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Republic of Kenya

Nairobi County Sessional Paper No. …..of 2019

on

Nairobi City County Trade Policy, 2019

September 2019

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Table of Contents

1.1. INTRODUCTION ............................................................................................................................ 4

1.2. POLICY DEVELOPMENT PROCESS .......................................................................................... 5

1.3. GEOGRAPHIC LOCATION AND SIZE ....................................................................................... 5

1.4. ADMINISTRATIVE STRUCTURE .............................................................................................. 6

1.5. SOCIAL-ECONOMIC CONTEXT .................................................................................................. 7 1.5.1. DEMOGRAPHIC FEATURES ..................................................................................................................... 7 1.5.2. EDUCATION .............................................................................................................................................. 7 1.5.3. POVERTY LEVEL AND HUMAN DEVELOPMENT INDEX ...................................................................... 7

2.1. INTRODUCTION ........................................................................................................................... 9

2.2. POLICY AND LEGISLATIVE FRAMEWORK GOVERNING TRADE POLICY ................... 9 2.2.1. NATIONAL POLICY AND LEGAL FRAMEWORK .................................................................................... 9

1) The Constitution of Kenya ......................................................................................................................... 9 2) The County Governments Act, No 17 of 2012................................................................................. 10 3) The Companies Act, No. 17 of 2015.................................................................................................... 10 4) The Business Registration Service Act, No. 15 of 2015 .............................................................. 10 5) The Small and Micro Enterprises Act, No. 55 of 2012 ............................................................... 10 6) The Weights and Measures Act, Cap 513 ......................................................................................... 11 7) Industrial Training Act, Cap 237 ......................................................................................................... 11 8) Movable Property Security Rights Act, No. 13 of 2017 .............................................................. 11 9) Technical, Vocation Education and Training Act, No. 29 of 2013 ........................................ 11 10) The Small and Micro Enterprises policy, 2005 ........................................................................... 11 11) The Kenya Vision 2030 ......................................................................................................................... 11 12) The National Trade Policy, 2016 ...................................................................................................... 11 13) The National Industrialization Policy, No.9 of 2012 ................................................................ 12 14) The Green Economy Strategy and Implementation Plan, 2016–2030 ............................... 12 15) The Integrated Urban Development Plan for City of Nairobi, 2014 ................................. 12 16) The County Integrated Development Plan, 2018-2022 ........................................................... 12

2.3. INTERNATIONAL POLICY AND LEGAL FRAMEWORK .................................................. 12 2.3.1. THE MULTILATERAL TRADE AGREEMENTS UNDER THE WORLD TRADE ORGANIZATION

(WTO) 12 2.3.2. REGIONAL TRADE AGREEMENTS (RTAS) ....................................................................................... 13 2.3.3. BILATERAL AGREEMENTS BETWEEN KENYA AND INDIVIDUAL COUNTRIES ............................. 13 2.3.4. UN SUSTAINABLE DEVELOPMENT GOALS (SDGS) ........................................................................ 13

2.4. COUNTY CONTEXT ON TRADE ............................................................................................. 13 2.4.1. DESCRIPTION OF COUNTY GROSS PRODUCT ................................................................................... 14 2.4.2. MICRO, SMALL AND MEDIUM ENTERPRISES ................................................................................... 14 2.4.3. DESCRIPTION OF COUNTY’S TRADE OR ECONOMIC ACTIVITIES .................................................. 15

1) Manufacturing .............................................................................................................................................. 15 2) Tourism, Hospitality, Recreation and Leisure ................................................................................ 15 3) Financial services ....................................................................................................................................... 16 4) Information Technology and Communication ................................................................................ 16

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5) Shopping malls and centres .................................................................................................................... 17 6) Wholesale and Retail trade ..................................................................................................................... 17 7) Auto industry ................................................................................................................................................. 17 8) Transport and logistic services ............................................................................................................. 18 9) Education services ...................................................................................................................................... 18 10) Health Services ......................................................................................................................................... 18

2.5. GEOGRAPHICAL COMMERCIAL ZONING OF TRADE OR ECONOMIC ACTIVITIES 19

2.6. PRIVATE SECTOR STAKEHOLDER ORGANIZATION ..................................................... 19

2.7. POLICY RATIONALE ................................................................................................................. 20

3.1. INTRODUCTION ......................................................................................................................... 21

2.8. POLICY VISION .......................................................................................................................... 21

2.9. POLICY MISSION ....................................................................................................................... 21

2.10. POLICY PRINCIPLES .............................................................................................................. 21

2.11. POLICY MEASURES ................................................................................................................ 22 3.1.1. TRADE PROMOTION AND DEVELOPMENT ....................................................................................... 22 3.1.2. TRADE REGULATION ........................................................................................................................... 23 3.1.3. WHOLESALE AND RETAIL TRADE ..................................................................................................... 25 3.1.4. TRADE AND INVESTMENT ................................................................................................................... 28 3.1.5. TRADE AND URBAN SPATIAL PLANNING AND DEVELOPMENT .................................................... 29 3.1.6. TRADE AND ENVIRONMENT (GREEN GROWTH) ............................................................................ 30

4.1. INTRODUCTION ......................................................................................................................... 32

4.2. POLICY IMPLEMENTATION ................................................................................................... 32 4.2.1. INSTITUTIONAL FRAMEWORK ............................................................................................................ 32 4.2.2. PLANNING AND PERFORMANCE MANAGEMENT ............................................................................. 32 4.2.3. LEGAL AND ADMINISTRATIVE REFORMS ......................................................................................... 33 4.2.4. COLLABORATION WITH NATIONAL GOVERNMENT ........................................................................ 33 4.2.5. STAFF CAPACITY DEVELOPMENT ...................................................................................................... 33

4.3. POLICY MONITORING AND EVALUATION ........................................................................ 33 4.3.1. DESIGN OF INDICATORS ...................................................................................................................... 33 4.3.2. MONITORING AND EVALUATION FRAMEWORK AND SYSTEM ........................................................ 34

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Chapter 1

Background Information

1.1. Introduction Trade is a core pillar of economic growth and development. Trade contributes to

economic growth and development through facilitation of establishment and growth of

businesses and the private sector. The private sector in turn create employment, pay

taxes, which contribute to government revenue. Trade contributes to improvement in

standards of living and poverty reduction by enhancing of people’s purchasing power.

