OPPORTUNITIES FOR SACCOS AND MSEs IN KENYA

Nov-Dec 2015 PRICE KSHS 350/-

BARINGO GUIDE TO TRADE AND

INVESTMENT OPPORTUNITIES

INVESTMENT NEWS 3

INVESTING, TRAVELLING AND LIVING IN KENYA

INSIDE THIS ISSUE November/December 2015

Publishers View………… 4

On cooperatives and

County development

The last word…………… 30

On women leadership

Quick News………………. 5

Books and culture..27

Visiting Nzaui , a place

that has impressed many

REGULARS

SPECIAL REPORTS

PULL-OUT ON INVESTING IN

BARINGO COUNTY

This special pullout focuses

on opportunities that can

benefit the local investor.

Small investors are being

urged to join cooperatives

to access funds so that they

can take advantage of op-

portunities Counties have

opened up. Start on Page 9

KONZA TECHNOLOGY CITY

Read how the new manage-

ment has brought new zeal

to Konza Tech City Start on

Page 7

Small Business Growth Plan is

our new column to help small

businesses grow and expand.

Start on page 25

4 INVESTMENT NEWS

Investment News

Editor

Muli wa Kyendo

Associate Editor

Emma Muli

Contributors

Uncle Sandu

Marketing

Charles Kavuu

Sylvia Njuguna

Investment News is published bi

-monthly by Investment News

Ltd, P.O. Box 20257-00100,

GPO, Nairobi, Kenya, Tel:

0773991820 , 0721302418,

Email: Editor

@investmentnews.co.ke

ISSN 1814 –9966

The Editor welcomes contribu-

tions but takes no responsibility

for loss or damage.

All rights reserved

Copyright: Investment News Ltd

PUBLISHER’S VIEW

Cooperatives May be the Best Way to

Improve Economies in Counties

Moses Chebor, the CEO of

the Eldama Ravine-based

Boresha Sacco, believes in

cooperatives to improve the

economies of the newly cre-

ated counties, to empower

rural communities and to fight

poverty.

Anyone who has been watch-

ing County Governments

struggle to attract the elusive

Foreign Direct Investments

(FDIs) doesn’t need much to

be persuaded by Mr.

Chebor’s logic.

Machakos was the first

county to hold an investor

conference to publicize its

investment potential. Many

incentives, including offers of

free land were announced.

And many potential investors

signed up. Some like the Nai-

robi Hospital even went

ahead to put billboards an-

nouncing their intention to set

up shop in Machakos.

Eventually, no one came to

invest. Those promises have

become more of an embar-

rassment to Dr. Alfred Mutu-

a’s Government than a

source of pride.

But Counties are full of imita-

tors—sometimes pushed by

their people as was the case

in Nyeri where Governor

Nderitu Gachagua, had to tell

the Nyeri people that the situ-

ation of Machakos was differ-

ent from that of Nyeri. That is

the key reason why we be-

lieve that local people — read

entrepreneurs— are best suit-

ed to develop their counties.

But these entrepreneurs suffer

from certain limitations—lack

of information about the re-

sources available and how to

exploit them in addition to lack

of finance.

That’s where cooperatives

come in. Most of the coopera-

tives have billions of shillings

sitting idle in banks. Many

have the capacity to raise

even much more. And we

have a pool of excellent man-

agers who have raised saccos

from scratch to large enter-

prises. These are people that

can be called upon to expand

the cooperative movement to

undertake large scale invest-

ments to the benefit of their

communities and Kenya at

large. .

INVESTMENT NEWS 5

Quick News

The discovery of oil in Kenya’s Turkana re-

gion in 2012 sparked excitement among the

local population and raised hopes of new-

found oil wealth. Numerous foreign oil com-

panies began exploration activities; local

communities started angling for a piece of the

cake demanding more jobs and opportunities;

and pundits talked of how crude would trans-

form Kenya’s mainly agrarian economy and

even eradicate poverty.

But three years later the hype is dying down. Ex-

ploration activities are slowing as budget-

conscious oil companies have downsized or shut

down operations in Kenya altogether. In 2012,

crude oil was trading at over US$100 a barrel, but

over the last year prices have declined sharply to

below $50. A research note released by Standard

Chartered bank last December indicated Kenya

can only produce oil at a profit if the price of crude

is at a minimum of $70 per barrel.

London-headquartered oil exploration and produc-

tion company Tullow Oil, which made the Turkana

discovery, said it would, as a result, reduce its rig

count in Kenya. Tullow cut its global 2015 explora-

tion budget to $200m after spending $1bn the pre-

vious year and noted that exploration activity would

be concentrated on West Africa.

Kenya is today estimated to have 600 million bar-

rels of crude. But Kenyan oil and gas expert Mary

M’Mukindia says the journey has been rocky since

the first discovery, despite talk of vast opportuni-

ties. Investors have been particularly frustrated by

Kenya’s business and regulatory environment.

Oil Multis Start to Quit Following

Drop In Prices of Crude

The global gross expenditure for research and development increased by more than 30%. from US$1,132 billion in 2007 to US$1,478 billion,

United States leads in global expenditure on research and development. Its spending rose from US$359.4 billion in 2007 to US$396.7 billion in 2013, representing a 28.1% share of the world’s overall expenditure on research and development. China came second its budget rising from US$116 billion to US$290.1 billion. As of 2013, China’s share of the global expenditure on research and development stood at about

20% Japan came third, spending US$141.1 billion on research and development in 2013, up from 139.9 billion in 2007.Other countries that invested highly include Germany, with a 5.7% global share, South Korea with 4.4%, France with 3.1%, the United Kingdom with2.5%, Brazil with 2.2% and Russia with 1.7%.

