Audit of Kenya arid and semi-arid lands development project

Audit report covers the period 5/83-12/84 and is based on document review, site visits, and interviews with GOK and USAID/K officials. Progress has been made toward meeting targets. Contracting difficulties, housing construction delays, and problems with project design have been overcome. The subprojects (SP"s) implemented (e.g., terracing, livestock improvements, subsurface dam construction, support to village polytechnic institutes) have helped to improve Kitui"s agricultural production base. However, seven problem areas remain: (1) SP"s have not been implemented as quickly or economically as possible due to a lack of advance planning; (2) the project monitoring system remains incomplete because the required computer has not been purchased; (3) the adult education component is behind schedule because the Ministry of Community and Social Affairs has not appointed a facilitator to oversee its activities (the facilitator should also work to integrate adult education with village polytechnic programs); (4) contractor personnel have not had ready access to project vehicles, which remain under GOK control despite a previous audit recommendation; (5) A.I.D. commodities have faced delays in customs because the GOK has not recognized their duty-free status and locally procured commodities have not been exempted by the GOK from taxation; (6) a follow-up system has not yet been set up to ensure that the 19 project-funded participants are assigned to development-related activities when they return to Kenya; and (7) some $1.8 million in funds set aside for contingencies are excessive and should be reprogrammed. It is noted that two of these problems, access to project vehicles and the tax free status of A.I.D. commodities, are pervasive in USAID/K projects.