Attachment J.5. Market Systems IEE.pdf

USAID/KENYA MARKET SYSTEMS STRENGTHENING IEE

IEE TEMPLATE VERSION 3.1

INITIAL ENVIRONMENTAL EXAMINATION

PURPOSE STATEMENT:

The Market Systems Strengthening (MSS) project will enhance the voice of the private sector to advocate for policy changes that improve the business environment at both the county and the national levels. The IEE was drafted based on the details of existing and planned activities under the MSS project. This analysis will expire October 31, 2027.

PROJECT/ACTIVITY DATA

Project/Activity Name: Kenya Market Systems Strengthening PDD IEE Geographic Location(s) (Country/Region): Kenya Amendment (Yes/No), if Yes indicate # (1, 2...): No Implementation Start/End Date (FY or M/D/Y): FY 2022 - FY 2027 If Amended, specify New End Date:

Solicitation/Contract/Award Number(s): Multiple Implementing Partner(s): Multiple Bureau Tracking ID: https://ecd.usaid.gov/document.php?doc_id=56385 Tracking ID of Other, Related Analyses: USAID/Kenya Programmatic PERSUAP

ORGANIZATIONAL/ADMINISTRATIVE DATA

Implementing Operating Unit(s):

(e.g. Mission or Bureau or Office)

USAID/Kenya

Other Affected Operating Unit(s): East Africa Lead BEO Bureau: USAID/AFR Funding Account(s) (if available): Multiple Prepared by: Environmental Compliance Support (ECOS) on behalf of USAID/Kenya Date Prepared: July, 2022

ENVIRONMENTAL COMPLIANCE REVIEW DATA

Analysis Type: ☒Environmental Examination ☐ Deferral Environmental Determination(s): ☒Categorical Exclusion(s)

☒Negative ☐Positive ☐Deferred (per 22 CFR 216.3(a)(7)(iv)

IEE Expiration Date (if applicable): October 31, 2027 Additional Analyses/Reporting Required: EMMP, EMMR, and ERF.

Climate Risks Identified (#): Low: 4 Moderate: 15 High: 2 Climate Risks Addressed (#): Low: 4 Moderate: 15 High: 2 https://ecd.usaid.gov/document.php?doc_id=56385 about:blank about:blank about:blank

IEE TEMPLATE VERSION 3.1

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS

PROJECT/ACTIVITY SUMMARY

The Market Systems Strengthening (MSS) project will enhance the voice of the private sector to advocate for policy changes that improve the business environment at both the county and the national levels. Through supply chains and stronger buyer-supplier relationships, the project will enable market systems actors to have thriving businesses that create jobs, buy from and sell to the domestic, regional and international markets. This will also require creating pull opportunities by investing in commercial and remunerative production and service provision.

Capacity building, especially for business associations and youth- and women-led businesses, on diversification, access to financial services, workforce development, relevant job readiness, up-skilling, and resilience capacities will also be critical.

ENVIRONMENTAL DETERMINATIONS

Upon approval of this document, the determinations become affirmed, per Agency regulations

(22 CFR 216).

TABLE 1: ENVIRONMENTAL DETERMINATIONS

Intervention Categories Categorical Exclusion Citation (if applicable)

Negative Determination

Positive Determinatio n1

Deferra l2

Intervention Category 1: Promote economic growth through job creation and financial stability in the agriculture sector.

Sub-intervention 1.1:

Promote productive livelihoods and job creation with conditions

Sub-intervention 1.2:

Strengthen the role of small and medium enterprises (SMEs), agribusinesses, and agro-input suppliers with conditions

Intervention Category 2: Government, institutional, Civil Service Organizations and private sector collaboration and coordination; policy and strategy development Sub-intervention 2.1 Enhance collaboration and coordination between stakeholders, create international, regional and local linkages and platforms

22 CFR 216.2(c)(2)(iii) Analyses, studies, academic or research workshops and meetings

Sub-intervention 2.2:

Facilitate and support development of economic

1 Positive Determinations require preparation of a Scoping Statement and Environmental Assessment.

2 Deferrals must be cleared through an Amendment to this IEE prior to implementation of any deferred activities.

IEE TEMPLATE VERSION 3.1

Intervention Categories Categorical Exclusion Citation (if applicable)

Negative Determination

Positive Determinatio n1

Deferra l2 and resilience plans at all levels

Sub-Intervention 2.3 Strengthen enabling environment for economic growth and resilience with conditions

Intervention Category 3: Direct Farmer Outreach/Extension services for improved agricultural production Sub-intervention 3.1:

Establish farmer association, networks, and capacity development of existing and new local organizations.

with conditions

Sub-intervention 3.2:

Develop the skills and knowledge about modern agricultural practices of farmers, farmer associations, agro-input suppliers, and service providers with conditions

Sub-intervention 3.3:

Improve agricultural production through improved inputs, processing, marketing, and supply chain structures with conditions

Sub-Intervention 3.4 Enhance Livestock Production and Management with conditions

Sub-Intervention 3.5 Promotion of Mycotoxin safety with conditions

Intervention Category 4: Foster enhanced financial mobilization, grant provision, and public-private partnership through targeted technical assistance and capacity building.

Sub-intervention 4.1:

Technical assistance, training, and capacity building in basic financial and project management

22 CFR 216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as

IEE TEMPLATE VERSION 3.1

Intervention Categories Categorical Exclusion Citation (if applicable)

Negative Determination

Positive Determinatio n1

Deferra l2 construction of facilities, etc.)

Sub-intervention 4.2:

Increase the capacity and outreach of financial institutions and agriculture financial service delivery

22 CFR 216.2(c)(2)(i) Education, technical assistance, or training programs except to the extent such programs include activities directly affecting the environment (such as construction of facilities, etc.)