Trade is a determinant of human settlement as people migrate and settle in search of

employment or business opportunities. Human settlements have consequential

implications for spatial planning, mobility infrastructure, water and social amenities such

as education and health and eventually trade and commercial processes.

Nairobi City County, which is also referred to as the Nairobi City is the capital of Kenya.

As the capital city, Nairobi plays significant role as the leading commercial hub in

Kenya. It is also the largest city in east and central Africa in terms of economic output.

Nairobi contributes to 21.7% of Kenya’s Gross Domestic Product (GDP). Trade drives

the county’s economy and consequently the national economy. Trade development and

governance is therefore important to Nairobi City County and national government. As

globalization continues driving trends in economic activities such as trade and investment

and competition for investment location, Nairobi city county has strategically to adopt

policy measures to retain national and regional positioning as a leading commercial and

trade hub.

Nairobi city is host to international diplomatic organizations such as UN and its affiliate

bodies, foreign embassies and respective development organizations, World Bank, IMF,

European Union and offices for other international governmental organizations such as

African Union, COMESA and IGAD. These organizations contribute significantly to the

city’s economy through employment creation of local residents, supply of goods and

services to the organizations by residents and convening national and international

meetings in the city.

The Nairobi City County Trade Policy has been prepared therefore a strategic policy

instrument for trade development in the city. The policy provides a framework for

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promotion, development and regulation of trade in the county. The policy provides a

foundation for county development planning, budgeting, regulation and service delivery

in relation to trade. As the county is host to large, medium, small and micro enterprises,

the trade policy provides a balanced approach to addressing the challenges and issues

facing this business diversity.

1.2. Policy Development Process The process of developing this policy was anchored on constitutional underpinnings of

public participation, participatory democracy and stakeholder engagement. The process

of development of the policy entailed conducting review of research reports, policies and

laws related to trade and review of how other cities globally deal with trade within their

national governance structures. The process also entailed conducting consultations with –

National Government Ministry of Trade, Industry and Cooperatives, the National

Treasury and Planning and the State Department of Devolution

All county departments since trade cuts across all county sectors and departments

The private sector or business community including representatives from Kenya

National Chamber of Commerce and Industry (KNCCI), national and Nairobi

offices, Kenya Private Sector Alliance (KEPSA), Kenya Association of

Manufacturers (KAM), Jua Kali Associations, wholesale and retails markets,

public transport SACCOs and other business associations operating in Nairobi

Development partners

The views and recommendations of the public and private sector stakeholders were taken

into consideration when adopting the policy measures. A balanced approach to policy

direction and measures was adopted in order to ensure that the diversity and multiplicity

of public and private sector policy interests was integrated.

1.3. Geographic Location and Size Nairobi City County borders Kiambu County to North and West, and Kajiado to the

South and Machakos to the East. Nairobi City County is located between longitudes

36045’ East and Latitudes 1

018’ South and lies at an attitude of 1,798 metres above sea

level. The county has a total area of 696.1 Km2.

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Figure 1 Nairobi City County Map

Nairobi’s geographical location makes and being the capital city makes is the leading

trade and commercial hub in the country. The city is a key market for goods and services

produced from the neighbouring counties.

1.4. Administrative Structure The county consists of 17 sub-counties, namely Starehe, Kamukunji, Kasarani,

Roysambu, Ruaraka, Makadara, Embakasi South, Embakasi North, Embakasi Central,

Embakasi East, Embakasi West, Dagoretti North, Dagoretti South, Lang’ata, Westlands,

Westlands, Kibra and Mathare. There are 85 wards in the county, which are represented

to the county assembly by a Member of the County Assembly.

County development planning and service delivery is organized around the county

administrative units, with the ward being the lowest unit of development planning.

Administrative structure in these units will play key role in supporting the

implementation of the trade policy

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1.5. Social-Economic Context

1.5.1. Demographic features

The county total population in the county was 3,138,369 in 2009 and was 4,941,708 in

2018. It is estimated that the total population will be 5,433,002 and 5,958,338 in 2020

and 2022 respectively. The county population that is below 35 years is 77%. The labour

productive age bracket of 15-64 years is 65% of the total population. This is the

population that would ordinarily be engaged in economic activities as employees or in

self-employment. The county has an annual population growth rate of 4%, which is

contributed to by births and high rural-urban migration. The county is also characterized

as multi-racial and multi-ethnic.

The county’s has a population density is 4,850 persons per Km2.

1.5.2. Education

The literacy levels in the county are 98.3%, which is the highest in the country. This is an

indicator of the population above the age of 15 years that is able to read and write. This is

an indicator that the labour force (labour productive age group or 15-64 years) is literate.

This implies that the population would have good uptake of the trade policy measures

provided and adopted herein. The population would have a high uptake of information

based policy measures.

