Ministry of Nairobi Metropolitan Development

December 2011

By:

Architect DavidIluve Kithakye

P.O. Box 75855, Nairobi, 00200

Tel: +254 722 379290

Email:

EXECUTIVE SUMMARY

This report outlines the Resettlement Policy Framework (RPF) for the Nairobi Metropolitan Services Improvement Project (NaMSIP) being implemented by the Ministry of Nairobi Metropolitan Development (MONMED) with funding assistance from the World Bank. MONMED was established through a Presidential Circular on 0I May 2008 with a mandate to create a metropolitan region comprising of 15 Local Authorities including the City of Nairobi. The Nairobi Metropolitan Rgion (NMR) extends over 32,000 square kilometres include the following local authorities grouped as follows:

Core Nairobi comprising the City Council of Nairobi;

The Northeern Metro comprising the Municipal Council of Kiambu, Municipal Council of Limuru, the Municipal Council of Limuru; the Municipal Council of Ruiru; the Municipal Council of Thika, Town Council of Karuri; Town Council of Kikuyu; and County Council of Kiambu;

The Southern Metro comprising of the Town Council of Kajiado and the County Council of Olkejuado; and

The Eastern Metro comprising of the Town Council of Tala/Kangundo, Municipal Council of Machakos, the Municipal Council of Mavoko, and the County Council of Masaku.

Although NMR is the most urbanized region in Kenya, it faces several development challenges which if unattended to, will hinder the region from the benefits of urbanization And realization of the Nairobi Metro 2030 Vision of creating a World Class African Metropolis by 2030. The main metropolitan challenges include:

-Uncompetitive metropolitan economy caused by high cost of land, high cost of infrastructure, inadesquate skilled manpower, poor safety and security and poor performing institutions;

-Inadequate Infrastructure andUtilities arising from poor service connections, poor network accessibility, inadequate capital investments and inadequate operations and maintenance;

-Poor quality of Life resulting from poor access to medical services, poor quality of housing, inadequate access to housing, poor access to education services and ineffective spatial planning regime;

-Poor Safety and Security caused by poor public and individual safety, internal strife, regional instability,inadequate emergency services, negative public image, poor business environment;

-Ineffective metropolitan Governance due to inadequate capacity in governance institutions, poor client focus, weak and uncoordinated efforts of various institutions.

The Nairobi Metropolitan Services Improvement Project (NaMSIP) is an integral element of the Country Partnership Strategy (CPS) between the World Bank the Government of Kenya, which will contribute to the goals of the Kenya Government’s Vision 2030, and through the strenghthening of governance of and within the region for improved service delivery, contribute towards the realization of the vision of creating a World Class African Metropolis by the year 2030.

The project has the following four components:

1. Institutional Reform and Development focusing on capacity enhancement of the local entities within the region and that of the Ministry to competently deliver the objectives of the project.,
2. Critical local government infrastructure and services which will finance critical infrastructure and investments for selected urban areas within Nairobi Metropolitan Region.
3. Critical metropolitan infrastracture and services which will assist in providing metropolitan infrastructure in the areeas of solid waste, transport, and sewrage services, which are crucial for the service delivery and development within the region.
4. Project Management, Monitoring and Evaluation which will finance the management activities associated with project implementation, including establishing and implementing a comprehensive monitoring and evaluation (M&E) system and training of the implementing agencies.

NaMSIP is at the planning stage and as such the projects to be executed for each component are yet to be defined and physical locations identified. The Ministry for Nairobi Metropolitan Development, using a World Bank Programme Preparation Facility has engaged a team of consultants to provide inputs into the preparation of NaMSIP including the preparation of the Resettlement Policy Framework (RPF) and the Environmental and Social Management Framework (ESMF).

The RPF will guide implementation of NaMSIP civil works packages to provide safeguards against adverse impacts of displacement and consequent disruption of livelihoods of the affected persons.The RPF has been prepared in conformity with the World Bank Safeguard Operational Policy, OP 4.12 – Involuntary Resettlement - and anchored in the legal provisions of the Kenya Government. Where the two are diverge, OP 4.12 prevails

The RPF will guide implementation of NaMSIP civil works packages to provide safeguards against adverse impacts of displacement and consequent disruption of livelihoods of the affected persons.The RPF examines the process of displacement and resettlement and discusses the following measures of avoiding, and where unavoidable, minimising the impact:

• Involving the communities and Project Affected Persons (PAPs) as early as possible in the project and engaging the community in the design and implementation of the of the projects;
• Keep the PAPs fully informed of any eventualities including possibility of being compensated and/or resettled.
• Preparing, updating and adhering to Regional and Development plans to ensure that developments are located appropriately. The Ministry will establish a Forward Planning Unit which will consider long-term projections and requisite provision of land and space;
• In the event that displacement cannot be avoided, , the process of assessing who is affected, determing the appropriate mitigation measure – compensation and/or resettlement- will be carried out with involvement and consultations of the persons affected, in a transparent manner and with a grievance redress mechanism in place.