Sub-Intervention 4.3:

Provide technical assistance, capacity building and implementation of grants program

Sub-Intervention 4.4:

Develop public-private partnerships and enhance competitiveness

Intervention Category 5: Communications, research, data-gathering, analysis, and models for strengthening resilience capacity at household, community, and market systems levels Sub-intervention 5.1:

Assessments, studies, evaluations, surveys, analyses, appraisals, concept papers, meetings and workshops, data and information exchange

22 CFR 216.2(c)(2)(iii) Analyses, studies, academic or research workshops and meetings

Sub-Intervention 5.2:

Improve outreach to farmers using communication technologies and printed materials

22 CFR 216.2(c)(2)(v) Document and information transfers

Intervention Category 6: Improve Water, Sanitation, and Hygiene access, use and efficiency

Sub-intervention 6.1:

Capacity building of water resources governance

IEE TEMPLATE VERSION 3.1

Intervention Categories Categorical Exclusion Citation (if applicable)

Negative Determination

Positive Determinatio n1

Deferra l2 institutions, businesses organizations and other stakeholders through consultations, advisory, training, and partnership-building Sub-intervention 6.2:

Strengthening markets for WASH products and services with conditions

Sub-intervention 6.3: Small-scale rehabilitation and/or construction of water and sanitation infrastructure with conditions

Sub-intervention 6.4:

Activities facilitating access to capital/financing for WASH service delivery with conditions

Sub-Intervention 6.5:

Improve access to water for agricultural/productive use, including small-scale irrigation.

Intervention Category 7: Support Nutrition and diet diversification with sustainable access to nutritious and safe foods Sub-intervention 7.1:

Support Nutrition and diet diversification with sustainable access to nutritious and safe foods

22 CFR 216.2(c)(2)(viii) Programs involving nutrition, health care or population and family planning services except to the extent designed to include activities directly affecting the environment (such as construction of facilities, water supply systems, waste water treatment, etc.)

There are 10 activities evaluated which formed the basis for developing this IEE. The table below lists the awards and identifies the Intervention Categories they are associated with. The intervention categories are the types of actions expected within the MSS project and can be applied to future activities during their design. The cross-walk in Table 2 are for activities that are either existing or with design details sufficiently evolved to provide an analysis here.

TABLE 2. LIST OF ACTIVITIES CROSS-WALKED WITH THE INTERVENTION CATEGORIES

IEE TEMPLATE VERSION 3.1

Activity Name Status at the time of Drafting

Sub-Intervention Categories

Determination(s)

1. Kenya Integrated Mycotoxins Activity

In Design 3.1, 3.2, 3.3, 3.4, 3.5, 3.6, 5.1, 6.2

Categorical Exclusion, Negative Determination with Conditions

2. Western Kenya Water In Design 6.1, 6.2, 6.3 Negative Determination with Conditions

3. Western Kenya Sanitation

Existing 5.1, 6.1, 6.3 Categorical Exclusion, Negative Determination

4. FTF 3.0 "Pull" Blended Finance and Private Sector Enabling Environment

In Design 1.1, 3.3, 4.2, 4.3 Categorical Exclusion,

5. FtF Zone of Influence Survey

Planned 5.1 Categorical Exclusion

6. Kentegra Partnership Program

Existing 1.1, 3.2, 6.4, 6.5 Negative Determination

7. Nuru Kenya Existing 1.1, 1.2,3.1,3.2,3.3,3.4,4.1,5.1 , 5.2,7.1

Categorical Exclusion,

8. World Renew Existing 1.1, 2.2, 3.1,3.2,3.3,4.1,4.2,5.1, 5.2,7.1

Categorical Exclusion,

9. Scaling Impacts by Advancing a Country-led System as a Model for Resilience Building through Investing in Locally Led Development (Resilience Challenge Fund)

Planned 2.1, 2.2,4.4, 5.1 Categorical Exclusion, Negative Determination with Conditions

10. PASA- Technical Assistance to USAID/Kenya and East Africa’s Economic Growth, Agriculture/Food Security and Energy Projects in Kenya with

USDA/FAS

Existing 2.3, 5.1 Categorical Exclusion, CLIMATE RISK MANAGEMENT

Section 4.2 summarizes the methodology used and findings of the Climate Risk Management (CRM) Screening, in accordance with ADS 201mal. The project design team, in consultation with the Climate Integration Lead (CIL), considered the potential effect of climate risks/stressors on the sustainability of the project (changing precipitation patterns, rising temperature, floods, droughts, fires, landslides, etc.). See Annex 1 for the complete CRM table.

https://www.usaid.gov/ads/policy/200/201mal

IEE TEMPLATE VERSION 3.1

BEO SPECIFIED CONDITIONS OF APPROVAL

Reporting Conditions: The AFR BEO requests that the activity managers/AORs/CORs provide access to the Regional Environmental Advisor (REA) and to the AFR BEO Team to review (not approve) the Environmental Mitigation and Monitoring Plans/Reports (EMMPs/EMMRs) that will be written to implement the findings of this IEE. These documents should be uploaded into the appropriate sub-folder(s) of this Google Drive folder:

https://drive.google.com/drive/folders/1qir7YU8wdUtkyrZTREIJVL7Fj1behzhp

Use of this folder will facilitate access by all parties who need these documents, including the Mission Environmental Officer and the AOR/COR. This access will allow the REA and the BEO Team to spot-check and review these documents to confirm that the mitigations seem appropriate and are cognizant of the specific design of the activities.

