fsd's financial education programme: evaluation and ... - FSD Kenya

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2 • FSD’S FINANCIAL EDUCATION PROGRAMME: EVALUATION AND RECOMENDATIONS Chapter 2 PROJECT OVERVIEW AND EVALUATION 2.1 Project Design The FSD Financial Education (FinEd) programme began in December 2008. Within the FSD, financial capability resides under the Formal Financial theme, although there is also a ‘financial education’ component under the Direct Poverty theme. The team which runs the Knowledge Generation Theme is responsible for research to support financial education initiatives, and in particular, for developing a national baseline. The FinEd Project Appraisal report (PAR) indicates that the purpose of the FinEd programme was to ”lay the foundations for a comprehensive and sustainable national programme of financial education in Kenya.” The vision of a financially literate Kenya is to make financial education available at all socio-economic levels. The objectives of the national programme were to: (i) improve Kenyans’ financial management practices; (ii) foster effective use of financial services; and (iii) advance consumer protection in the financial marketplace. The PAR recognised that realising the FinEd vision and achieving its objectives would require an enabling policy, a legal and regulatory framework and a multi-faceted approach to delivery. Three primary delivery channels were identified: (i) the formal educational system; (ii) mass media; and (iii) faceto-face interaction, which was to be sponsored by the financial sector itself. The intention was that the financial sector should expand its outreach by partnering with other civil society organisations. The project had four outputs, each with several activities. These outputs were: 1. Establishing a financial education partnership (FEP) 2. Developing a preliminary national framework for financial education 3. Establishing a financial literacy baseline 4. Piloting potentially viable approaches to financial education In addition, a number of activities were added in the course of the programme. These included: 5. A consumer protection diagnostic 6. Training of public sector organisations to deliver financial education 7. Study into branchless banking and financial capability 8. Creation of a financial education website 9. Development of a financial education curriculum 2.2 Project Implementation A dedicated Project Manager (PM) was appointed. The programme was intended to run until December 2010. The pilot projects were launched in 2008 and were intended to run until 2010. The project was then extended to December 2011, to allow for completion of pilots, and then again to March 2012 to allow for completion of the pilot evaluations. 2.3 Financial Education and Protection Partnership (FEPP) 2.3.1 Overview The Financial Education Partnership (FEP) was set up in 2008 with the intention of providing a neutral body which could coordinate financial education-related activities in the private and public sector. Key responsibilities were: “to cultivate a vision for the programme, market financial education to stakeholders, research financial education resources, and define a policy agenda for consumer protection.” Its first goal was to agree a basic framework to guide the development of a national financial education programme. The FEP was later renamed as the Financial Education and Consumer Protection Partnership (FEPP). A task force was established to drive the FEPP and the FSD provided secretarial services through the FinEd programme. The Governor of the Central Bank of Kenya became the “Champion” of FEPP. Initially there was much interest and membership soared further after the FEPP put out a call for proposals for FE pilots. However, once only four pilots were selected to receive support from the FinEd through the FEPP, some participants lost interest. Over time, the FEPP became more pilot-focussed and participation in the FEPP dwindled. A final FEPP Workshop was held in Naivasha in December 2010. This was well attended by several institutions and four working groups were formed: Consumer Education, Consumer Protection, Financial Education Policy, Research, Monitoring and Evaluation. No follow-up meeting was ever called as the Fin Ed programme was coming to an end in December 2011. However, during 2011, after FinEd was extended, the FinEd PM further evolved several of the concepts discussed at the last FEP workshop. These included a proposed national framework, consumer strategy and curriculum. Also, there were no further FEPP meetings after the Naivasha workshop at which to discuss or distribute these concepts, as no more funding was available.
FSD’S FINANCIAL EDUCATION PROGRAMME: EVALUATION AND RECOMENDATIONS • 3 2.3.2 Evaluation The FEPP was instrumental in placing financial education on the national agenda in Kenya (and beyond). The FinEd excelled in providing secretarial services to the FEPP, technical assistance to the pilot initiatives and in advancing the deliverables from the last FEPP workshop. However, the FEPP had several structural shortcomings: • • • • The active members were mainly those who applied for grant funding under the FEPP – while at the same time being FEPP members who in theory had to judge the applications. These roles need to be divorced in a true ‘neutral’ national structure. Membership appeared to be voluntary (largely pilot-driven) rather than strategic. The four pilots overshadowed the agenda and the activities of the FEPP became increasingly implementation-oriented - until the final Naivasha workshop. Stakeholders perceived the FEPP as an FSD-driven initiative and no real ownership of the FEPP was taken by the Kenyan stakeholders. Most stakeholders interviewed in the course of the evaluation seemed unaware that the FSD had an underlying programme with a limited timeframe, which was merely providing support and secretarial services to the FEPP. The FinEd PM became synonymous with the FEPP and indeed with any FE-related activities in Kenya. The FEPP therefore came to an end when the FinEd programme closed. While the FEPP may have been seen as a temporary structure, the FinEd design document did not make provision for transformation of the FEPP into a permanent structure owned by Kenyan stakeholders. Actually, a conscious decision was made in the design of the FinEd not to create a national entity at the outset. At the Naivasha workshop, a proposed structure was discussed and tabled, but as there were no follow-up FEPP meetings and the FinEd closed, this proposed structure was never moved forward. The outcome of the FEPP is not dissimilar to that which transpired in Ghana. In this instance, the FE initiative was also largely donor driven and funded, with the result that when the underlying donor programme came to an end, the national initiative also came to an end. It was only resurrected when a new donor programme was introduced. In conclusion, the FEPP was instrumental in creating awareness of FE and, to a lesser extent, consumer protection. Most of its planned activities were effectively executed. However, it assumed the form of a broad forum with a loosely defined task force rather than that of long-term sustainable unit providing strategic direction. Table 2: FEPP activities and achievements Outputs Activities Achievements 1. Identification of a representative stakeholder group with willingness to take responsibility for driving the programme forward Partially achieved – but no sustainability in approach Financial education partnership (FEP) established by private and public sector stakeholders Overall: partially achieved, but with no sustainability 2. Reach a consensus on an effective operating approach for the stakeholder partnership Achieved 3. Secure preliminary institutional commitment from critical public and private sector stakeholders Achieved 4. Agree terms of reference for FEP and ensure effective and representative governance Achieved 5. Establish secretariat services to provide support to work of partnership Achieved 6. Engage critical stakeholder institutions in Government to establish route to mainstreaming FEP activities within national policy development and implementation 7. Review evidence from Kenya and international experience on potential priority objectives for financial education 8. FEP to reach agreement on the preliminary priority objectives and market segments for financial education in Kenya and criteria for selection of pilot projects to be supported Some key stakeholders engaged, but FEP activities not mainstreamed in policy developments Unclear what priorities referred to (e.g. for the FEPP or for Consumer strategy or for policy?) Pilot projects selected - achieved Segments proposed in consumer strategy, although not distributed to FEPP members – partially achieved
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