of worsening physical conditions, increased teaching loads withconcomitant loss of research time, and declining real salaries. In part to deal with this last,the government now permits university staff to import personal vehicles duty free. Anattempt to recruit expatriate academics to help fill the gap on a temporary basis has beenlargely unsuccessful, because of the relatively low salaries offered. Universities are trying tosolve the academic staff shortfalls by using qualified part-time teachers, who are also in shortsupply in some subjects, and graduate students and research fellows, but their nuinbers andthe time they can spend away from their research commitments are limited. By contrast,academic staff no longer have sufficient time for research, as their opportunities to take leavehave been curtailed and as research funding has declined. Limited use has also been made ofclosed circuit television for teaching, but training is needed in its application to universityteaching.

1.26 In sharp contrast to the shortages of academic staff, there is an excessivenumber of nonacademic staff. While there we,re about 3,700 academic staff in 1990/91 (astaff to student ratio of 1: 11), there were 16,700 nonacademic staff (resulting in a staggeringoverall staff:student ratio of 1:2). An early priority for the Task Group preceding the

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revamped CHE will be the establishment of staffing norms for both academic andnonacademic staff.

D. External Assistance

1.27 Kenya's universities have always benefitted from donor assistance, althoughthis has until recently been fairly limited in volume terms as there was only one universityuntil 1984. With the expansion of the universities, there are now three major programs:

e The British Overseas Development Administration (ODA) has a majorprogram to assist Moi University, consisting of a library building togetherwith equipment and science books, equipment for science and technologyfaculties and departments, and support for Information Sciences. In addition,ODA is assisting all universities with communications skills training foruniversity teachers and Kenyatta University with staff development for theFaculty of Science.

* The United States Agency for International Development (USAID), consistentwith its overall strategy of assisting Kenyan agriculture, has continued thesupport it first extended to Egerton University when it was still anAgricultural College. Current support is in the areas of institutional capacitydevelopment and agricultural management.

i ¢ The Japan International Cooperation Agency (JICA), consistent with itsoverall strategy of promoting science and technology in Kenya, has supportedJKUCAT since the early 1980s and is currently half way through a five yearprogram of assistance to develop its courses in agriculture and technology.

In addition, Italy is assisting Moi University with facilities development; the Netherlands isfinancing the development of Agricultural Engineering at the University of Nairobi;Switzerland is aiding the University of Nairobi's programs in Food Technology and Nutritionand in Diplomacy Training; Germany is financing postgraduate scholarships at severaluniversities; UNESCO is funding the development of the Department of Home Economics atKenyatta University; and the Ford and Rockefeller Foundations, as well as the InternationalDevelopment Research Center, are supporting research at all universities. The RockefellerFoundation is currently funding the development of a complete inventory of current andplanned donor support to the universities.

1.28 Role of the Bank. The Bank's overall strategy toward Kenya is to help theGovernment improve public sector imanagement, to expand and diversify the export base, andto lay the foundations for sustainable development, including by strengthening Kenya's humanresource base. Lending includes both poiicy-based support and investment project financing,with an increased share of both in the human resource sectors. Lending for human resourceshas so far consisted of six investment projects and one sectoral adjustment operation ineducation, and of four population projects. A Health Rehabilitation Project (Report 9174-KE)will represent the first IDA operation in health, as opposed to population, and is intended tobe followed by a health adjustment operation. Past IDA lending for education has providedmodest assistance to the University of Nairobi. The Second (185-KE) and Fourth (797-KE)Education credits provided facilities, equipment and staff development over 1970-82 to

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establish the Faculty of Agriculture. The Fifth Credit (1107-KE) assisted the same Faculty toestablish the Department of Range Management at Kabete and Kibwezi and also the newlycreated Department of Forestry, provided books for both teaching and the library, and fundeda mainframe computer.

1.29 The first six education projects were successful in themselves. They did not,however, sufficiently address rising education expenditures, teacher numbers and hiring,declining quality, issues of equity and access, and sector management weaknesses. CurrentBank strategy for education is to support major policy reform through sectoral adjustmentoperations, complemented with appropriate investment proJects. The first phase of thisstrategy is now in place with the Education Sector Adjustnment Credit (EDSAC),complemented by the present Universities Investment Project. The EDSAC (Cr. No.2295-KE) covers policies for all levels of education, including the universities, and seeks (a)to contain the growth of education's high recurrent budget through restraining the size of theprimary and secondary teaching forces and limiting and improving the coordination ofbudgetary resources going to the universities; (b) through savings on the teacher salary bill, toincrease spending on textbooks and other school materials, especially at primary level; (c) toincrease access to primary schools, especially for children from the Arid and Semi-AridLands; (d) to improve the quality and relevance of education at all levels; and (e) tostrengthen sector management, planning, budgeting and information systems, including at theuniversity level. The policy matrix for EDSAC is attached to the government's Letter ofSectoral Policy in Annex 1. In the event of successful implementation of both EDSAC andthe Universities Investment Project, a second education adjustment credit is planned for FY95to consolidate and extend reform throughout the sector.

1.30 Other lessons from Bank project experienice in Kenya have also been appliedin the preparation of this project. Both agriculture and education projects have taught theneed for a market-oriented approach to the supply of graduates in agriculture. Experience inimplementing fellowship training under education projects has also pointed to the need foradministrative simplicity and the consolidation of training programs.

1.31 Given that donor assistance to the universities has until recently been fairlylimited, its coordination has been satisfactorily handled on an ad hoc basis. This is no longerappropriate and the government anticipates that CHE will progressively take on the role ofdonor coordination for the public universities.

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IL THEIURQOZC

A. Obiectives

2.1 The objectives of the project are to support the government's education sectoradjustment program as it pertains to the universities by (a) rationalizing and strengthening theinstitutional framework for higher education, in both the public and the private sectors; (b)limiting the growth of government budgetary resources devoted to the public universities bypromoting cost sharing and improved investment planning; and (c) improving the quality ofthe teaching and research delivered at the public universities. The project is thuscomplementary to EDSAC.

B. Summary Description

2.2 The project is designed to be implemented over a 4.5 year period starting inJanuary 1992. It consists of two major components:

(a) At the central level (US$9.4 million base cost), strength_ning CHE, reformingthe Student Loan Scheme, carrying out relevant studies, supporting appliedresearch, and implementing the project. Project elements include (i) officefurniture and equipment, including computers; (ii) training of centralinstitutional staff; (iii) technical assistance; (iv) studies; (v) initial operatingcosts of that section of CHE to be responsible for the coordinating, planning,programming, budgeting and financing of public universities; (vi) appliedresearch funding; and (vii) project implementation.

(b) At the six public university institutions (US$45.6 million base cost),institutional development (especially the strengthening of administration andfinance), staff development in key areas, and the supply of teaching andrelated equipment. Project elements include (i) science and engineeringequipment, including minor civil works as needed to install and operate it; (ii)computers; (iii) equipment, books and journals for libraries; (iv) printing andpublishing equipment; (v) telephone systems; (vi) vehicles; (vii) officeequipment; and (viii) training of academic, technician, administrative andservice staff.

C. Detailed Description of Compoagents

C.1 Central Components

C.1.1 Strengthengng the Commission for Higher Education(Base Cost: US$5.0 million)

2.3 CHE will be revamped (para. 1.18). From January 1, 1993 it is expected totake on new responsibilities in addition to its existing work and will be respon-sible for:

13

(a) Coordination and harmonization of public universities' academic programs;(b) Planning, programming, budgeting and financing of the public universities

based on 10-vear projections, 6-year development plans, and 3-year fundingplans in accordance with the Government's forward budget;

(c) Central universities admissions services;(d) Accreditation and promotion of private universities;(e) Coordination of education and training courses in post-secondary institutions;(f) Planning higher education in accordance with manpower needs in the public

and private sectors of the economy and in conformity with national skills andemployment patterns of graduates, technicians and craftspersons;

(g) Accreditation of diploma colleges and other post-secondary institutions;(h) Award of degrees to upgraded diploma colleges;(i) Raising funds from non-Government sources;(j) Determination of equivalence of qualifications; and(k) Management and implementation of the project.

2.4 Preparing for the revamping of CHE will take time, however, in order todetermine an appropriate organizational structure and operating procedures. For the interimperiod prior to January 1993, a full-time Coordinator was appointed in July 1911 and a full-time secretariat is being recruited. For administrative convenience, they are on CHE's staffand will utilize CHE's administration, finance and data processing services. The Coordinatorreports directly, however, to the Permanent Secretary of the Ministry of Education. TheCoordinator is the Chairman of a Task Group which is also responsible directly to thePermanent Secretary for:

(a) Review of legal and organizational arrangements relating to CHE and theuniversities, prior to revamping CHE;

(b) Planning, programming and budgeting of universities;(c) Review of the long-term development of the Student Loan Scheme; and(d) Implementation of the project.

2.5 Four subgroups have been established under the Task Group, responsible foreach of the above four responsibilities. The structure of the Task Group and its specialistsubgroups and the staffing of its secretariat are shown in Annex 3. A conditon effectiveness, is the, iMplemenktaton of,aran&eMents satisfactory to ID-A concernin_th§

tffng. accommodain wrk nrormmand budget of the Task Grouap and, its associated&ubgrops d ereiat for 1221192 (i.e. through June 1992) (para. 6.l(b)). Theresponsibilities of the subgroups concerned with the legal and organizational review and withthe review of the student loan scheme are inherently interim and will terminate before CHE isrevamped. The responsibilities of the other two subgroups will, however, be fully absorbedinto the revamped CHE. Assurane were obtained at neaotiations concering (atsubmission by June 30. 1292 of a propoal satisfactory to IDA for restructring CHE withefec from Januar 193. and also for contintued interim arrangement fro-m July_-Dcember1922 and (b) the inrleMntation by Januar 1. 1993 of this nr=onosal following IDA's reviewand cgmmentn (para. 6.3(c)). This proposal will cover the organization, staffing, budget andwork plan of CHE for 1992/93, includtng the management and implementation of the project.The revamping of CHE is also included in the EDSAC program.

2.6 Planing. Po MMingN anBudgeting for Univers Dement. TheProject will provide funding for the Coordinator and the Task Group, together with sub-

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groups, panels, resource persons and consultants, in cooperation with the universities, toprepare a long-term public university development plan for 1993-99. The plans will beconsolidated by CHE after January 1993 and incorporated into the National DevelopmentPlan. The planning process will include the adoption of unit costs and norms for utilization ofstaff and resources and incorporate the use of output indicators. Long term universityplanning, including refining the analysis of costs and use of norns, will be continued by therevamped CHE, which will also be responsible after January 1993 for recommendations onannual budget allocations to the universities. At negotiations. assurances were obtainedconcerning the submission for IDA's review and comment of (a) the drai ydevelopment plan for 1993-99 by March 1. 1993: and b)y h ecy r. starting in1993, of CHE's draft recommendations on university admissions and b sWgets for the financiayear sarting on July I (paras. 6.3(d) and 6.3(h)).

2.7 Starting with initial provision of :omputers to support the planning byuniversities and the Task Group, an integrated information system will be established as abasis for improved planning and management of universities. The Task Group, in associationwith the universities and CHE, will begin to establish the information system with theassistance of consultants who will carry out a systems analysis and study. The project willEovide funding for the study.

2.8 The project will also provide funding to strengthen CHE to carry out thefollowing other functions related to the coordination, planning and efficient operation ofuniversity and other higher education:

(a) Taking over the admissions work of the Joint Admissions Board;(b) Award of degrees for non-university bodies;(c) Accreditation of private universities and promotion of the private university

sector; and(d) Coordination of post-secondary education, particularly with regard to labor

market aspects.

2.9 Annex 4 is a summary and schedule of CHE's project-related activities,agreed during appraisal.

2.10 The Project will provide technical assistance, staff training including studytours, seminars and workshops, and equipment for the Task Group and its Secretariat, and forCHE following its revamping. Technical assistance and staff training programs, seminars andworkshops and study tours were agreed during appraisal. Planning and detailed budgeting forthese programs needs to be completed by the Task Group/CHE and included in their initialand annual work plans to be submitted to IDA. The Project will also fund all the incrementaloperating costs of the Task Group and initial transfer of its responsibilities, resources andsystems to the restructured CHE, until June 30, 1994; funding for this purpose between July1, 1991 and project effectiveness is provided through an IDA Project Preparation Advance(para. 4.2). At nezotiations. asurances we obtained that the overnment will fom Jul1994 fully fund the operating budg of CHE at a level satisfactory to IDA such that CHE cncarrM gut its university coordination, planning and financing functions (para. 6.3(e)).

2.11 At neggtiations. assuranc were obtained concerning the anal submissiofor _A's review and comment (a) by March 1. of CHE's oed work rogram and

budet for the financialyea stringt on July 1:- and (1)by Aus1. of a detailed report on

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CHE's activities during the previous financial year. paying particular attention to the fuznctionsdiscussed in paragraphs 2.6-2.8 (paras. 6.3(h) and 6.3(i)).

C.1.2 Reforming the Student Loan Scheme(Base Cost: US$1.5 million)

2.12 Policy decisions about the Student Loan Scheme were taken by thegovernment in July 1991 and adopted with effect from academic year 1991/92 (para. 1.23).In addition to overall loan policy, the administration of the scheme is to be reformed. It iscurrently administered by the Ministry of Education. Disbursements and loan recoveries are,however, handled by separate sections under separate management. Moreover each managerhas other responsibilities, that for disbursements also being responsible for the universities'development budgets and that for recoveries also being responsible for secondary schoolregistration. A 1991 review of the staffing for the Student Loan Scheme by the Directorate ofPersonnel Management made recommendations to strengthen significantly theaccounting/finance staff and reduce the number of general education officers in both the loanrecovery and disbursement sections.

2.13 A Loan Scheme Review Committee, responsible for reviewing theadministration of the scheme, has been established as one of the Task Group's subgroups, alsochaired by the Coordinator (para. 2.4), and with terms of reference agreed with IDA. TheReview Committee will inter alia examine the organization of loan scheme administration(possibly through the establishment of a separate Student Loan Board), the application of arealistic interest rate, and mechanisms for improved loan recovery. In addition aninformation systems review is to be carried out, to examine the linkages between thecomputer systems of the Student Loan Scheme, CHE and the universities; as a necessarypreliminary step, the backlog of manual records is being updated. On the basis of therecommendations of the Review Committee and of the systems analysis, an Action Plan willbe drawn up for reforming the scheme's administration, including the merger of thedisbursement and loan recovery units, starting with records and accounts in December 1991and completLig the merger of administration and finance by July 1992. The Action Plan willalso list the office equipment, computers, staff training and technical assistance to be financedunder the project. A conAition of disbursement for the Student Loan Scheme is the initialexecution of this Action Plan. to be acceptable to IDA (paras. 3.13 and 6.2(a)).

2.14 At negotiations, assurances were obtained concerning the annual submissionfor IDA's review and comment (a) by March 1. of the staffing. work program and budget oathe body reonsible for the student loan scheme for the financial year beginning in July: and(b) by August 1. of the activities of the body during the year ending on June 30 (paras. 6.3(h)and 6.3(i)). For 1992, this will be the Ministry of Education. These submissions will includeinter alia targets and achievements regarding the interest rate, loan recoveries and analyses ofthe impact of changes in the loan scheme on access to university education, including forneedy students and women.

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C.1.3 Studies(Base Cost: US$0.7 million)

2.1S Three major policy studies will be included in the project:

* A graduate labor market study will assess the relationship between supply anddemand for graduates in tne economy in a largely qualitative way using amarket-oriented approach.

* A study of the future development of the private university sector will becarried out for CHE. It will explore how the government could assist inincreasing enrollment and examine alternative models of funding theestablishment and operation of private universities.

* A socioeconomic study of access to the universities, and of subseql!entperformance, particularly in respect of equity and gender issues.

Annex 5 contains outline terms of reference for the studies. Detailed terms of reference werereviewed at negotiations.

2.16 In addition, as noted in section C. 1.2, studies are included in the Student LoanScheme component to monitor the changes in the Student Loan Scheme and to evaluate itsimpact, particularly on needy students and women. At negotiations, assurances were obtainedthat all studies will be submitted to IDA for review and comment within three months of theircomletion in accordance with a timetable satisfactory to IDA (para. 6.3(f)).

C.1.4 Support for Agpiled Research(Base Cost: US$1.5 million)

2.17 TI. e project will provide modest funding for the carrying out of selectedapplied research projests which are relevant to Kenya's economic development and for whichthe university concerned has the necessary expertise and background. The criteria for supportof an applied research project are set out in Annex 6. Proposals will initially be appraised bythe Task Group, and subsa.uently by an appropriate body within the revamped CHE. Thereview procedure will include an evaluation by an acknowledged expert in the field. Atnegotiations, assurances were obtained that (a) the initial three proposals accepted by the TaskGroup/CHE. together with the experts' evaluations and the Task Groug's assessments. will besubmitted to IDA for review and confirmation: (b) that subsequent proposals will be approvedin accordance with ageed criteria: and (c) that an annual report for the year ending on June30 on the use of applied research funds will be submitted to IDA by August 1 each year(paras. 6.3(g) and 6.3(i)). Proposals approved after the first three will be subject to randomreview by IDA.

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C.1.5 Project Itnplementalion(Base Cost: US$0.8 million)

2.18 The project will finance incremental implementation costs for both the CentralComponents discussed in this section C. 1 and the University Components discussed in sectionC.2 below. These costs are essentially the operating costs related to this project of the ProjectImplementation Unit in the Ministry of Education, discussed in para. 4.4.

C.2 3Iniversity Components

2.19 Each of the four universities will receive US$ 10 million of support under theproject and each of the two constituent colleges will receive US$5 millionl/. These equallevels of assistance for each institution were agreed in order to build consensus among theuniversities for the strengthening of the central institutional framework. If necessary, theallocation across universities will be reexamined in the light of experience during the secondmajor project review in mid-1994 (para. 4.9). The support to the university institutions willbe in the form of funding specific subprojects. At all six university institutions thesubprojects will concentrate on institutional development, staff development, and teaching andrelated equipment, complementing the major investments the government is making inuniversity buildings.

C.2.1 Subproiec Selection and P!basing

2.20 Each of the six university institutions has prepared a three phase package ofproposals comprising subprojects for both university-wide facilities and specific academicdiscipline areas. These packages were prepared in accordance with formal procedures,criteria and operational indicators (Annex 7), agreed with IDA for subproject developmenit,appraisal and selection. The procedures permit only projects for which there is an urgentneed, which canne. be funded from other sources, which conform with institutional goals(generally, that they are in the areas in which each university has been designated a nationalcenter of excellence - para. 1.11), and which do not require civil works. In essence this wIllresult in the project supplying equipment and providing training for university-wide activitiesand for science and engineering departments. The criteria emphasize links to thesocioeconomic and labor market environment.