IMPLEMENTATION

In accordance with 22 CFR 216 and Agency policy, the conditions and requirements of this document become mandatory upon approval. This includes the relevant limitations, conditions and requirements in this document as stated in Sections 3, 4, and 5 of the IEE and any BEO Specified Conditions of Approval.

https://drive.google.com/drive/folders/1qir7YU8wdUtkyrZTREIJVL7Fj1behzhp

IEE TEMPLATE VERSION 3.1

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION

PROJECT/ACTIVITY NAME: Kenya Market Systems Strengthening Project

Bureau Tracking ID: https://ecd.usaid.gov/document.php?doc_id=56385

Approval:

Cleared

08/30/2022

David Gosney, Mission Director USAID KEA Date

Clearance: Cleared 07/29/2022 Matthew Hutcherson, Director Office of Economic Growth and Integration Date

Clearance: Cleared 08/23/2022 Thomas Kress,Strategic Planning and Analysis Office Date

Clearance: Cleared 07/28/2022 Wilkister Magangi, Mission Environmental Officer Date

Clearance: Cleared 08/04/2022 David Kinyua, Regional Environmental Advisor Date

Clear Clearance: 8/16/2022 Jeffrey Meyers, Regional Legal Officer Date

Clearance: Cleared 09/07/2022 Colin Quinn, AFR Climate Integration Lead Date

Clearance: Cleared 07/29/2022 Harrigan Mukhongo, PMC Lead Date

Concurrence: Cleared 09/12/2022 Brian Hirsch, AFR Bureau Environmental Officer Date

DISTRIBUTION:

SPA

RLO

OEGI

https://ecd.usaid.gov/document.php?doc_id=56385

IEE TEMPLATE VERSION 3.1

INITIAL ENVIRONMENTAL

EXAMINATION

CONTENTS

THRESHOLD DETERMINATION AND SUMMARY OF FINDINGS 2

ENVIRONMENTAL DETERMINATIONS 2

BEO SPECIFIED CONDITIONS OF APPROVAL 2

IMPLEMENTATION 3

USAID APPROVAL OF INITIAL ENVIRONMENTAL EXAMINATION 4

1.0 PROJECT/ACTIVITY DESCRIPTION 6

1.1 PURPOSE OF the IEE 6

1.3 INTERVENTION AND SUB-INTERVENTION CATEGORIES 6

2.0 BASELINE ENVIRONMENTAL INFORMATION 7

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT,

PHYSICAL, CLIMATE, SOCIAL, Threatened and ENDANGERED species) 7

2.2 APPLICABLE AND APPROPRIATE PARTNER COUNTRY AND OTHER

INTERNATIONAL STANDARDS (E.G. WHO), ENVIRONMENTAL AND SOCIAL LAWS,

POLICIES, AND REGULATIONS 10

2.3 COUNTRY/MINISTRY/MUNICIPALITY ENVIRONMENTAL CAPACITY ANALYSIS (AS

APPROPRIATE) 13

3.0 ANALYSIS OF POTENTIAL ENVIRONMENTAL RISK 14

4.0 ENVIRONMENTAL DETERMINATIONS 14

4.1 RECOMMENDED ENVIRONMENTAL DETERMINATIONS 14

4.2 CLIMATE RISK MANAGEMENT 15

5.0 CONDITIONS AND MITIGATION MEASURES 15

5.1 CONDITIONS 15

5.2 AGENCY CONDITIONS 17

5.3 MITIGATION MEASURES 18

6.0 697.0

69ATTACHMENTS:

IEE TEMPLATE VERSION 3.1

1.0 PROJECT/ACTIVITY DESCRIPTION

1.1 PURPOSE OF THE IEE

The purpose of this document, in accordance with Title 22, Code of Federal Regulations, Part 216 (22 CFR 216), is to provide a preliminary review of the reasonably foreseeable effects on the environment of the USAID interventions described herein and recommend determinations and, as appropriate, conditions, for these activities. Upon approval, these determinations become affirmed, per 22 CFR 216 and specified conditions become mandatory obligations of implementation. This IEE also documents the results of the project-level Climate Risk Management process in accordance with USAID policy (specifically, ADS 201mal).

This IEE is a critical element of USAID’s mandatory environmental review and compliance process meant to achieve environmentally sound activity design and implementation.

Potential environmental impacts should be addressed through formal Environmental Monitoring and Mitigation Plans (EMMPs) and/or Environmental Assessments (EAs), if needed.

Activities which were awarded and are being implemented under the previous or existing IEEs, may continue to operate under the conditions of their historical IEE if the project/activity has an existing EMMP conforming to the conditions of that IEE. Those activities which are new, or currently operating but do not have an existing EMMP, must comply with the conventions of this IEE.

1.2 PROJECT/ACTIVITY OVERVIEW

The Market Systems Strengthening (MSS) project will enhance the voice of the private sector to advocate for policy changes that improve the business environment at both the county and the national levels. Through supply chains and stronger buyer-supplier relationships, the project will enable market systems actors to have thriving businesses that create jobs, buy from and sell to the domestic, regional and international markets. This will also require creating pull opportunities by investing in commercial and remunerative production and service provision.

Capacity building, especially for business associations and youth- and women-led businesses, AORs/CORs and IPs: How to Use this Development Objective IEE:

For Activities Listed in this IEE:

For each activity in your project and using Table 2, identify the intervention category to which it belongs. NOTE: Intervention categories are generally organized by sector, so if your project contains activities in a single sector, they are likely to be found in only one or two of the intervention categories.

Go to Section 4.1 to find the determination that applies to the intervention category.

Draft and implement an EMMP for each activity that includes the intervention categories associated with your activity that receive a Negative Determination with Conditions.

This EMMP must include the Environmental Impacts identified in Section 3 and expand upon the Mitigation Measures addressed in Section 5.3 The EMMP must also address compliance with all general implementation conditions contained in Section 5.1.

Repeat 1-3 for each activity in your project. If any activity is not included, please consult the MEO.