1.5.3. Poverty level and Human Development Index

The county population that may be classified as poor is 16.7%, which is the lowest in the

country. The national poverty level stands at 36.1%. This population would ordinarily be

living in informal settlements such as Kibra, Mathare, Huruma, Mukuru, Kawangware,

Korogocho and other satellite settlements. Whereas poverty levels in Nairobi are the

lowest in the country, county residents face a unique form of poverty commonly referred

to as urban poverty which is characterized by poor housing, unaffordability of adequate

quality food (nutritional) since most of the food consumed by households is purchased

from outlets, poor mobility and transport and lack of social safety nets. In addition, the

population is more vulnerable to economic shocks such as rise in food, housing, health

and transport prices.

The Human Development Index (HDI) is a summary measure of average achievements in

key dimensions of human development, a long and healthy life (life expectancy at birth),

knowledge (expected years of schooling) and a decent standard of living (Gross National

Index Per Capita). A Human Development Index of less than 0.550 signifies a low human

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development, 0.550 – 0.699 signifies medium human development, 0.700 – 0.799 for

high human development and 0.800 or greater for very high human development.

Nairobi City County has a Human Development Index of 0.64. This implies the extent to

which the county population meets the 3 criteria of HDI a long and healthy life,

knowledge and a decent standard of living. From the HDI categorization, the county has a

medium human development. This corresponds with the low poverty index.

Poverty and human development have implication for the population’s uptake of

engagement to economic activities such as trade and business. It also influences the trade

related issues such as access to capital, level of entry in business value chain, form of

business and trade activities engage in and utilization of trade related information.

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Chapter 2

Situational Analysis, Policy and Legislative

Context

2.1. Introduction The situational analysis for trade policy in the county is characterized by the governing

national and global policy and legal framework governing trade policy and the county

context on trade policy.

2.2. Policy and Legislative Framework Governing Trade Policy The policy and legal framework governing trade that has implications on this policy is

diverse. This section provides a summary of the national and international policy

framework, which has bearing on this policy.

2.2.1. National Policy and Legal Framework

1) The Constitution of Kenya

The Constitution lays the foundation for trade policy and trade development. Sustainable

development, which is one of the pillars of trade development is enshrined as one of the

national values. Other national values such as good governance, inclusiveness, social

justice, equity, democracy and participation of the people, transparency and

accountability have implications on the development, adoption and implementation of

trade policy measures. One of the objects of devolution under Art. 174 is to promote

social and economic development. The trade policy is one of the instruments for social

and economic development.

Under the Bill of Rights, trade policy is advanced in Art. 27 (equality and freedom from

discrimination), Art. 31 (privacy especially right not to have possessions seized), Art. 40

(protection of the right to property), Art 41. (labour relations) and the consumer rights

(Art. 46).

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Further, the Constitution assigns specific functions under Part 2 of the Fourth Schedule.

Section 7 assigns the function of trade development and regulation to counties which

includes–

markets

trade licences (excluding regulation of professions)

fair trading practices

local tourism

cooperative societies

In addition, other functions with implications on trade include agriculture (especially

marketing) county health services (especially licensing of food undertakings), public

entertainment and public road transport.

2) The County Governments Act, No 17 of 2012

The County Governments Act provides for governance and administration of county

government. The Act provides for development and delivery of public services, which

include public services related to trade. Art. 120 of the Act obligates the county

government to develop and adopt a tariff pricing policy for guiding how the county

government adopts various tariffs. Most of the economic activities attract certain tariffs in

the form of charges, fees and levies.

3) The Companies Act, No. 17 of 2015

The Companies Act, No. 17 of 2015 provides for registration and governance of

companies. A Company is the core form of formal registration of business entities as it

addresses the liability issues and separation between owners and the business as distinct

identity. Business registration and governance form the core of engagement of the

business in economic or trade activities.

4) The Business Registration Service Act, No. 15 of 2015

The Business Registration Service Act, No. 15 of 2015 provides for the establishment of

business registration service that is responsible for registration of businesses.

5) The Small and Micro Enterprises Act, No. 55 of 2012

The Small and Micro Enterprises Act, No. 55 of 2012 provides for promotion of

development of Small and Micro Enterprises (SMEs) as well as regulation of SMEs. It

also provides for the establishment of SME fund for providing access to affordable credit

and capital for SMEs.

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6) The Weights and Measures Act, Cap 513

The Weights and Measures Act, Cap 513 provides for the regulation of measurements for

packed goods for sale, prescription of units of measurement, weighing and measuring for

trade and testing system for verification and standardization of measurement machines.

7) Industrial Training Act, Cap 237

The Industrial Training Act provides for regulation and management of apprenticeship

and industrial training. The Act provides for the process of provision of apprenticeship by

industries.

8) Movable Property Security Rights Act, No. 13 of 2017

The Movable Property Security Rights Act, No. 13 of 2017 provides for use of movable

properties as collateral for credit facilities. The Act provides the registration of movable

properties such as chattels, which form the bulk of SMEs affordable collateral.

9) Technical, Vocation Education and Training Act, No. 29 of 2013

The Technical, Vocational Education and Training Act, No. 29 of 2013 provides for the

establishment of technical education and vocational training. This includes establishment

and governance of training institutions. Technical and vocational education and training

is the core driver of labour integration and mobility in trade and economic activities

especially in self employment.

10) The Small and Micro Enterprises policy, 2005

The Small and Micro Enterprises, 2005 provides for the promotion of micro and small

enterprises. The policy provides for promotion and development of SMEs through

facilitation of access to credit and capital formalization, training and capacity

development and business development support.

11) The Kenya Vision 2030

The Kenya Vision 2030 provides for transformation of Kenya into a globally competitive

industrialized economy. Under the economic pillar, the Kenya Vision 2030 provides for

development of wholesale and retail trade, manufacturing, agro-processing and tourism.