Coordination of the NaMSIP will require adequate capacity at MONMED to match the responsibility of delivering the World Class African Metropolis by 2030. The detailed Resettlement Action Plans (RAPs) which will be prepared once the projects are definitely defined should be simple and clear and to be understood by all actors, but at the same time comprehensive.

The arrangements for monitoring the resettlement and compensation activities fall under the overall monitoring programme of the entire NaMSIP which will be carried out by the PCT. It is important to involve the communities and the PAPS in the M&E process. They have local information on trends and challenges and they know the best way to articulate the same.

Periodic evaluations will be made in order to determine whether:-

-the PAPs have been compensated as required under OP 4.12;

-economic rehabilitation measures have been implemented; and

-the PAPs have the same or better standard of living than before.

A number of objectively verifiable indicators shall be used to monitor the impacts of the compensation and resettlement activities. These indicators will be targeted at quantitatively and qualitatively measuring the physical and socio-economic status of the PAPs, to determine and guide improvement in their social wellbeing.

KEY HIGHLIGHTS OF THE RPF

The key highlights in this RPF report is presented as follows:

• Principles and objectives governing resettlement preparation and implementation.
• A description of the process for preparing and approving resettlement plans.
• Land acquisition and likely categories of impact.
• Eligibility criteria for defining various categories of project affected persons.
• A legal Framework reviewing the fit between the laws of Kenyan and regulations and World Bank policy requirements and measures proposed to bridge any gaps between them.
• Organizational procedures for the delivery of entitlements, including an Entitlements Matrix.
• A description of the implementation process, linking resettlement implementation to civil works.
• Descriptions of grievance redress mechanisms.
• A description of mechanisms for consultations with, and participation of PAPs in planning, implementation, and monitoring of NaMSIP activities.
• Arrangements for monitoring by the implementation agency and, if required, by independent monitors.

CONTENTS

EXECUTIVE SUMMARY

KEY HIGHLIGHTS OF THE RPF

CONTENTS

ABBREVIATIONS AND ACRONYMS

GLOSSARY OF TERMS

Definitions

1CHAPTER ONE: INTRODUCTION

1.1Background:

1.2The Assignment:

1.3Objective of the Assignment

1.4The need for the Resettlement Policy Framework

1.5Resettlement Policy Framework Report Layout

2CHAPTER TWO: METHODOLOGY AND CONSULTATIONS

2.1Resettlement Policy Framework Preparation Process

2.2Results on Findings

2.2.1National Context:

2.2.2Nairobi Metropolitan Region (NMR)

2.2.3NaMSIP preparation:

2.2.4The Kenya Constitution:

2.2.5Resettlement Policy Frameworks:

2.2.6Public Works

2.2.7Housing and upgrading Programmes:

3CHAPTER THREE: PROJECT DESCRIPTION

3.1The Project Objective

3.2Proposed project components for NaMSIP

3.3Analysis of the components

4CHAPTER FOUR: IMPACTS ON PEOPLE AND LIVELIHOODS

4.1Displacements

4.2Categories of Project Affected People (PAPs)

4.3Response mechanism to the needs of the listed PAPs categories

5CHAPTER FIVE: PRINCIPLES & OBJECTIVES GOVERNING PREPARATION OF RPF

5.1Involuntary Resettlement:

5.2Socio-economic displacement:

5.3Physical displacement:

5.4Screening of projects for displacement impacts

5.5Socio-economic Survey of Affected Households

5.6Implementation Conceptual framework

6CHAPTER SIX: THE ENTITLEMENT MATRIX FOR NAMSIP

6.1Nature and scope of displacement impacts under NaMSIP

6.2Computation of Compensation:

6.3The Entitlement Matrix

6.4Compensation for vulnerable groups

7CHAPTER SEVEN: LEGAL FRAMEWORK FOR RESETTLEMENT

7.1Land Bill 2011

7.2Land Acquisition

7.3Physical Planning Act

7.4World Bank Operational Policies OP 4.12

7.5Gaps between GoK and WB Policies

8CHAPTER EIGHT: PLANNING FRAMEWORK FOR RESETTLEMENT

8.1Planning for resettlement

8.2Spatial Planning in the context of Resettlement Policy Framework

8.3Land use and Resettlement Planning.