IEE TEMPLATE VERSION 3.1

on diversification, access to financial services, workforce development, relevant job readiness, up-skilling, and resilience capacities will also be critical.

This PDD IEE evaluates the following activities:

● Activity 1: Kenya Integrated Mycotoxins Activity: Mitigating the effects of aflatoxins, fumonisins, and microbiological contaminants on Kenyans’ health and enhancing trade opportunities.

● Activity 2: Western Kenya Water: The activity’s county-wide approach to strengthening markets for sanitation and hygiene products and services will entail addressing the need for realizing higher quality household sanitation facilities in rural areas, and coming up with new initiatives that go beyond the traditional “Do-It-Yourself” model promoted through Community Led Total Sanitation. The activity will facilitate better delivery of services, as opposed to funding infrastructure and direct service provision, and apply a range of approaches to both professionalize rural water services and strengthen water utilities, while protecting the watersheds and effectively managing the water resources that these services rely upon.

● Activity 3: Western Kenya Sanitation: The Kenyan Sanitation Alliance empowers the national and county governments to achieve the GOK goals to eliminate Open Defecation by 2030 and sustain these results long term, thus promoting a Kenyan-led, Kenyan-owed and a Kenyan-managed solution. It also directly contributes to the U.S.

Global Water Strategy Strategic Objective 2: Increase sustainable access and use of sanitation and the practice of key hygiene behaviors

● Activity 4: FTF 3.0 "Pull" Blended Finance and Private Sector Enabling Environment (a modified follow-on of the Kenya Investment Mechanism and key Private Sector aspects of other programs): USAID is seeking to develop a new opportunity-driven activity focused on accelerating ag-led growth in Kenya through partnerships with leading private agricultural sector off-takers, processors and other market makers and the development of robust smallholder farmer out-grower schemes.

This activity will focus on creating significant numbers of new jobs and generating large increases in sales and exports through supporting private-sector agricultural companies and associated out-grower schemes, to expand investments and operations via a blended finance approach. The activity will have two primary focuses: 1) Attracting new investments in agricultural processing, value-addition and storage 2) Establishing or expanding structured outgrower schemes for smallholder farmers around targeted lead private sector firms that feature clear contractual relations and access to technical assistance and feasible inputs and/or financing. The approach will be opportunity-driven and will provide the implementer with flexibility in terms of both the geographic and product coverage.

● Activity 5: New FtF Zone of Influence Survey: The ZOI is the targeted geographic area where Feed the Future aims to achieve the greatest impact in reducing poverty, hunger, and undernutrition; and increasing inclusive and sustainable agriculture-led economic growth, strengthening resilience among people and systems, and achieving a well-nourished population, especially among women and children, in target countries.

Feed the Future monitors this progress using a suite of 20 indicators that measure conditions among the population in the ZOI, collected through a population-based survey (henceforth referred to as the ZOI survey).

● Activity 6: Kentegra Partnership Program: The overarching purpose of this activity is to strengthen Kenya’s economic competitiveness and its prospects for sustained growth through a partnership between USAID and Kenya’s one U.S.-owned pyrethrum processor to invest in the revitalization of the Kenyan pyrethrum farming sector.

IEE TEMPLATE VERSION 3.1

● Activity 7: Nuru Kenya: Sustainable Local Leadership for Kenya (SLLK) program aims to champion sustainable and innovative leadership for economic investments by smallholders vulnerable communities, as a pathway to strengthening their resilience, reinforce the existing network of cooperatives with business support service entities and provide critical support services through private sector investment, business enterprise offerings and technical capacity development.

● Activity 8: World Renew: World renew: Solai Conservation Agricultural activity aims to increase agricultural production of nutritious foods among participating farmer households using conservation agriculture methods, and increasing the engagement of smallholders farmers, especially women, in profitable economic livelihoods.

● Activity 9: Scaling Impacts by Advancing a Country-led System as a Model for Resilience Building through Investing in Locally Led Development: To build a coherent country-led resilience model that is inclusive and empowers Kenyan institutions (state and non-state), communities, and citizens to effectively coordinate, mitigate, and respond to threats and shocks.

● Activity 10: PASA - Technical Assistance to USAID/Kenya and East Africa’s Economic Growth, Agriculture/Food Security and Energy Projects in Kenya with USDA/FAS: Through PASA, USDA/FAS provide support to the USAID/Kenya Economic Growth Office through capacity building and technical assistance in the areas of economic growth and integration, agriculture/food and water security, market information, trade, food safety, resilience, climate change and energy.

For the purposes of environmental review, this IEE uses thematic Intervention Categories to evaluate and manage environmental impacts and climate risks to like-interventions across Activities. These Intervention Categories are described in the section that follows.

1.3 INTERVENTION AND SUB-INTERVENTION CATEGORIES

TABLE 3: DEFINED INTERVENTIONS AND SUB-INTERVENTIONS

Intervention Category

Sub-interventions Illustrative Actions

Intervention Category 1:

Promote economic growth through job creation and financial stability

Sub-Intervention 1.1:

Promote productive livelihoods and job creation

● Establish and strengthening the livelihood activities that generate meaningful income through the promotion of production activities that are resilient and high in income generation

● Identify commercial-scale opportunities for job-creation and increased exports/sales in agriculture in Kenya

● Train youth on entrepreneurship, CA value chains and value addition, and marketing, integrating a gender lens.

● Create formal sector jobs for women, youth, and the poor in agricultural processing operations.

Sub-Intervention 1.2:

Strengthen the role of small and medium enterprises (SMEs), agribusinesses, and agro-input suppliers

● Explore and invest in agribusinesses that lead to household and cooperative financial sustainability.

● Establish an accredited network of Kenyan small and medium enterprise development centers.