2.21 Each subproject submission includes a detailed proposal, technicalprocurement specifications, costs, implementation plans, and a justification in terms of theagreed eligibility criteria. Subprojects were initially prepared by the academic staff who willbe responsible for their implementation, a key step for ensuring effective subprojectimpiementation. As the total number of subprojects and the associated funding requests at

l/These figures include contingencies. Base cost amounts are US$9.1 and US$4.6 million,respectively, totalling US$45.6 million.

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first greatly exceeded proposed project financing, they were prioritized through a two-stepprocess. Initially each university institution determined its own priorities amolng thesubprojects submitted by its staff. Subsequently an ad hoc Project Preparation Group, withrepresentation from all the universities and other relevant organizations such as CHE and tieProject Implementation Unit, established technical subgroups (e.g. for Science, withsubgroups for Biological and Medical Sciences, Physical Sciences and Engineering, andComputing). The technical subgroups set common unit costs and staff developmentparameters and discussed all high value and high maintenance equipment, its rationalizationacross institutions, and the appropriate timing for its acquisition. This resulted in a final setof consistent subprojects, which were then divided into three phases. The selection processhas thus resulted in a structured resource allocation, at the level of both the individualuniversity institutions and the public universities as a system, characterized by openness andpeer review. The process has represented the first occasion ever at the individual universitiesin which departments have been involved in other departments' decisionmaking, and at thenational level in which individual universities have been involved in each others'decisionmaking.

2.22 Each phase is 18 months long: Phase I covers the period from projecteffectiveness until June 1993; Phase II, July 1993 to December 1994; and Phase III, January1995 to June 1996. The phased approach will permit adequate time for thorough subprojectpreparation; avoid a hurried program of specification and installation; ensure the coherence ofthe subprojects as a whole; enable the content of the Phase II and IlI packages to be modifiedas appropriate in the light of Phase I implementation; and develop the institutional capacity ofCHE (para. 2.23). Annex 8 is a schedule of the activities that will result in theimplementation of the Phase I packages, and the development, selection, appraisal andimplementation of those for Phases II and III.

2.23 The Phase I packages, which represent about 45 percent of total projectfunding for the universities, were reviewed in detail during appraisal, jointly by IDA and keymembers of the ad hoc Project Preparation Group established by the government, and weref-nalized during negotiations. Annex 9 presents some typical Phase I subprojects and Annex10 summarizes the Phase I packages confirmed at negotiations, noting which selection crite iaeach subproject met. The Phase II and Phase HI packages, which are expected to be ofapproximately equal size, were jointly reviewed at a more general level in order to determinetheir broad composition. As a key element in institution building, the Phase II and IIIpackages will be appraised by a Project Appraisal and Implementation Subgroup, chaired bythe Deputy Coordinator, which will evolve from the existing ad hoc group, continuing itspractices of openness and peer review. The subgroup will be one of four subgroups under theTask Group, to be serviced by the full-time secretariat, including the key positions of DeputyCoordinator and Assistant Coordinator-Prcject (paras. 2.4-2.5 and Annex 3). A condition ofprplect effectiveness is the establishment of this Project Appraisal and ImplementationSubgroup. the apointment of the Dept Coordinator on the Task Group's Secretariat, andthe apnointment of Liaison Officer at each of the six university institutions (para. 6. 1(b)).The Subgroup will ultimately become part of the revamped CHE, and its organization will bea key part of the proposal for restructuring CHE (para. 2.5).

2.24 In appraising the Phase II and RI packages, the Project Appraisal andImplementation Subgroup will continue to use the agreed subproject selection criteria andoperational indicators (Annex 7) and will also take into account the outcome of Phase Iimplementation. Phase II and Phase m allocations to a subproject will not be made until the

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Phase I and Phase II subprojects, respectively, are completed. A condition of disburs§Lenefor the Phase 11 and Phase III packages is the submission of evidence to IDA that thepackages consist of subprojects appraised according to the agreed criteria and assessed in thelight of Phase I and Phase II implementation where Qppropriar_ (paras. 3.13 and 6.2(b)).

C.2.2 Subprojects by Function

2.25 The main subprojects can be classified in terms of three activities:

a) Institutional Development (Base Ccet: US$1.5 million). These subprojectsinclude a major commitment to staff t aining in the areas of institutio)nplanning, managenrrnt, administration, finance and procurement, tok sther withthe office equipment (mainly computers) necessary to facilitate these tasks.They will put into place management information systems, focusingparticularly on student, staff and budgetary data.

b) Staff Development (Base Cost: US$4.7 million). These subprojects coveracademic, technician and administrative and service staff and include incountry and overseas training; strengthening and expanding existing links withcollaborative overseas universities and research centers; short overseas visitsto study good international practice; collaborative research; and professionalmeeting attendance.

academic staff subprojects are for subject discipline and teaching-oriented studies and for training in the efficient use of laboratory andleaching equipment. No more than 20 doctoral candidates are to beincluded because the universities already have a relatively highproportion of teachers with Ph.Ds and because there are manybilaterally funded departmental links and postgraduate trainingcourses.

- technician staff subprojects are mainly for training in the maintenanceand use of laboratory and workshop equipment, including but notlimited to that to be acquired under the project.

- administrative and service staff subprojects relate mainly to trainingin the use of new office equipment and Software, including basic skillstraining such as wordprocessing, special programs for specificadministrative software packages, longer term courses in informationtechnology, accountancy and institutional management, training tofacilitate the introduction of computers into libraries and offices, andtraining in desktop publishing and other teaching support activities.

c) Teaching and related equipment (Base Cost: US$39.5 million). Equipment,including 3 years worth of accessories, spare parts and maintenance,represents the vast bulk of the subprojects, in terms of both number andexpenditure. It falls into five categories: that for laboratories and workshops,that for library development, computers, printing and publishing facilities, andtelephone and transport systems.

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laboratory and workshop equipment (US$22.1 million) ranges fromlarge numbers of small standard items such as microscopes andoverhead projectors through major analytical and testing machines to afew very high cost items such as electron microscopes and nuclearmagnetic resonance spectrophotometers.

library development material (US$6.3 million) includes books andjournals mainly in the disciplines supported by the subprojects,equipment for handling texts and documents and the improvement oflibrary access and services.

computers (US$4.0 million) consist of both the expansion of existingmainframe facilities and their supplementation with personal computernetworks.

printing and publishing facilities improvement subprojects (US$1.7million) are located in libraries, departments and centraladministrations.

- telephone (US$2.2 million) and transport (US$3.2 million)improvement subprojects are included in almost all the universities'proposals, reflecting the dispersed campuses that now characterize thepublic university system.

EqWroment subprojects include also minor civil works necessary to implement the subprojectse.g. st Allized power supplies, constant water pressure, controlled environments and specialistdrainage for some equipment.

2.26 Table 2.1 presents the individual university packages according to thisclassification and by university institution.

Table 2.1: University Components by Functional Category(US$ million)

._ =

Nairobi Moi Kenyatta Egerton JKUCAT Maseno Total

Instit. Devt. 0.2 0.1 0.1 0.6 0.2 0.3 1.5

Staif Devt. 1.6 2.1 0.4 0.2 0.1 0.3 4.7

Equipment 3.7 4.6 4.2 4.8 4.0 0.8 22.1

Library 1.1 - 2.0 1.4 0.2 1.5 6.3

Telephone 0.5 0.8 0.8 - - - 2.2

Transport 0.6 0.6 0.4 0.7 - 0.7 3.2

Printing 0.3 0.5 - 0.5 0.1 0.2 1.7

Computing 1.1 0.3 1.1 0.8 - 0.7 4.0

Total 9.1 9.1 9.1 9.1 4.6 4.6 45.6

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C.2.3 Phase I Subprojects by University

2.27 The same classification is presented in Table 2.2 for the Phase I packages, i.e.those for the period from project effectiveness until June 1993. This section then discussesthe Phase I packages for each university, consistent with the designation of each as a nationalcenter of excellence in certain disciplines (para. 1. 11).

Table 2.2: Phase I Packages by Functional Category(US$ million)

Nairobi Moi Kenyatta Egerton JKUCAT Maseno Total

Instit. Devt. - - - - 0.1 0.1 0.2

Staff Devt. 0.5 0.7 0.2 0.2 - 0.1 1.7

Equipment 2.5 2.3 2.9 2.8 1.8 0.5 12.7

Library 0.4 - 0.2 0.7 0.1 0.6 2.0

Telephone 0.5 0.5 0.5 - - 1.5

Transport 0.3 0.3 0.2 0.2 - 0.4 1.4

Printing - 0.4 - 0.2 0.1 0.1 0.8

Computing 0.2 0.2 0.5 0.4 0.4 1.7

Total 4.4 4.4 4.4 4.4 2.2 2.2 22.0

2.28 The University of Nairobi Phase I package of US$4.4 million includes bothuniversity-wide and departmentally based activities. At the overall university level, it includescommunications (telephone, transport and printing), computer facilities, library, the universityhealth center (a requirement as an employer) and institutional management and administration.At the departmental level, the package concentrates on those disciplines for which theUniversity of Nairobi is the designated national center of excellence (medicine, architecture,engineering, veterinary medicine, computing and meteorology) and also includes a range ofscience and technology disciplines based in the constituent colleges of the university.

2.29 Major elements in the Phase I package at the University of Nairobi include:

At the College of Agriculture and Veterinary Sciences: equipment upgradingand associated training for veterinary anatomy, animal production, animalphysiology, crop science, public health pharmacology and toxicology, clinicalstudies, soil sciences, range management, Kibwezi dryland field station,veterinary pathology and microbiology.

At the College of Biological and Physical Sciences: equipment and staffdevelopment for the science workshop, botany, chemistry, geology,mathematics, meteorology, physiks, zoology, and biochemistry.

At the College of Health Sciences: equipment for human pathology and humananatomy, and surgical instruments to enable dental surgery to have a fullyoperational theater for oral and maxillofacial surgery.

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At the College of Engineering and Architecture: Computer Assisted Dcsign,basic workshop and laboratory equipment, with a related program of staffdevelopment.

At the College of Education and External Studies: equipment and training foreducational communication and technology.

During appraisal, it was confirmed that these colleges have sufficient laboratory and workshopspace to accommodate the Phase I equipment.

2.30 A major component of Moi University's USU4.4 million Phase I package isthe enhancement of university-wide facilities. Institution wida planning and evaluation will bestrengthened and the student and financial data systems improved. Computer equipment willenable the university to keep pace with rapidly growing teaching demand. Staff andequipment in the central instrumentation center will be upgraded in response to the practicalemphasis in all disciplines, the growth of science, forestry and technology programs, andserious current equipment maintenance and repair problems. Other university-wide servicesto be improved include printing, telephone and transport. No provision is made for theuniversity library under the project because ODA is financing its construction and initialsupply of books and reference materials.

2.31 At the departmental level, there is a very great need for science equipment.Several departments currently transport students five hours by road each way to the Universityof Nairobi for essential practical work. Disciplines for which Moi University is to be thenational center of excellence include technology, environmental studies and forestry. All thetechnology departments have both undergraduate and postgraduate programs and haveexperienced a very rapid growth in student numbers. The project will fund equipment andtraining to improve the practical component of these courses, teaching and learning methods,and the quality and relevance of research. The departments of environmental studies andforestry aim to train high level manpower for sustainable development and professionalmanagement of natural resources, including short courses for resource managers. The projectwill enable them to raise standards in the existing laboratories and to establisn field researchlaboratories in various parts of Kenya. The remaining disciplines, basic sciences and a groupof cognate medical subjects, will be equipped to support their vocational orientation and toimprove teaching and learning methods. The university is completing a major buildingprogram which wll provide adequate space and services for all the proposed equipment.Equipment to be provided under the project will also complement science equipment beingfunded by ODA, and every effort has been taken to ensure consistency between the IDA- andODA-financed assistance to Mol University.

2.32 Kenyatta University's Phase I package of US$4.4 million is designed toupgrade both university-wide and departmental facilities, with emphasis on improvedefficiency, staff development, equipment and teaching methods. The university has not beenable to attract donor financing to the same extent as the other university institutions and hencethere is a broad range of needs, including computer equipment, library materials, telephoneequipment and improved transport. Computer equipment will improve the systems andperformance of the administrative and finance departments and of institutional policy makingand planning. The library will acquire a significant number of basic texts and journals,computerize its operation, information and reference systems, support teaching and learning

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by establishing a central audiovisual resource center, and expand its special provision forblind students.

2.33 At the departmental level, the project will supply equipment and associatedtraining for basic science and for environmental sciences. The equipment to be suppliedrecognizes and supports the need for new methods of teaching and learning which willemphasize practical work, self reliance, innovation and environmental awareness. A crucialfactor in the selection and appraisal of Kenyatta University's package has been the need toavoid duplication across several departments of expensive items of analytical equipment, withassociated high running and maintenance costs; the project preparation process has thereforecontributed particularly to interdepartmental cooperation at the university.

2.34 Egerton University's Phase I package of US$4.4 million covers some centralfacilities and also those departments with very urgent requirements that have the capacity toimplement their subprojects right away. The university-wide components of the package aredesigned to enable the university administration, library, transport and educatic ;.al materialscenter to provide a more efficient and effective service for staff and students. '!he universityadministration will upgrade its computer facility for data collection and managementinformation. The library will increase its bookstock and purchase book binding and relatedbook repair equipment. Aging vehicles, site expansion, and more students who need to travelas part of their study programs require improved transportation. The educational materialscenter will acquire additional desk top publishing and printing equipment and newreproduction and video facilities. Related staff development is included in all of thesesubprojects.

2.35 Egerton is to be the national center of excellence in agriculture and relatedsubjects, including the basic sciences and relevant aspects of engineering. Departmentalsubprojects cover botany, chemistry, physics, zoology, mathematics, computer science,agricultural engineering, agronomy, animal health and animal science. The departments canbe considered in two groups, those of long standing (which existed when Egerton was anagricultural college), and those recently established as part of the recent rapid expansion ofthe universities. The former non science departments have obsolete equipment which urgentlyrequires replacement and updating. The more recently created science departnents have verylittle equipment and the package will provide for their basic needs. Some empty practicalfacilities currently exist; a new science block will be ready for occupation during the academicyear 1991/92.

2.36 Jomo Kenyatta University College of Agriculture and Technology(JKUCAT) Phase I package of US$2.2 million focuses on improving the administration of theuniversity, the library, the engineering workshops and the quality of science and mathematicsteaching and research. In order to provide effective information and support for the academicprograms, the key areas of planning, finance, management and administration will bestrengthened through staff development and the provision of equipment for computerizedmanagement systems and stude t monitoring. The library will purchase additional text books,journals and library proc3ssing eqaipment, and install a closed circuit television network toimprove the quality and efficiency of learning.

2.37 JKUCAT is the national center of excellence for horticulture, food science,agricultural engineering including water resources and irrigation, and post harvest technology.The College concentrates on the production of applied scientists and engineers and the

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package contains highly appropriate subprojects covering practical training and the supply oflaboratory and workshop equipment. Phase I equipment will be concentrated on agriculturalengineering, the basic sciences, mathematics and computing. A very high proportion ofJKUCAT's package is for equipment, reflecting not only the vocational nature of its programsbut also the very poor current provision of scientific equipment. Workshop and laboratoryspace and technician support are already available.

2.38 Maseno's Phase I package of US$2.2 million covers the library, officeequipment, education and basic science equipment to enable the science studies to includepractical work.

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IIo. PROTECT COSTS AND FINANCING

A. Costs

3.1 The project is costed over five years, shorter than the standard seven yeardisbursement profile for Kenya because the project contains no civil works and because theprocurement documents for the Piiase I packages will be substantially prepared byeffectiveness. Total costs are estimated at US$61.1 million. Base costs are estimated atUS$55.1 million (90%) and contingencies at US$6.0 million (10%). Foreign exchange costsaccount for US$51.1 million, or 84% of the total. Taxes and duties are excluded incalculating the project cost. Table 3.1 summarizes costs by expenditure category; they aredetailed in Annex 11. Equipment, vehicles, and library books account for 78% of base costs,staff development and training for 12%, studies for 1%; institutional development (mainlyconsultants) for 3%; and recurrent costs for 5%. The equipment costs include both minorcivil works necessary to install the equipment and minor amounts of furniture, estimatedtogether to total no more than 10% of equipment costs. Recurrent costs are included only forthe Task Group and its Secretariat and for the Project Implementation Unit (PIU); others areexcluded because the project basically provides equipment for facilities that already exist orare being constructed as part of the expansion of the university system. During subprojectappraisal, it was confirmed that adequate funding existed for the operation and maintenance ofthe equipment supplied in each subproject.

3.2 Project costs are estimated at June 1991 prices. As the bulk of the project isin foreign exchange, the project was initially costed in United States dollars and only the localcost items were costed in Kenya Shillings. Equipment and documentation lists for Phase Iprocurement for the university components and for procurement during the first two years ofproject implementation for the central components were reviewed in detail during appraisal;the exception was the equipment for strengthening the Student Eoan Scheme which is a roughestimate contingent on the action plan to follow the administrative review of the scheme (para.2.13). Equipment lists for Phases II and III were reviewed in less detail but sufficient toestimate total project costs. Equipment, furniture, vehicle and book lists are included in thefinal project preparation documents submitted to the Bank at negotiations and included in theProject File.

3.3 The total project costs include US$6.0 million equivalent for contingencies, or10 percent of project costs. As there are no civil works and as final equipment lists have yetto be drawn up for Phases II and Im, only price contingencies are included. Pricecontingencies for foreign exchange expenditures are 3.9% per annum for 1991-96; pricecontingencies for local expenditures are included at 11.5% for 1991, 9.5% for 1992, 7.5%for 1993, 6.0% for 1994 and 5.0% for 1995 and 1996.

3.4 The foreign exchange component of US$51.1 million is based on estimates of50% for consulting services, 50% for training and staff development, 50% for studies, and90% for -equipment, vehicles and library materials.

3.5 Project costs by component are shown in Table 3.2. The Central Componentsaccount for 17%, of which half is to strengthen CHE, and the University Components for83%.