UNESCO Science Report: Towards 2030, says focus on research has changed ―Researchers are investing more than before in basic research into a commercially viable and sustainable product or technology with a potentially beneficial socio-economic impact,‖ Dr Bhanu Neupane, a UNESCO programme specialist says.

Oil exploration in Turkana

Global Spending on Scientific Publications Increases

6 INVESTMENT NEWS

Kenya is among African countries with least number of scientific publications, according to a just published UNESCO Science Re-port: Towards 2030. Its publications were 30 while the eastern African country with least number of publications was Ethiopia with 9.

Other were as follows: Cameroon 31, Congo 24, Uganda 20 and Rwanda 12.

Generally, number of publications per million inhabitants in Africa increased from 21 to 29 – still very low.

South Africa

South Africa is top of Africa in peer-reviewed publications, producing 5,611 in 2008 and 9,309 last year – also a 60% increase. South Africa’s global share of publications rose from 0.5% to 0.7% in the same period, while publi-cations per million inhabitants rose from 112 to 175.

Tanzania is in second position followed by Malawi and Zimbabwe.

However in terms of publications per million inhabitants, Seychelles leads SADC with 364 publications followed by South Africa (175), Botswana (103), Mauritius (71), Namibia (59) and Zimbabwe (21). Probably because of in-cessant conflict in the Democratic Republic of Congo, the report shows the country had only two papers per million inhabitants.

Quick News

Kenya Limps in Race for

Science Publications

EACC Audits Lifestyles of Machakos

County Staff

Machakos Governor Alfred Mutua has taken

his fight against corruption in the county a

step further by handing over files of the

County staff to the Ethics and Anti-corruption

Commission in a move that the commission

Chief Executive Halakhe Waqo called ―very

bold.‖

Governor Alfred Mutua’s wealth information

was among them.

INVESTMENT NEWS 7

By Muli wa Kyendo

Newly employed Konza Tech

City CEO, John Tanui and his

right hand man, Director of

Business and ICT, David Mu-

gambi, are possibly the most

enthusiastic and creative man-

agers of the city so far. Asked

by a reporter how they would

describe the city to their small

kids, they were quick with sen-

tences that would be the envy

New MD Brings New Hope to

Konza Technology City Excitement now returns to Kenya’s multi–billion shillings City

of even the shrewdest of mar-

keting minds.

Describing Konza City

Mugambi described the city as:

“the place where dreams will

become a reality, a place where

Africa’s future will be crafted.”

Kenya, he says, has all the

things that are needed to make

the city, not only a reality but

the leader in technology. The

first of the things that Kenya has

is an abundance of qualified

human resources and the se-

cond are enthusiastic research-

ers. What the city will do, ac-

cording to Mugambi, is to bring

these two resources in one

place so that investors, who

form the third ingredient of

great developments, would ac-

cess and use them.

“The city will be the place

where the basic resources will

8 INVESTMENT NEWS

be available for use by inves-

tors,” says Mugambi.

Role of Konza City

The city, being built some 60

kilometers away from Nairobi

along Mombasa Road, is the

biggest component in the Vision

2030. It is expected to become

the most important generator

of employment for Kenya’s in-

creasing number of school leav-

ers. It is also expected to be-

come the engine to move into

the league of the world’s most

developed economies.

Konza Tech City is being built on

a 5,000 acre land that was

bought by the Kenya Govern-

ment from a ranching group in

2008. Construction work was

initiated with great pomp by the

retired President Mwai Kibaki.

But then it went into a limbo

and most Kenyans begun to be-

lieve that it would soon die off.

Konza Technopolis Develop-

ment Authority

Indeed, passing by the road to

Mombasa, you would still be

forgiven to think nothing of im-

portance is happening. From a

distance, you can only see an

occasional tractor racing in the

expansive Kapiti plains. But the

Konza Technopolis Develop-

ment Authority (KoTDA) CEO

Eng Tanui has an explanation:

Konza City is work of great mag-

nitude. And work of that magni-

tude requires great care in plan-

ning. That is what the Authority

has been doing. “Now you are

starting to see work being done,

“he says.

And the work that is currently

going on includes laying fiber

optic cables, road construction

and development of other infra-

structure to enable the City to

welcome investors. After laying

the infrastructure, the govern-

ment will issue leases to local

and international business. It is

through this business partner-

ship that the government hopes

to build the city.

Land Leases

The city will be built on two

phases with the first phase ex-

pected to bring some 20,000

residents.

The first phase will have 24 leas-

es and invitations to business

community to take up the leas-

es have already been issued.

“The Authority has started sign-

ing leases,” says the CEO.

Land will be leased out to inves-

tors for a period of 99 years.

Interested companies are ex-

pected to have strong financial

muscle, a well-defined construc-

tion plan with timelines to start

development by April 2016 and

complete it by end of the year.

Investor Conditions

Investors are also expected to

adhere to Konza’s green build-

ing requirements as well as have

an ICT focused development

strategy.