● Establish a network of county-based small business centers, including existing and new centers that provide low-cost business support services to MSMEs

IEE TEMPLATE VERSION 3.1

Intervention Category

Sub-interventions Illustrative Actions

● Increase awareness and capacity of county-based MSMEs to tap export-market opportunities available under U.S-Kenya trade programs

● Conduct business environment assessments and business advisory services to improve market entry

● Promotion of business-to-business linkages between U.S.

and Kenyan small and medium enterprises

Intervention Category 2:

Government, institutional, Civil Service Organizations and private sector collaboration and coordination; policy and strategy development

Sub-Intervention 2.1:

Enhance collaboration and coordination between stakeholders, create international, regional and local linkages and platforms

● Facilitate training on networking, forming and maintaining linkages, and collaborative approaches

● Host and facilitate national level meetings for donors, stakeholders, or partners to share best practices and development solutions.

● Stand up a coordination platform for state and non-state actors for coherent management and partnerships in resilience investments and activities.

● Organize and host business summits for trade and investment promotion

Sub-Intervention 2.2:

Facilitate and support development of economic and resilience plans at all levels

● Develop an Economic Development Master Plan for areas of chronic vulnerability with a financing and implementation framework.

● Facilitate national, county and community level institutions to take charge of their resilience programs

● Develop coherent and locally owned resilience programming framework for multiple shocks and disasters

● Conduct Participatory Rural Appraisal (PRA) for locally led development.

● Identify and scale sustainable community-driven and locally led initiatives.

Sub-Intervention 2.3:

Strengthen enabling environment for economic growth and resilience

● Convene dialogues, forums or other platforms to engage community perspectives on country resilience, water security and water resource management planning and policies

● Conduct policy analysis for priority sectors (water, health, agriculture, infrastructure/energy, manufacturing and technology) and develop policy position papers

● Technical assistance to GoK agencies, public and private sector entities to enhances self-reliance towards broader food, water security and economic growth efforts

● Technical assistance to USAID/Kenya EG Office for strategy development, program design, studies and evaluations, training, etc. related to Ag Policy, Ag statistics, regulatory reform, food and water security, food safety, climate change, agribusiness development, trade, land reform, energy and water resources management.

Intervention Category 3: Direct Farmer

Sub-Intervention 3.1:

Establish farmer association, networks, and

● Training key resource farmers/ aggregation leaders on management of aggregation centers.

IEE TEMPLATE VERSION 3.1

Intervention Category

Sub-interventions Illustrative Actions

Outreach/Extension services for improved agricultural production capacity development of existing and new local organizations.

● Train new farmer groups on agricultural marketing & post-harvest management.

● Improve farmers’ and sector associations’ awareness and understanding of antimicrobial resistance (AMR) through effective communication, education, and training.

Sub-Intervention 3.2:

Develop the skills and knowledge about modern agricultural practices of farmers, farmer associations, agro-input suppliers, and service providers

● Provide new farmers with tailored technical and empowerment training to enable capacity building, improve program outcomes, and promote female and youth participation.

● Facilitate annual stakeholder forums in communities for learning among new and old farmers.

● Facilitate field days and communities of practice for farmers, community members and surrounding communities.

● Train on robust, modern, and best management practices with the application of modern technologies.

● Offer demand-driven community-level agricultural technical support and backstopping.

● Support for disease and pest control

● Train farmers on agroforestry for fruit, wood and fodder trees.

Sub-Intervention 3.3:

Improve agricultural production through improved inputs, processing, marketing, and supply chain structures

● Scale up Social Enterprise operations in Homabay County through establishing marketing outlets for the animal feed products and dairy yield

● Expand incomes for small-scale farmers and cooperatives through expanded sourcing, increased productivity, and expanded linkages to domestic, regional or international markets and buyers

● Provide planting materials (access to fertilizer, seeds, transport, and seedlings) to farmers at a subsidized or no cost model.

● Develop partnerships with the smallholder farmers for contract farming and securing raw materials from the farmers to produce animal feeds. Smallholder farmers producing avocado on their individual small farms are contracted to supply the avocadoes to an exporter. The exporter aggregates avocadoes, grades and standardizes, packs, chills and transports to end markets in Kenya, African countries, Europe and the Middle East.

● Provided access to soil testing, training, planting materials and long-term supply contracts from Kentegra.

● Support Former Field Schools (FFS) with kitchen liners to promote kitchen gardening among new farmers.

● Strengthen local level post-harvest management practices.

● Attract new investments in agricultural processing, value-addition, agricultural inputs and storage.

IEE TEMPLATE VERSION 3.1

Intervention Category

Sub-interventions Illustrative Actions

Sub-Intervention 3.4:

Enhance Livestock Production and Management

● Technical assistance to relevant stakeholders (farmers, private sector actors, SMEs, government regulatory agencies) on animal health and safe animal feeds

● Train farmers in farmer organizations best management practices for animal husbandry and animal health support

● Support small farmer holders in improving animal health and hygienic milking practices to mitigate infections

● Support dairy processors in the implementation of food safety management systems including value chain Hazard Analysis Critical Control Points (HACCP) system.

● Acquisition and distribution of improved dairy heifers

Sub-Intervention 3.5:

Promotion of Mycotoxin safety

● Support private sector companies and civil society in the provision of extension services that enable farmers to access markets for mycotoxins prevention and mitigation technologies and information.

● Design awareness approaches to reach non-conventional actors/audiences along with the different nodes of the dairy value chain (like aggregators, transporters, traders, policymakers) that are likely to drive up the uptake of aflatoxin-safe milk and milk products.

● Extend targeted awareness-raising efforts to consumers and more in household-level aflatoxin and fumonisins prevention and mitigation packages.

