| 4. In which ways is the initiative creative and innovative?
1. Provision of a convenient and integrated payment gateway for the Disbursement of Government Funds with clean know your customer database and electronic business rules to manage funds disbursements.
2. One Biometric and Huduma Card Registration Point for Several Government Services for example: Social Intervention Funds (National Social Security Fund, National Health Insurance Fund), Kenya Revenue Authority, Other Government Disbursement Funds like National Youth Service Stipend.
3. The Huduma Card is the first Government of Kenya issued smart card that ensures inclusion of Kenyans from all walks of life by providing access to financial services, health insurance, social services and welfare programmes.
4. The Huduma Card is a convenient, universal usage card that is “one size fits all” that allows the user to conduct multiple electronic transactions for both private and public sector services. A “One Stop Shop” Model in making payments for Government Services
5. The Huduma Card is issued instantly when the customer fills an application giving the customer instant access to a prepaid bank account and transaction card
6. Partnership with private sector institutions e.g. MasterCard, Banks and X-Infotech has enabled the Government of Kenya to issue Huduma Cards at no cost to the citizen and at no cost to the Government
7. The adoption of a pre-paid card bank account model means the Huduma Card holder (usually at the bottom of the financial pyramid) does not incur account management costs as they would for a normal bank account and therefore enjoys reduced costs
8. The Huduma Card project is being rolled out at zero cost to Government and the Customer this has been achieved through a partnership framework with MasterCard, four biggest/tier 1 National Banks in Kenya and the X Infortec Solution provider to roll out the Huduma Card.
9. Partnership with MasterCard ensures global acceptance for the Huduma Card giving the card holder a convenient method to access financial services online or anywhere in the world
10. Enhanced tax collections - Employers of low income earners such as domestic workers and SMEs will be urged to pay employee wages through the card account upon which automatic deductions will be made for NSSF, NHIF and KRA income tax. Statistics from developed countries have demonstrated that there exists a growth in GDP commensurate to the percentage increase in the usage of card transactions.
| 5. Who implemented the initiative and what is the size of the population affected by this initiative?
5. Who implemented the initiative and what is the size of the population affected by this initiative? In no more than 300 words, describe the organization through which the programme is administered and how many people it benefitted.
5.1.1 Who implemented the initiative
The Huduma Card project is implemented by the Government of Kenya, Ministry of Public Service, Youth and Gender Affairs through the Huduma Kenya Secretariat.
5.1.2 What is the size of the population affected by this initiative?
All Customers of Government Services
Currently, over 200,000 Huduma Cards issued, half of these are receiving Government Disbursement and Intervention Funds through the National Youth Service Government Intervention. 800,000 Huduma Cards are in the Country and being issued to all citizens through Huduma Centers and Bank Branches of the 4 National Banks partnering with the Government of Kenya in this initiative for free. An additional, 2Million Huduma Cards have been fully financed by MasterCard and are being produced to be brought to Kenya for the continuing issuance exercise.
5.1.3 Organization through which the programme is administered and how many people it benefitted.
The Huduma Smart Service and Payment Card (Huduma Card) is being rolled through the Huduma Kenya Programme Institutional Governance Structure that was gazetted by H.E The President vide Gazette Notice No. 2177 of 4th April 2014. The unique Governance framework is led by H.E the President and His Cabinet as the Service Delivery Summit. The Summit has given the Programme the required Policy, Managerial and Political Leadership to anchor such an extensive transformational Programme in the Public Service.
Falling under the Summit is the Huduma Kenya Technical Committee comprising accounting officers (Principal Secretaries and CEOs) of Agencies and Departments represented at the Service Delivery Summit. The committee defines the strategic actions to be undertaken in the roll out of the Programme and oversees overall implementation of the programme. The committee is chaired by the Cabinet Secretary Ministry of Public Service, Youth and Gender Affairs. The Technical Committee has the Huduma Kenya Secretariat as the Operational Secretariat responsible for the implementation of the decisions of the Technical Committee and is involved in the day to day management of the Huduma Kenya Programme.
| 6. How was the strategy implemented and what resources were mobilized?
6.1.1 How was the strategy implemented
Five Key Areas were identified in putting together the Huduma Card Action Plan:
i. Huduma Card Programme Strategy & Approach Developed
ii. Value proposition Development
iii. Customer enrollment and onboarding
iv. Card Processing & Issuer operations
v. Ongoing cardholder, programme management, monitoring and evaluation
Below is a highlight of the Activities in each component as per the four above stated categories.
Note: The detailed Action Plan is attached as per guidelines
1. Huduma Card Programme Strategy & Approach Developed
Target segment identification
Business model designed
Business plan/ card tariffs defined
Operating model & organization design developed
Roles and responsibilities of stakeholders defined
Rules of engagement & SLAs defined
2. Value proposition Development
Prototype system development and integration testing
Network configuration and Testing
Product development (NHIF, NSSF, KRA and Government Disbursements)
Customer enrollment and onboarding
Card Processing & Issuer operations
Ongoing cardholder & programme management
3. Customer enrollment and onboarding
Marketing & advertising
Customer registration/ data capture
Card issuance / fulfilment
4. Card Processing & Issuer operations
Transaction data capture / tracking
Clearing and settlement
Technology / platform management
5. Ongoing cardholder, programme management, monitoring and evaluation
Card Load points & use network management
Ongoing cardholder engagement
Card usage development
SLA/ KPI management
Continuous monitoring through customer surveys and contact centre customer response call backs.