Table 31: Project Costs" By Expenditure Category

___________ _ KSh. mullion | US$ million

Foreign Share inExchange Total Base

Local Foreign Total Local Foreign Total Share (%) Costs (%)

INVESTMENT COSTS 141.4 1274.1 1415.5 5.2 47.1 52.4 90 95

Institutional Development 22.0 23.5 45.4 0.8 0.9 1.7 52 3

Staff Development 100.5 79.7 180.2 3.7 2.9 6.7 44 12

Studies 9.5 9.5 19.0 0.4 0.4 0.7 50 1

Equipment, Furniture and - 992.2 992.2 - 36.7 36.7 100 67Vehicles

Librry Materials and Equipcmt - 169.2 169.2 - 6.3 6.3 100 11

PPF 9.5 - 9.5 0.4 - 0.4 0 1

RECURRENT COSTS 72.9 - 72.9 2.7 - 2.7 0 5

Incremental Operating 50.7 - 50.7 1.9 - 1.9 0 3

Incremental Implementation 22.2 - 22.2 0.8 - 0.8 0 2

TOTAL BASE COSTS 214.2 1274.1 1488.4 7.9 47.1 55.1 86 100

Price Contingencies 55.5 105.9 161.5 2.1 3.9 6.0 66 11

TOTAL PROJECT COSTS 269.8 1380.1 1649.8 10.0 51.1 61.1 84 111

af Net of taxes

Table 3.2: Poject Cos' by Component

KShx. million US$ million

Foreign Share inExchange Total Base

Local Foreign Total Local Foreign Total Share (%) Costs (%)CENTRAL COMPONENTS 143.0 112.3 255.2 5.3 4.2 9.4 44 17

Strengthenng CHE b/ 84.5 35.1 119.6 3.2 1.7 5.0 34 9Reforming Student Loan 12.4 27.9 40.3 0.5 1.0 1.5 69 3Scheme b/ _ _

Studies 9.5 9.5 19.0 0.4 0.4 0.7 50 ISupport for Applied Research 14.3 39.8 54.1 0.4 1.1 1.5 74 3

Project Implementation 22.2 - 22.2 0.8 - 0.8 0 2UNIVERSITY COMPONENTS 71.3 1161.9 1233.0 2.6 43.0 45.6 94 83Nairobi 19.9 226.1 245.0 0.7 8.4 9.1 92 17Moi 24.6 221.4 246.0 0.9 8.2 9.1 90 17Kenyatta 6.2 241.7 246.0 0.2 8.9 9.1 97 17Egeiton 10.5 235.5 246.0 0.4 8.7 9.1 96 17JKUCAT 4.0 119.5 123.5 0.2 4.4 4.6 97 8Maseno 6.9 116.6 123.5 0.3 4.3 4.6 94 8

TOTAL BASE COSTS 214.2 1274.1 1488.4 7.9 47.2 55.1 86 100Price Contingencies 55.5 105.9 161.5 2.1 3.9 6.0 66 11

TOTAL PROJECT COSTS 269.8 1380.1 1649.8 10.0 511 61.1 84 111/ Netoftaxes

b/ Includes PPF

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B. Financing Plan

3.6 Of the total project costs of US$61.1 million, the contribution of thegovernment will be US$6.1 million (10%) which will cover 7% of investment costs and 67%of recurrent costs. The remainder of the project costs will be financed by IDA. Table 3.3presents project costs by financing source. An IDA credit to the Government of Kenya ofUS$55.0 million is proposed, which will be passed on to the central institutions and theuniversities as grants. The project, and its financing, take account of the major bilateralprograms at Moi, Egerton and JKUCAT universities (para. 1.27).

Table 3.3: Proposed Project Financing(US$ million)

Expenditure Total Base PercentageCategories Costs GOK IDA IDA

INVESTMENT 52.4 3.7 48.7 93

Institutional Development 1.7 1.7 100

Staff Development 6.7 6.7 100

Studies 0.7 0.7 100

Equipment, furniture and 36.7 3.7 33.0 90vehicles

Library materials and 6.3 6.3 100equipment

PPF 0.4 0.4 100

RECURRENT 2.7 1.8 0.9 33

Incremental Operating 1.9 1.5 0.4 21

Incremental Implementation 0.8 0.3 0.5 63

TOTAL BASE COSTS 55.1 5.5 49.6 90

Contingencies 6.0 0.6 5.4 90

TOTAL PROJECT COSTS 61.1 6.1 55.0 90

C. Procurement

3.7 Table 3.4 su-mmarizes procurement arrangements. Procurement will beundertaken by the Projoct Irnplementation Unit (PIU) of the Ministry of Education. IDA-financed procurement of goods and services is expected to be 74% by InternationalCompetitive Bidding (ICB) and 26% by other means. Where ICB procedures are used,qualified domestic manufacturers will be allowed a marginal preference of 15% for goods orthe existing rate of import duties, whichever is lower, over the CIF price of competingforeign suppliers. Equipment, vehicles and library materials will be consolidated in threepackages each for phased ICB procurement, in accordance with World Bank guidelines.

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Table 3.4: Procurement(US$ million)

ICB LCB Other N.A. Total Cos

GOODS AND ASSOCIATED MINORCIVIL WORKS

Equipment 31.3 0.9 0.1 32.3(31.3) (0.9) (0.1) (32.3)

Furniture 2.1 2.1____________________.________ _________ . ... (-) (-)

Vehicles 3.5 3.5(3.5) (3.5)

Library Equipment and Materials 5.9 1.0 6.9(5.9) . (1.0) (6.9)

Minor Civil Works 2.0 2.0I~ ~ ~ ~ ~~~~~~________ ____ (-) (-)

SERVICES

Training 9.2 9.2(9.2) (9.2)

Technical Assistance 0.7 0.7(0.7) (0.7)

Studies 0.8 0.8(0.8) (0.8)

TOTAL CIVIL WORKS, GOODS AND 40.7 0.9 2.i 13.3 57.5SERVICES (40.7) (0.9) (2.6) (9.2) (53.4)

RECURRENT

Operating Costs (CHE) 2.6 2.6(0.9) (0.9)

Implementation Operating Costs (PIU) 1.0 1.0(0.7) (0.7)

TOTAL RECURRENT 3.6 3.6* I______________________ __ . . .... . ._ (1.6) (1.6)

TOTAL PROJECT 40.7 0.9 2.6 16.9 61.1(40.7) (0-9) (2.6) (10.8) (55.0)

Amounts in parentheses are to be financed by IDA.

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3.8 Other means of IDA-financed procurement include:

a) Some contracts for equipment and library materials are s:nall in valueand it is unlikely that they will attract foreign competition. Suchcontracts costing less than US$100,000, up to an aggregate amountnot exceeding US$900,000, will be procured through LocalCompetitive Bidding (LCB). LCB procedures will include localadvertisement, allowing sufficient time for bid submission, public bidopening, clearly spelled out evaluation criteria, and award to thelowest evaluated bidder. Interested foreign contractors will not,however, be precluded from participation. Smaller contracts costingless than US$25,000, up to an aggregate amount not exceedingUS$100,000, will be procured through international or local shoppingbased on price quotations from at least three suppliers.

Local procurement procedures were reviewed by IDA and areconsistent with the requirements except for preference for"indigenous" local firms. At negotiations, it was confirmed that allLCB procurement will conform to IDA guidelines. Also, the firstLCB document will be reviewed by IDA before its release to bidders.

b) For certain university-level library books and journals, the number ofsuppliers is limited. Such contracts, up to an aggregate amount ofUS$1.0 million, will be procured through Limited InternationalBidding (LIB) or by direct purchasing from the publisher.

c) Training and other staff development (e.g. seminars and workshops):based on an annual Staff Development and Related Training Plan thatthe Task Group (and then CHE) will draw up, with the PIU, on thebasis of the training needed at the central level and contained withinthe university subprojects.

3.9 Technical Assistance and Studies. Tle technical assistance requirements willbe provided by firms and individual consultants. Approximately 60 months of the technicalassistance is costed on the assumption of procurement from qualified foreign consultants andapproximately 234 months from local sources. Details are provided in Annex 12. Selectionprocedures for all consultants (firms and individuals) will be in accordance with theGuidelines for the Use of Consultants by World Bank Borrowers and the World Bank asExecuting Agency (August 1981). All consultant terms of reference, qualifications,experience and conditions of employment will be satisfactory to IDA and subject to reviewbefore an agreement (or contract) is negotiated and signed. Procedures in consultancycontracts involving firms will include a mandatory review by IDA of the proposed short list,letter of invitation and award proposal for all contracts.

3.10 Review of Procurement. All bidding packages exceeding US$100,000 to befinanced by IDA for goods will be subject to IDA prior review. All other contracts will besubject to selective post-award review. Thus about 95% of the total value of procurementwill be subject to IDA prior review.

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3.11 Government-financed procurement will be as follows:

a) Furniture up to US$2.1 million: contracts would be awarded to localmanufacturers in accordance with local procedures.

b) Minor civil works, up to US$2.0 million, necessary to implementsome of the University Component subprojects: either force accountby the universities' own facilities staff or by direct contract.

D. Disbursements

3.12 Disbursements from the IDA credit will be on the basis of:

a) 100% of foreign and ex-factory local expenditures for equipment,library materials and vehicles;

b) 80% of local expenditures for other equipment, library materials andvehicles procured locally (in order to avoid IDA financing taxes);

c) 100% of foreign and local expenditures for staff development andrelated training, studies, and foreign and local institutionaldevelopment, technical assistance and specialists;

d) 100% of CHE's incremental operating costs associated with its role inuniversity coordination and planning, through June 30, 1994;

e) 60% of the PIU's incremental operating costs throughout the project;and

D) 100% of withdrawn Project Preparation Advance funds.

3.13 There are two conditions of disbursement:

a) For the Student Loan Scheme component, the initial execution of anAction Plan acceptable to IDA for reforming the administration of theLoan Scheme (paras. 2.13 and 6.2(a)); and

b) For Phase II, and subsequently for Phase III, of the UniversityComponents, submission of evidence that the packages consist ofsubprojects appraised according to the agreed criteria and assessed inthe light of Phase I and Phase II implementation where appropriate(paras. 2.24 and 6.2(b)).

3.14 All disbursements will be fully documented except for items costing less than$50,000 where certified statements of expenditures (SOEs) will be used; supportingdocumentation will be retained by the implementing agncies for review by IDA supervisionmissions and for annual audits. It is anticipated that the credit will be fully disbursed by June30, 1996. Annex 13 is an indicative schedule of IDA disbursements, expected to be fasterthan in the standard disbursement profile for Kenya because of the advanced state of projectpreparation and the absence of major civil works.

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3.15 A foreign exchange Special Account of US$4.0 million, funded by IDA, willbe established in the Central Bank of Kenya. To the extent possible, IDA's share of allpayments will be made through the Special Account except for any exceptionally large itemwhich will be handled under IDA regular procedures. The Government will submitreplenishment requests on a quarterly basis or whenever the Special Account is diminished byone third, whichever comes first. The Government and the universities will make availabletheir contributions, as the case may be, for items to be financed out of the Special Account atthe same time as withdrawals are made from the Special Account.

E. Accounts and Audits

3.16 The project would be subject to normal public sector accounting and auditingprocedures, which are considered satisfactory to IDA. The PIU would maintain separateproject accounts and would prepare as part of its input to the half-yearly reports to besubmitted to IDA for review (para. 4.g) a financial statement or project expenditures. Projectaccounts would be audited annually covering -ll expenditures related to the project and withparticular attention to and including separate opinions for (a) expenditures reimbursed againstSOEs, and (b) the adcministration of the Special Account. At negotiations, assurances wereobtained that annual audits of project accounts and SOEs by independent auditors acceptableto- IDA will be carried out and that all audited accoumts will be made available to IDA withinsix months of the close of each fiscal year (para. 6.3(k))

33

IV. PJT LMENTATION

A. Status of Project Preparation

4.1 The project was prepared by the government through the establishment of aPolicy and Planning Task Group, with representation from the Ministry of Education, CHEand each of the six public university institutions. This Task Group also helpeA to prepare thehigher education policy changes being supported by EDSAC which provide the generalfraniework for the project. An Qrii pL ntn was prepared for the appraisalmission, which included the policy framework, a public universities investment program,detailed proposals for the central components, summaries of the individual universitysubprojects, summary expenditure proposals, and implementation and procurementarrangements. This document shows clearly how all components (central and university)relate to overall policy for the development of the university sector. This document wasagreed in final form at negotiations and is included in the project file. The Policy andPlanning T&k Group established two Subgroups, that for the Central Components and that forthe University Components. The latter included the procurement engineer from the PIU.The Task Group and its subgroups have now been fornmalized with the appointment of a full-time Coordinator in July 1991, chairing a Task Group under CHE equipped with a full-timesecretariat (paras. 2.4-2.5).

4.2 The continued work of the Task Group and its secretariat, together with thereview of the Student Loan Scheme (para. 2.13), between project appraisal and effectivenessare being financed by a Project Preparation Advance of US$400,000 confirmed on August 14,1991.

B. Organization and Management

4.3 Under the overall authority of the Permanent Secretary of the Ministry ofEducation, project implementation responsibility would be delegated to CHE, initially theTask Group and subsequently the restructured CHE itself. Until CHE is revamped, the buikof the work would be handled by the Project Appraisal and Implementa: -n Subgroup,although formal responsibility would rest with the overall Task Group (Annex 3). TheDeputy Coordinator and the Assistant Coordinator-Project on the Task Group secretariatwould have principal day-to-day responsibility for project implementation, but again formalresponsibility would rest with the Coordinator. The condition of effective-ess concerning theTask Grop and its associated subgroups and secretariat thus also aplies to projectimplementation; in addition the proposal to be submitted to IDA by June 30. 1992 Lorrestructuring CHE will cover the continued management and implementation of the pro(paras. 2.5, 6.1(b) and 6.3(c)).

4.4 The Task Group, and later CHE, would have responsibility for all projectimplementation functions except three. Project accounts, procurement and disbursements forjustified project expenditure would be handled by the existing Project Implementation Unit(PIU) of the Ministry of Education, which has been responsible for implementing the Fifth(1107-KE) and Sixth (1683-KE) IDA Education Credits. The respective operationalresponsibilities of the CHE Task Group and the PIU are listed in Annex 14. The PIU wouldbe represented on the Project Appraisal and Implementation Subgroup of the CHE Task

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Group. It would also liaise closely on procurement with technical panels appointed by thisSubgroup and with Liaison Officers appointed at each of the six university institutions forproject preparation and implementation who would provide input during specifications, biddocument preparation and bid evaluation. The PIU would have full responsibility forprocurement from specifications/bid document stage through equipment delivery andinstallation. The PIU would also share responsibility, as appropriate, with the Task Groupand Liaison Officers for implementation of the annual staff development and related trainingprograms (para. 4.5). It would be strengthened to handle the procurement of advancedscientific equipment.

4.5 At negotiations, assurances were obtained concerning the submission by CHEto IDA b" March I each year of proposed project implementation work programs, actionplans and detailed implementation schedules by project element to execute the work prosgram.for the fiscal year to start in July. satisfactory to IDA (para. 6.3(h)(i)). These will include astaff development and related training program, integrating the training and other staffdevelopment needs of the central components and the university subprojects into aconsolidated program, indicating the nature, duration and location of training; similarproposals for seminars and workshops; and any required consultant services with terms ofreference. The submission of such a program. action plan and implementation schedule for1991/92 is a condition of project effectiveness (para. 6. 1(c)).

4.6 Detailed implementation schedules for strengthening CHE (Annex 4) and forthe University Components (Annex 8) were agreed during appraisal. Of the other centralcomponents, an implementation schedule for reforming the Student Loan Scheme will formpart of the action plan to be submitted to IDA as a condition of disbursement (paras. 2.13,3.10 and 6.2(a)); timetables for the studies were agreed at negotiations (para. 2.15); and thefunding of applied research will be ongoing throughout the project. The Central Componentswould be implemented by CHE, initially through the Task Group; all procurement, whethercentral or for the universities, would be handled by PIU; the Task Group and the universityLiaison Officers would implement the annual staff development and related training programwith appropriate support from PIU.

4.7 The World Bank will communicate directly on all project matters with CHE,initially the Task Group Coordinator. However, it is understood that for administrativeefficiency, CHE may request the Bank to communicate directly to the PIU Director onmatters concerning project accounting, procurement and disbursements, with copies sent toCHE.

C. Monitoring. Reportinig and Evaluation

4.8 At negotiations, assurances were obtained that CHE (initially the Coordinator)will submit to IDA half:yearly progress reports by February 1 and August 1, highlightingissues that need resolution (para. 6.3(i)). These reports would be prepared with the help ofthe PIU and other appropriate bodies such as that responsible for the Student Loan Scheme.In addition, the Project Appraisal and Implementation Subgroup will, in conjunction with thePIU, conduct monthly meetings to assess progress and resolve any problems emerging in theimplementation of individual project components.

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4.9 IDA's supervision plans are detailed in Annex 15, and include ongoingsupervision from the Bank's Nairobi office. In addition to regular supervision, two majorreviews of the project are planned. The first will be in the second half of 1992 to ensuresmooth transition to project management by CHE; the second in the first half of 1994 toevaluate progress in the achievement of project objectives in general, and the functioning ofthe restructured CHE in particular, in advance of Phase III for the University Components.For the first major review, the key document to be prepared by the government will be theproposal for restructuring CHE (para. 2.5), plus the regular submissions. For the secondreview, the August 1994 half-yearly report will be replaced with a complete report onprogress since effectiveness. and will include any government proposals for reshaping theproe (para. 6.3(j)). During both reviews, the Task Group and CHE's developing capacityto appraise subprojects under the University Components will be the subject of particularattention. During the second, the allocation to individual universities will also be reexamined(para. 2.19).

4.10 During the period of implerrentation of EDSAC, i.e. through 1993,supervision missions for EDSAC and for this Project will, wherever possible, be scheduled tocoincide, permitting joint supervision of the policy issues relating to higher education. Oncethe third and final tranche of the Adjustment Credit is released, the second major review andcontinuing supervision will enable the Government and IDA to continue to discuss the overalluniversity policy framework. The Phase II and III university component packages will beappraised by CHE and subject to an IDA condition of disbursement (paras. 2.24, 3.13 and6.3(b)); IDA will attach considerable importance to satisfying itself that the condition ofdisbursement is met, through in-depth random review of the appraisals, especially for PhaseII. It will also be important for IDA to ensure the continued involvement of supervisionexpertise in advanced scientific and engineering equipment in order to review subprojectappraisals and equipment procurement specifications.

4.11 No later than six months after the Credit closing date, CHE, with theassistance of the PIU, will prepare and provide to IDA a Project Completion Reportevaluating the implementation, initial operation, costs and benefits of the project, and theperformances of the Goverment and IDA, including the significant lessons learned duringimp;ementation.

D. Environmental Impact

4.12 The project involves no construction and wil be environmentally neutral.During appraisal, it was determined that university procedures were satisfactory for thehandling of potentially dangerous scientific equipment, e.g. radioisotopes. Certain universitysubprojects will also support teaching and research relevant to atmospheric, ground and waterpollution and the preservation of endangered animal and plant species.

- 36 -

V. PROJECT BENEFITS, .IUSTIF1CATION AND RISKS

A. Benefits and Justification

5.1 The project, together with the education sector adjustment credit, will havethree principal benefits. First, it will set in place an institutional framework for thecootdination, planning, and financing of Kenya's universities. Second, it will help to controlthe government's education budget. Third, it will improve the quality of the teaching andresearch that the universities deliver.