12) The National Trade Policy, 2016

The National Trade Policy, 2016 seeks to transform Kenya into a competitive exports led

and efficient domestic economy. It seeks development and growth of domestic wholesale

and retail trade, growth of micro and small enterprises trade, and international trade. In

addition, the policy seeks to facilitate growth of e-commerce, human capital development

for trade, promotion of trade and environment and trade and finance.

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13) The National Industrialization Policy, No.9 of 2012

The National Industrialization Policy, No. 9 of 2012 provides for promotion of

development of industries for purposes of facilitating national industrialization. It

provides for development export oriented industrialization through prioritization of

industries such as agro-processing, textiles and clothing, leather and leather products, iron

and steel industry, machine tools and spares as well as pharmaceutical industry.

14) The Green Economy Strategy and Implementation Plan, 2016–2030

The Green Economy Strategy and Implementation Plan 2018–2012 provides for

mechanisms for the development of a green economy in Kenya through the promotion of

sustainable infrastructure, building resilience, sustainable resource management,

promotion of resource efficiency and social inclusion and livelihoods.

15) The Integrated Urban Development Plan for City of Nairobi, 2014

The Integrated Urban Development Plan for City of Nairobi, 2014 provides for urban

development planning and transformation which includes development of urban transport

infrastructure and traffic management system, sustainable urban waste management,

industrial development and development of urban/town centers in Nairobi.

16) The County Integrated Development Plan, 2018-2022

The County Integrated Development Plan, 2018–2022 provides for development of trade

and commerce through creation of enabling environment for domestic and investment,

regulation of business licensing, promotion of legal metrology and promotion of domestic

tourism. The development plan seeks to increase access to finance, improved sector

working environment, capacity development in the cottage industry, increased utility of

trading spaces and trade licensing reforms.

2.3. International Policy and Legal Framework

2.3.1. The Multilateral Trade Agreements under the World

Trade Organization (WTO)

The multilateral trade agreements under the World Trade Organization (WTO) such as

General Agreement on Trade and Tariffs (GATT), General Agreement on Trade in

Services (GATS), Agreement on Trade Related Investment Measures (TRIMS),

Agreement on Sanitary and Phytosanitary Standards (SPS) have implications on

domestics trade in the country and consequently the county. The agreements provides for

reduction of tariffs and elimination of non-tariff barriers within the domestic market that

may hinder international trade. They also provide for

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2.3.2. Regional Trade Agreements (RTAs)

The Regional Trade Agreements that have implications on trade policy in Nairobi County

are–

(a) Africa Continental Free Trade Area

(b) East African Community (EAC)

(c) Common Market for East and Southern Africa (COMESA)

(d) Economic Partnership Agreement between EU and EAC (which at global

level is referred to as EU-Africa Caribbean Countries)

The RTAs provide for further elimination of WTO level tariffs among the member

countries, free movement of capital, services and labour and elimination of non-tariff

barriers. The RTAs have resulted in importation of cheaper goods from neighbouring

countries, which are more competitive than locally sourced materials.

2.3.3. Bilateral Agreements Between Kenya and Individual

Countries

Bilateral agreements between Kenya and other countries have resulted in importation of

cheaper products or entry of workers from those countries who have competed for the

same market with the local operating in the same businesses.

2.3.4. UN Sustainable Development Goals (SDGs)

The policy seeks to implement –

(a) Goal 1: End poverty in all its forms everywhere

(b) Goal 7: Ensure access to affordable, reliable, sustainable and modern energy

for all

(c) Goal 8: Promote sustained, inclusive and sustainable economic growth, full

and productive employment and decent work for all

(d) Goal 9: Build resilient infrastructure, promote inclusive and sustainable

industrialization and foster innovation

(e) Goal 10: Reduce inequality with the country (county)

(f) Goal 11: Make cities and human settlements inclusive, safe, resilient and

sustainable

(g) Ensure sustainable consumption and production patterns

2.4. County Context on Trade Nairobi County is the commercial and industrial hub in Kenya. Trade is the leading

economic driver in the county. As noted above, Nairobi is the largest city by output in the

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region. The economic activities in the city can be described as consisting of diverse

sectors. The key sectors include manufacturing and processing, tourism and hospitality,

financial services, telecommunication, wholesale and retail, transport and logistics

services, auto industry, education and health services among others. The trade in Nairobi

City County may also be classified according to the level of formality, capitalization and

turnover in terms of large, medium, small and micro enterprises. Trade in the city is

geographically bound with different trade activities being prominent in specific localities.

This section describes the County Domestic Product (GCP) and the predominant

economic or trade activities in the county.

2.4.1. Description of County Gross Product

The Gross County Product (GCP) is a measure of value created through production by all

economic agents in a county based on the appropriate economic indicators. This is an

economic measure that was initiated by the Kenya National Bureau of Statistics (KNBS)

in 2019.

From 2013 to 2017, the average contribution of Nairobi City County to the Gross

Domestic Product (GDP) was 21.7%. The county has the highest current price GCP,

which was at Ksh. 1,492,323 billion in 2017, 1,379,459 billion in 2016, 1,230,361 billion

in 2015, 1,107,647 billion in 2014 and 1,003,072 billion in 2013. Between 2014 and

2017, the county’s GCP growth remained stable at 5.6%. The county’s current prices per

capita GCP was Ksh. 212,498 in 2017 and Ksh. 211,055 in 2016. Manufacturing and

services sectors are the largest contributors to the county’s GCP.