The property, owned by the Na-

tional Treasury, will be con-

trolled by the KoTDA Bill and

partly by the Special Economic

Zones Bill. When enacted, the

Bills will provide tax incentives

TURN TO PAGE 29

Opportunities for

cooperatives and

the small business

AN INVESTMENT NEWS PUBLICATION

CS: 2549

Boresha Society Ltd is a Financial Institution licensed for Deposit Taking business by Sacco Socie-ties Regulatory Authority (SASRA). Boresha SACCO is among the top performing SAC-COs in the country with a solid capital base of 4 Billion. The Soci-ety was registered on 31st August 1976 by 10 Members with initial share Capital of 60,000. Today the growing Membership stands at 63,000 with Members Sav-ings/Deposits of Ksh. 2.2 Billion. Membership is open to All; Sala-ried Members, Business communi-ty, Farmers, Organised groups and organizations.

The Society’s area of operation is the Republic of Kenya with a Base in Baringo County in the Rift Valley Region. Head Office is Situated in Teachers Plaza , Eldama Ravine, Koibatek Sub County. The Head Office is central in coordinating the Branch network in Baringo County and beyond. Boresha has established vibrant Branches in Nakuru, one of the fast growing city in Africa to serve the Cen-tral Rift, Eldoret to serve Uasin-Gishu and Kapsa-bet to serve Members in Nandi County.

In an effort to conveniently serve our valued cus-tomers, the SACCO has established 12 Performing Branches in Baringo County and Neighbouring Counties. They include; Eldama Ravine, Kabarnet, Marigat, Mogotio, Kabartonjo, Mochongoi, Barewesa, Eldoret, Chemolingot, Nakuru and Kapsabet. Besides the fully fledged branches, the Society also has Satellite Offices in Tenges, Kip-saraman and Kisanana.

The economic impact by the SACCO at the local level is unquestionable. Boresha SACCO offers more than banking services and facilitates eco-nomic change for prosperity by empowering Members and Community at large. The SACCO exists to improve people’s living standards having stood the test of time as stable and reliable Socie-ty. Members are proud that the SACCO has ena-bled them to built great homes, ventured into business, and educated themselves and their chil-dren

The Sacco has continued to collaborate with the County Government and other Partners in eco-nomic empowerment and to alleviate poverty in the community.

We join the County Government in Welcoming Investors to Baringo County.

Boresha Sacco Kabarnet Branch situated in Mwalimu Plaza

in Kabarnet Town, Baringo County’s Headquarters

BORESHA SACCO SOCIETY LTD P.O Box 80-20103,Eldama Ravine. | Tel: +254(20)8024881 | Cell: +254720200689/734200004 |

Email: info@boreshasacco.co.ke | Website: www.boreshasacco.co.ke

INVESTMENT NEWS 11

Contents BARINGO 2015 BORESHA SACCO SOCIETY LTD

INTRODUCTORY MATTER

12 Editor’s note

Governor's Foreword

15 County economic indicators

18.Summary of the natural resources . A

look at the natural resources that Barin-

go County has including those that re-

quire large scale investment such as ge-

othermal energy

20 Early trading and civilization of Barin-

go. There is an analysis of the role of

Tugen Hills as a depository of early

Man’s history.

22 Investment opportunities in Baringo

County. This section looks at the variety

of investment opportunities focusing

mainly on opportunities for cooperatives

and small businesses.

Like cattle, bee keeping forms a great

part of the economic activities in Baringo

County. Here we pay special attention to

the industry

12 INVESTMENT NEWS

2015

EDITOR’S NOTE

Investing: Baringo County 2015

Copyright 2015 Investment News P.O. Box 20257-00100 Nai-

robi, Kenya. All rights reserved. No part of this publication

may be reproduced, stored in a retrieval system or transmit-

ted in any form or by any means, electronic photocopying,

mechanical recording or otherwise without the prior permis-

sion of the copyright owner

Contents: The contents of this guide have been deliberately focused on the local investor

- the Kenyan micro, small and medium entrepreneur. Our belief is that individually and in

groups such as cooperatives, the local entrepreneur can help counties create wealth. Of-

Often however, they are unaware of the opportunities available and the contribution they

can make as investors. Our purpose is to provide them with the information and encour-

agement they need. We will continue to encourage cooperative as the best way for the

average investor to pull together as well as access funds for their businesses.

Advertisements: Advertisements help to give extra information to readers. In this case,

advertisers were to help show the value they had achieved in investing in Baringo County.

We appreciate again with grateful thanks, those who agreed to help to tell the story of

Baringo as a viable investment destination for investors.

Finally, the Editor acknowledges with grateful thanks, the help of a very large number of

information sources who have cooperated in the compilation of this guide.

The sponsors have helped in facilitating the gathering of the information and publication

of the guide. I wish to thank particularly the officials of Baringo County Government who

volunteered to cooperate and help in a variety of ways whenever we needed their help. It

is due to the constant help that we now have this guide.

INVESTMENT NEWS 13

FOREWORD

As the Governor of Baringo County, and on behalf

of the Baringo County Government, I am pleased to

introduce this Investor’s Guide to Investment Op-

portunities in Baringo County. Investors in Kenya

should look at growing horizons of opportunities

that the new political dispensation has created. In-

vesting in large cities and the surrounding areas

may provide a simple option, but investors that re-

ally want to make money and create social impact

must look beyond – far into the countryside where opportunities are not only unex-

plored but offer much greater margins of returns on capital. Baringo County is one

such far off area with plenty of opportunities for both the large and small investors.