5.2 The process of strengthening CHE so that it will by 1993 become theinstitution responsible for the coordination, planning, programming, budgeting and financingof the public universities will be the key benefit of the project, and is also supported byEDSAC. It is essential to establish and maintain an institutional framework for Kenya'suniversity development, such that the uncontrolled experience of 1985-90 will not be repeated.The project is designed to support institution building through the progressive adoption of newfunctions by CHE, specifically through preparing a university development plan for 1993-99and through taking responsibility for subproject appraisal and selection under Phases II and mof the University Components. At the same time, CHE will continue its effective work inpromoting and accrediting private universities, and will be aided in this by the study of theirfuture development to be carried out under the project. If successful, the Kenyan experiencein managing tertiary education expansion could be an important reference point for otherAfrican countries as they face similar transition problems.

5.3 Establishing this institutional framework will not only lead to the rationaldevelopment of Kenya's university subsector, it will also permit the government to bringuniversity expenditure under control. Recurrent spending by the rapidly expandinguniversities has been one of the two main factors driving the education sector budget, whichin turn has been a major force in driving overall government expenditure and resulting in thefiscal deficit. The adoption of an institutional framework for financing universities will leadto improved resource allocation. In addition, the limits on student admission!s and the reformof the Student Loan Scheme will also help to bring under control the rapidlly increasinguniversity level expenditure. University expenditure should now stabilize at around 20percent of the overall recurrent budget for education, arresting the present very rapi&yincreasing share.

5.4 The quality of teaching will be enhanced by the provision of much neededinvestments at the six public universities; this will account for the bulk of project funds.Research will also be modestly assisted through the funding of applied research. Improvedteaching and research conditions should also help to attract and retain academic staff. Intime, the concentration of both teaching and research quality improvements on those scienceand engineering disciplines most critical for Kenya's development will also benefit theeconomy as a whole.

B. Risks

5.5 The project has two risks. The first - and most serious - risk is that the policyframework put in place by the Education Sector Adjustment Credit, which provides the

- 37 -

context for and is extended over time by this project, may not hold if government supportfalters in the face of public opposition to various reform measures. Restricting studentnumbers, and increasing cost-sharing, both direct and deferred, are two examples of measurespotentially unpopular with students and their parents, while giving CHE far reaching financialcontrols is potentially unpopular with the university Vice-Chancellors, even though they sit,and will continue to sit, on the Commission of CHE. However, the preparation of both theAdjustnent Credit and this Project have involved extensive consensus building through ad hoctask groups, and indeed the ones established for this project are now being formalized andwill eventually become part of CHE. This consensus building appears to have paid off interms of the initial policy steps that the government has already taken: limiting studentadmissions, stating that CHE will be revamped and appointing a Coordinator, and announcingreforms to the Student Loan Scheme. Tackling these issues in the context of the educationsector adjustment credit (where they are conditions of tranche release) as well as in thisproject (where they are the subject of covenants), not to mention their inclusion in the IMFEnhanced Structural Adjustment Facility approved on August 2, 1991, provides a powerfulexternal stimulus to stay the course.

5.3 A second risk, specific to the project, is that CHE will take time to developthe capacity to coordinate university development in general, and to appraise subprojects inparticular, and that this will impede implementation. This risk has already been reduced,however, by the extensive manner in which the Phase I subprojects were reviewed jointly bythe Bank and the government at appraisal, which established consensus on both proceduresand criteria. Moreover, the risk is justified in the interest of institution building and will bemitigated by the conditions of disbursement on Phases n1 and In (paras. 2.24, 3.13 and6.2(b)) and will also be the subject of specific attention during the two major project review,,(para. 4.9).

U

- 38 -

VI. ASSURANCES AND RECOMMENDATION

6.1 The following are conditions of effectiveness:

a) The collection in academic year 1991/92 of the direct charge of KSh 6,000,the operation of the bursary scheme for needy students (not to exceed 20% ofstudent enrollment), and the limiting of the student loan to KSh 21,500 withno more than KSh 5,000 available for personal expenses (para. 1.23);

b) The implementation of arrangements satisfactory to IDA concerning thestaffing, accommodation, work program and budget of the Task Group and itsassociated subgroups and secretariat for 1991/92 (para. 2.5), to include theProject Appraisal and Implementation Subgroup, the appointment of theDeputy Coordinator on the Task Group's secretariat, and the Liaison Officersat the six university institutions (paras. 2.23 and 4.3); and

c) The submission of a project implementation work program, action plan andimplementation schedule for 1991/92, to include a staff development andrelated training program (para. 4.5).

6.2 Conditions of disbursement are:

a) For the Student Loan Scheme, the initial execution of an Action Planacceptable to IDA for reforming the administration of the Loan Scheme(paras. 2.13 and 3.13); and

b) For Phase II, and subsequently for Phase III, of the University Components,submission of evidence that the packages consist of subprojects appraisedaccording to the agreed criteria and assessed in the light of Phase I and PhaseII implementation where appropriate (paras. 2.24 and 3.13).

6.3 In addition, during negotiations, assurances were obtained concerning:

a) Limiting undergraduate admissions to 10,300 in 1992, 10,610 in 1993, 10,930in 1994, 11,260 in 1995 and 11,600 in 1996 (para. 1.19);

b) Capping the student loan at KSh 21,500 through 1993 and then at a levelsatisfactory to IDA during 1994-96, eliminating the personai element from theloan by 1993, and maintaining the direct student charge at least at KSh 6,000(para. 1.23);

c) The submission by June 30, 1992 of a proposal satisfactory to IDA forrestructuring CHE (including for project implementation) with effect fromJanuary 1993, and also for continued interim arrangements from July-December 1992, and the implementation by January 1, 1993 of this proposal,following IDA's review and comment (paras. 2.5, 2.23 and 4.3));

- 39 -

d) The submission for IDA's review and comment by March 1, 1993 of a draftpublic university development plan for 1993-99 (para. 2.6);

e) That the government will, with effect from July 1994, fully fund the operatingbudget of CHE at a level satisfactory to IDA such that it can carry out itsuniversity coordination, planning and financing functions (para. 2.10);

0 That each study funded by the project will be submitted to IDA for reviewand comment within three months of its completion in accordance with atimetable satisfactory to IDA (para. 2.16);

g) That the initial three applied research proposals accepted by the Task Group,together with the experts' evaluations and the Task Group's assessments, willbe submitted to IDA for review and confirmation and that subsequentproposals will be approved in accordance with agreed criteria (para. 2.17);

h) The submission for IDA's review and comment by March 1 each year ofproposals for the financial year to start on July 1 as follows:

(i) a project work program, action plan andimplementation schedule, including a staffdevelopment and related training program (para 4.5);

(ii) a work program and budget (including staffing) forCHE (initially including the Task Group) (para. 2. 11);

(iii) a work program and budget (including staffing) for thebody responsible for the Student Loan Scheme (para.2.14); and

(iv) starting in 1993, CHE's draft recommendations onuniversity admissions and budgets (para. 2.6);

i) Starting in August 1992, the submission to IDA by February 1 and August 1each year of progress reports as follows:

(i) in February, on project activities within the precedingJuly-December (para. 4.8);

(ii) in August on:

a) project activities within the preceding January-June (para. 4.8);

(b) CHE's (including the Task Group) activitiesduring the previous financial year (para. 2. 11);

(c) the activities of the body responsible for theStudent Loan Scheme during the previousfinancial year (para. 2.14); and

- 40 -

(d) the use of applied research funds during theprevious financial year (para. 2.17);

j) The submission by August 1, 1991 for the second major review of a completereport on the project since effectiveness, including any government proposalsfor reshaping the project (para. 4.9); and

k) The carrying out and submission to IDA within six months of the close ofeach fiscal year of annual audits of all project accounts and SOEs (para.3.16);

6.4 Subject to these provisions, the project constitutes a suitable basis for an IDAcredit of SDR 41.3 million (US$55.0 million equivalent) to the Government of Kenya.

- 41 -

Annex IREPUIUCOf 0 KENYA Page 1 of 12

OFFICE OF THE.VICE.PRESIDENT AND MINISTRY OF FINANCE

:444--oWde Add. , , THE rREASURY;FiNANCE.NAIACS&.. .' -; ** P.O. l86 3000io

*.4ODa; ,3i38 11 1 .i.-- . - _ . .- . I NAtBoil -+

Rd. No. .: . . ... . . . '-KENYA..N ~ ~~~~~ ......... ;.,1:*and 41t0 - J'--_ - 9W

.. .. .. .. .. .. . ...

Mr. Barber B. Conable . : . . . ..; ..President . - .::he World Bk .. .; ;...... -: . -

. . * .18.18 R Ste-eteX.W.;; . .: ,. -- :.: --.. Washingtoa.D.C. 210433: ^.. * , '

* * - * * - t. s ;. . ;. *. . _ :--l U-S..A\.: , i. _ * , .

LE-MB OuF EDUCATTO! scrR oq

I am writing to you in connection with the proposed Education Sector AdjustmentCredit (EDSAC) for which we are seeking assistance from the International DevelopmentAssociation. Kenya has accorded high priority to education since Independence, and hasachieved literacy and participation ratios that are very high by African standards. Todaymore than 6 million Kenyans, which is about a quarter of the country's total population, areenrolled in various educational institutions. At the primary level, enrollment rose from lessthan one million chi'ren at Independence to more than S million in 1990, an indication that ahigh proportion of primary aged children now enter school. Adult literacy rates are estimatedto be above 60 percent for males and 40 percent for females. Although not yet quite equal,school participation rates and educational achievement levels for females are rapidlyapproaching those of males.

In addidon to making education widely accessible to the population and providingskilled manpower for the economy, Kenya prides itself on the quality of its education systemand on the relevance of education to the lives that people lead after completing their formaleducation. In tis regard, the education system was reformed in 1985. The former 7:4:2:3system whiW imlvod seven years of primary education, four years of secondary education,two years of log school and three years (mnimum) of university education was replaced byan 8:4:4 syst_ The new 8:4:4 educadon system entails eight years of primary education,four years of condary education and four years (minimum) of university education. Inchanging the slructure of the education system, major curriculum changes were alsointroduced. These were designed to make primary and secondary levels of educationappropriate to both the needs of those children for whom that level of education is terminal aswell as catering for those who go on to the next level. With the first group of secondaryschool leaveks having sat for the new Kenya Certificate of Secondary Education (KCSE)examination in November 1990 and having recently en6ered university, implementation of thenew system Ls well underway. However, a number of transitional problems in theimplementation of the new curriculum have been identified and the Government of Kenyaintends to address some of these in the context of EDSAC.

The needs of a rapidly growing school age population and rising demand for moreeducation have necessitated that Kenya spend heavily on inputs essential to a well fitnctioning

42 - nPage 2 of 12

education system. These have included awong other things: the ever increasing teacherssalary bill; increased dernandi for provision of physical facilities; equipment and learningmaterials to educational institutionjs; and expansion in professional and administrative supportservices for the promotiou amld provision of formal education. This demand for education isbased on considering education as a vehicle for national development and individualadvancement. Both public and private expenditure on education are high in Kenya, and havecontinued to rise in recent years. However, at 6.7 percent of GNP, public expenditure oneducation has probably reached its limits. In Sessional Paper No.1 of 1986 (EconomicManagement for Renewed Growth), which provides the 'ong-term economic framework forthe country till the turn of century, my Government noted its concern over the rate of growthof public expenditure ont educatiotn, especially recurrent expenditure. Rapidly rising educationexpenditures not only constrain the budgetary allocations on other important sectors but alsocontributes to the fiscal deficit. Tlhe Sessional Paper No. I of 1986 indicated the intention ofGovernment to gradually reduce education's share in Goverunent ministries recurrentexpenditure, and this objective remains central to present-day macroeconomic management.

Kenya has periodically reviewed the philosophy and objectives of its educationsystem. The most recent review was concluded in 1988 by the Presidential Working Party onEducation and Manpower Training for the next Decade and Beyond. The thrust of theresulting Sessional Paper (No. 6 of 1988) is increased access to education and provision ofquality education for sustainable living couched in the reality of Kenya's macroeconomic andfinancial constraints. A number of recommendations of the Sessional Paper have alreadybeen implemented while the implementation of others is planned during the period supportedby EDSAC.

Recent Refom in the Edaion L

These have included aonong rmany others:

The implementation of the 8:4:4-system of education at primary school levelin January 1985, at secondary school level in January 1986 and at universitylevel in October 19. The change in the system of education and trainingaimed at enhancing and improving the relevance and quality of education andtraining at all levels.

• The expansion of enollment and divesification of courses in the publicuniversities. This gave rise to the establishment of Moi University in 1985,Kenyanta University in 1986, Egerton University in 1986, Jomo KenyattaCollege of Agricultre and Technology in 1989, and Maseno UniversityCoilege, Laikipia College and Chepkoelel campus in 1990. The expandedwoess to univeity education aimed at reducing the large number of Kenyanswho were going to foreign countries for university level education. There arenow abo 40,000 Kenyans in the public universities.

° Deentralizadon in 1989 of the disbursement of university students loans tothe district level through Kenya Commercial Bank of Kenya and NationalBank of Kenya. This was an efficiency measure to facilitate accountability forthe loans.

• Further decentralizadon and deconcentration of educational managementadministration, and supervision services to the districts in accordance with theGovernment policy on district focus for rural development which wasintroduced in 1983. Now there are about 800 Zonal Education Officersstaffed by Inspectors of Schools, 300 Divisional Education Offices staffed by

43. AnnIePage 3 of 12

Education Officers, and B Provincial Education Offices staffed with DeputyAssistant Directors of Education, Senior Education Officers, Senior Irnspectorof Schools and School Auditors.

Increased levels of and cost sharing measures in tte provision of physicalfacilities, equipment, textbooks and other learning resources in primary andsecondary schools. Parents have a responsibility to provide facilities, booksand equipment in primary schools. However, in boarding priinary schools inarid and semi arid areas the Govemnment continues to provide facilities,equipment and books.

Improvement in the internal efficiency within the education sector in relation to theabove reforms calls for: establishing an institution for the disbursement and recovery ofuniversity students loan; economic deployment of teachers; gradual withdrawal of boardingsubsidies in Government maintained secondary schools and colleges; improving procurementof text-books for primary schools; delinking training and university graduation from publicsector employment; and improved management, administration and supervision throughout thesector. In this regard, reomsto bi minl nggAW: (i) access improvement; (ii) quality improvement; (iii) education budgetrationalization; and (iv) strengthening sector management planning, btudgeting and informationsystems.

ReforMs to be Imbeent2d duringz the Creit

The attached policy matrix sets out in detail the objectives, actions, and timetable which aresummarized below.

(i) Access tg Educatn

A central objective of Government policy is to continue to expand access to primaryschool to those segments of society currendy unable to attend school, and se§ expandaccess to secondary and tertiary education. In order to increase primary participation ratioszmong children from remote parts of the country, the public sector will continue to establishand maintain boarding schools in arid and semi arid areas an well as explore the feasibility ofalternative delivery systems for nomadic peoples. At the secondary level, commlnities willbe encouraged through Harambee efforts to continue building secondary schools. However,unlike in the past when schools were established wherever communities chose to put them,District Education Boards will control the establishment of new secondary schools so thatexpansion can occur in a more planned way than hitherto. Goverment hopes that throughthis policy small schools with low enrollments which have proven uneconomic to staff will beno longer be vabllshed and those in existence will be merged with large viable institutions.

At te twtary level, Government intends to continue expanding erollments as a wayof serving equity objectves by opening up the system to students from a wider range ofsocioeconomic backgrounds and som different pars of the country. However, after the largeenrollment increase in 1990 Government intends to allow the universities a period forconsolidation, and will admit no more than 10,000 new students in 1991. Admissions in 1992and 1993 will be 3% higher than for the previous year, and actual numbers of students willnot exceed 10,302 and 10,612 in 192 and 1993 respectvely. In addition, future universityadmissions will be derived by taking Into account: number of secondary school leavers;capacity of the universities to take additional students; availability of natona fincilresources; and the needs of the economy for skilled manpower. At the saws time,Government will continue to implement its policy whereby the public sctor hbas cesed to bothe employer of last resort for the university graduates who are unphle to find altenataiveemployment. Expansion of other public tertiay institutions will be planned in the credit

Annex IPage 4 of 12

period, and this together with promotion of private sector tertiary institutions will help diffusepressure away from the public universities and also address national manpower imbalances.

Although not well quantified. it is observed that a sizeable numbers of children leaveprimary and secondary school before reaching the end or the cycle. This phenomenon isparticularly unfortunate for those who leave school before achieving literacy and numeracy,and who find themselves marginalized from economic life. Government therefore plans toundertake a study to determine the courses and extent of primary school drop-outs as a matterof urgency. Once we know the dimensions of the problem, measures designed to reducedrop-out rates will be put into place.

(ii) Quality of Education

A second objective of Government policy is to improve the quality of education at alllevels of the system. In order to achieve this at primary and secondary levels greateremphasis will be placed on in-service teacher training, and the 8:4:4 curriculum, which iscurrently considered to be too intense, will be streamlined and harmonized particularly at thesecondary level. To ensure that adequate textbooks are available in schools, limitedpublic-sector provision of core textbooks to primary school children will resume. The latterrepresents a modification of the current policy whereby parents are entirely responsible for theprovision of all school books. The financing of this policy in discussed below. An area ofparticular concern is the teaching of science and mathematics at the primnary and secondarylevels. The problem of poor performance in mathematics and science has persisted for manyyears, and major new efforts are needed to strengthen this critical area. Government plans toreorganize and harmonize the mathematics, science and applied science curricula, enhance andexpand in-service courses for mathematics and science teachers, accord greater emphasis tothe preparation of maths and science teachers in diploma colleges and the universities, andfinally, explore the possibility of wide-scale public sector provision of basic mathematics andscience books and equipment.

In addition to restricting university enrollments (discussed above), course offerings acrossthe four universities will be rationalized, including the amalgamation of programs with smallenrollm.cnts, so thA true "programs of excellence" in relation to stated areas of nationalimportance can develop. This move will protect and ulmately enhance the quality ofuniversity education and permit teaching staff to develop their skills and professional standingthrough research, fuoher study, and interaion with a critical mass of colleagues in their ownareas of concentration.

(iii) EUgail Eta bdighr

As I madoned above, Kenya has a high level of expenditure on education. In recentyears, public ezpenditure on education has grown faster than other sectors and it nowconstitutea about 25 percent of total expenditure (37 percent of recurrent expenditure). It isthe view of Govenmet that this trend cannot be sustained and the time has come to curtailthe growth of the education budget. In order to reduce the rate of growth of the educationrecurrent budget, Government has introduced measures that will restrain the growth of theteaching force and will control the expansion of higher education. Given the anticipatedreduction in primary and secondary teacher costs, some of the resulting savings will be usedto finance bools and materials in the schools, run more in-service training courses forteachers and headteachers (especially on matnrs relating to the implemewtation of the 844curriculum), and make investments in equipment and training, needed to improve the teachingof mathematics and science. By the end of the credit period Government hopes to establishedan expenditure flow of no less than 3 percent of te primary education recutrent budget forschool equipmant (including books) and other learning supplies.