2.4.2. Micro, Small and Medium Enterprises

According to the 2016 Basic report on Micro, Small and Medium Enterprises by Kenya

National Bureau of Statistics, there are 268,100 licensed Micro, Small and Medium

Enterprises (MSMEs) in the county out of which 83.8% are micro enterprises, 14.8% are

small enterprises and 1.4% are medium enterprises. At the same there are 782,500

unlicensed MSMEs. In terms of employment, the MSMEs employ 2,851,000 persons

with licensed micro enterprises contributing 741,500, small enterprises 750,700 and

medium enterprises 252,300 persons. Unlicensed micro enterprises employ 1,106,900

which would be classified as informal sector. Consequently, licensed enterprises

contribute to 61.2% and unlicensed enterprises contribute to 38.8%. The key economic

activities that most of the enterprises engage in are in manufacturing, wholesale and retail

trade, accommodation and food service activities and financial and insurance among

others.

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2.4.3. Description of County’s Trade or Economic Activities

The county trade is driven by diverse sectors and economic activities. The key economic

or trade activities include manufacturing, tourism, hospitality, leisure and recreation,

financial services, information technology and communication, shopping malls and

centers, wholesale and retail trade, auto industry, transport and logistics services,

education services and health services among others. The sectors and economic activities

provide employment to county residents, facilitate establishment and development of

businesses which make Nairobi City to be a regional trade and commercial hub. Industry

players in the sector are organized as large multinational companies or enterprises, large

national enterprises, medium, small and micro enterprises.

1) Manufacturing

Manufacturing the Nairobi is predominantly located in industrial area and Baba Ndogo

where the main manufacturers are located. A wide range of consumer products is

manufactured in Nairobi city. Key industries located in Nairobi include confectionery,

pharmaceutical, food processing, auto-assembly, ceramics, metal fabrication, iron and

steelworks, paints, dairy processing, water bottling, paper, packaging materials, edible

oils, chemicals, agro-processing, Nairobi city is a host to Export Processing Zones

(EPZs) that offer manufacture of goods for export market. There are also light industries

engaged in manufacturing are located in Kariobangi and metal works and fabrication in

Kamukunji.

Manufacturing is a leading employer in the county especially for the low-income earners

since most of it is labour intensive. Informal settlements such as Korogocho, Mukuru

have coalesced around manufacturing hubs.

2) Tourism, Hospitality, Recreation and Leisure

Nairobi City County is endowed with tourism attraction sites and cultural centers which

are of national nature, key among them being Nairobi National Park which consists of

animal orphanage and Nairobi Safari Walk, the National Museum which includes the

Snake Park and the National Archives.

The county landmark hospitality and entertainment facilities and services such as –

(a) Leading hotel brands e.g. Serena, Sarova Panafric and Sarova Stanley, Villa Rosa

Kempinski, Radisson Blu, Sheraton, Hilton, Movenpick, Sankara, Fairview,

Fairmont Hotel, Norfolk, Hemmingways, Best Western and The Tribe

(b) Leading restaurants brands e.g. Java House and Artcaffe

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(c) Meetings, Incentives, Conferences and Events products with Kenyatta

International Conference Center (KICC) leading in terms of hosting international

meetings for global bodies such as UN e.g. UNCTAD conference

(d) Leisure and recreation centers such as Uhuru Park, Uhuru Gardens, the Helipad

at Kenyatta International Conference Center (KICC)

(e) Cultural entertainment centers such as the Bomas of Kenya, the Kenya National

Theatre and art galleries

3) Financial services

The financial institutions have played a key role as intermediaries in trade activities

through provision banking services, access to credit and capital and facilitation of e-

commerce e.g. mobile banking and mobile money transfer. This has facilitated growth

and development of trade in Nairobi city. Nairobi is a national and regional hub for

financial services, which include–

(a) The Central Bank of Kenya

(b) The Nairobi Securities Exchange (NSE) and the stock/securities brokers

(c) All leading national and international banks operating in Kenya such as Kenya

Commercial Bank (KCB), Equity Bank, Cooperative Bank, Standard Chartered,

ABSA-Barclays Bank, NIC and Commercial Bank of Africa (the banks were in

the merger process at the time of developing this policy), Stanbic, Housing

Finance, Diamond Trust and I&M banks among others. The banks have created

auxiliary financial service providers who are agents of the banks.

(d) Microfinance banks or institutions such as Kenya Women Microfinance bank,

and Faulu Microfinance bank

(e) The leading insurance industry players such as Jubilee Insurance, AAR, UAP,

Britam, Heritage, Sanlam, CIC, Directline Assurance and Madison and insurance

brokers such as AON Minet.

(f) Mobile money lending companies

(g) Forex bureaus

(h) Other unregulated financial intermediaries such as Shylocks

4) Information Technology and Communication

Information technology and communication is one of the foundations of the county’s

economic growth and development. Most of the trade in Nairobi is dependent or

supported by Information Technology and Communication (ICT). Some of the key

players in the industry include –

(a) The main mobile service providers i.e. Safaricom, Airtel and Telecom and

companies providing IT support and retails agents to these companies

(b) International information technologies companies such as IBM, Oracle, Google,

Microsoft, Facebook and SAP

(c) Local IT software development companies with international brand such as

Seven Seas, Craft Silicon and Cellulant among others

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(d) IT Innovation hubs such as Nailab and ihub that provide incubation and support

system for IT entrepreneurs

(e) Other local Small and medium sized IT software developers and distributors and

retailers of IT equipment and software

This sector is one of the growing sectors for entrepreneurs and start-ups especially among

the youth.

5) Shopping malls and centres

The concept of shopping malls have revolutionized how business, leisure and

entertainment blend. Nairobi is a host to leading landmark shopping malls in the regions

such as the Village Market, the Hub, the Two Rivers, the Junction, Sarit, Yaya Center,

Garden City, Thika Road Mall, and the Galleria Mall among others. The malls have

provided growth in retail market especially restaurants, household goods and clothing.

