Environmental and Social Impact Assessment (ESIA) Policy in Kenya and International Finance Corporation (IFC): A Comparative Perspective

Abstract

The Kenya’s National Environment Action Plan process culminated in the formulation of the policy on Environment and Social Impact Assessment (ESIA) under Sessional Paper No. 6 of 1999 and subsequently, the National Environment Management Authority of Kenya (NEMA). The additional legal framework which guides the Environmental and Social Impact Assessment (ESIA) is the Constitution of Kenya 2010 under which environmental, social, resettlement and compensation issues are given prominence. ESIAs consider various aspects of the environment such as impacts on the social environment and an Environmental and Social Management/Monitoring Plan (ESMP) is prepared to counter or lessen the impacts. The ESIA reports in Kenya are prepared in accordance with set guidelines of NEMA. The International Finance Corporation (IFC) is a subsidiary of the World Bank group whose main purpose is to finance private sector projects. The banks operational/bank procedures (OP/BP 4.03) guides the IFC operations and staff on ESIA policy that private sector borrowers are obligated, before release of funding. There are eight IFC Performance Standards that constitute the ESIA policy and that must be adhered to before application for IFC finance for private sector projects. When host country regulations differ from the levels and measures presented in the IFC’s ESIA policy, projects will be required to achieve whichever is more stringent. This paper notes that the ESIA requirements in Kenya (championed by the National Environment and Management Authority (NEMA)) and IFC are similar in scope, application and recommendations.