Intervention Category 4: Foster enhanced financial mobilization, grant provision, and public-private partnership through targeted technical assistance and capacity building.

Sub-Intervention 4.1:

Technical assistance, training, and capacity building in basic financial and project management

● Training on business planning, financial modeling, savings mobilization and key concepts of lending and default management, financial bookkeeping, post-harvest handling and marketing of produce.

● Attend ADS CR board meetings and facilitate governance training to increase capacity and effectiveness of the board and leadership.

● Form new VSLAs and train and support them on Financial Literacy.

● Train existing VSLAs to form and operate as Cluster Level Associations (CLAs).

Sub-Intervention 4.2:

Increase the capacity and outreach of financial

● Improve the presence and network of contacts with firms, funds, financial institutions, and DFIs in Kenya.

● Facilitate linkages of VSLAs/CLAs to microfinance institutions and banks.

● Conversations with investors/financial institutions active in agriculture, and targeted outreach and calls for proposals/concepts.

● Increase capacity of local partners to evaluate firm financials and to structure innovative blended finance structures to successfully attract commercial/social capital.

Sub-Intervention 4.3:

Provide technical assistance, capacity building and

● Provide performance-based grants, credit enhancements, TA directly to companies based, or with commercial presence, in Kenya

IEE TEMPLATE VERSION 3.1

Intervention Category

Sub-interventions Illustrative Actions implementation of grants program

● Establish a funding framework for county-based small business development centers that includes: matching grants from national and/or county governments; in-kind contributions from the local host and/or (at the pilot stage) USAID grant funding.

Sub-Intervention 4.4:

Develop public-private partnerships and enhance competitiveness

● Develop and implement strategy for mobilizing public and private sector financing.

● Accelerate economic policy reforms by building coalitions of private sector associations, policy think-tanks, national governments, and RECs

Intervention Category 5:

Communications, research, data-gathering, analysis, and models for strengthening resilience capacity at household, community, and market systems

Sub-Intervention 5.1:

Assessments, studies, evaluations, surveys, analyses, appraisals, concept papers, meetings and workshops, data and information exchange

● Strengthen a system for data collection, analysis, modeling, prediction, and feedback loops to inform locally

- led decisions in building resilience.

● Develop a system for coding, tracking and reporting of resilience investments

● Conduct research and baseline assessments

● Leverage research currently being undertaken by USAID in partnership with UNICEF and the GOK

● Support M&E through mentoring site visits

● Develop data collection templates and schedules, offer training for data collectors, develop sound M&E plans, indicators, and frameworks.

● Develop a regression-based predictive model that estimates a household's consumption aggregate.

● Develop technical guidance to support scale-up of this survey-to-survey imputation approach in the ZOI midline indicator assessment.

● Capacity building activities around the ZOI survey results and datasets for Mission, implementing partner, and government staff.

● Develop market surveys

● Develop and curate a market information hub focused on improved Kenya-US trade

● Target analytical support through meta-analyses, database analyses, qualitative surveys, and case studies

● Technical assistance to the USAID Kenya EG office to fulfill its management, coordination, M&E, reporting requirements

Sub-Intervention 5.2:

Improve outreach to farmers using communication technologies and printed materials

● Incorporate local radio advertisement to enhance recognition and communication for longer term farmer and cooperative engagement.

● Provide an opportunity for farmers in the project to share their experiences and success stories with the larger community

● Distribute agricultural extension messages to farmers using an established SMS platform.

● Development and distribution of IEC materials.

IEE TEMPLATE VERSION 3.1

Intervention Category

Sub-interventions Illustrative Actions

● Engage media platforms to increasingly debate on mycotoxins awareness within their routine broadcasts.

Intervention Category 6:

Improve Water, Sanitation, and Hygiene access, use and efficiency

Sub-Intervention 6.1:

Capacity building of water resources governance institutions, businesses organizations and other stakeholders through consultations, advisory, training, and partnership-building

● Empower the national and county governments to achieve the GOK goals to eliminate Open Defecation by 2030.

● Professionalize rural water services and strengthen water utilities while protecting watersheds and effectively managing the water resources that these services rely on.

● Work with the private sector, government, and civil society to expand and improve the quality of services, monitor service delivery, and enforce environmental standards

● Link water management with water service provision by bringing together stakeholders at the national and sub-national levels to better govern and manage resources.

● Strengthen institutional capacity at the county level to plan, finance, and manage water services to enable county governments to meet their mandate for ensuring that all citizens have reliable water service.

Sub-Intervention 6.2:

Strengthening markets for WASH products and services

● Engage new and non-traditional partners and create partnerships that cut across traditional silos to advance progress in the WASH sector.

● Improve the operational performance of utilities in order to allow them to engage more effectively with commercial finance.

Sub-Intervention 6.3:

Small-scale rehabilitation and/or construction of water and sanitation infrastructure

● Small-scale rehabilitation may include borehole construction and rehabilitation, installation of solar panels on existing wells, and upgrading pipes in existing systems.

● Increased/expanded services for fecal sludge management which may include treatment plants.

● No large-scale construction is planned Sub-Intervention 6.4:

Activities facilitating access to capital/financing for WASH service delivery

● Allocate funds for urban and rural sanitation across the 15 target counties.

● Deploy innovative approaches to creating demand for household sanitation, particularly in rural, pastoralist communities.

Sub-Intervention 6.5:

Improve access to water for agricultural/productive use, including small-scale irrigation.

● Bring new acres of land under production through a phased approach.