Located in the former Rift Valley Province of Kenya, Baringo County lies about 270km

north-west of Kenya’s capital, Nairobi and covers an area of 11,015.32 sq km. Within

that area, you find plenty and diverse opportunities.

As a County, we recognize that these opportunities must be made known to potential

investors. We have, in deed, embraced the UN advice to States and Counties to profes-

sionally package and disseminate relevant, useful and targeted information to put their

counties on the map of local and international investors. The guide starts that crucial

journey for our County. It explains the opportunities available to the investor as well as

the requirements and the environment – cultural and political – that surrounds the in-

vestor.

I believe that information provides the key to sound and intelligent investing. I believe

this guide will provide that key.

Welcome to Baringo County.

Benjamin Cheboi, CBS, EBS, OGW

Governor, Baringo County.

14 INVESTMENT NEWS

EARLY TRADING AND CIVILIZATION

Welcome to the home of the original man in Tugen Hills

THE culture and history of the people of

Baringo County cannot be found in the gen-

eral folk tales of the Kalenjin community of

the Rift valley. It is best sought in the stories

and traditions built around their own fact of

existence in an area that is unique in many

ways.

The uniqueness lies in its semi-arid condi-

tions, in its locations, fauna and flora which

have for years attracted travellers and trad-

ers from distant countries and who have in

turn influenced and enriched the culture and

history of Baringo. This uniqueness must have

inspired the imagination and creativity of the

early Man of Baringo and entranced the visi-

tors and traders who have in turn enriched

the culture of Baringo.

THE journey of Baringo starts in earnest

probably more than six million years ago with

an early man known by scientists as Orrorin

tugenensis. His remains were discovered One of the Tugen Hills one of the most

important areas of study of early Man

INVESTMENT NEWS 15

around the Tugen Hills in 2001.

Orrorin tugenensis, scientists believe, makes

Tugen Hills the origin of Mankind and there-

fore a repository of world culture.

And instinctively human beings have been

drawn to the hills since time immemorial.

Among them were early traders.

These early traders were Indians who brought

along with them the famous tamarind trees of

Tugen Hills. Then there were Arab slave deal-

ers whose presence was immortalized by

naming the trees brought by the Indians as

tamarid tree.

Early trade also involved ivory, cowries shells ,

gold brass and hides.

The connection with traders from the coast of

Kenya is something treasured by the Tugens

of Baringo. In deed, a recent cultural festival

held at the site of Koroto— a slave and trad-

ing center - featured ‘Lamu eyes’ traditionally

nailed to the front of a dhow to keep away

the evil eye.

Following hot on the heels of the Arabs were

the Europeans led by the famous explorer

Joseph Thomson in 1883. But it was colonial-

ism that brought in a flood of Europeans es-

pecially administrators, educationists and

Christians whose influence was much far-

reaching. Many places in Baringo—including

the capital town of Kabarnet—were named

for some of these influential Europeans.

Other unique things are the great lakes—

lakes Baringo and Bogoria. They are not just

lakes in the great valley, they are unique in

their own ways, making them a pivotal point

for a variety of activities in Baringo County

and beyond.

BARINGO COUNTY INDICATORS AND FACTS AT A GLANCE

Demographics

Population

Total Population 555,561

Male 279,081

Female 276,480

No. of households 103,734

Education

No of primary schools 656

No. of secondary schools 134

Pop with secondary school education 16%

Pop. with primary school education 48 %

Land and land use

Class Sq.km

Built up land 5,985.32 (55%)

Forest cover 1,481.11 (14%)

Water bodies 196.69 (1%)

Agricultural land 3,250.37 (30%)

Title deed holders 25%

Urban leasehold holders 5%

Customary land rights 70%

Employment

Total labour force 190,349

Unemployed 66%

Wage employment 34%

Literacy level (labour force) 46 %

16 INVESTMENT NEWS

NATURAL RESOURCES

Geothermal energy

Baringo County has more than 3,000 mega-

watts (MW) of geothermal generated power

already being exploited.

Silale, Paka, Korossi/Chepchuk and areas

around lakes Baringo and Bogoria have been

identified as sites which have potential for ge-

othermal development. In addition, the block

is capable of yielding up to 576,000 tonnes of

water per day which can irrigate 57,000 hec-

tares of land

Solar, Wind, Bio fuel and Biogas are also avail-

able in commercially exploitable quantities.

Biomass power generation from Prosopis Juli-

flora trees of at much above the 12MW cur-

rently generated. Areas with geothermal energy in

Baringo County has a variety of natural resources that can be exploited by large

and small business enterprises. And although some of these are already being ex-

ploited, their full potential has yet to be realized. In addition, there are business-

es that can be constructed as a result of the exploitation of the natural resources.

Below are some of these natural resources.

Forests

Although generally classified as semiarid area,

Baringo County has one of the largest forest cov-

er with rare and valuable tree species.

Gazetted forests in the County are mainly popu-

lated with indigenous trees and plantations of

exotic trees like eucalyptus, pine and gravelia.

These include; Tarambas, and Kabarnet forests in

Baringo Central Sub-County; Tulwonin, Saimo,

Ketnwan forest and Katimok forests in Baringo

North, Lembus Mogotio and Perkerra in Mogotio

sub-County, Maji Mazuri Londiani Forests, Kibunja

forest and Koibatek forest in Eldama Ravine Sub-

County, and Ol Arabel forest in Baringo South sub-

County.

