Kenya market development : program assistance approval document

The program will be implemented in conjunction with a complementary $40 million Food for Progress program; the two will have substantially the same conditionality. The program has a three-fold policy agenda: (1) the removal of movement controls on maize, beans (and minor grains) and public announcement of this; (2) the development of systems for regular dissemination of agricultural market price information; and (3) a 10% annual increase in GOK road maintenance budgets. The Ministry of Agriculture"s (MOA) Farm Management Division will develop extension messages to teach farmers how to use price information in their production decisions. The GOK will provide the local currency equivalent of $38 million to finance the rehabilitation and maintenance of 1,500 km of rural inter-market roads. In addition, the GOK will deposit the local currency equivalent of the $10 million in sector grants in a special account; these latter funds will be used in support of the sector program objectives. A companion project, 6150250, will provide TA and training to support the program"s policy agenda. See the abstract of that project. Amendment of 9/21/94 provides an additional $2 million and requires that it be used to repay GOK debt to the U.S. Government. (PD-ABJ-554)