Aun 1-45 Page 5 of 12

Restraining the growth of the teaching force at a time of expanding enrollments willlead to an increase in pupil-teacher ratios, and improve the efficiency with which teach'-rs areutilized. Government has set the following pupil-teacher ratio targets for the credit period: inprimary education from 31:1 (current) to 34:1 1993; and in secondary education from 21: 1(current) to 22:1 1993. Achievement of higher pupil teacher ratios over the 2-to-3 yearperiod will require modification of some of the current policies/practices relating to:governmnent financing of teachers in small, over staffed schools; the recent decision that GOKwill finance all teachers in the former category of assisted secondary schools; control over thenumber of 844 curriculum options offered in small secondary schools; guaranteedemployment of certificate, diploma, and education graduates of the primary teachers colleges,diploma colleges and universities; the need for annual review of v; ler requirements andprojected output of teachers from the primary teachers colleges, dipioma colleges, anduniversities; the proportion of untrained teachers versus new KCSE school leavers taken asfirst year entrants into the primary teachers colleges and diploma colleges; deployment ofprimary level teachers to schools outside their own home districts; and the curricula ofdiploma colleges and education degree programs and, in particular, the need to producesecondary school teachers prepared to teach two or more 844 subjects.

The other area of the education budget that has witnessed rapid increase inexpenditure is the university sub-sector. In order to contain the universities budget andprotect other levels of education, a ceiling of 20 percent will be set on the universities shareof the recurrent education budget. At the beginning of the 1991/92 academic yearGovernment will introduce increased cost sharing at the tertiary level. This will involveintroduction of a tuition fee of KShs 6000 per year and changes in the student loan scheme.However, in order to ensure that no eligible student is barred from admission to universitiesthrough lack of ability to pay fees, Government will introduce a bursary scheme which willprovide up to 20% of students with some financial support, additional to the student loanscheme. Government has already announced this plan to students and the general public, andis currently working out implementation details. As you know Kenya has had a student loanscheme since 1974, but because of administrative constraints, the scheme has not operatedeffectively and especially with regard to loan recovery. As mentioned above, the scheme hasbeen undergoing various reforms in recent years, and further changes are planned for thecredit period. These include: establishment of a Loan Board to run the university student loanscheme; segregation of the loan find from the Ministry of Education and universitiesrecurrent budget; charging an interest rate that will change from time to time and which willenable the fbud to become more self-sustining. Functions of the Loan Board will includesecuring of funds, disbursement of loans, management of funds and loans, and recovery ofloans. The loan will continue to be opdonal to all students, up to a maximum amount whichwill be fixed from time to time.

-46- AnnL1Page 6 of 12

(iv) Strenheningseor Management, 2laing. bUdg inforMation systeMa

The education system is large and complex and although a number of changes havebeen made in the years since Independence, management practices and planning capacity havegenerally not kept pace with growth. During the ci -dit period Government plans to undertakeactions on three fronts. First, educational managers, administrators, supervisors and plannerswill be trained in a variety of areas for more effective management and service delivery.Second, appropriate and accurate information and data collection systems will be establishedin order to facilitate more policy analysis, planning and informed decision making. Andthird, in order to coordinate and maximize the benefits derived from the nation's highereducation institutions, both public and private, and to plan centrally for any future expansionof this sub-sector, the Commission of Higher Education (CHE) will be strengthened andexpanded before January 1993. It is expected that the revamped CHE will be capable ofcarrying out the function of overseeing the development and expansion of higher education,with special reference to coordinating the planning, programming, financing and budgeting ofthe public universities. During the interim period, the critical functions of policy formulationand planning, budgeting and financing, and investment pl&nning will be undertaken by taskgroups formed within CHE.

I hope that these details will help clarify for you the main objectives and directions ofthe education sector reform program. We are convinced that once we have these reforms inplace we shall have a robust education system that will cater for the needs of all Kenyanchildren, will be efficient and effective, and which will continue to develop within thefinancial resources of the country. I am delighted that we shall engage in this reformprogram with the full support of IDA.

Looking forward to continued assistance and cooperation between us.

Y ours0- _.

Profegr a.o4 Sa1k4I. ..Vice Presidnt r Minister fo Plnance

KENYA: EDUCATION SECTOR ADJUSTMENT CREDIT:POLICY MATRIX July 15, 1991

---------------------------- Policy actions ----------- >

(Sept '491) (Sept '92) (Sept '93)

Issums/Problm Objectives Actians Already Before Board 2nd Trunche 3rd TrencbeTaken Presentation Relee "isleam

Investment Plan nd Isu ts

1. Sector Is To prepare. An education Pblisihed Provisionat Provisionalcurr2ntly sector sector Est intes for actusl recurrent actual recurrentwithout an i _tnsnt plan invest ent plan 1991/92 reflect and developnt nd devetopientI,westmnt plan. nd to Juw both has been educatici budget outcomes budget outcoaesExpicit changes dmwlomnt and prepared. 6K recurrent and for 1991/92 are for 1992193 arein budget recurrent has agreed to developoent acceptable to acceptabte toaitocations are budgets to consult with IDA expenditure IDA. 992/93 IDA. 1995394rarely used as implement policy on delfelpient altocations published publishedtools of policy. cd e. ad reurrent accepteble to Estia_tes Estia_tes

budet IDA, *nd IDA hs reflect reflectaItelctions for been provided developoent and dewelop ent andiedacation with an recurrent budget recurrent budqet t4sctor. assurance that allocations atlocations

those key itemc acceptable to acceptable toomitted frem the IDA. Sector IDA. Sectorp.M ished investment plan investrnnt plenEstimstes will has been has beenbe provided for upmdted. updated.in the revisedm16 vestEsti_ tes.

e

KENYA: EDUrTION SECTOR ADJUSTMENT CREDIT:POLtIC MATRIX

<---- ----- Poticy actions ----------------------------

(Sept '91) (Sept '92) (Sept '93)

isdies/Problem Objectives Actions Alreadv 8efore Board 2nd Trancrhe 3rd Trench.Taken Presentation teleae Reles

Primarv Education

2. Rapidly To reduc* rate No rw UTs Nuiher of New aekissions New adeissionc*xpwding of growth of hired *s of te;hers on to PTCs have not to PTCs have notteaching force teaching lorce Jamary 1991. prim_ry payroll exceeded 8.000 exceeded 0.000Is escalating by Ca) aplying lae adissions does not exceed and include at wnd include ateducation the ared to PTC& have 175 000,of ihich least 3.000 least 3,000rectrrent budget staffing policy been decided end no mwe then experienced UTs experiened UTs*nd sqceezing of on teacher the total does 4.500 are UTs. nd no more then nd no mors thanpubl ic resources par elas plua not exceed S.000 school S 000 schoolfor other school 2.SX; (b) a.000. *nd leavers. Nhuber teavers. Numberleluts. _ploying no new includes at of teachers on of teachers on

untrained least 3.000 primary payroll prim_ry payrollteachers WUTs); experierncd UTs. does not exceed does not exceed(c) rsdocing the and no more than 1Z5.000,of oiich 175S000of ,Aichtotal intake to S.m scO ol no more then no eore then 4the PICs but at leaers. 36,000 are UTs. 33.500 are UTs. othe mns timincreasing theintake ofserving UTs.

3. lnadequate To increase the A broad plan GCK has provided 1992/93 1993/94availability of availability of an textbook IDA with an recurrent recurrentessential textbooks in provision has assurance that Estimtes Est imtestextbooks in primary schools been prepared the revised contain an contain ennoWy prim_ry by saom public ihich adiresse 1991/92 allocation for allocation for

scbools. provision of (i) regional recurrent primary school primary schoolbooks to dieparities; Estimates will textbooks. textbooks. Ancoaplowmnt (ii) existing contain an evaluation ofperental/school parentat allocation for the scheme hasefforts. illi . s to primary school been undertaken.

pay; (iii) textbooks.f inncialdetails; andCiv)distribution aid estoragecomnerns. 3De oo =~~~~~3

---- --..------..----...Policy actions ---

(Sept 91) (Sept '92) (Sept 95)

Issues/Problm Objectives Actions slready Before Board 2nd Tranche 3rd TrancheTaken Presentation Release Release

Se§Mcoary Eduoatiop

4. *qpidly tulth taending No new Uts number of Nbober of uber ofe*unding the reqironts hired as of teachers on TSC teachers on TSC teachers on TSCteaching force of the Janiary 1991. secondary secondaryis escalatin curriculma based payroll has not payroll has not p rolli has noteducation esttabli/lnt in aeaad 32.008. exceeded 33.000. exceeded 34.000.recurrent buatt sll public uaer of non- an mmber of udwr of non-and aqsezing schoolo, contain teaching staff non-teching teaching staffpublic rources the growth of on payroll staff on payroll on parrollfor otber sdhol the p_Micly remins at no rmins at no r_Ins at noinputs. fued secodar mwre than 4.600. more than 4.600. ore than 4.600.

dcool teacweby (a) rmpiringall cla" tocoprise atlint 40students; (b)reuiring allteachrs toteach at a*inium 2Speriods perweek; (c)aqploying no newUls other thangraduates inarm ofcriticalshortage;(d) redscing theintake ofuniversi tystudents to E Ed(Arts); and (e)no IonrofferingeqWloVnt toall universitygradustes withedwat ionqial ifications.

I \0 o

- ,,,,, - P----------------- -Policy action- ------->

(Sept '91) (Sept '92) (Sept '93)

Issues/Problem Objectives Actions already Before Board 2ne 7ranche 3rd TrencheTaken Presentation Release Release

Nlgher Education

5. University To limt future Final decision Confirmation of Adeissions to Adeissions toenrollments hav un.t miv ty and public the principles public pulhicexpanied at a *alona and aunnouncement of upon Aich universities in universftles Inrate well beyrnd to *stabNish an the 1991/92 future public 1992/93 have not 1993%94 have notthe physical xnd dislons student Intake university exceeded 10.300 exceeded 10.600bun capacity policy that to the pUlsic intakes will be now newof the this end. 4.4iversities based. ad uwdergraktes. undergraites.universities, (not to excee plwmed numbersmid are 10.000) has for affission indemding taken place. 1992 and 1993unsutaingble hove beenlevels of budget provided to midresources. are acceptable

to IDA.

6. University To ensure that An ad-hoc Uder the ChE, a luplenentation CUE isdaopment an future expanion working grep task grom, ha cenmced of effectively 0eApamion in and financing of has began to responsible for a plan. overseeing thel2cking control public address sc the ptmming, acceptoble to planming,methaniso tor universities of these issues. programming, IDA. Md wiich progra*ing.planning, occurs in a more A decision ha budgeting ond includes budgeting andprogrining, coordinated and beon taken on financing of orgnization, financing offinn and planod fashion the institution puilic staffing, budget publiccoordination. than hitherto, that will bhaw universities, *nd work universities.

the following responaibility has been proorar, for mid is handlingtasks should be for the established, a rsstructuring grants from thestre_tlined: i) financrin and Coordinator, CUE to wmble it public sector topoticy davla_nt of supported with to handle universities asformulation * pLli qc opprpiate effectively the well as donorsector plarming; uaiversities. full-tim staff plaming, assistance. A(ii) budgeting wa budget, has progrming, comprehensivefinacing; and been Wainted, bubeting ard ffiincing -r*(iii) investent and a work finaneng of investmnt planand devlopent progrm for pshlic for the publicplaming. 1991/92 for the universities. universities has

task grosi has been prepredbeen prepared, and isall satisfactory acceptable toto IDA. ID

I gt

------------------ Policy actions ---------------------------->

(Sept '91) (Sept '92) (Sept '93)lssues/Problem Objectives Actions already Before Board 2nd Tranche 3rd Tronche

Taken Presentation Release telease

Niaher Education tcont.I

7. A student Estabtlshmant of Some improvement A student loan. For acadmic For ceademicloan schae has an effective in loan recovey available to all year 92/93. *ll year 93/94, allexisted since student loon rate has been qyelifying new and new and1974. but has schome, as mell achieved. The students, has returning returningfailed to as ash more review of the been capped at students have students havefunction as diret ctcot *dinistration K.Sh.21.50 per paid a direct paid a directsuch. with raeovery, to of the Student student, of charge of chare ofrapid expansion raduce the Loan Schew has ihich no more K.Sh.6,000, K.Sh.6,000,in student finwncial burden started. The than K.Sh. 5,000 minim-a and up minim and upnusbers, greater of hiaher introduction of is availeble for to a maxim of to a maxima ofcost educatlon an the direct charges personal 20X of students 201 of studentssharing/cost exchaquer. for university expenses. have received have receivedrecovery in atudents and the Government hs some finncial some financialhigher education reform of the finanl ized upport to meet support to meetis essential, student loan details for the this charge. The this charge. Theschea, both to iaptc ntation student loan student loontak effect in of the direct recmins capped remains cappedacademic year c e end the at K.Sh.21,500 at K.Sh.21.5001991/92, he" scholarship per student, of per student. LIbeen siounsced fund, nd is which no more evaluation ofby the prepaing for than K.Sh.2,500 new measures togovernWent their is avail-ble for japrove the rate

introduction in personal of student loanacademic year expense. Ip ct recovery has1991I92. of direct been carried out

student charge ad furtheron university appropriateenrollment of actions toecnomically iqwowe loondisadvantaged recovery havegrOeus wd women been agreed withhas been IDA.monitored. Areview of themechan isms toiqprove theeffectiveness ofthe student loan Ischeme has been MDcoapleted and aplan of actionis beingI ispiemented.

---------------------------- Policy actions ---------------------------- >

(Sept '91) (Sept '92) (Sept *93)

Issues/Probltes Objectives Actions already Before B8Ord 2nd Tranche 3rd TrancheTsken Presentation Release Release

Curriculus

S. Current S:A:A strc ine the Thorough review A plan of action loplementation A r port aneurriculm has airriculm so of prim_y a*nd to implement of plan of progress inso e serious tot It cmn be secondary ne d d action is iepls_ntinghotcoings - ffectivelty curriculun has revisions with undrway. reviSed

e.O.aSpectS of ilemsnted, been copleted. targets on in- curricule hascontent abvb service teacher bee prepardconceptual lowel training and and presnted toof pupils too revision of IDA.m*ch material to classroombe covered in _teriels hastoo little tim. ben prepared.

9. Educational Strenthen A plan of action Implementation Inple ntation first aimualgrowth and Institutional for enhancing of plan of of plan of report has beenexpwasion has capacity nd the capacity of action. ction, preparedoutpeced linkages for MoE in the areas including in- including in- reviewingexisting tfficient of edcational srvice training service training progress with

-aagem nt and adUctional _en gment, of Wpropriate of ppropriate implewntationpl=min m a nt/ pluning, policy peraonel. has persormel is of plan ofcepecities, nd _ qrvislon. anlysis sn ben started. contlining. action.reulted in pluming and data collectionineffective dats/ ha benfunctional informtion prepred.linkages between enagemnt.various NOEsctions.

Poor Accerss

10. Poor access Increase access A detailed A study on A reportto prim_ry and perticipatio review of extent wnd reviewingschool In some n in prinry existing data causes of non- progress withres, falling school; reduce end docu sntatio nrollment wnd implementationparticipation In drop-out. n has been drop-out, of action planother areas, d completed, nd together with an has beenhigh rates of tom for studv action plan prep red.drop-out. hav been (with targets)

prFeprd. for tacklingproblem has babeen completed.

Annex 2Page 1 of 4

Table 1: Universitv Admissions 1974/75 to 1990/91

Nairobi Moi Eaerton Kenyatta JKUCAT Masenu TOTAL

1974/75 1711 17111975/76 1753 17531976/77 1519 15191977/78 2098 20981978/79 256'. 25651979/80 2592 25921980/81 2518 25181981/82 2598 25981982/83 1/ 1/1983/84 2477 24771984/85 2470 24701985/86 2563 33 25961986/87 2131 178 142 1047 34981987/88 4204 834 488 3053 85791988189 2854 1178 1202 1967 72011989/90 2794 1173 1890 1062 117 70361990/91 6069 4221 4687 3906 948 1617 21448 2/

Source: Ministry of Education.

Notes: 1. No admissions in 1982/83.

2. The 1990/91 admission comprises 12,243 'A' level, and 9,205 KCSE School leaversi.e. the final years of both the old and the new school systems.

54- AnumIPage 2 of 4

Table 2: Prolected University Admissions. 1990/91 --- 2016117

TotalScience Undergraduate

Admissigns Admisalons (%) Numbers

1990/91 21,448 29.0% 37,8381991/92 10,000 37.9% 41,7311992/93 10,302 39.6% 44,9541993/94 10,613 40.0% 43,9671994/95 10,934 40.5% 46,5471995/96 11,264 40.9% 48,0171996/97 11,606 41.3% 49,389

2001/02 13,470 43.9% 56,784

2006/07 15,635 46.0% 65,380

2011/12 18,147 48.2% 75,396

2016/17 21,065 50.4% 86,980

Source: Project Preparation Working Group.

Table 3A: Sub-Sectoral Distribution of Ministry of Education Recufrent Expenditure: 1986187 - 1995196(Constant 1989 Kenya Pounds)

1986187 1987188 1988/89 1989/90 1990191 1991t92 1992193 1993194 1994195 1995196Actual Projected 11

Primary Education 265,166 278,443 299,098 287,337 312,453 329,901 340,216 344,002 346,813 349,648Secondary Education 59,678 65,640 76,693 81,008 82,469 88,016 91,025 94,005 96,940 99,834University Education 47,151 62,722 79,160 91,930 109,693 111,964 114,477 115,904 126,973 130,782General Admin. & Planning 22,930 22,061 22,981 20.576 19,459 20,043 20,644 21,263 21,901 22,558Teachers Education 15,834 15,897 15,854 13,727 11,603 11,951 12,310 12,679 13,059 13,451Special Schools 2,292 3,127 3,711 3,592 3,893 4,010 4,130 4,254 4,382 4,513Miscellaneous 1,705 1,524 1,936 1,825 1,784 1,838 1,893 1,949 2,008 2,068Pre-Primary Education 276 339 524 564 643 662 682 703 724 745

Total MOE Gross Expenditure 415,032 449,753 499,957 500,559 541,997 568,385 585,377 594,759 612,800 623,599

Total GovemmentRecurrent Budget 1,335,178 1,380,150 1,497,797 1,374,891 1,443,500

Share of Ministry of Education 31.0% 32.6%o 33.4% 36.4% 37.5%

Soure: Staff Recurrent Budget Model.