INVESTMENT NEWS 17

Mineral Resources

Mineral potential of baringo County has not

been fully explored. Further exploration of

these minerals needs to be undertaken to

establish the viability of commercial exploita-

tion. Some important mineral deposits that

are believed to exist in the County include

Rubies, Diatomite, Flourite deposits around

Tiaty Hills, Vermiculite, Trona at Lake Bogoria

and Carbon Dioxide at Esageri in Mogotio sub

-County.

Ruby deposits are found in the rocky terrain

of Kwirintoi close to Waseges River to the

east of Lake Bogoria, and at Kapleng’noi and

Barsemoi to the west of Lake Baringo. Ru-

bies and pink sapphires were first reported

in the Baringo/Bogoria area in 2001.

The current prospective site is East of Lake

Bogoria around Mbechot area and West of

Baringo South where John Saul mines and

Corby Company Ltd are the only companies

which have mined Rubies in commercial

quantities. In order to exploit this valuable

resource, the security situation in that re-

gion is being addressed.

Soda Ash

Soda Ash (Trona) deposits on the shores of

Lake Bogoria are mined in small quantities

by the pastoralist community and used as

salt licks for their livestock. Oil is currently

under exploration in Barwessa region of

Baringo North sub-County while geo-

thermal energy is under exploration in Sila-

le in Tiaty sub-County.

Wildlife

Baringo County is home to a wide range of

wildlife. The main wildlife reserves and sanc-

tuaries are: Lake Bogoria, Lake Baringo, Lake

94 and Lake Kamnarok, Nasolot, Saiwa

swamp and Rimon. Lake Bogoria National

Reserve was recently declared by United Na-

tions Environmental, Science and Cultural

Organization (UNESCO) as the World Herit-

age Site with spectacular hills suitable for

bird watching. It also has a range of wild ani-

mals including Greater Kudu, Leopards, Lions,

Buffalos, Zebras, Hyenas, and Gazelles, ba-

boon, Dik-dik and Klipspringer, the latter at

the rocky slopes south and east of the lake.

Besides flamingoes, there are more than 500

bird species in the County as well as several

scattered birds on cliffs and shrubs in the

County. Baringo remains one of the world’s

largest bird watching destinations.

18 INVESTMENT NEWS

INVESTMENT AND TRADE OPPORTUNITIES

Investment and trade opportunities

are very much dependent on the natu-

ral resources. Baringo County is well

endowed with natural resources. This

section looks at some of these opportu-

nities that are particularly suitable for

the Micro, Small and Medium investor

Livestock-based industries

The county supports a wide range of live-

stock related enterprises which constitute

70% of the county economic activity. This

sub sector plays an important economic and

socio – cultural role among the community

members. It contributes to the food and

cash needs of the pastoralist and provide

employment to 90% of the population. It

provides raw materials for industries and the

sector directly influencing the growth of the

county’s economy.

Apart from rearing animals, an investor has

plenty of derivative investment opportuni-

ties.

Meat and milk processing are some of these

industries. Hides and skins also offer great

opportunities. Diseases and drought affect

animals in Baringo county, thus creating a

chance for an investor in hay and medicines

–and even water supply for the animals as

well as human beings.

Quality of products, distance to the markets,

insufficient market information, lack of value

addition initiatives, are other areas where

investors can benefit. These offer the inves-

tor opportunities that include abattoirs, sale

yards, vaccination, holding grounds and dips

which are currently inadequate.

The Baringo Government is targeting to posi-

tion livestock as a major economic driver de-

livering at least 10% of growth.

Other trade opportunities are offered by fish

trade and farming as well as bee keeping.

With the great lakes of Baringo and Bogoria,

fish is an important occupation in Baringo

County. We will look at bee keeping in a sub-

Annual income from selected livestock

INVESTMENT NEWS 19

Bee Keeping, Honey

Processing and Cooperatives

The fact that Baringo County could use bees

to promote its investor conference clearly

indicates the amount of bees and honey in

the county. In fact, currently, the county has

more than 135,000 beehives which produce

only 579 tonnes annually earning the county

Sh144 million.

And, according to Governor Benjamin

Cheboi, the County government hopes to in-

crease production to Shs 5billion every year.

Urging farmers to use modern behives,

Cheboi said local log bee hives currently be-

ing used in the county produce a maximum of

18 kilogrammes each season while the com-

mercial hives can produce up to 70 kilo-

grammes in a season.

Honey production statistics

Baringo North Sub-County is leading in hon-

ey production with 46,000 bee hives followed

by Mogotio with 32,000 bee hives while Tiaty

has 16,000 bee hives Koibatek Sub-County

has 2,000 hives while Baringo South has

15,000 bee hives Kenya’s potential for apicul-

ture development is estimated at over

100,000 tonnes of honey and 10,000 tonnes

of beeswax per annum. At the moment only

about one fifth of this potential is being ex-

ploited.

Various challenges have made it difficult for

farmers to fully harness the opportunities in

beekeeping. Among these challenges are the

inadequate training in beekeeping technolo-

gies for farmers and staff, insufficient re-

search on apiculture, inaccessibility of credit

for farmers as well as lack of development of

quality standards. Beekeeping provides an

excellent business to small-scale farmers.

Cooperatives and groups

Many of these challenges can be solved if

farmers join up in groups and cooperatives.

Governor Cheboi advices farmers to join co-

operatives in order to develop the honey val-

ue chain and to avoid being exploited by un-

scrupulous middlemen.