Multi partner project appraisal and evaluation.
6.1.2 What resources were mobilized
1. Financial Resources
The entire Huduma Card project is being rolled out at Zero Cost to the Government of Kenya. Our Partners including Mastercard, four tier 1 Banks in Kenya and the X Infotech Solution provider are fully supporting the project roll out and target to recoup their investment through a Huduma Card/ Cashless/ Cash light driven economy.
This model elaborates a successful public private partnership with a focus on social interventions but leveraging on economic opportunities available in the Cashless/ Cash light sector.
However, the Partners have committed over Kenya Shillings 1.5 Billion (Approximately 14.5 Million US Dollars) in Financial and Technical support for the roll out of the Huduma Card Project.
2. Technical Resources/ Human Resources / The Huduma Kenya Secretariat
The Ministry of Public Service, Youth and Gender Affairs through the Principal Secretary Public Service appointed a team of Technical Officers from the Private and Public Sector to spearhead the day to day running of the Huduma Kenya Programme and the Huduma Card under the Huduma Kenya Secretariat.
However, the partners have fully provided additional technical/ specialized human resources for the Huduma Card roll out as it being a prepaid card and the partners are conversant with this arena.
| 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
The Stakeholders of the Programme:
1. The Presidency
2. The Ministry of Public Service, Youth and Gender Affairs
3. National Social Security Fund
4. National Health Insurance Fund
5. Kenya Revenue Authority
6. Pensions Department
7. The National Treasury
8. Ministry of Information, Communication & Technology
9. Ministry of Labour, Social Security and Services
10. Higher Education Loans Board
11. National Transport and Safety Authority
12. Kenya Police
14. Equity Bank Kenya Limited
15. Diamond Trust Bank Kenya Limited
16. Commercial Bank of Africa Limited
17. Kenya Commercial Bank Limited
18. X Infortec Limited
19. Huduma Kenya Secretariat
B. Civil Servants
1. Madam Cecily Kariuki – The Cabinet Secretary in charge of the Ministry of Public Service, Youth and Gender Affairs and Chairperson of the Huduma Kenya Technical Committee.
2. Madam Lillian Mbogo Omollo – Principal Secretary, Public Service and Youth.
3. Mr. Dennis Mutuku – Secretary, Huduma Kenya Secretariat
4. Mr. Geofrey Mwangi – Chief Executive Officer/ Board Secretary, National Health Insurance Fund.
5. Mr. Anthony Omerikwa – Chief Executive Officer/ Managing Trustee, National Social Security Fund.
6. Mr. John Njiraini – Commissioner General, Kenya Revenue Authority
| 8. What were the most successful outputs and why was the initiative effective?
1. Accountability for Government Disbursements – All Government beneficiaries entitled to Government disbursements are biometrically registered and the disbursement is done to their Huduma Cards. Further, the disbursement is done through a uniquely developed Huduma Disbursement Portal that has electronically developed business rules that define the disbursements being done to the beneficiaries.
i. Over 200,000 customers have been issued with Huduma Cards and over 100,000 have received their Government stipend/ social funds through their Huduma Card.
ii. Financial Inclusion – Of the 200,000 customers who have Huduma Cards 70% of this group have never had a Bank account and this now avails an opportunity to access Financial Products from the Huduma Card Partner Banks.
2. Efficiency, transparency and accountability in the collection of Government Payments Citizens empowered with electronic payment card to enable digital payments for government services. Electronic payments are received directly and credited into government bank accounts reducing the cost, risk and time involved in handling and processing cash settlements
3. Enhancing Social Inclusion – Customers able to register for Social Interventions Funds: National Health Insurance Fund and National Social Security Fund at one registration point. This has also enhance convenience to customers through the single registration approach. Further, has led to Health and Welfare inclusion through the National Health Insurance Fund and National Social Security Fund.
4. High Customer satisfaction for the use of the Huduma Card that stands at 85% (Measured through a Customer Satisfaction Survey and Contact Centre Continuous Customer Call and Feedback Mechanism). Customers have lauded the one card concept where their social intervention card can be used for other private purposes.
5. Successful Public Private Partnership for Social Intervention Projects – This has seen the Huduma Card project that has cost over Kenya Shillings 1.5 Billion (Approximately 14.5 Million US Dollars) rolled out at Zero Cost to the Government of Kenya.
| 9. What were the main obstacles encountered and how were they overcome?
1. Implementation Delays
Partners have at certain project periods not managed to meet the set implementation timelines. To address this joint project management teams were constituted to oversee the Huduma Card Project and they were tasked to implement a Task Specific Project Plans to track progress and therefore act on any delays.
2. Transformation Public Cash use Culture
For a long time cash has been the medium of economic transaction that the public has been used to and transformation of this means there is need for continuous sensitization and awareness creation on the benefits of the Huduma Card.
3. Information, Communication and Technology (I.C.T)
We have experienced downtimes with the Huduma Card ICT systems. To resolve this we have leverage on the ICT capacity of our Huduma Partner Banks as regard redundant links and Data Center Infrastructure and Capacity.
4. Multi Stakeholder Management
Operational gaps in aligning the different partners for the successful roll out of the Huduma Card Project has at times adversely impacted the project roll out. This has emerged as the partners also have other running projects. To address this a steering committee was constituted to align the leadership of the different organizations that were involved in the Huduma Card Project and the steering committee had the overall project oversight.