Misalignment of Risk management Strategies in Kenya
Category: Accountability
By: Collins Okoth,
Natural disasters have been a persistent issue in Kenya. This is a part one of a two part series on issues around the misalignment of risk management strategies in Kenya, the gaps that lie therein and possible recommendations to better management of such situations. Last year the Kenyan Government declared drought a natural disaster affecting 23 arid and semi-arid counties and pockets of other areas, a situation that saw the president call on both local and international partners to come in and support the Government’s efforts to contain the situation. It was during this period that high cereal prices forced the Government to allow maize importation by licensed millers but under strict surveillance. Other measures that the Government took included doubling of food rations and cash transfers to counter the effects of the drought.
In March 2018, the country began to experience heavy rains which led to serious flooding with loss of property and lives experienced across the country. Notably a forecast of the country’s harvest foresees a decline in this years harvest as farms were destroyed during the rainy season, which clearly indicates that stress on the country’s food basket will also be felt. Once again, the Government had to dig deep to allocate funds and work with other agencies in trying to contain the effects of floods. This clearly indicates and directs a pointing finger to the state of risk management and preparedness in Kenya. Proper policies, adequate budget allocation and improved inter-agency coordination go a long way to stabilize a country during times of natural disasters, in this case flooding.
Kenya’s major setback is the slow implementation of polices and failure to recognize key institutions and sectors in drafting policies for improved risk management and mitigation of occurrence, despite having taken part in ratifying the two major frameworks for risk management. The first one was the Hyogo Framework for Action (HFA) 2005-2015 and the second is Sendai Framework. The Hyogo Framework for Action was meant to build resilience of nations and communities to disasters and is the first plan to explain, describe and detail the work that is required from all different sectors and actors to reduce disaster losses. This framework emphasized on 5 key priority areas namely:
• Making disaster risk reduction a policy priority and institutional strengthening.
• Risk assessment and early warning systems.
• Education, information & public awareness.
• Reducing underlying risk factors
• Preparedness for effective response.
The Sendai Framework, which is the successor instrument to the Hyogo Framework for Action 2005-2015 is a 15 year voluntary, non-binding agreement which recognizes that the state has the primary role to reduce disaster risk but that responsibility should be shared with other stakeholders including local government, the private sector and other relevant stakeholders. It aims for the substantial reduction of disaster risk and losses in lives, livelihoods and health and in the economic, physical, social, cultural and environmental assets of persons, businesses, communities and countries. The Sendai framework meant to achieve the following seven goals:
(a) Substantially reduce global disaster mortality by 2030, aiming to lower average per 100,000 global mortality rate in the decade 2020-2030 compared to the period 2005-2015.
(b) Substantially reduce the number of affected people globally by 2030, aiming to lower average global figure per 100,000 in the decade 2020 -2030 compared to the period 2005-2015.
(c) Reduce direct disaster economic loss in relation to Global Gross Domestic Product (GDP) by 2030.
(d) Substantially reduce disaster damage to critical infrastructure and disruption of basic services, among them health and educational facilities, including through developing their resilience by 2030.
(e) Substantially increase the number of countries with national and local disaster risk reduction strategies by 2020.
(f) Substantially enhance international cooperation to developing countries through adequate and sustainable support to complement their national actions for implementation of this Framework by 2030.
(g) Substantially increase the availability of and access to multi-hazard early warning systems and disaster risk information and assessments to the people by 2030.
These frameworks if implemented would go a long way in streaming the risk management response more so to natural disasters. It is important for the Government to recognize players in the risk management industry during the framing and implementation of risk management policies. One notable sector being the insurance industry. The main purpose of the insurance industry is to cover the occurrence of a risk and compensate should the risk occur. Both the Hyogo framework and Sendai Framework emphasis on the need for the Government to work with institutions and stakeholders during the processing and implementation of risk management strategies for natural disasters and it goes without doubt that the insurance industry fits in this arrangement.
In part 2 of this article I discuss how insurance plays a major role towards rebuilding a nation after the occurrence of a natural disaster and how the industry can work with government in easing resources used to mitigate such risks.