An example of a group that has benefitted

Benefits of Unity

Beekeepers in Kapkuikui area of Baringo

South Sub-County formed a group and are

now enjoying the benefits. They have in-

creased and improved their behives. Their

earnings in a season can exceed Sh.1.8 mil-

lion which they distribute to members ac-

cording to the amount of honey delivered.

Group members can earn in excess of Shs

200,000 a season which has made their lives

comfortable.

“We are now able to cater for our families’

needs, including taking our children to

school. Local youth have also ventured into

the enterprise and some of them own be-

tween 20 and 40 hives, which have kept

them from vices like drug abuse,” said Mr

Simon Chesang.

20 INVESTMENT NEWS

from unity is that of Kapkuikui farmers.

Working with the group has made market-

ing easier and thus improved their incomes

The county government was able to assist

the farmers of Kapkuikui with Sh2 million to

the farmers of Kapkuikui with Sh2 million to set

up a honey processing plant. This, according to

the chairman, has enabled the group to do

value addition for their honey.

CROP FARMING

Main Crops

The main crops produced in Baringo County

can be grouped into:

Food Crops (Maize, beans etc.)

Cash Crops (Coffee, Sisal, pyrethrum, cot-

cotton)

Nuts (Groundnuts, macadamia

Horticultural crops (Fruits and Vegetables)

Flowers

Resource Products Suggested location

Maize Flour Marigat, Eldama Ravine

Cotton ginning & spinning Salawa (old ginnery rehab)

Pawpaw winery Marigat (rehab)

Cabbages cold storage facilities Timboroa. Maj mazuri, Mumberes

Potatoes cold storage, crisps Timboroa

Coffee Coffee roasting Kabartonjo, Tenges

Nuts Nut roasting and packaging Kabartonjo, Tenges

Rice milling & packaging Marigat

Aloe Vera cosmetics &medicine Koriema (rehab)

Summary of resource, opportunities and location

These crops are grown using rainfall and irri-

gation. Baringo County depends mainly on

rain fed agriculture for production of food

and Irrigation is mainly for production of cash

crops. The potential for irrigation in the coun-

ty is above 10,000 hectares. The County Gov-

ernment of Baringo has embarked on estab-

lishing new irrigation schemes across the

county and so far eight have been completed

or are nearing completion. Many crops can

grown under irrigation for instance in 2011

Perkerra and Eldume irrigation schemes start-

ed growing seed sunflower and rice on con-

tract to help diversify crops and reduce over-

reliance on maize. Both crops have shown the

INVESTMENT NEWS 21

potential to improve farmers’ incomes and

soils.

FRUIT PROCESSING Production capacity/annum – 18,000 MT

The county government through the minis-

tries of Environment and Agriculture, Live-

stock and fisheries has embarked on a pro-

motion drive for fruit trees by supplying as-

sorted fruit tree seedlings to farmers. The tar-

get is to have 10,000 Hectares to be under

fruits in three years. The County Government

is looking for an investor in the fruits industry

to start processing of the fruits at the same

time reviving stalled winery factory at Mari-

gat. The main fruits being promoted include:

Mangoes, Bananas, passion fruit, pawpaws

and avocadoes.

Passion Fruit

Passion fruit is a very common fruit in Baringo

and can grow across the County. It is simple

to cultivate as it is even inter-cropped and as

a creeper, it can thrive even on fences and

hedges. Kenya Agriculture, Livestock Re-

search Organization (KALRO) has been active-

A mango plantation in Baringo

A juicy passion fruit

ly involved in developing high yielding varie-

ties like Brazil and CF4 that are also tolerant

to diseases and bugs, while training farmers

in orchard management and fruit harvesting.

The ultimate result has been the increase in

fruit supply and farmer participation through

the collection centers over the seasons which

has changed the supply mode.

Aloe Vera

Aloe Vera is a cash crop that grows well in the

dry areas. Efforts have been made to encour-

age farmers to cultivate the crop due to its

minimal maintenance and good returns for its

gel. However, this has not been taken up due

to poor payment to the farmers.

Baringo Aloe Bio-enterprise, a factory put up

in Koriema trading centre, to process the crop

is currently stalled. Poor pricing played a ma-

jor role in the collapse of the factory because

it discouraged many farmers from investing in

the crop that has little production expenses.

This resulted into a shortage of raw material

supplies to sustain the factory. The capacity

of the factory is at least 10,000 tonnes of aloe

vera sap from farmers annually.

22 INVESTMENT NEWS

Tourism

The tourism industry is fairly developed in the

County, with Lake Bogoria National Reserve,

Lake Baringo, Ruko Conservancy, Kabarnet

Museum and Snake Park and being the major

tourist attractions.

The rich wildlife diversity and hot springs

found in the County are major attractions

that lure tourists to the County. The diverse

cultures and heritage among the communi-

ties living in

Baringo are an-

other form of

tourist attraction.

The County gov-

ernment seeks

for partners to

help develop

Ruko Conservan-

cy in Baringo

South measuring

about 19,000

hectares. It is also reclaiming Lake Kamnarok

where crocodiles thrive. Development of

Lodges at the lake Baringo and Cheploch

Gorge is a great opportunity to allow tourists

take a view of the panoramic scenery of the

lake and Kerio River.