They have also provided entertainment and leisure opportunities for local residents and

tourists.

6) Wholesale and Retail trade

The City has vibrant wholesale and retail industry due to its being an industrial and

commercial hub in the country. Wholesale and retail trade is a core economic activity in

the city and include–

(a) Leading retail supermarkets in the country such as Tuskys, Naivas, Carrefour,

Foodplus, Nakumatt, the Game Store, Choppies, Eastmatt, Quickmatt and

Cleanshelf supermarkets

(b) Agricultural/food products wholesale and retails markets such as Wakulima

market, Githurai market, Kangemi market, City Park and City Market

(c) Clothing and domestic products markets such as Gikomba, Toi, Muthurwa,

Nyayo, Kenyatta, Korogocho and Eastleigh markets

(d) Meat product markets such as Dagoretti, Burma and Kiamiko markets

(e) Ordinary wholesale and retail outlets and exhibitions across different regions in

the city which are the bulk of the trades and economic activities

(f) Temporary markets for items such as artifacts and curios which are commonly

referred to as Maasai markets which take place in shopping malls or county

designated market areas

7) Auto industry

The auto industry in Nairobi is very vibrant economic activity and is characterized by –

(a) Franchise Motor vehicle assemblers and dealers such as Toyota, Isuzu, DT

Dobie, Simba Colt, Car & General, Jaguar- Landrover Kenya, Honda, Ashok-

Leyland

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(b) Second hand (used) motor vehicles importers and dealers operating in car bazaars

across Nairobi

(c) Dealers in motor vehicle spare parts mainly operating along Kirinyaga road,

Ngara and Industrial Area

(d) Motor vehicle repairers operating along Kirinyaga road (Grogan), industrial area,

Ngara, Pangani and along various road reserves in town centers across the city.

The industry provides significant investment opportunities and employment in Nairobi.

8) Transport and logistic services

Nairobi is the national and regional transport and logistics hub (both air and road

transport) due to geographical location and investments. The industry consists of players

such as –

(a) Jomo Kenyatta International Airport (JKIA) and Wilson Airport and related

logistics services such as cargo handling, clearing and forwarding and transport

services

(b) Courier service forms such as DHL, Wells Fargo, Fedex, UPS, Aramex and other

courier service providers associated with public service vehicles e.g. 2NK, Coast

Bus and Mololine

(c) Public transport services operating within the city and inter-city

(d) Taxis services such as online taxi companies such as Jim Cab, Pewin Travel

Group, Uber, Taxify, Delight Cabs, Jatco Travels and Little Cab. In addition

there are other companies and individuals providing regular taxis

9) Education services

Education services are essential for the population residing in Nairobi County. The city is

endowed with public and private primary, secondary and tertiary education institutions.

The city is a host to international schools that meet education needs of international

expatriates and Kenya’s middle and upper class. These institutions play a key role in the

City’s economy through job creation, consumption of transport service, housing and

accommodation, cleaning services, security services, health and hospitality services. The

city hosts some of the leading universities in Kenya such as University of Nairobi,

Strathmore University, Daystar University, United States International University (USIU)

and Kenya College of Accountancy (KCA) University.

10) Health Services

As the capital city, Nairobi plays a leading regional role in provision of public and private

health services. The city hosts the leading hospitals in Kenya such as Kenya National

Hospital (KNH), Nairobi Hospital, Agha Khan University Hospital, MP Shah Hospital

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and Mater Hospital among others. Other key hospitals include Mathari hospital (the

leading psychiatric hospital), National Spinal Injury Referral Hospital, Mama Lucy

Kibaki Hospital, Nairobi West Hospital, Avenue Hospital Nairobi and Nairobi Women’s

Hospital. The city is also host to leading health research institutions such as Kenya

Medical Research Institute (KEMRI), Amref Health Africa and Center for Disease

Control (CDC), US. Nairobi also hosts leading emergency medical services providers

such as Amref Health Africa, Kenya Red Cross and St. Johns Ambulance.

The health service providers contribute to national and regional medical tourism where

people move to the city to seek medical care. The research institutions attract local and

international researchers and research based conferences. Consequently, the health

facilities and institutions promote trade in other sectors such as health professional’s

practice, transport, hospitality, housing and accommodation, pharmaceutical industries

value chain players, cleaning services and security services among others

2.5. Geographical commercial zoning of trade or economic activities Trade or economic activities in Nairobi are geographically spaced and situated in diverse

localities. The geographical distribution and zoning of trade and economic activities in

Nairobi is significant as it influences location of new business enterprises and mobility of

economic activities across diverse locations. Some of the notable geographical

commercial zones in Nairobi include–

(a) Industrial Area including Baba Ndogo and Kariobangi Light Industries

(b) Commercial Areas especially office and hotels locational areas and such as

Central Business District, Westlands, Upper Hill, Riverside

(c) Town centers or shopping centers which predominantly host retail trade e.g.

BuruBuru, Lang’ata, South B, South C, Lavington, Kilimani, Kileleshwa,

Embakasi, Kasarani, Githurai, Gigiri and Kahawa West among others

2.6. Private sector stakeholder organization Trade or economic activities are generally undertaken by the private sector. In order to

enhance private sector engagement with the county government or national government

and promote growth of enterprises participating in trade, the private sector or business

community has formed or organized itself around Business Member Organizations

(BMOs). The BMOs are formed based on–

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(a) Geographical location where economic actors are located e.g. countywide, town

center or streets

(b) Economic or commercial interests e.g. sector or industry based BMOs such as

Jua Kali Associations

(c) Branches or chapter of national BMOs

The BMOs have played a significant role in partnering with the county government on

diverse trade development initiatives and service delivery platforms.