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Misalignment of Risk management Strategies in Kenya
| Post date: Wed, Jun 13, 2018 |
| Category: Accountability |
| By: Collins Okoth, |
Natural disasters have been a persistent issue in Kenya. This is a part one of a two part series on issues around the misalignment of risk management strategies in Kenya, the gaps that lie therein and possible recommendations to better management of such situations. Last year the Kenyan Government declared drought a natural disaster affecting 23 arid and semi-arid counties and pockets of other areas, a situation that saw the president call on both local and international partners to come in and support the Government’s efforts to contain the situation. It was during this period that high cereal prices forced the Government to allow maize importation by licensed millers but under strict surveillance. Other measures that the Government took included doubling of food rations and cash transfers to counter the effects of the drought.
In March 2018, the country began to experience heavy rains which led to serious flooding with loss of property and lives experienced across the country. Notably a forecast of the country’s harvest foresees a decline in this years harvest as farms were destroyed during the rainy season, which clearly indicates that stress on the country’s food basket will also be felt. Once again, the Government had to dig deep to allocate funds and work with other agencies in trying to contain the effects of floods. This clearly indicates and directs a pointing finger to the state of risk management and preparedness in Kenya. Proper policies, adequate budget allocation and improved inter-agency coordination go a long way to stabilize a country during times of natural disasters, in this case flooding.
Kenya’s major setback is the slow implementation of polices and failure to recognize key institutions and sectors in drafting policies for improved risk management and mitigation of occurrence, despite having taken part in ratifying the two major frameworks for risk management. The first one was the Hyogo Framework for Action (HFA) 2005-2015 and the second is Sendai Framework. The Hyogo Framework for Action was meant to build resilience of nations and communities to disasters and is the first plan to explain, describe and detail the work that is required from all different sectors and actors to reduce disaster losses. This framework emphasized on 5 key priority areas namely:
• Making disaster risk reduction a policy priority and institutional strengthening.
• Risk assessment and early warning systems.
• Education, information & public awareness.
• Reducing underlying risk factors
• Preparedness for effective response.
The Sendai Framework, which is the successor instrument to the Hyogo Framework for Action 2005-2015 is a 15 year voluntary, non-binding agreement which recognizes that the state has the primary role to reduce disaster risk but that responsibility should be shared with other stakeholders including local government, the private sector and other relevant stakeholders. It aims for the substantial reduction of disaster risk and losses in lives, livelihoods and health and in the economic, physical, social, cultural and environmental assets of persons, businesses, communities and countries. The Sendai framework meant to achieve the following seven goals:
(a) Substantially reduce global disaster mortality by 2030, aiming to lower average per 100,000 global mortality rate in the decade 2020-2030 compared to the period 2005-2015.
(b) Substantially reduce the number of affected people globally by 2030, aiming to lower average global figure per 100,000 in the decade 2020 -2030 compared to the period 2005-2015.
(c) Reduce direct disaster economic loss in relation to Global Gross Domestic Product (GDP) by 2030.
(d) Substantially reduce disaster damage to critical infrastructure and disruption of basic services, among them health and educational facilities, including through developing their resilience by 2030.
(e) Substantially increase the number of countries with national and local disaster risk reduction strategies by 2020.
(f) Substantially enhance international cooperation to developing countries through adequate and sustainable support to complement their national actions for implementation of this Framework by 2030.
(g) Substantially increase the availability of and access to multi-hazard early warning systems and disaster risk information and assessments to the people by 2030.
These frameworks if implemented would go a long way in streaming the risk management response more so to natural disasters. It is important for the Government to recognize players in the risk management industry during the framing and implementation of risk management policies. One notable sector being the insurance industry. The main purpose of the insurance industry is to cover the occurrence of a risk and compensate should the risk occur. Both the Hyogo framework and Sendai Framework emphasis on the need for the Government to work with institutions and stakeholders during the processing and implementation of risk management strategies for natural disasters and it goes without doubt that the insurance industry fits in this arrangement.
In part 2 of this article I discuss how insurance plays a major role towards rebuilding a nation after the occurrence of a natural disaster and how the industry can work with government in easing resources used to mitigate such risks.
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Introduction The matatu metaphor can be used to analytically frame Kenya’s budget as a system that is subject to binding constraints, evolving expectations, and continuous adjustment to shocks. Like the matatu sector, fiscal policy reflects a balancing act between efficiency and quick action seeking to respond to public service delivery while constrained by competing sector […]
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According to the Annual Debt Report 2024/25, as shown in Chart 1 below, Kenya today is such that for every one hundred shillings the Kenyan government raises in tax revenue, approximately ksh71 goes directly into servicing existing debt before a single hospital is staffed, a classroom is built, or a kilometre of road is constructed. […]