End of grant evaluation on the rural enterprise extension service, Kenya

Final evaluation covers the period 4/77-6/80 and is based on document review and interviews with USAID/K officials and PfP staff and clients. As a prototype of assistance to small rural businesses, the project deserves special consideration, even though not all targets were met. A total of 1,019 clients (about 25.8% of the business sector pool) were assisted vs. a planned 1,840; the average client improvement ratio was 1.3 (2.0 targeted). Client monthly sales reached $2,162, short of the $3,000 planned and client monthly profits reached $285 ($500 planned). Many more than the 20 planned Kenyan business consultants were trained, employment was generated for 379 persons (vs. a planned 300), and collaboration with the Government of Kenya (GOK) in small business initiatives was increased. The extension service was expanded from Kenya's Western region to the Central region, indicating replicability. PfP consultants are reaching out to women, groups, and productive enterprises, and other clients beyond the petty traders traditionally served. Project services continue to be in great demand and clients attest to improvement in their managerial and technical skills. Progress was adversely affected by administrative problems attendant on the Kenyanization of PfP/Kenya's staff, which resulted in weak leadership, poor organizational structure, and unclear policies and terms of service for personnel. Nonetheless, PfP/K is evolving into a sound organization, with a dedicated and high-quality staff, and is fully committed to seeking a strong relationship with the GOK. Although PfP consultants attempted to help clients to obtain loans, the extension service created an expectation of credit assistance which it was unable to satisfy. It is recommended that the project be continued to allow PfP to continue its extension service, that PfP be restructured to indicate clearly terms of service and lines of communication, and that highest priority be placed on seeking support from the GOK. The project taught the need for extension services to assure credit availability and the value of using extension agents who are familiar with clients' environments.