● Support smallholder farmers to access solar powered irrigation equipment

Intervention Category 7:

Support Nutrition and diet diversification with sustainable access to nutritious and safe foods

Sub-Intervention 7.1:

Support Nutrition and diet diversification with sustainable access to nutritious and safe foods

● Support Nutrition and diet diversification with sustainable access to nutritious and safe foods

● Social behavior changes and communication to empower producers

IEE TEMPLATE VERSION 3.1

Will this project/activity involve construction3 as defined by ADS 201 and 303? Yes ☒ No ☐

Construction is expected to be small-scale in nature, such as rehabilitation and/or construction of water and sanitation infrastructure.

2.0 BASELINE ENVIRONMENTAL INFORMATION

2.1 LOCATIONS AFFECTED AND ENVIRONMENTAL CONTEXT (ENVIRONMENT, PHYSICAL,

CLIMATE, SOCIAL, THREATENED AND ENDANGERED SPECIES)

Geography. Kenya is located in East Africa, bordering the Indian Ocean between Somalia and Tanzania, with a total land area of 569,140 square kilometers. The southern regions, where most of the population and nearly all the economic production is located, consists of a low‑lying coastal area and a plateau varying in altitude from 3,000 to 10,000 feet.4 Other important geographical features include Mount Kenya, Africa's second highest peak where glaciers can be found and Lake Victoria, the world's largest tropical lake and the second largest freshwater lake, which is shared among three countries: Kenya, Tanzania, and Uganda.5

The major ecosystem of the highlands is montane forest, while the arid and semi-arid lowlands are comprised primarily of woodland, brushlands, savannah and grassland. Along the coastline, there are discontinuous but significant patches of dryland forests. The coast is divided between sandy areas and mangrove forests, while offshore Kenya has abundant seagrass beds and a coral reef system. Kenya’s freshwater resources are divided between lakes, notably Lake Victoria and Lake Turkana, and several rivers.6

Climate. Kenya’s geography is dominated by arid and semi-arid plains, with a temperate highland plateau (reaching over 5,000 m) in the center, and a hotter, wetter climate along the coast and the shores of Lake Victoria. Two-thirds of the country receives less than 500 mm of rainfall per year; coastal and highland areas receive annual averages upwards of 1,100 mm and 2,000 mm, respectively. Kenya has two rainy seasons: “long rains” from March to June (about 70 percent of total annual rainfall); and “short rains” from October to December. In the west and along the coast, additional significant rainfall occurs outside of these two rainy seasons.

Temperatures range from an average of 18°C in high elevation areas like Nairobi to 26°C in coastal areas such as Mombasa. Located on the equator, Kenya experiences little seasonal temperature variation.7

3 Construction, as defined by ADS 201 and 303, includes: construction, alteration, or repair (including dredging and excavation) of buildings, structures, or other real property and includes, without limitation, improvements, renovation, alteration and refurbishment. The term includes, without limitation, roads, power plants, buildings, bridges, water treatment facilities, and vertical structures. In the box below, describe any construction planned for this project/activity. Refer to ADS 201maw for required Construction Risk Management procedures.

4 “Kenya Geography,” Country Reports, accessed on October 4, 2021, https://www.countryreports.org/country/Kenya/geography.htm

5 “Kenya,” CIA World Factbook, last updated April 06, 2022, https://www.cia.gov/the-world-factbook/countries/kenya/#geography

6 Ibid.

7 “Climate Risk Profile: Kenya,” USAID, accessed on October 4, 2021, https://www.climatelinks.org/sites/default/files/asset/document/2018_USAID-ATLAS- Project_Climate-Risk-Profile-Kenya.pdf https://www.usaid.gov/sites/default/files/documents/1865/201maw.pdf https://www.countryreports.org/country/Kenya/geography.htm https://www.cia.gov/the-world-factbook/countries/kenya/#geography https://www.cia.gov/the-world-factbook/countries/kenya/#geography https://www.climatelinks.org/sites/default/files/asset/document/2018_USAID-ATLAS-Project_Climate-Risk-Profile-Kenya.pdf https://www.climatelinks.org/sites/default/files/asset/document/2018_USAID-ATLAS-Project_Climate-Risk-Profile-Kenya.pdf

IEE TEMPLATE VERSION 3.1

Biodiversity. Kenya is a country rich in biodiversity with a variety of ecological zones and habitats, including lowland and mountain forests, wooded and open grasslands, semi-arid scrubland, dry woodlands, and inland, coastal, and marine ecosystems.8 Kenya has approximately 25,000 species of animals, including 1,133 birds, 315 mammals, 191 reptiles, 180 freshwater fish, 692 marine and brackish fish, and 88 amphibians, as well as 7,000 species of vascular plants and more than 2,000 fungi and bacteria.9 1,100 species of vascular plants, 14 mammalian species, and eight bird species are endemic to the country. One-hundred and three species of bird, 51 mammals, eight amphibians and reptiles, and 26 fish species are endangered or threatened.10

Kenya has an extensive National Protected Area system with over 50 parks and 66 Important Bird Areas (IBAs), maintained by the Kenya Wildlife Service (KWS) and the Kenya Forest Service (KFS). Kenya also offers more than 140 conservancies on private and public land to secure the migratory routes of Kenya’s wildlife.11 Despite efforts, 65 percent of Kenya’s wildlife live outside national parks and have been increasingly threatened.12 These declines have been driven by numerous factors, such as agricultural expansion, high population pressure, escalations of poverty and conflicts, habitat fragmentation and degradation by poor land use practices, and poaching for both meat and trophies.13 Extensive surveys covering 88 percent of the country found wildlife populations declining by an average of 68 percent between 1977 and 2016. Several once-common species such as warthog, lesser kudu (Tragelaphus imberbis), Thomson’s gazelle (Eudorcas thomsonii), eland, oryx, topi (Damaliscus korrigum), hartebeest (Alcelaphus buselaphus), impala (Aepyceros melampus), Grevy’s zebra (Equus grevyi) have declined 72–88 percent threatening their population viability.14