With the rich diversity of tourism attractions,

there exist opportunities to provide tour facil-

ities like tour vans and tour guides. Young

graduates who major in tourism will find ex-

cellent opportunities to showcase their talent

in the industry. Other tourism activities that

can be promoted are: clubs, recreational and

amusement parks; boat rides at Chemususu

Dam, rock climbing on the cliffs of Morop and

Tugen hills, cultural showcases and dances.

Special Interest and Activity Products

The capacity within Baringo to further devel-

op a range of special interest products around

wildlife and nature is exceptional. Baringo has

a unique resource base on which to establish

a distinct competitive advantage over other

counties. In addition,

Baringo has a remarkable

range of tourist attrac-

tions that provide the

basis of many other qual-

ity special interest prod-

ucts, which include: wa-

ter resources for marine

based interest, the

mountains for climbing,

hiking, mountain biking

and walking and a range

of possibilities for those seeking to

pursue aspects of cultural interest.

Resort and Cable Car Products

The natural resource attractions exist in

Baringo that are ideal for construction of re-

sorts on the lakes and on the islands as well

as in the mountains.

However the development must of a scale

that is in keeping with the environment, but

large enough to be economically viable to

provide the services and facilities associated

with a cable car and quality resort.

Cable car

INVESTMENT NEWS 23

INVESTMENT NEWS 25

Small enterprises make up 99 per cent of all compa-nies in Kenya creating jobs for millions of Ken-yans. We’ve kick-started a range of information and promo-tional support services which have joined up with other like minded organiza-tions to promote the growth

Helping Your Company to Grow and Prosper

The Small Business Growth Plan The Column that gives you every thing you

need to move your business to the next level

Small businesses are pow-ering economies around the world as they are doing in Kenya. They are creat-ing jobs, exporting to new markets, opening up far flung areas of Kenya and developing innovative new products. And above all they are growing into large enterprises with capacity to spread to other coun-tries as multinationals.

of small businesses. This way we believe we will help more people to build a business, hire more em-ployees and work with us to build a better Kenya We are on the side of the hard working heroes of our economy. I hope you will join us to make Kenya a land of plenty for all. —Editor

Let’s Start With a Dream— Yes,

a BIG Dream of Your Business The beginning is the realiza-

tion of the vast opportunities

that modern technology has

offered all of us. Technology is

the big equalizer. Think of it,

today a toddler can start

world shattering business. In

deed, brilliant school kids sit-

ting in a dorm are inventing

the future. Heedless of bound-

aries, possessed of new tech-

nology and youthful enthusi-

asm, they build a new com-

pany from scratch. Their early

success allows them to raise

money and bring an amazing

new product to market. They

hire their friends, assemble a

superstar team, and dare the

world to stop them.

That is the future. And that

future is today. The new tech-

nique is to dare to dream—to

dream of an overwhelming

size of your business.

The average Kenyan is lim-

ited by their upbringing. Cul-

ture tells them never to boast,

never to set out on a journey

that moves you further than

your neighborhood. Words

such as ―ka‖ that occur in

most Kenyan languages are

great indicators of this small

thing. You should never tell

your friends of your business.

26 INVESTMENT NEWS

It must be a ―Ka-business.‖

The sad thing is that local

languages such as Kiswahili

that lacked this destructive

thinking have been invaded

by this minimalist thinking

and introduced the destruc-

tive ―ka‖.

Other destructive words that

Kenyan business people

should strike out include ―jua

kali‖ Because of lack of build

up garages, most mechanics

repaired cars, as they do to-

day, out in the bright sun.

That is not bad. It is healthy

to work out in the fields and

breath fresh air. But the sun

becomes hot - and some-

times very hot. And this is

the negative aspect that has

characterized people in en-

trepreneurship. A ―jua kali‖

entrepreneur is regarded as

a struggling man or woman

who will stay poor unless

God comes down to help

him. That is not the man or

woman to build the next Eq-

uity Bank.

Once you clean yourself of

these negative words—and

there are many more that

you can add, then you are

ready to dream big in the

modern business context—

ready to build a business as

big and vibrant as Equity

bank.

Now start thinking of yourself

as an entrepreneur. These are

people who take extreme risks

to bring out new ideas, prod-

ucts, services and everything

that the world has that makes

life easier for human beings.

In the next issue we will

look at the 5 principles that

guide an entrepreneur. In

the meantime feel free to

join in the Small Business

enthusiasm by writing to us

with your comments.

INVESTMENT NEWS 27

Recently I visited a place that I

have written about for years,

but which I had never visited.

That place is called Nzaui in Ma-

kueni County. Just to show you

have important this place has

been in my life I have based

more than two books in it. One

is a play named The Woman of

BOOKS AND CULTURE

Nzaui. That play talks about the

life of a woman – some would

say – the most significant wom-

an among the Akamba commu-

nity. It was performed at the

Kenya National Theatre in 1994.

Another book that is set at the

place is a children’s book, Kioko

and The Legend of the Plains.

So what is interesting about the

place? Why have I made it the

setting of my books? Well, I like

the name. It is - at least to me –

an ancient, quaint name that

evokes in me images of a beau-

tiful Africa that is no more. The

idea was put into my mind by

the names of places where my

parents grew and which they

frequent mentioned.

The Akamba – those who lived

long ago – were also apparently

Visiting the Setting of Your Books

The Reality May Amaze, Even Shock You

Peter Scott’s Church

in Nzaui

By MULI WA KYENDO

28 INVESTMENT NEWS

impressed by the Nzaui because

they based the Akamba creation

myth at the same place.

