The overall objective of this analyticalwork is to assess the possibilities for using a communitydriven development approach in Kenya, to increase formallinkages, downward accountability of service deliverymechanisms, and social inclusiveness in the povertyreduction effort. The report explores relevant policy, andinstitutional features which color the community drivendevelopment (CDD) experience in the country. In the attemptto summarize existing data, and experience on CDD, the focusremains on the various institutional approaches used bydifferent programs. These include a wide spectrum fromgovernment and non-government, including a look at theenabling legal, and administrative environment for communitymobilization, and civic engagement. Initially, the reportprovides a background, and introduction to the study, and inanalyzing the CDD, aims to inform the Government's thePoverty Reduction Strategy Paper process, and theBank's Country Assistance Strategy. It then reviewsmajor policies which had impacted the present socioeconomiccircumstances, and attempts at CDD. This policy analysismainly focuses on institutional issues, coveringinteractions between provincial administration, central lineministries, and local government, and service delivery.Recommendations suggest the instutionalisation of villages,empowerment and improvement of local authoritiesfunctioning, and, the design of a supportive developmentadministration, options viewed not as mutually exclusive,but designed to provoke stakeholder discussions.