Social, Economic and Political Context. Though the two official languages in Kenya are English and Kiswahili, there are numerous indigenous languages belonging to over 70 distinct ethnic groups. Kenya has a population of 54.6 million, 59 percent of which is under the age of

24. Growing at an annual rate of 2.15 percent, Kenya’s population is expected to reach 85 million by 2050.15 Kenya’s dramatic population growth is due to its high birth rate and declining mortality rate. The young and well-educated society is eager to join the workforce. However, since about 83 percent of Kenya’s 15.9 million workforce is in the informal sector, there are few formal sector jobs for qualified youth. Recent data from the Ministry of Education indicates that

8 “Kenya: Main Details,” Convention on Biological Diversity, accessed on October 12, 2021, https://www.cbd.int/countries/profile/?country=ke 9 “Part 2: State of the Environment,” National Environment Management Authority, accessed on October 12, 2021, https://www.nema.go.ke/images/Docs/Regulations/KenyaSoECh4_a.pdf 10 Kenya: Main Details,” Convention on Biological Diversity, accessed on October 12, 2021, https://www.cbd.int/countries/profile/?country=ke 11 “Biodiversity and Tropical Forestry FAA (118/119) Assessment,” USAID/Kenya, May 2017, https://usaidgems.org/Documents/FAA&Regs/FAA118119/Kenya_2017.pdf 12 “Kenya Environment: Overview,” USAID, last updated April 05, 2022, https://www.usaid.gov/kenya/environment 13 “Biodiversity and Tropical Forestry FAA (118/119) Assessment,” USAID/Kenya, May 2017, https://usaidgems.org/Documents/FAA&Regs/FAA118119/Kenya_2017.pdf 14 Joseph O. Ogutu, et al. “Extreme Wildlife Declines and Concurrent Increase in Livestock Numbers in Kenya: What Are the Causes?” PLOS ONE 11(9): e0163249, September 07, 2016, https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0163249 15 Wolfgang Fengler, “Demographic Transition Growth in Kenya,” April 28, 2010, https://www.worldbank.org/en/news/opinion/2010/04/28/demographic-transition-growth-kenya https://www.cbd.int/countries/profile/?country=ke https://www.nema.go.ke/images/Docs/Regulations/KenyaSoECh4_a.pdf https://www.cbd.int/countries/profile/?country=ke https://usaidgems.org/Documents/FAA&Regs/FAA118119/Kenya_2017.pdf https://www.usaid.gov/kenya/environment https://usaidgems.org/Documents/FAA&Regs/FAA118119/Kenya_2017.pdf https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0163249 https://www.worldbank.org/en/news/opinion/2010/04/28/demographic-transition-growth-kenya

IEE TEMPLATE VERSION 3.1

of the 1 million young people that qualify to join the job market from universities and colleges every year, only one out of five is likely to get a job in the formal sector16.

With adoption of a new constitution in 2010, Kenya brought forth a more representative and inclusive system, including a bicameral legislative house, a constitutionally enforced judiciary and electoral body, and 47 county governments, aimed to disperse political power and economic resources. Uhuru Kenyatta won the first presidential election under the new constitution in 2013. Kenyatta won a contested reelection in 2017 against opposition leader Raila Odinga, after the Supreme Court first annulled his victory.17 Political tension deepened social and ethnic divisions, as Kenyans strongly identify with the ethnic group to which they belong.18 The lack of diversity reflected in Kenya’s national-level leadership is a source of tension, since ethnic affiliations typically supersede national identity resulting in the marginalization of certain groups. Kenya’s democratic future will be decided in the August 2022 presidential election.

Kenya is East Africa’s economic, financial, and transport hub, and its real GDP growth has been robust in recent years.19 Kenya’s GDP growth averaged 5.7 percent between 2015 and 2019, making it one of the fastest growing economies in Sub-Saharan Africa. Agriculture is essential to the Kenyan economy, contributing to one-third of the country’s GDP. A major challenge for the Kenyan economy is that the push towards becoming a middle-income country does not align with its current economic composition. Roughly 42 percent of the national GDP is derived from natural resource sectors.20 Roughly 75 percent of Kenyans work at least part-time in the agriculture sector. Over 75 percent of all agricultural outputs are from small-scale farming or livestock production.21 Agricultural products include sugar cane, milk, maize, potatoes, bananas, camel milk, cassava, sweet potatoes, mangoes/guavas, and cabbages. However, the COVID-19 pandemic has affected Kenya’s economy and caused activity to slow sharply in 2020 (real gross domestic product is estimated to have contracted by 0.3% in 2020).

Agricultural output grew robustly, but manufacturing and many services subsectors (e.g., tourism, education) were severely disrupted.22 The pandemic has also affected the tourism sector, which had previously contributed an average of 10 percent to Kenya’s GDP.23 Kenya’s resources support economic activities of its population and provides for the $2.5 billion tourism industry.

Though Kenya has made progress in social development, including the reduction of child mortality, achieving near universal primary school enrollment, and narrowing gender gaps in

16 “The Youth Are Key Towards Kenya’s Economic Transformation,” The AGA Khan University, February 21, 2020, https://www.aku.edu/news/Pages/News_Details.aspx?nid=NEWS-002065 17 “Kenya,” 2022 Index of Economic Freedom, 2022, https://www.heritage.org/index/country/kenya 18 John Campbell, “What Went Wrong with Kenya’s Elections,” Council on Foreign Relations, November 03, 2017, https://www.cfr.org/expert-brief/what-went-wrong-kenyas-elections 19 “Kenya: 2022 Index of Economic Freedom,” The Heritage Foundation, accessed on October 12, 2021, https://www.heritage.org/index/country/kenya 20 “Biodiversity and Tropical Forestry…