2.7. Policy Rationale The rationale of developing and adopting this policy is to–

(a) Provide for a policy framework for implementing constitutional functions

assigned to the county in relation to trade

(b) Promote development of trade in the county so as to facilitate economic

growth and employment creation in the county

(c) Provide a policy framework for regulating trade

(d) Provide a policy framework for promoting Nairobi city as an investment

destination

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Chapter 3

Policy Framework

3.1. Introduction This chapter provides for the policy framework that shall govern trade in the county. The

chapter provides for the vision and the purpose of the policy, the policy principles that

guide the adoption of the policy measures and the policy measures. The policy measures

describe the direction the government and the stakeholders will pursue in order to

mitigate, resolve and address the policy challenges.

2.8. Policy Vision In terms of trade, the vision of Nairobi City is to be a leading city that is competitive in

trade and business environment, which is the best to start and grow business.

2.9. Policy Mission In relation to trade, the mission of the Nairobi City County is to promote and facilitate

trade and business development through adoption and implementation of effective

regulations and efficient and sustainable trade supportive service delivery.

2.10. Policy Principles The trade policy is based on the following principles–

(a) Free enterprise by promoting market allocative efficiency in the demand

and supply of goods and services within the county mandate on trade

policy

(b) Business friendly environment that minimizes regulatory burden on

private sector

(c) Predictability of trade regulatory framework including licensing and

inspections

(d) Inclusivity and non discrimination of all economic actors irrespective

of social and economic structures as well as inclusion of private sector in

public policy process related to trade

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(e) Sustainable development in ensuring that trade contributes to wealth

and employment creation while ensuring consumption and management

of resources does not jeopardize access to the same resources by the

future generations

(f) Innovation by promoting advancement, acquisition and adaptation of

trade related innovation

(g) Collaboration and networking among businesses, between county

government and the private sector and between county and national

government

2.11. Policy Measures

3.1.1. Trade Promotion and Development

Context and issues

Trade is undertaken mainly by private actors as individuals or corporate entities.

Individuals or entities are responsible for initiation and developing their enterprises

irrespective of the operating environment. However, there are diverse individuals or

entities that face diverse market barriers and challenges such as entry barriers, exit

barriers, industry competition (whether fair or unfair competition) among others. Some of

these barriers include –

(a) Inadequacy of skills and technical knowhow on business management and

industry related issues

(b) Lack of access to capital especially for capital intensive industries

(c) Lack of business premises or operating space especially for the youth and new

industry entrants

(d) Lack of exposure to markets

(e) Low innovation or inaccessible technology relevant for businesses

(f) Complex supply value chains

(g) High competition and effects of globalization

(h) High defaults in trade credit which has resulted in financial distress for many

traders and collapse of some businesses

(i) Lack of affordable credit

Policy Objective

To increase entry and sustainability of enterprises into various industries

Policy Measures

In order to promote and develop trade, the county government shall –

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(a) In collaboration with national government and relevant stakeholders establish a

vocational and technical training programme suitable for business individuals or

enterprises for purposes of technical skills acquisition

(b) In collaboration with the private sector and relevant stakeholders–

(i) Establish and provide relevant business development services

(ii) Provide or facilitate training and capacity development for enterprises for

purposes of promoting business growth and sustainability

(iii)Establish business development centers to provide business development

services and support

(c) In collaboration with the private sector and relevant stakeholders promote the

culture of entrepreneurship and facilitate establishment of –

(i) entrepreneurship development programmes

(ii) business coaching and mentorship for entrepreneurs

(iii)business or trade incubation programme and centers

(d) Promote and facilitate trade or business innovation adaptation and e-commerce

especially for small and micro enterprises

(e) In collaboration with national government and private sector, carry out industry

or sector specific research and analysis to establish existing market entry barriers

related to the trade policy or industry practices and initiate policy and legislative

measures to reduce or eliminate the barriers

(f) Establish a database for individuals and entities conducting business in the

county, disaggregated on the basis of such attributes such as industry, large,

medium, small or micro enterprises

(g) In collaboration with the private sector, establish programme for industry

relevant market linkages and collaboration among the private sector players

(h) In collaboration with national government and relevant stakeholders establish a

mechanism for effective and efficient repayment of trade credit among traders in

the county and enforcement of the same

(i) There shall be established a County Trade Development Fund to provide

affordable credit to small and micro enterprises and developing business

incubation processes, and which shall be administered by representatives from

public and private sector

(j) There shall be established the County Trade Advisory Council consisting of

government and private sector, including representation from commercial or

industrial districts as provided under this policy, for purpose of promoting

public-private dialogue, public-private partnership and collaboration

(k) The county government shall establish measure for Aid coordination for all

financial Aid or technical support the county receives from development

partners.

3.1.2. Trade Regulation

Context and issues

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Section 7 of Part 2 of the Fourth Schedule assigns to the county trade regulation

functions. Trade regulation relates to matters such as weights and measures, unfair

trading practices, licensing, inspections and compliance. The county and business

community faces several challenges including–

(a) Unfair trade practices such as operating businesses in areas designated for other

businesses, deceptive advertisement and misinformation, deceptive trade

practices

(b) Tampering with odometers and scales

(c) Selling goods in packages and quantities that do not comply with Weights and

Measures Act

(d) Establishing competing businesses by employees in proximity e.g. next door to

their previous employers upon departure from employment

(e) Advertising products with intent to sell them at different price or quantity that the

advertised price

(f) Misleading facts as to quality of the products being sold

(g) Unpredictable business inspections regime

(h) Unpredictable and business disruptive enforcement mechanism and procedure for

non compliance with business or trade laws and regulations

Policy Objectives

(a) To enhance increase transparency, accountability and efficiency in enforcement of

