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CSPs in Kenya By Phillys Karanja Why are CSPs necessary? Grave social and economic issues are affecting the population and since the 1970’s increasing levels of corruption have only intensified the effects and decreased government’s institutional capacity and legitimacy. Cross sector partnerships are thus considered a suitable approach not only to tackle these issues but also as a means to increase trust in the public sector. How have CSPs emerged? The relationship between the government and other Kenyan societal sectors in addressing the needs of the population dates back to the country’s colonial times when missionary churches collaborated with the British colony to provide the communities with education and health services. After independence the issues afflicting Kenya included not only lacking basic needs but also a very weak government. KENYA GDP in mill USD: 44,101 Population: 44,353,691 Doing Business Index: 122 Corruption Perception Index: 27 As an initial approach, the new Kenyan government instilled the spirit of civil society collaboration “Harambee”, whereby the population was encouraged to devise and implement local projects for the development of their communities. At this stage, the government’s role was to support groups of community members in the activities of fundraising, monitoring and partial funding of projects related particularly to infrastructure development. What do CSPs look like? The most common forms of partnerships in Kenya have traditionally been service contracts, concessions and leases and have thus been the basis for legislation regarding cross sector collaborations. However, this has been considered too restricting for other types of collaborations, leading to an increasing number of partnerships between private sector and civil society. In order to improve participation of state in tripartite partnerships, the government is currently devising the creation of a PPP Centre with the purpose of designing more comprehensive guidelines, providing better resources and adequate support for newer partnership models. Particularly, bilateral development agencies have shown interest in these state efforts as they increase their reliance on partnership models where they bring together their government partners with private sector actors, who can support improved accountability. This pressure of bi- and multilateral agencies has spurred the emergence of PPPs for infrastructure development. Partnerships have most commonly involved the national government, with mainly the Ministry of Finance acting as core partner, and large private companies. However, most recently, partnerships have been created between public authorities at local levels and small enterprises as well. These partnerships have also generally focused on infrastructure development objectives. Moreover, partnerships that engage civil society organisations have predominantly been supported by bilateral development agencies and international NGOs, established primarily for the provision of basic services to communities. These have focused on strengthening collaboration between this sector and the government by either providing financial support to government programs or joint development of projects. However, civil society has also increased its collaborative work with the private sector, especially in the agriculture sector, whereby civil society organisations assume the role of facilitators for on-the-ground implementation activities. What challenges to CSPs face? Despite this development of the Kenyan partnership approach, cross sector partnerships still face barriers to collaborative endeavour. Challenges range from persistent levels of corruption both within governmental institutions as well as private sector cartels, motivated by high levels of opportunistic behaviour. This, in turn leads to low trust from the communities in partnership projects, which results in negative attitudes and little support from the population. Moreover, power asymmetries within partnership management fail to create equity between the donor partner and implementing partner, a partner configuration which is frequently found across partnerships. In this regard, however, some policy making efforts have started to deal with the issue of funding and have evaluated the options of budget support vis-à-vis basket funding in partnership agreements. Cross Sector Partnership Case Revitalization of Cotton Industry A partnership between Equity Bank, the Ministry of Agriculture, the Cotton Development Authority (CODA), National Irrigation Board (NIB), Cotton Ginners and Bura Farmers Association has begun to restore cotton production in Bura. In this partnership, Equity Bank provides credit for farm inputs and facilitates payment to farmers while NIB is responsible for maintenance of canals that channel water to farms in the Bura Irrigation scheme. The Farmers Association coordinates the farmers’ activities and CODA jointly with Ministry of Agriculture offer extension services to support farmers in crop husbandry. The challenge of marketing of the cotton has been addressed by the involvement of selected cotton ginners who have committed to buy the seed cotton from the farmers at competitive prices. The initiative has motivated replication in other areas of the country, evidencing the potential for the cotton industry development to help Kenyan farmers fight poverty. http://equitygroupfoundation.com/index.php/our-pillars/agribusiness