8.4Resettlement Planning Requirements

8.5Resettlement Policy Framework and NaMSIP implementation

9CHAPTER NINE: CONSULTATION AND GRIEVANCE REDRESS MECHANISMS

Overview

9.1Mechanisms for consultation

9.1.1Data Collecting phase

9.1.2Implementation Operation

9.1.3Monitoring and evaluation phase

9.2Grievance Redress Mechanism.

9.2.1Grievance Procedures

9.2.2Grievance redress process

9.2.3Timeliness of the process

9.2.4The process

9.2.5Grievance Log

9.2.6Monitoring Complaints

9.3Institutional Arrangements

9.3.1Institutional Coordination

9. 3.2 NaMSIP Coordinating Team:

9.7The Ministry of Nairobi Metropolitan Development

10CHAPTER TEN: METHODS OF VALUING AFFECTED ASSETS

10.1TYPES OF COMPENSATION PAYMENTS

10.2 VALUATION OF ASSETS AND NATIONAL LAW

10.3 VALUATION PROCEDURE

10.4 Preparation of Asset Inventory

10.5 VALUATION METHODS

10.6 CALCULATION OF COMPENSATION BY ASSETS

10.6.1 Compensation for Land

10.6.2 Land Measurement

10.6.3 Calculation of Crops Compensation Rate

10.6.4 Compensation for Buildings and Structures

10.6.5 Compensation for Community Assets

10.6.6 Compensation for Sacred Sites

10.6.7 Compensation for Loss of Businesses

10.6.8 Compensation for Cultivated Crops (both cash and subsistence) and Trees

10.6.8 Compensation for vegetable gardens and other activities

10.6.9 Compensation for horticultural, floricultural and fruit trees

10.6.10 Other domestic fruit and shade trees

11IMPLEMENTATION ARRANGEMENTS

11.1Public Consultation and participation

11.2Stakeholders Workshop

11.3Inventory/Census of PAPs to prepare Assets Registers

11.4Linking implementation to civil works

11.5Preparation of Resettlement Action Plans (RAPs).

12CHAPTER ELEVEN: MONITORING AND EVALUATION

12.1Setting of Monitoring and Evaluation Goals

12.2Responsibility of the authorities

12.3Indicators to Determine Status of Affected People

12.4Indicators to Measure RAP Performance

12.5Monitoring of RPF Implementation

12.6Storage of data and information:

12.7Socio-economic monitoring

APPENDIX 1

APPENDIX 2

APPENDIX 3

Appendix 4: RPF POWER POINT PRESENTATION

Appendix 5: Minutes of Stakeholder Workshop 20 December 2011

TABLES AND FIGURES

FIGURES

Figure 2.2.1: Nairobi Metropolitan Region (NMR)

Figure 5.5.1: Implementation Conceptual Framework

Figure 8.5.1: Implementation Conceptual Framework

Figure 9.5.1: Conceptual Framework for NaMSIP Coordination

Figure 9.7.1: Ministry Organizational Structure

TABLES

Table 2.2.1: Assignment Delivery Plan

Table 2.2.2: Analysis of Main Metropolitan Region Challenges

Table 3.3.1: Components Analysis – Inputs and Potential Socio-Economic Impacts

Table 6.4.1: Entitlement Matrix

Table 7.5.1: Comparative Analysis of World Bank Op 4.12 and Gok Law

Table 7.5.2: Comparative Analysis of WB OP 4.12 and GoK Requirements

Table 10.4.1 Forms of Compensation

ABBREVIATIONS AND ACRONYMS

GOKGovernment of Kenya

MONMEDMinistry of Nairobi Metropolitan Development

MoFMinistryof Finance

NaMSIPNairobi Metropolitan ServicesImprovement Project

RPFResettlement Policy Framework

ESMFEnvironment and Social Management Framework

RAPResettlement Action Plans

PAPSProject Affected Persons

OPOperational Policies

ERSEconomic Recovery Strategy

CPSCountry Strategy Partnership

PCNProject Concept Note

PCTProject Coordination Team

KISIPKenya Informal Settlements Improvement Programme

KMPKenya Municipal Programme

NRMPNatural Resources Management Programme

KSUPKenya Slum Upgrading Programme

KURAKenya Urban Roads Authority

KeRRAKenya Rural Roads Authority

KeNHAKenya National Highway Authority

NUTIP National Urban Transport Improvement Project

IMSWMIntegrated Metropolitan Solid Waste Management

SDPSpatial Development Plan

NMRNairobi Metropolitan Region

UN-HABITATUnited Nation’s Human Settlement Programme

WBWorld Bank

GLOSSARY OF TERMS

Definitions

Resettlement Policy Framework (RPF) is the instrument prepared to guide resolution of displacement arising from project activities. It sets out the compensation policy and resettlement arrangements to address the needs of the affected persons to ensure that their livelihoods are restored to pre-project levels or better.

