The development objectives of the Second Accelerating Reforms for an Inclusive and Resilient Recovery Development Policy Financing in Kenya contribute to Kenya’s inclusive and resilient recovery from the COVID-19 crisis by strengthening: (1) fiscal management; (2) operational efficiency in the electricity sector while placing Kenya on an efficient green energy path; and (3) the governance framework for Kenya’s natural and human capital (environment, land, water and healthcare). The program responds to the urgency of the crisis to tackle longstanding bottlenecks and distortions, improve the efficiency and transparency of public spending, strengthen service delivery, and help lift the economy onto a higher, sustainable productivity and job-creating path. This Development Policy Financing series directly supports the government’s Big Four development goals and ERS. Electricity sector reforms (pillar 2), and reforms to strengthen environmental governance and unlock bottlenecks hampering the more efficient and sustainable use of land and water (pillar 3) contribute to facilitating a green and resilient recovery and growth. Human capital reforms (pillar 3) strengthen Kenya’s healthcare system. Finally, fiscal reforms (pillar 1), as well as reforms in the above-referenced pillars to strengthen the financial performance of public entities in energy, water, and health, all help to improve the quality of public spending, contributing to more sustainable public finances.
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