Note: 1. ProJected on the basis of implementation of policy measures supported underthe Education Sector Adjustment Credit and this project.

IV

tw O

Table 3B Sub-Sectoral Distribution of Ministry of Education Recurrent ExDenditure. 1986/87 - 1995196(Percent)

1986/87 1987/88 1988/89 1989/90 1990/91 1991/92 1992193 1993194 1994/95 1995196Actual Projected 1/

Primary Education 63.9% 61.9% 59.8% 57.4% 57.6% 58.0% 58.1% 57.8% 56.6% 56.1%Secondary Education 14.4% 14.6% 15.3% 16.2% 15.2% 15.5% 15.5% 15.8% 15.8% 16.0%University Education 11.4% 13.9% 15.8% 18.4% 20.2% 19.7% 19.6% 19.5% 20.7% 21.0%General Admin. & Planning 5.5% 4.9% 4.6% 4.1% 3.6% 3.5% 3.5% 3.6% 3.6% 3.6%Teachers Education 3.8% 3.5% 3.2% 2.7% 2.1% 2.1% 2.1% 2.1% 2.1% 2.2%Special Schools 0.6% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7% 0.7%Miscellaneous 0.4% 0.3% 0.4% 0.4% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3%Pre-Primary Education 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% 0.1%

Ut

Total MOE Expenditure 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Source: Staff Recurrent Budget Model.

Note: 1. Projected on the basis of implementation of policy measures suported under the Education Sector Credit andthis Universities Investment Project.

ii=

- 57 -

Amex 3

INTERIM TASK GROUP AND SECRETARIATSTRUCTURE AND STAFFING

A. THE TASK GROUP STRUCTURE

r TASK FORCE l

LEGAL & INSTITUTIONAL PLANNING, PROGRAiiMiING PROJECT APPRAISAL STUDENT LOANORGANIZATION & BUDGETING & IMPLEMENTATION SCHEME REVIEW

SUBGROUP SUBGROUP SUBGROUP COITTEE

The Subgroups will be assisted by specialist panels, resource persons and consulants as necessary.

B. THE SEf.cdTARIAT STAFFING STRUCTURE

COORDINATOR(CHAIRMAN OF IASK

GROUP)

DEPUTYCOORDINATOR

ASST. COORDINATOR ASST. COORDINATOR(PLANNING & PROGRAMMING) (PROJECT APPRAISAL & SENIOR SYSTEMSASST. COORDINATOR IMPLEMENTATION) ANALYST(BUDGETING)

2 ASST. REGISTRARS SENIOR REGISTRARSENIOR CLERICAL OFFICERS SENIOR CLERICAL OFFICER SYSTEMS ANALYSTSECRETARIAL/CLERICAL SECRETARIAL/CLERICAL PROGRAMMER

* The Deputy Coordinator will chair the Project Appraiskl and ImpLementation Subgroup.

- 58 -

Annex 4Page 1 of 2

STRENGTHENING ThE COMMISSION FOR HIGHER EDUCATION

Schedule of Sub-Comoonents and OutPuts

Sub-component Actions/Oututs a

1. Instittional Develonpnt

Establishment of Legal FrameworkReview legal provisions 10/91Prepare revisions 12/91Process legislation 09/92

Reorganization of CHEPrepare organizational structure andstaffing 12/91Submit proposal to IDA 06/92Formal adoption of new structure 09/92Initial implementation ofrevamped CHE 01/93

2. Planning, Programmin.Budgelinand Financing of Public Universities

2.1 Interim coordination of acadern .c Review of courses/admissions ongoingprograms and admissions Proposed 1992 admissions 12/91

Proposed 1993 admissions 12/92

2.2 Long-term planning, programming, Prepn. of guidelines and formatsbudgeting and financing for plans 09/91

Identification of unit costs, norms(staff, utilization of facilitiesetc.) and output indicators 12/91

Prepn. by universities of draft plans:10yr projections6yr development plans3yr investment/finance 09/92

Central review of plans and revisions 12/92Preparation of National Plan forPublic Universities 1993-1999 02/93

Submission of draft to IDA 03/93Incorporation into NationalDevelopment Plan 06/93

2.3 Annual reviews, and proposals Annual review of outputs, and plansfor budgets and finance and prepn. of recommendations on regular

admissions and budget 1993-

- 59 -

Annex 4Page 2 of 2

3. Strengthen Other CHI Functions

3.1 Central Admissions Service Services to institutionalize theJoint Admission Board 01/93

3.2 Coordination of Post-secondary Education Graduate labor market studies 03/93 &(a) HRD & Labor Market Aspects and reviews regular(b) Review Provisions, Outputs,

Standards, etc. Reviews regular(c) Award degrees for non-university bodies Arrangements to be set in place regular

3.3 Promotion of Private TJniversities(a) Accreditation of Universities Continue reviews, visits, etc. continue(b) Promotion of Private Universities Study of feasibility of expansion of

private universities and (OKinterventions 03/93

3.4 Raising of funds for universities Approaches to donors, industry, etcand trust formation regular

-60-An-nex 5

STUJDIES

Outline Terms of Reference

-GRADUATE LABOR MARKET STUDY

OJbectives:(a) To assess the relationship between supply and demand for graduates in the

economy in order to determine current and future graduate labor balances.(b) To identify present and future mismatch in supply and demand, particularly in

different fields of study.(c) To collect information about the characteristics of employment of graduates in

the modem sector and about the experience of graduates in self-employment.(d) To collect relevant information to guide the planning of university

development including the introduction of new courses of study.(e) To contribute to the improvement in the regular collection, analysis and

dissemination of information about the graduate labor market.

Method:It is expected that the study will include:

(a) Review of available labor market data.(b) Tracer studies of graduates.(c) Surveys in selected sectors of the economy.

Estimated Cost:US$ 220,000

HI. DEVELOPMENT OF THE PRIVATE UNIVERSITY SECTOR

Objectives:(a) To examine the present and future role of the private universities in Kenya.(b) To explore the various ways in which the GOK could intervene to assist in

increasing the enrollment in private universities in order to reduce the burdenon public expenditure.

(c) To examine different models of funding the establishment and operation ofprivate universities.

(d) To examine the characteristics of students entering the private universitiescompared with those studying abroad and in public universities.

MethQd:(a) Examination of private university development in selected countries.(b) Examination of various forms of government intervention in private

universities.(c) Study of costs and sources of finance of private universities.(d) Survey of students in the private universities.(el Collection of information from present and potential owners of private

universities.

Estimated CoUS$ 100,000

-61 -

Anngfx

SUPPORT FOR APPLIED RESEARCH

Criteria for Funding

1. Funding will be restricted to applied research projects which satisfy the following:

(a) The topic and planned output is relevant to Kenya's economicdevelopment;

(b) The university has the necessary staff and accommodation;

(c) The related basic research has been completed; and

(d) Funding will not exceed US$ 200,000 for a project.

2. Proposals will be judged strictly on quality and viability. In addition to the abovecriteria, consideration will be given to:

(a) In the case of projects with potential for revenue earning, theireconomic viability;

(b) Links with industry;

(c) Actual or potential links with other bodies, including those overseas.

3. Funding could cover equipment, including pilot plant, materials, staff developmentand support staff.

- 62 - Annex 7Page 1 of 3

UNIVERSITY SIUJBPROJECT SELECTION CRITERIA AND OPERATIONAL INDICATORS

A7. 1 The system for selecting subprojects is designed to achieve two major goals inassisting the rapidly expanding system of university education in Kenya. The first is the developmentof a model for policy making and structured resource allocation at both the level of the universitysystem as a whole and that of the individual university institutions, based on openness and peerreview. The second goal is to improve the content and delivery of the provision.

A7.2 The goals will be achieved by considering and demonstrating sector planningproposals and by financing university-wide and departmentally-based investments in all six universityinstitutions. These interventions will be aimed at improving:

(i) policy making and management of the sector;

(ii) university management and administration;

(iii) curriculum quality, including relevance, in selected science and technology degreeprograms targeted at labor market needs;

(iv) curriculum delivery, through staff development and enhanced equipment, facilities andtheir use; and

(v) national development through closer collaborative links between the universities andlocal employers.

A7.3 The project is designed to improve the efficiency and relevance of the universitiesthrough the introduction of a policy making and operational framework which will provide theguidance and support necessary to improve planning and the capacity, quality, and responsiveness ofuniversity education. The open approach to resource allocation, with agreed criteria and proceduresinvolving peer review and decision making, which has been a feature of project preparation and willremain throughout implementatior, is essential in leading into the longer term planning andcoordination of the university system which CHE is to take on from 1993 onwards.

A7.4 Each university institution is responsible for the preparation and implementation of itsown subprojects, aimed at improving the quantity and quality of service to the students anddemonstrably conforming with its institutional goals and priorities, including particularly developingthose disciplines for which it is the designated national center of excellence. Subproject selection andappraisal is done centrally, initially by the ad hoc group, and then by the Project Appraisal andImplementation Subgroup of the Task Group.

A7.5 Each subproject must first satisfy all of the following overarching requirements:

(a) It is the only way in which the subproject objective can be met, i.e. that otherresources and sources of funding are not available;

(b) It conforms with the institutional goals and priorities, principally the objective ofenhancing the disciplines for which each institution is the designated national center ofexcellence;

- 63 - Annex 7Page 2 of 3

(c) The need for the subproject is urgent; and

(d) The subproject does not require civil works, including buildings services and facilities(minor civil works to accommodate equipment, e.g. the provision of stabilized powersupplies, are, of course, not excluded).

A7.6 The appraisal and selection, and later the monitoring, of the subprojects which meetthese four overarching requirements, is then carried out on the basis of the following five criteria andoperational indicators:

Criterion 1: Capacity to absorb and implement the proposed subgroject.

Operational Indicators - the institution's capacity to implement the proposed siibproject will bemeasured in terms of the current availability of the following:

(a) Space: i) teaching;ii) laboratories and workshops;

iii) other general and specialized.

(b) Supplies and Services: i) water;ii) gas;

iii) electricity;iv) drainage;v) equipment specific (eg electrical stabilization for

computers).

(c) Personnel: i) academic;ii) technical support.

(d) Recurrent Costs: i) finance (eg external maintenance contract);ii) consumables.

Criterion 2: Contribution to improved links with the socioeconomic environment

Operational Indicators

(a) Relevance to labor market:

i) labor market surveys;ii) job vacancies;

iii) graduate tracer studies;iv) institutional advisory bodies.

(b) Collaborative links: i) mechanisms for developing links;ii) type of link - contracts, training and graduate

placement, curriculum design and delivery.

-64 - Annex 7Page 3 of 3

Criterion 3: Contribution to improvements in the quality of teachina and learning

Operational Indicators

(a) Undergraduate courses: i) directly related to science and technology areas;ii) curriculum redesign for KCSE intakeiii) staff development in key discipline areas identified in

the subproject - discipline and pedagogical oriented;iv) increase in practical work;v) improvements in internal effficiency e.g. lab usage,

student:staff ratio;vi) creation of new course programs related to market

demand

(b) Postgraduate courses: i) expected activities related to undergraduate teaching;ii) increase in applicable research.

(c) Central facilities: i) enhancement of libraries, teaching technology andcomputer facilities;

(d) Collaboration with the i) curriculum design and development;world of work: ii) joint student projects

iii) special invited lectures and seminars.

Criterion 4: Contribution to improvement in institutional develogment

Operational Indicators

(a) Financial management: i) planned skill improvement;ii) proposed equipment enhancement;

iii) improved planning and policy;iv) increased capacity to attract outside resources.

(b) Administrative i) planned skill improvement;management ii) proposed equipment enhancement;

iii) improved systems for personnel, facilities andstudents;

iv) improved skills for procurement and personnelmanagement.

Criterion 5: Contribution to improvements in maintenance and rpair

Operational Indicators

(a) Schedule availability: i) maintenance programs;ii) repair programs;

iii) spare part requirement list.

(b) Skills training provided in: i) equipment management;ii) equipment maintenance and repair.

(c) Equipment usage: i) Reduction in down time;ii) Reduction in non-functioning equipment;

iii) Repair of non-functioning equipment.

UNIVERSITY COMPONENTS: IMPLEMENTATION SCHEDULE

1991 1992 1993 1994 1995 1996

Package finalization 0_ __

Package agreement with IDA 09 _

Imnplemenation 01 06

Monitoring 01-06

HASEII

Package preparation 01-04

Package finalization 05 _ _ = _

Package agreement with IDA 06 _

Implerentation _ _ 07 12

Monitoring 06-12

PHASE III

Package preparation 06-09

Package finalization 10

Package agreement with IDA 11

Implementation 01 06

Monitoring _ ___ _ _ | I!

- 66 -

Annex9Page 1 of 2

PHASE I PACKAGES: TYPICAL QUBPROJECTS

A9. 1 The Phase I packages include two distinct types of subproject. The first is concernedto improve the overall management and efficiency of the university institution, and the second toimprove the quality, including the relevance, of its teaching and research. Seven typical subprojectsof both type are described in this annex.

A9.2 The university-wide subprojects are mostly aimAd at improving the collection and useof management information (student data, staff data, funding and other resources) throughcomputerization, involving equipment purchase and the provision of staff training; and at improvinguniversity telephone and transport systems, which have not kept pace with the rapid geographical andstudent expansion of all the institutions, with many more students now at more locations.

A9.3 The second type of subprojects is handled at the departmental level and reflects theurgent need in most courses to improve the practical component and teaching and learning rmethods.All the departmental subprojects seek to redress the current, wholly inadequate provision of the basicequipment necessary to improve delivery, develop appropriate skills and attitudes, and to emphasizepractical applications and rel ̂ v ance. The provision of technician training in the proper use andmaintenance of the new equ pment, and the availability of the space and services it requires, wereimportant factors in the se,ection and appraisal of these subprojects. All departmental subprojectsinclude some staff development; here the selection and appraisal examined the relevance, availabilityand length of the proposed study programs.

A9.4 Egerton University's Department of Agricultural Engineering was originallycreated to train students in those aspects of engineering relating to agriculture. Today the remit of thedepartment has been broadened to include engineering skills and knowledge that will enable the ruralengineer to contribute to the wellbeing of the community, either in traditional engineeringemployment or in the informal or Jua Kali sector. In order to achieve this, the engineeringworkshops and laboratories have an urgent need for basic tools, instruments,equipment and plant.The Phase I subproject will provide equipment for a range of basic undergraduate experiments inworkshops and laboratories, none of wihich are currently available and for which students currentlyhave to travel to institutions in Nairobi. Implementation costs and technician training programs areincluded to cover the use, maintenance and safety of the equipment. The department has sufficientspace to accommodate the equipment requested and has produced detailed plans relating to the sitingand servicing of the larger items of equipment.

A9.5 Egerton University's Centralized Education Materials Unit can no longer cope withthe number of students at the university, and particularly with some exceptionally large classes. Inorder to improve teaching and learning, the university will acquire additional desktop publishingcoi;.puters - at present there is only one key-in computer for all staff -- and associated printingequipment. It will also expand the use of audiovisual aids to improve lecture performance andefficiency. In each case the detailed list of equipment in the subproject is accompanied by appropriateacademic and support staff training.

- 67 -

Annex 9Page 2 of 2

A9.6 Kenyatta University Library aims to provide more books and journals, equipment,library automation and staff training. The library can acquire only 10,000 books and 300 journalsannuallv from its own funds and external donors, whereas it needs in each of the next three years atleast 60,000 volumes and 2000 core journals. Very rapid growth in the number of library users hasresult'd in increased wear and tear on the book stock. The subproject therefore includes newrebintding, repair and photocopying equipment. The automation of the Kenyatta University Libraryhas been discussed at joint meetings of all the university librarians with a recommendation toimplement compatible systems. This will be achieved by acquiring CD ROM technology in amicrocomputer network for operation, access and reference. The subproject will also expand thelibrary's unique service to blind students, who are currently restricted to studying only four subjects.

A9.7 The University of Nairobi Science Workshop will be upgraded as a subproject, inorder to expand the university's routine maintenance and minor rep tir capacity. The existingworkshop has a number of units covering electrical, electronic and .nechanical engineering,glassblowing, forming plastic materials and spray painting. Existing equipment is heavily used, andin some cases needs upgrading. The subproject includes electrical and electronic equipment and arange of commonly needed spare parts as well as glass rod and tubing and related staff development.

A9.8 The University of Nairobi Biochemistry Department epitomises the difficulty ofreconciling explosive growth with high quality teaching, learning and research. Student numbers haveincreased from 100 to 1000 in ten years, in areas such as medicine, veterinary medicine andagriculture where the development of practical skills is of paramount importance. In addition, thedevelopment of new techniques and the obsolescence of older items and methods requires continuousupdating of equipment and staff. The department has made special arrangements with local expertsfor the rep Žr and updating of some of its equipment. It also has an active link with UniversityCollege, London in Britain to train its technicians in routine laboratory practice, maintenance andminor repairs. Its Phase I subproject ijncludes two major items of equipment along with related staffdevelopment. The items were selected from a larger three year proposal following discussion of themost urgent needs, the space and resources immediately available and the department's 10 yeardevelopment plan.

A9.9 The Jomo Kenyatta University of Agriculture and Technology has centralized itspractical training into a Unit for Production and Innovation. The unit's objectives are to coordinateand make effective use of limited expertise and equipment; to provide workshops for manufacture andrepair; to strengthen links vith local industry; to encourage entrepreneurship and provide "real world"student projects and industrial placements. The subproject will expand and improve this facilitythrough the acquisition of new equipment for manufacturing (including metal machining and shaping),woodworking, instrumentation and inspection. Space and services are available in the existingcomplex with sufficient support staff for maintenance, laboratory prepaiation and research.

A9. 10 Moi University's Computer Center serves all academic disciplines and also theuniversity administration. At present the center has only 30 personal computers for all students,including 600 taking computer courses. The goals of the university include the production ofpractically oriented students. The subproject aims to provide adequate facilities, access andexperience. The Phase I subproject will treble the number of personal computers and provideadditional software and printers. The computer center subproject is linked to a separate subproject toenhance the university's central management planning department, which will also supply personalcomputers to assist with the collection and presentation of management information. The computerequipment in both subprojects will be compatible, resulting in efficiencies in staff development,software and maintenance.