And that’s not all. In 1883, a

young White man – Scottish

American Peter Cameron Scott -

wandered into Nzaui – about

500 kilometres into the interior-

and was overwhelmed by an

idea of “establishing a network

of mission stations that would

stretch from the southeast

coast of Africa to Lake Chad.”

The result was the pioneering

AIM (Africa Inland Mission).

With the support of American

churches, on August 17, 1895,

AIM's first mission party set off,

consisting of Scott, his sister

Margaret, and six others to start

the church in Nzaui. His church

– a small building that can hold

only about 50 people - still

stands strong and neat –

thanks to the fact that it is

built on a rock (the Akamba

wouldn’t allow him anything

better!) where ants and ter-

mites cannot reach.

Scott died only a year later and

was buried at the church com-

pound. When I visited the

place, the faithful– descend-

ants of his early converts were

busy building up a strong en-

closure to the grave –which

also holds his wife and child.

How then does it feel to stand

in a place which has for years

held your imagination? One

you are surprised how close to

the imagination the real places

are. First, I was surprised by a

long mountain that dominates

the place. Prof. Kivuto Ndeti

described it as a mound –how

wrong he was! He had appar-

ently never been to Nzaui!).

The truth is that it is a long big

mountain with the side facing

Mombasa road rising up higher

and sticking out as if to warn

invaders.

Here on this mountain, God,

Mulungu dropped the first man

(Mundu) and his wife (Kiveti)

and all their wealth and the

Kikamba language. The story is

long and interesting and I pick

it up another time.

So what else did I find in

Nzaui? I didn’t know whether it

was wooded or grassy plains. I

now realized that after having

grown up in the steep and

heavily wooded Iveti hills

above Machakos town, I trans-

Inside Scotts church (Left) and above my com-

panions, Mary Syombua (left) and Leonard Wam-

bua.

INVESTMENT NEWS 29

for investors developing the

parcels of land.

Konza city is the key to trans-

form Kenya’s economy from

agricultural to modern,

knowledge-based economy,

according to Eng Tanui. It will

become the hub of innovation

where centers of excellence will

be put up. This will attract mul-

tinational companies and

through the partnerships, Ken-

ya will be enabled to have its

own multinationals going out

to other countries, says Engi-

neer Tanui.

Kenya Technology University?

Great project planned for the

near future includes a universi-

ty specializing on technology,

possibly to be known as Kenya

Technology University, accord-

ing to Cabinet Secretary for

information Dr Fred Matiangi

Dr. Matiangi said the govern-

ment will assist local investors

wanting to invest in the city

The KoTDA recently held a pro-

gress briefing meeting with na-

tional and international business

community where it announced

that it was now ready to wel-

come investors to the city.

“We already have many local

and international inquiries but

we have been telling them to

wait as we prepare. Now we are

ready,” says Eng. Tanui.

FROM PAGE 9

Konza City

ported the Nzaui of my mind to

the Iveti hills. I was amazed how

different the real place was from

the imagination.

Otherwise I found simple folk,

living simple life between what i

imagine was traditional and

modern. At a small town called

Kalamba that stands at the foot

of the mountain and nearest to

Peter Scott’s church, I was told

people come from Nairobi to eat

roast meat. “It tastes like noth-

ing else,” my guide told me.

And for sure, it tasted like noth-

ing else, so I cannot tell what it

tastes like. It is among the things

you must taste to appreciate.

And that also happens to be an

appropriate metaphor to answer

the question posed. It is among

the things you must experience

to appreciate.

A view of modern day Nzaui

near the mountain

30 INVESTMENT NEWS

Do these women leaders make any difference? Let me stand corrected but when was it that

you heard our women leaders—MPs, MCAs or

any other– say something that only a woman

could say? If you are like me, you haven’t.

Women leaders are vocal in the same issues

that men leaders are—their salaries, their

parties and what not. Yet the constitution

that we now have regard women as special

group, needing an affirmative action to be

included in leadership.

I have heard women talk with passion about

the girl child - and wondered. Sure the girl

child has special problems that require special

treatment. But many of these things are of

such nature that they don’t require passion.

They require simple, straightforward explana-

tions.

A man—a normal person in their own normal

senses—does not require so much persuasion

to see that his daughter requires certain

things that his son doesn’t. After all, the

daughter is as much his child as the son is.

That’s why it beats the sense out of me

when I see a mature woman—one that we

elected to represent us—using all her efforts

to “fight” for girls as if the sons were not hers.

Would you rather give your daughter food

and starve your son or share the food equal-

ly?

Sure there are cultural issues –and both men

and women are victims. Boys stay in the

home and bring girls as wives—often to be

taken care of. It was normal that parents

would try to equip the son to fit his roles—to

bring up a home that could be respected. To-

day, women are working—as they were be-

fore. The difference is that women have dif-

different jobs in our modern society. This is a

new dimension to which families are adjust-

ing, faster if you are in urban areas, slowly if

you are in the rural areas.

Beliefs change with time—so are some of our

cultural beliefs. They will change faster for

those in urban areas, slowly for those in rural

areas. There is no hero or heroine in fighting

these beliefs. If we want all the people to

change at once, we should bring education to

them at the same time. Education will re-

the needs that necessitated these cultural

practices.

What I would like to see is a woman leader

who stands for something that truly benefits

women—and has nothing to do with boys.

Let’s see true women leaders who make a

difference, not pugilists, thieves, boy-child

haters.