Resettlement Action Plans (RAPs) is a resettlement instrument to be prepared when the location(s) of civil works are identified. RAPs contain specific and binding provisions to resettle and/or compensate the affected persons before implementation of the activities.

Involuntary Resettlement means the involuntary acquisition of land resulting in direct or indirect economic and social impacts due to loss of benefits from use of land, relocation of structures, loss of access to assets, loss of income and means of livelihood and loss of social networks.

Project Affected Persons (PAPs) arethe persons affected because they have lost their land, their properties, their incomes and livelihoods due to land and space being required for use in carrying out civil works for the project.

Displacement means dispossessing someone of their land or part of their land so as to utilize the same for civil works. The affected person is required to relocate.

Compensation means the payment in kind, cash or other assets given to a displaced person in exchange for the acquisition of land including activities;

Resettlement Assistance means the measures to ensure that displaced persons who require to be physically relocated are assisted with resettlement plans, materials and means whichever is applicable for ease of relocating and restoration of livelihoods.

Land Acquisition means the repossession of or alienation of land, buildings or other assets there on for purpose of making Land available for project activities.

Cut off date is the date of commencement of the census of persons affected by the project within the project area. This is the date on and beyond which any person whose land is occupied for project use, will not be eligible for compensation.

Census means a field survey carried out to identify and determine the number of persons affected by the project activities or displaced to leave land for civil works. The census provides basic information needed to determine the appropriate resettlement option including compensation.

1

1CHAPTER ONE: INTRODUCTION

1.1Background:

The Ministry of Nairobi Metropolitan Development (MONMED) was created via presidential circular no. 1 of May 2008 and mandated among others to establish and develop the Nairobi Metropolitan Region. The Ministry started by defining a vision to create a World Class African Metropolis by 2030. This required elaborating strategies and building the capacity to take on the responsibility to improve core public infrastructure of NairobiCity and the 14 Local authorities in the metropolitan area. Public infrastructure is chief enabler in the achievement of the economic pillar of the vision 2030 and enhanced National Economic Development.

The establishment of the Ministry of Nairobi Metropolitan Development came at a time when Kenya was recovering from the post-election violence of December 2007/January 2008. The impact of the post-election violence changed Kenya’s social and economic outlook drastically as the gains of the previous five years were lost. The establishment of a new Ministry following such an experience was therefore a bold yet very demanding choice. The Ministry’s vision of a World Class African Metropolis was equally demanding. The creation of the most urbanized region was an affirmation of the benefits of urbanization in line with the globally accepted norm: “Cities are Engines of economic growth”.

The transformation process that will see Kenya achieve Vision 2030 will need intervention in all sectors of development and concerted effort to engage with a wide variety of development partners.. The Kenya Government has sought assistance of the World Bank to support the Ministry of Nairobi Metropolitan Development in the preparation of Nairobi Metropolitan Services Project which will address the challenges faced by the region and contribute towards the realization of the World Class African Metropolis vision.

1.2The Assignment:

The Ministry of Nairobi Metropolitan Development faces many challenges in its effort to build a robust, internationally competitive, dynamic inclusive economy; develop a world class infrastructure and enhance linkages and accessibility to national, regional and global markets. The transformation of the region will depend to a large extent on the establishment of well resourced institutions with capacity to plan and implement integrated infrastructure services programme and coordinated social and economic development within the Nairobi Metropolitan Region.

Nairobi Metropolitan Region (NMR) extends over 32,000 square kilometres and comprises the jurisdiction of NairobiCounty, KiambuCounty, MachakosCounty and KajiadoCounty. According to the 2009 Population and Housing Census, these four counties contain a population size of 6.65 million. Majority of the population is concentrated in NairobiCity which has also the highest concentration of infrastructure development and services. NMR is the most urbanized region in Kenya and still urbanising fast especially with the growth of populations in the satellite towns. This is one of the challenges the region is going to address as it strives to realise the World Class African Metropolis.

Economically, the Nairobi Metropolitan area generates some 50 percent of Kenya’s gross domestic product. Nairobi has grown to be a regional transport hub, a communications centre and home of several multinational corporations. Nairobi has an extensive market network for goods and services. It has grown to provide employment to a variety of manpower in commerce, industry and electronics. Economically, the Nairobi Metropolitan area generates some 50 percent of Kenya’s gross domestic product.