PHASE I PACKAGES: SUMMARY LIST OF SUBPROJECTS

I. UNIVERSITY OF NAIROBI

TITLE MAJOR ELEMENTS CRITERIA a/ COST (US$)

University-Wide

1. Telephone PABX System 1,2,3,4 313,0442. Transport 6 buses + spares 1, 3, 5 417,3913. Printing Desk top publishing equipment 1, 3, 4 141,6004. Computer Lab Diagnostic Computing Lab 1, 2, 3, 4 200,0005. Library Staff development equipment, texts 1, 3c 725,0186. Health Centre Staff development, equipment i, 4 371,8057. Administrative Staff Training Staff development 1, 4 80,000

Departmental

9. Vet. Anatomy Staff development, equipment 1, 3a 107,10410. Animal Production Staff development, equipment 1, 3a, b 35,66011. Animal Physiol. Staff development, equipment 1, 3a 54,14412. Crop Science Staff development, equipment 1, 3a 57,83013. Public Health Staff development, equipment 1, 3a,b 66,65014. Clinical Studies Surgical equipment, staff development 1, 3a,b 105,81715. Soil Science Staff development, general equipment 1, 3a,b 93,72316. Range Management Staff development, equipment 1, 3a,b 47,92117. Kibwezi Field Station Equipment 1, 3a,b 24,76118. Vet. Path & Micro Staff development, equipment 1, 3a,b 77,40319. Botany Staff development, equipment 1, 3a 51,96120. Chemistry Staff development, equipment 1, 3b 334,09821. Geology Staff development, equipment 1, 3a,b 196,593

a/ Refers to criteria in Annex 7

oIi

TITLE MAJOR ELEMENTS CRITERIA a/ COST (US$)

22. Mathematics Staff development, computers+accessories 1, 3a,b 61,08623. Meteorology Staff development, equipment 1, 3a,b 80,57024. Physics Staff development, equipment 1, 3a,b 114,53225. Zoology Staff development, equipment 1, 3a,b 109,58026. Science Workshop Staff development, maintenance and

production equipment 1, 3a, 5 50,42427. Biochemistry Staff development, HPLC, Elisa Reader 1, 3a,b 86,80028. Dental Surgery Staff development, surgical instruments 1, 3a,b 81,66229. Human Pathology Staff development, equipment 1, 3a 186,10030. Human Anatomy Staff development, microscopes, ava 1, 3a 144,90031. Architecture Staff development, computers+accessories 1, 3a,b 61,33232. Civil Engineering Staff development, equipment 1, 3a,b, 5 241,29433. Education Tech. Staff development, equipment 1, 3a 100,985

TOTAL 4,127,860

o 0

Eli. MOF UT1ST

TlTLE MAJOR ELEMENTS CRrrERIA COST (US$)1st Phase

Universitv-Wide

1. Management & Planning Staff development, computing equipment 1,4 174,5702. Computer Centre Staff development, computing equipment 1, 3,4 159,8003 Instrumentation Centre Staff development, equipment 1, 2, 3, 5 117,7004. Printing etc. Staff development, equipment 1, 2, 3, 4 103,1505. Telephone Services Equipment 1, 2, 3, 4 310,0006. Transport Equipment 1, 3, 4, 5 360,000

Denartmental

7. Environmental Studies Staff development, equipment 1, 3b 234,2878. Elec. & Comm. Technology Staff development, equipment 1, 3b 322,5009. Production Technology Staff development, equipment 1, 3 243,38010. Education Technology Staff development, equipment 1, 2, 3 98,65011. Home Science & Technology Staff development, equipment 1, 3 74,51212. Human Anatomy Staff development, equipment 1, 3 177,80013. Human Physiology Staff development, equipment 1, 3 223,89814. Microbiology Staff development, equipment 1, 3 131,75015. Diagnostic Radiology Staff development, eqcuipment 1, 3 73,40016. Clinical Pharmacology Staff development, equipment 1, 3 136,76017. Social & Preventive Medicine Staff development, equipment 1, 3 45,34018. Dept. of Wildlife Management Staff development, equipment 1, 2, 3 62,43419. Forestry Staff development, equipment 1, 2, 3 161,16020. Mathematics Staff development, equipment 1, 3 52,17821. Chemistry Staff development, equipment 1, 3b 398,50022. Physics Staff development, equipment 1, 3 227,70023. Zoology Staff development, equipment 1, 3 212,60024. Botany Staff development, equipment 1, 3 144,627 jW D25. Technology Education Staff development, equipment 1, 3, 4 143,380

TOTAL 4,390,076

E. KENYATTA UNIVITY

TITLE MAJOR ELEMENTS CRITERIA COST (US$)

University-Wide

1. Library Services Staff development, equipment & texts 1, 3a,c, 5 380,7262. Science Workshop Staff development, equipment 1, 3a,c, 5 160,5803. Telephone Staff development, equipment 1, 3c, 4 595,9974. Transport Staff development, vehicles 1, 3, 5 266,516

Departmental

5. Appropriate Technology Centre Staff development, workshop equipment 1, 2a,2b 67,2046. Biochemistry Staff development, lab equipment 1, 3a 162,9057. Chemistry Staff development, lab equipment 1, 3a,b 345,8148. Communications & Technology Staff development, equipment 1, 3a,c 342,3509. Computer Project Staff development, computers,

conversion of rooms 1, 3a,c, 5 601,00010. Environmental Studies Staff development, equipment 1, 3a 310,01911. Geography Staff development, equipment,

conversion of rooms 1, 3a 75,50012. Physics Staff development, equipment 1, 3a 379,00913. Zoology Staff development, lab equipment 1, 3a 412,90014. Botany Staff development, lab equipment 1, 3a 155,352

TOTAL 4,255,872

.- '

-410

IV. EGERTON UNIVERSITY

TITLE MAJOR ELEMENTS CRITERIA COST (US$)

Universitv-Wide

1. Central Administration Staff development, computerization, 4b 214,742transport

2. Library Staff development, texts, library equipment 1, 3c 715,9773. Educational Materials Centre Audio visual equipment, staff development 1, 3a,c, 5 387,490

Departmental

4. Chemistry Staff development, lab. equipment 1, 3a 329,7505. Animal Science Spectrophotometer + accessories 1, 3b 13,0006. Computer Science Staff development, computers, 1, 3c 364,970

+ accessories7. Agronomy Staff development, basic equipment 1, 3a,b 248,1008. Mathematics Staff development, office & ava equipment 1, 3a 33,1009. Physics Staff development, basic equipment 1, 3a 188,00010. Agricultural Engineering Staff development, lab & workshop equipment 1, 3a, 5 1,242,85311. Botany Staff development, basic equipment 1, 3a 270,00012. Zoology Staff development, basic equipment 1, 3a 261,57613. Animal Health Staff development, equipment 1, 3a,b, 5 164,864

TOTAL 4,434,422

V. JOMO KENYATrA UNIVERSrrY COLLWE OFAGRICULTURE & TECHNOLOGY

TITLE MAJOR ELEMENTS CRITERIA COST aUSS)

University-Wide

1. Library & Publishing Staff development, equipment & texts 1, 3c 154,8142. Institutional Development Staff development, office & computer

equipment 1, 4a 171,6743. CCTV Major renovation, staff development,

equipment la,c,d, 3c 56,000Departmental

4. Chemistry Staff development, basic lab equipment 1, 3a 453,277 _,5. Physics Staff development, basic lab equipment 1, 3a 459,4896. Botany & Zoology Staff development, basic lab equipment 1, 3a 591,8307. Maths & Computing Staff development, computers 1, 3a,c 274,0938. Practical Training Staff development, mechanical & 1, 2b, 3a, 5 270,000

(Ag. Eng) workshop equipment

TOTAL 2,431,177

a

VI. MASEO UNIVERSY COLLEGE

TITLE MAJOR ELEMENTS CRITERIA COST (US$)

Univesity-Wide

1. Institutional Development Staff development, equipment 1, 2, 3, 4 170,0002. Computer Services Staff development, equipment 1, 2, 3, 4 405,0003. Tranport Staff development, equipment 1, 2, 3, 4, 5 420,0004. Library Staff development, books, equipment 1, 3 600,000

)epartmental

5. Botany Staff development, equipment 1, 3 83,9686. Chemistry Staff development, equipment 1, 3 63,8537. Communication & Technology Staff development, equipment 1, 3, 4 141,0008. Geography Staff development, equipment 1, 3 80,0009. Home Science & Technology Staff development, equipment 1, 3 59,00010. Physics Staff development, equipment 1, 3 70,00011. Zoology Staff development, equipment 1, 3 107,373

TOTAL 2,200,194

-t

q 0

UNIVFRSITI[S INVESTNEUI PROJECTProject Components by Year

IXSH. I 000)

base Costs Total

91/92 92/93 93/94 94/95 95/96 ISH". IIU$ 00

A. CtEIRAt SERVICES

I CENTRAlt SERVICES 42.696 49.481 51.090 51. 198 51.306 245.771 9.0922. PR0JECT PREPARATION fUND 9.461 - - - 9.461 350

Sub-total CENTRAI. SERVICES 52. 15? 49.481 51.090 51, 198 51.306 255.232 9.4428. INDIVtDU4t UINIVEQSIIIES

1. KtYAIlIA 39.574 79.338 42.980 43.007 43.034 247.934 9. 1722. AIRI081 39.547 79.311 42.196 42.223 42.223 24SS.01 9.0823. MCI 39.574 79. 338 42. 115 42. 169 42.223 245. 420 9.0794. EGERTOII 39. 01 79. 284 42.710 42.737 42. 764 247. 096 9. 1415. JAUCAI 19. 409 38, 817 21.815 21. 85 21.842 123. 697 4.5766. IASENl 19. 787 39. 628 21.301 21. 355 21. 409 123. 480 4.568

Sub-lotal INDIVIDU3t. UNIVERSlitS 197.493 395.716 213. 117 213.306 213.496 1.233. 128 45. 18

lotal ASEt IR COSIS 249.65i 445.197 264. 207 264.504 264.802 1.488.360 55.060Price Contingenc. s fi.948 30.892 29.314 40.072 54.237 161. 463 5.973

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

lotal PROJECI COSTS 256,598 476.089 293.521 304.576 319.039 1.649.823 61.033

forign Exchange 21f,460 428. 461 236. 636 243. 776 254. 726 1.3S0.058 51. 054

July 25, 1991 13 35

1-;

II

5(N7*iEvtEsilIltS ItlISIKII PllWECiProject Cipoenents by T"r

Ws *0001

Bass Costs lotal

91/92 92/93 93/94 94/95 95/95 US S l)S S 0001

A. CEUl1AI StWICIS

1. £ni1t8l SIRVICES 1.580 1.831 1.890 1.894 1.B98 9.092 9.0922. PIOIICI MPPR*1I UN FUD 350 350 350

Sub-loIa# C£51t3l SERVICES 1.930 1.831 1.890 1.894 1.898 9.442 9.4428. IIDIVIIIUII IUVlIRSliltS

1. 8ElutIl* 1.464 2.935 1.590 1. 591 1.592 9. 172 9.1722 UIEU8I 1. 463 2.934 1.561 1.562 1.562 9.082 9.0823. 110 1. 464 2.935 1.558 1.560 1.562 9.079 9. 0794 E(GSIIt 1. 4615 2.933 1.580 1. 581 1.582 9.141 9. 1415. M1C1I6 73t8 1.436 80? 807 808 4.576 4,5766. 115E11 732 1.466 788 790 792 4.568 4.568

...... ... ...... ......... ....... .. .... .... .. ...... .... .........

Sub-1041 INDIVIDUAL IUlIVERSIIIIS 7,306 14.639 7.8U4 7.891 7.898 45.618 45.618...... .... .... .... ... .. . ... .. .......... .... . .. .......... .. .

lotil MISEl E COSIS 9.236 16.470 9.774 9.785 9.?96 55.060 55.060Price Cont secuss 257 t 143 1.084 1t482 2.006 5.973 5.973

lote) PgIICI COSIS g,493 17.612 10M8AU 11.267 11.802 61,033 61.013

loreipg [&chengm 8.008 15.850 8.754 9.018 9.423 Si. 054 51.054-- - - - - - - - - - - - - - - - --- --- --- --- --- --- --- --- --- .... .... ...... ........ .... .. ................. .

Mly 25. 1991 13 39

-U-

UNIVERSITIES INVEShH6K4 PROOECtProjct Compoents by Ts.r

lotals Including Coantingnci.s lolals Including Conl irgeniesUISH. '0001 WS$ '0001

91/92 97293 93/94 94/9; 95(96 lol;al I/92 92/93 93/94 94/95 95/96 tolal

A CutuimI surlRcus.. .... . . . . .

1. CN141U SERVICES 44.480 55.329 60.415 63.666 67.029 290.920 1.645 2.047 2.235 2.355 2.480 10.7622. PROJICI PIMPARAIION I118D 9.461 - - 9.461 350 - - 350

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

Ssh-IotIl Cf'4R1t SERVICES 53.941 55.329 60.415 63.666 67.029 300.381 1.995 2,047 2.235 2.355 2.480 1l. 1128 IKOiVlIuiM t11V1F9tSliltS

........................

I milttAtl 40.582 64.180 46.659 48.119 50.291 269.838 1.501 3.114 .1726 1. 780 1.861 9.9822 NAIRi81 40.594 84.416 46.411 48.018 50.203 269.643 1.502 3. 123 1. 77 . 776 1. 857 9.9753 ElI 40.6 45 84, 602 46. 476 48. S17 50. 423 270. 304 1 504 3. 130 1. 1t9 1. 782 865 tO 0004 EGER108 40,607 84. 106 46.655 48. 189 50.393 269.950 1. 502 3. III t. 726 t. 783 1.864 9. 984S5. UCattI 19.913 41.256 23.676 24.400 25.521 134. 766 737 1.526 876 903 944 4.9856. RISEtn 20.314 42.199 23.229 24.027 25.172 134.941 751 1.561 859 889 931 4.992

S.b-lotIl I3NIVlO(u*t UNI VERSITIES 202.656 420.759 233.106 240.910 252,010 1.349.442 7,497 15.565 8.623 8.912 9.323 49.921.. . ... .. . . . . . ... . ..... .. . ... .. . . . . . ... .... .. . ...... ..... . ..... . .... .

TlWt Pl0D1fCI COSIS 296.598 476.089 293. 521 304.576 319.039 1.649.823 9.493 17. 612 t0.858 t. 267 11.802 61.033

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

July 25. 1991 13:35

-JGo

WlnttSililS ltoSlilat tECIPgOitCI COSI S_3Wt

5t58 I000) tSs 000 I total. ------------------------ - ---------------------- I Foregn Base

tocal foreign SolaI ota foreign total [.chnge Cosis

A. CtulS1 SERVICES

1. CEIIIUI StUnlS 133.520 112,251 245. " 4.539 4.153 awM 46 172. P021CI M?IIPARAIlt lUDt 9.461 - 9.4E1 350 - 350 - I

Ss4-loSaS CIKlIl SElttlCtS 142.981 112.251 255.232 5.289 4.153 9.442 44 17. oivgolWi oiugtuSitus

1. 16IA8116 6.236 241.698 247.934 231 8.941 9 .72 97 It2. lUitJS 19.449 226.052 245.501 719 8.3t3 9q.032 92 163. IEt 24.032 221.337 245.420 891 S.1on 9.079 90 164 (G69I30 10.E507 236.489 247.0ff m R.149 9.141 95 175. aIcI"U 3. 998 is.19 9 123.i19 148 4.428 4. 576 97 86. R35EI10 E,877 116.604 123.480 254 4.314 4.568 94 8

Sih-totel IUPIIIUAI 331VE05111S 7I.250 I.161.818 1.233. 128 2. 63E 42. 82 45.658 94 83

total BASE611E COSTS 214.231 1 274. 29 1. 48. 3l0 7.925 71.35 S5.060 8S 0ooPrice Contingwc iSs 5 1.533 105.929 151.443 2.054 3.919 5.973 66 13

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

Total Pt.CI COStS 269.164 1.380.058 13.49.823 9.9810 51.054 61.033 84 III

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

July 25. 1991 13 SS

II

U!tlt£RSIli£S 1111S,ll1i WKIRtCS%vry Akco.mts by Test

MS"ls oomt

am CoIs Foreigm lschang.

91112 92f13 8t3194 9415 SS/96 loSal I t

I limsltl£tl CoS15...a .11s.. a . ..

A toSXtivltlolt 01111tal"l0Pl111.. .. ...........

I lIS3IIIalatilt 0,tIWtltP i 2.054 4.136 11. 786 11.813 11.814 41.683 500 20.84I2 cWUsuiLIUIs 1.243 1.210 405 405 405 3.710 70.0 2.633

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

Sub-lotal IUS3IIUI3UIaI DtViIOP2IVT 3.298 5.406 17.191 12.218 12.29M 45.413 5I 6 23.4536 Staff OIVEtLWPEUI. SItNISARS. 8 3t8l3l3tG

1. Siil oTviIlaml 14.840 79.816 27. 113 27. II3 27. 140 176.021 60 0 75. 6132 stall IR36t811G 8.245 8.2745 8.082 8.082 8. 364 40.118 t0 0 4.0821 SItNhARS AND WUMSIOPS 2.757 2.757 2.595 2.62? 2.627 3. 354 0 0 0

Stit-lotal SWAll DiVEIitOPMI. SFUINAIS. S M1ININSG 25.842 g 40.818 37. 0 37.81 317.925 180. 93 44 7 79.695C IQUIIPKINI AN0 IURUIIURI 130 482 247. 150 l05.3 lS 05.4 23 105.450 693.820 1000 693 8700 SIUDI£5 6.03S 6.015 2.298 2.298 2 298 18.922 so0 9.463F IIa B73.679 35.411 38.109 38.799 38.736 369.245 300 0 169.2451. IE1P3a3 13.1 462 27. 0F6 S. 363 6. 363 6. 663 s9. 037 3000 o 59.037G IRttSPDtti 12.840 25.1761 15.41 IS. 8 5. s6 86. 177 M go0 0 s. I77a PsuimliN 6.185 I 33.97 8.380 8.407 8.434 45.602 500 0 45.602I . co£t3 ING6 15. 300 30. 735 20. 490 20.544 20.571 3o0. 640 3oo0 0 07. 640J pPI 9.461 - 9.463 00 0

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

Total ImSINIUI Cots01 243. 362 431.978 247. 377 247.447 247.745 1.415.50 90. 0 3.274. 129

11. RCERAUIG COStS

I. SIMss 4.055 4.055 5. 40 5.406 5.406 24.328 00 02. las. GPs - 2.027 2.103 2.703 2.703 30. l37 00 03. 033119 2.703 4.487 4.514 4.534 16.219 0 0 0

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

S-& Io0l3 OPER9*V3G COSIS 4. 05 8.1785 12.597 37. 674 2. 624 50.684 0 0 0a3flE31Ia130U 4.431 4.633 4.433 4.433 4.433 27. 368 0 0 0

loSeS MtC£I3IOU COS0S 8.488 13.218 37.030 17.057 17.057 72.850 0 0 0lo3l 89571331 COSIS 24. 650 445. 197 264.207 264.504 7U2.807 1.488.360 85 6 1.274. 329

Prece tCan.sngcwes 6.948 30.8S2 79.314 40.072 54.237 165.463 65 6 305.979

Intel PROtICI COSIS 756.598 476.089 293.s27 304.576 319.039 3.649.823 83 6 1.380.058

loreg EuxcIung 236.460 428.461 236. 636 243.776 254.726 3. 380.058 0 0 0

... ... .. ..... ...... . .. . ... .. . . .. .. . .. . .... ...... .. ......... ................ ....

duly 25 199 13: 35

to

00

tl4vt3SIlfS IMWSIESNI PUJtCISurn.'y Accounts by lear

totls Includsng Cont ntupncbes lotals Includ.gng Contngenc es(IS"1 I000) 1)151 '0001

91/92 92/93 93/94 94/95 95/96 lotal 91/97 92/93 93/94 94/95 95/96 IOtat

I ItJ1Slt1t1l COSIS

.. .. ... .... .

I IS1I5 UltJllA8 ClvlOPNiNI 2. 139 4.606 13.823 14.543 15.375 50.488 79 170 Sill 538 559 1.8682 CoKS1iIAtliS t.287 1.387 460 480 503 4.11, 48 SI 17 is 19 152

Sub lotal INSIIIUIIGI114 OivrbOPrnNI 3.426 5.993 14.284 15.023 15.878 54 604 127 222 527, 556 587 2.0208 Slttil DtVEtO im.l SINIAmRS. A IRAINItNG. ... ...................... ..... .

I Stall DESttoPtlEI 15.404 32.883 31. 291 32.725 34.360 146.664 570 1. ?16 1. 158 1.211 1.271 5.4262 SllAI IRAIItIG 8.592 9.540 10.086 10.731 11.424 50.473 322 353 373 397 423 1 8673. SEM8INARS AND WDORtSHOPS 2. 916 3.220 3.287 3.545 3.739 16.707 too 119 122 131 138 618

Sub total StAfI OEVEIOPMIOII. SlEMINARS. 8 i1RA8IIN 27.012 45.643 44.665 47.001 49 523 211 844 999 1 689 1 652 1.739 1.832 7 911C fQUtIPPtiN *0 IIURlIIIURt 131. 744 261. 843 113.641 117.067 122,261 748.555 4.948 9 687 4 204 4. 331 4.523 27. 6920 SlUDtES C 263 6.698 2 695 2.829 2 970 21 455 712 2.8 100 IOS 110 794f lIBRAlRt 18. 121 37 517 41.769 42 985 44 911 18S 103 670 t 388 I 545 l.590 1.661 b.85SI tEtiPHOttf 13 798 28.696 6.650 6.844 7 146 63. 134 510 1 062 246 253 264 2 336G IRANSPORI 13. 161 27.293 17,093 17 620 18 397 93.564 487 1 010 Ell 652 681 3.461II PRINTING 6.955 14.405 9.042 9.335 9.778 49.516 257 533 315 345 362 1 832t CONPU I ING 15. 682 32. 562 22.110 22.813 23.850 117.018 580 1.20S 838 844 882 4 329a PPi 9.461 9.t1 350 3S0

lotal INVISINlNIl COSIS 247.622 460.650 271.949 281.518 294.715 1,556.454 9, 160 17. 041 10.060 10 414 t0.903 57.579

It RECUIRENIT COSIS

A. OPIRAtING COSIS

I SIltlf 4.288 4.736 6.848 7.309 7.710 30.890 159 175 253 270 285 1.1432 IASI CPS 2.368 3.424 3.654 3.8S 13. 301 8S 127 135 143 4923 0OIHE 3 1S7 5.584 6. 103 6.437 21. 381 117 210 226 238 791

S.b-IoIal 0PERA111NG COSIS 4.288 10 261 IS 956 17.066 16.002 bS 573 159 380 590 631 666 2 426a IIIPItINIIIUIlOt 4.688 5, 178 5.616 5.993 6 322 27.796 113 192 208 222 234 1.028

Oetal RECURREtI COSIS 8.976 IS 439 21.572 23.059 24.324 93.369 332 571 798 853 900 3.454. - - --: - : - - . . . - : - : ~~~~~~~~~~r-: : : : : .... : :: :_ : - --- :

tolol PROJECI COSIS 256.598 476.089 293.521 304.576 319.039 1 649.873 9.493 17,612 10.858 11.267 11.802 61.033

.. J. .....y.. .............. .. .. .... ..... ....

July 25, 19S1 13 35

00

KENYAuWltRSlIIfS ,mVts:iti MtJECISUNlIAR, ACCOurIs COSI SuWi,IAR

IN5". 10001 tuSS '000) 1 lolal.... .... .... .... .... .... - .. .... ... . - 1 2 oreigns Base

tocal foreign ;o;al local to0e.gn tolal Elc6, nge Costs

1. ItutSiUu1 CostS..... ........... ....

*a ltSIlIlullo4 DIVYLIOPIINI-1 .. ... .... ........ . - .

I ItSlluIOUaIt OvEtOPloltil 20.84. 70.84i 41.683 771 771 1.542 50 32. CONSUIJINIS t119 2.611 3.730 41 91 138 70 0

S.b-1ol6a IiSIltiUltONI OiVI6O1: tPINI 21.960 23,453 45.413 812 858 1.680 5? 38 SliSi WVIIlOPP110. SE"INARS. 8 IRA 1titG

. .... . . . . . . .. . .. ...

I STA54 06VE0OPllNl 50. 409 75. 613 126.021 1, 865 2. 797 4.662 60 a2 STAFF 1681N1MG 36. 36 4.082 40.818 1. 359 56 1. 510 10 31 SfINNRAS MA iISiOPS 3. 354 13. 354 494 - 494 1

S5A lotal SIAFI WIVElOPIINI. SilNiaRS. a IRNIN6IIG 100.498 79.695 180. 193 3.718 2.948 6 666 44 12C EOUIPiIINI AND IURNIIURRI 693.820 693.820 - 25.667 25.667 300 470 SIUDIES 9.461 9.461 18.922 350 350 700 JO It tLiBARY 169.245 169.215 6.261 6.261 100 ItI Illti lOI 59.037 59.037 2. 184 2. 184 100 4C IRaUSPORl 86. 177 86. 177 3. 188 3. 188 100 6N P911308 45.502 45.602 3.687 1.687 100 1I C lPttIING 107.640 107.,40 3.982 3.982 100 7J. P9F 9.461 9.461 350 350 1

,. ........ .......... -- - -- - ---- --- -- ------ . . . . .total IIVISINtiN COSIS 141. 381 1,274. 129 1.415.510 5.230 47.135 52. 365 90 95S

11 RtSU!tNINI cstOS -

A OPERTEING COSIS..............

I SIall 24.328 24.328 900 900 22 IASI ces 10W1l 10.137 375 375 13. 018R 16. 219 16. 219 600 6 50 I

Sub-lotal PtR811t0G ttSIS 50.684 50.684 1.875 I.875 38 INPItEdI6UAlalo 22. 166 - 22. I66 820 820

, ... ... .......... ..... .............. . ....... ....... ...... ....... ........... .... . .

Iladl R11CtiJMI OSIS 72.850 72.850 2.695 .2695 5lotal UASElitE cOSIS 214.231 1.274. 1?9 1.488. 360 7.925 47. 135 55.060 85 100

Price Comingiges 55.533 t05.929 16. 463 2.054 3. 919 5.973 66 1I

lotal tttCI COSIS 269.,64 1.380.058 1.649.823 9.980 o,O054 61.033 84 iIlJ- 2.. 1- -3 -. 3-----

Jult 23. 1991 11.35

to

00

tmtlvtBSiliS IttwSl;lt pu£tlS ry ccount by Project Cowent

Stt 0001

CINIRAL SERVICESPhys caI

PRWtCt InD1IV1DtA umTlfuSMiMS £ti ngenit6I PPRItP4JU£O -------------- . -

SRVICFS ItPID 6W111* 3iR£131 "at tCERIOU JKUC*I 8*5630 lolal 2 t

I hKmslffl CosiS

A ItSIIIUII£t4t (l 018101216911............ ............. I ....... _

I lnstIiIUllu At i t vianottll - 3. 109 4.622 3.319 16.976 6.352 7.244 41.t683 00 02. C(JS01812IS 3.730 - - - 3. 710 00 0

Sb-lotaI IM$lII0hilI*tI OfittOVliUN 3. 130- 3.109 4.622 3.379 16. 976 6.352 7.244 45.413 0 0 0B SiAlf OIVE&I££I11 SEMINARS. 8 MININHG. - -..... ............. ......... ....... .....

I SlAfl DtWtlOPtWII - 705 42.845 55.982 5.298 2.054 6. 137 126.021 0 0 02 SlAF IRAINIHC 40.818 * - 40.818 0 0 03 SttINIRS AND ttlDPS 13.354 - 11.354 00 0

Siu lotiol SlFf1 D1tiot Ni . stInimAS. 8 toAlmlntG 54 1 I 11 705 42.845 55.982 5 798 2.051 8 137 180. 19 00 0C 209IPWMI Of A FO311IURI S6.097 114. 857 98. 665 123. 859 130 544 106. 775 22. 923 693. 82 00 0D SIUDI0S 18.922 18.922 00 0E 118*RAR 54.98 29.221 - 37.493 6.082 41.466 169.245 00 0f il£1P7ltDIE - 22. 761 13.516 22.761 - 59.037 00 0G (RftSPORI 11.542 17.273 17. 354 19.949 20 057 86. It7 00 0I PRI9IIG. - 9.245 13.971 14. 813 2.433 5. 190 45.602 0 0 0I COPU I I -G 28.978 30. 1 8. 164 21.921 18. 463 107.640 0 0 0J PW2 9.461 9.461 00 0

o108 IIiV[$111211 COSIS 172.921 9.461 247.934 245.501 245.420 247.096 123.697 121.480 1.415.510 0 0 0

11 RE1URR0 It WSIS

A 081a5l*21 coSIS

I 15141 24. 328 - 24.328 00 02 2AS GPS 10.137 - - - 10.117 00 03 OIH£R I5.219 - 16.219 00 0

s5d,101o1 OPR8 tI9tC COStS 50.684 50.684 0C 06 lltItEtl2IAIIb6 22.166 022.26 00 0

lotal R1CU19t53 tt0515 72.850 - 72.850 0 0 0total 8c5£118f Ct7SIS 245. 771 9.461 747.934 245.50t 245.420 247.096 123.697 123. 480 1. 488. 360 0 0 0Price Contiltc ses 45. 149 21.904 24. 142 24.884 22.854 11. 069 11.461 161. 463 00 0

lot&t PgttJE21 CosIs 720.920 9.461 269.838 269.643 270.304 269.950 134.766 134.941 t.649.823 0 0 0: ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ - -- -. -- : - : -- = : : = :

foreign Exchasnqe 122. 114 261.804 244.592 239. 477 255.974 129. 765 126.312 1. 380.058 0 0 0.. .. . .. ... ...................... .............. ..3--------------------- -- .5.... ..... ..... ... ...... -------------------My( 25. 1991 13. 35

CID

- 83 -

Annex 12

TECHNICAL ASSISTANCE REQUIREMENTS(Person-months)

i_____=_________- ______ Foreign Local Total -F/Il/

CENTRAL CHE: Information System 4 9 13 | FCOMPONENTS __

CHE: Legal Analysis - 3 3 1

CHE: Org & Mgmt Analysis . 3 3 I

CHE: Prog & Budget 6 12 18 I

CHE: Miscellaneous 3 12 15 Ff1

Loan Scheme: Info system 2 9 11 F

Loan Scheme: Impactevaluation 3 14 17 F

________________ Loan Scheme: Collection I 10 11 I

Loan Scheme: Miscellaneous 3 12 15 F/I

Studies: Labor Market 6 18 24 F

Studies: Private Univs 4 14 18 F

Studies: Univ Access 4 12 16 F

Studies: Project Evaluation - 8 8 F

Studies: Future 8 24 32 F

Total 44 160 204

UNIVERSITY Institution Planning 12 12 FCOMPONENTS . . . .

Management and 16 16 FAdministration

Finance 4 16 20 F

Procurement - 5 5 F

. Information Systems 6 10 16 F

Miscellaneous 10 15 25 F/I

Total 20 74 94

TOTAL PROJECT . 64 234 298

11 F=firms I=individuals

- 84 -

Annex I

ESTIMATED IDA DISBURSEMENT SCHEDULE

Cumulative CumulativeDisbursements Cumulative Disbursements Disbursements

IDA Fiscal Year During Semester Disbursements This Project Country Averageand Semester (US$ million) (US$ million) (%) (%)

19921st 0.3 (PPF) 0.3 1 02nd 8.1 8.4 15 3

19931st 7.6 16.0 29 62nd 7.5 23.5 43 14

19941st 5.1 28.6 52 222nd 5.4 34.0 62 30

19951st 5.1 39.1 71 422nd 5.4 44.5 81 54

1996Ist 5.1 49.6 90 622nd 5.4 55.0 100 70

- 85 -

Annex 14Page 1 of 2

IMPLEMENTATION RESPONSIBILITIES OF CHE AND THE PIU

I. Commission for Higher Education (CHE1:

CHE, initially through the Coordinator, would oversee, review and report to thePermanent Secretary of the Ministry of Education on the following functions related to projectimplementation:

(a) Preparation of Work Program for project implementation.

(b) Preparation of an Action Plan with detailed Implementation Schedule by projectelement to execute the Work Program.

(c) Staffing and management of the secretariat to ensure efficient implementation ofthe project.

(d) Coordination and evaluation of appraisal of remaining subprojects for the sixUniversities and College Institutions and for Applied Research Funding.

(e) Review and appraisal of proposals for studies; monitoring the conduct of thestudies; reviewing them and arranging final publication with recommendations foraction.

(f) Preparation of equipment, furniture and vehicles procurement schedule.

(g) Coordination and lFaison on equipment, furniture and vehicles procurement by thePIU.

(h) Preparation of Staff Development and Related Training Progam (SDRT) togetherwith detailed implementation schedule of SDRT and sundry seminars, workshops,study tours etc.

(i) Coordination and liaison with the PIU as required to follow World Bankprocedures on recruitment/procurement for the SDRT.

(j) Liaison with government and other agencies, including IDA.

(k) Relevant data collection and analysis as necessary.

(I) Liaison as required with the PIU which is responsible for accounting and auditingof project accounts together with disbursements.

(m) Preparation, as required, liaison and cooperation with periodic supervisionmissions from IDA and with the World Bank office in Nairobi.

- 86 -

Annex 14Page 2 of 2

(n) Preparation of half-yearly progress reports on project implementation fortransmission to IDA for review.

(o) Yearly updating of the Work Program, Action Plan and Implementation Schedule.

II. Project Implementation Unit (PMI):

The PIU would be responsible for:

(a) Undertaking equipment, furniture and vehicle procurement in accordance withCHE procurement schedule and liaison accordingly with Liaison Officers for thesix university institutions.

(b) Providing support on recruitment/procurement for the SLRT, in liaison with CHEand the Liaison Officers.

(c) Maintaining project accounts, organizing annual audits of accounts, andundertaking disbursements for justified project expenditures.

(d) Providing input as required for CHE preparation of half-yearly progress reportson project implementation, well as for yearly up-dating of the Work Program,Action Plan and Implementation Schedule.

- 87 -

Annex 15

IDA 9JPERVISION PLAN

A15.1 IDA Supervision InDijnto Key Activities. The staff input indicated in thetable below is in addition to regular supervision needs for the review of progress reports,procurement actions, correspondence, etc. (estimated to require 10 staffweeks of Washington-based staff in the first year and 8 staffweeks per year thereafter, higher than normal becauseof the need to review complex scientific procurement packages). In addition, another 8staffweeks per year of long-term consultant time in the Bank's Nairobi office will he requiredfor regular supervision.

A15.2 Borrower's Contribution to Supervisiorn.

a) Progress reports are to be submitted as follows:

i) in the form to be discussed during the first IDA supervisionmission;

ii) at the end of January and July of each year; and

iii) by CHE (initially the Coordinator), with input from the P[Uand other appropriate bodies, such as that handling the StudentLoan Scheme.

b) CHE and the Ministry of Education will be responsible forcoordinating arrangements for Bank supervision missions and forproviding information tequired by missions;

c) During supervision missions, initial briefing and final wrap-upmeetings will normally be chaired by the Permanent Secretary of theMinistry of Education.

Date Activity Skills SW

03/92 Project Launch Task Manager 6Impl. SpecScience Eqpt Expert

09/92 First Review Task Manager 8Higher Educ SpecScience Eqpt Exp- tLoan Scheme Expert

03/annual Regular Supervision | Task Manager |4_ Science Eqpt Expert I

09/annual Regular Supervision Task Manager 4Science Eqpt Expert

09/94 Second Review Task Manager 8(coincide with Higher Educ Specsupervision Science Eqpt Expertmission) Loan Scheme Expert

- 88 -

Annex 16Page 1 of 2

DOCUMENTS IN THE PROJECT FILE

WORKING PAPERS

1. Central Components: Details on consultancies, staff training, seminars and workshops,and annual operating costs.

2. University Components: Detailed Tables for Phase I subprojects.

3. Project Cost Tables: Detailed Tables, including university-by-university.

4. Implementation: Strengthening the PIU to handle procurement under the project.

GOVERNMENT PROJECT PREPARATION DOCUMENTS

General

i. Commission for Higher Education, University Education in Kenya: Trends and theirImplications for Costs. Financing and Occupations, November 1989.

2. Ministry of Education, University Education in Kenya: Reguest for World BankCredit, June 1991.

Investment Plans

3. Universities Investment Plans: Ongoing and Proposed Proiects, August 1991.

4. Commission for Higher Education, Ongoing Projects and Proposed Projects, August1991.

Equipment Lists

5. Consolidated Master List of Phase I Equipment, August 1991.

6. Consolidated Master List of Equipment Specifications: Phase 1, September 1991.

- 89 -Annex 16

Page 2 of 2

Implementation

7. Implementation Schedule for Phase 1, August 1991.

Central Components

8. Laniversities Central Services Programme, August 1991.

9. Commission for Higher Education, Proiected Comnputerisation Requirements, August1991.

University Components

10. University of Nairobi, Project Document, July 1991.

11. , Books for the Library, May 1991.

12. , Technical Specifications for Computer Equipment, August 1991.

13. Moi University, Proiect Documentn, August 1991.

14. , Computers, August 1991.

15. Kenyatta University, Project Document, August 1991.

16. , Books and Journals Specifications, August 1991.

17. , Computer Requirements and Specifications, August 1991.

18. Egerton University, Proiect Document, July 1991.

19. , Technical Specifications of Computer Equipment, August 1991.

20. JKUCAT, Proiect Document, July 1991.

21. , Books for the Library, August 1991.

22. Maseno University College, Proiect Document, July 1991.

23. __, Computers, August 1991.

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