trade or business related laws

(b) To increase compliance with fair trade practices laws and regulations

Policy Measures

In order to mitigate the challenges related to trade regulation, the county government

shall–

(a) Enact, implement and enforce unfair trade practice law and weights and measures

in accordance with the national standards and international best practices

(b) Develop and adopt standard operating procedures for carrying out business

inspections for the purpose of ensuring compliance with county laws or national

laws as may be prescribed

(c) Establish a business regulation unit that shall be responsible for implementing and

enforcing trade or business related laws

(d) Promote and facilitate compliance with county related laws and enforcement of

county laws related to trade and business

(e) Develop the Tariff Pricing Policy in accordance with the County Governments

Act that shall guide the process of designating fees, levies and charges

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(f) Develop legal framework for regulating trade in residential areas and prohibiting

certain economic or trade activities that are incompatible with residential areas

(g) Establish a comprehensive and integrated business licensing automated system

(h) Publish all trade or business related regulatory requirements and compliance

expectation in the county website, which shall continuously be updated

(i) The county government shall in collaboration and consultation with the private

sector adopt regulatory framework for promoting, facilitating self-regulation on

specific matters as may be prescribed

(j) Levy such fees, charges and levies on economic activities as may be appropriate

provided that the county government shall adopt the principles of equity, fairness,

cost-benefit balance, reasonableness, implications on cost of doing business in

adopting such fees, charges and levies.

3.1.3. Wholesale and Retail Trade

Context and Issues

Wholesale and retail trade is a leading sector in the county. The county plays a key role in

supply value chains in food products, agricultural products, finished products. Wholesale

trade takes place mostly in markets such as Wakulima market or through distribution and

warehouses/depots. Retail trade takes place in supermarkets, open-air markets or semi-

enclosed markets e.g. Gikomba, Nyayo or Toi markets, retail outlets commonly known as

exhibitions, or in the ordinary retail shops. The wholesale and retail trade experience the

following challenges–

(a) Inadequacy of wholesale and retail public markets which has resulted in

proliferation of hawking and informal trade and congestion in the operational

public markets

(b) Poor physical infrastructure in the public markets such as roads, water and

sanitation, electricity, waste management and storage facilities, which prevents

sustainable growth of the markets as drivers of wholesale and retail trade

(c) Persistent conflicts on management of public markets such as Gikomba coupled

with persistent arson attacks

(d) Poor governance of the markets and presence of middlemen operating within the

markets which negatively affects operations of the markets

(e) Weak operation of market forces of supply and demand in determining of prices

especially in food and agricultural wholesale products

(f) Weak linkage between the farmers and wholesalers in the county for purposes of

developing the value chains in food market

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(g) Low uptake of technology and innovation in the wholesale and retail trade

especially in the public markets

(h) Proliferation of informal trade and hawking in the city which has increased

encroachment of business areas where other licensed businesses operate

(i) Proliferation of retail trade along road reserves, illegal worksites and other non-

designated areas. These structures are often demolished by public authorities in

the event of roads expansion and recovery and further utilization of public or

private land where the worksites operate unlawfully in public or private land

(j) Sub-optimal utilization of space in the public markets due to poor planning and

infrastructure development

(k) Multiple licensing requirements for wholesale and retail traders which increases

compliance burden for business

Policy Objectives

(a) To enhance the growth of wholesale and retail trade and integration of informal

retail trade in the formal overall wholesale and retail trade

(b) To improve regulation of trading and business operations areas for retail trade

Policy Measures

In order to mitigate the challenges related to wholesale and retail trade, the following

policy measures shall be adopted–

(a) The county government shall in collaboration with the private sector register

persons and entities engaged in wholesale and retail trade and maintain a

database

(b) All persons or entities engaging in wholesale or retail trade whether formal or

informal shall be registered with the county for purposes of facilitating planning

and efficient service delivery

(c) The county government shall, in collaboration with national government and

private sector–

(i) Designate, delineate, survey and gazette all public wholesale and retail

markets and maintain title deeds for each market

(ii) Designate specific markets for wholesale trade only

(iii)Establish an automated or online platform or trading and operational

system for management of trade in the wholesale markets

(iv) Redevelop and upgrade the wholesale and retail public markets into

modern markets for purposes of increasing the capacity and optimal

utilization of the scarce land space

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(v) Develop and adopt, where appropriate public-private partnership for

upgrade and infrastructure development of the markets

(vi) Promote establishment of business parks as the modern wholesale and

retails markets

(vii) Develop infrastructure in the markets which shall include development

of all weather roads and pavements, waste management system, drainage

and storm water management, public lighting, reliable water supply,

sanitation and security among others

(d) There shall be established –

(i) management committees for each wholesale or retail market which shall

consist of traders in the respective market and the county government

(ii) rules and by-laws for co-management and co-governance of wholesale

and retail trade markets which may include self-regulation

(e) Each wholesale or retail market shall establish a sustainable waste management

system

(f) The county government shall in consultation and collaboration with national

government and wholesale and retail traders –

(i) classify markets in the county

(ii) designate temporary retail markets, areas where such markets may be

situated and schedule days and durations when such temporary markets

may be held and the permitted products that may be traded

(iii)organize, promote organization or facilitate trade fairs, exhibitions and

trade festivals for designated products, sector or industries for purposes of

promoting trade

(g) Subject to the Public Finance Management Act, the county government shall

designate at not less than 30% of the fees and charges collected from the markets

for defraying operational costs of management and maintenance of the markets

including infrastructure development and maintenance

(h) Where a wholesale market has been established, retail trade on similar products

offered in the wholesale trade market shall be prohibited

(i) There shall be established a legal framework for regulating and managing

informal trading and hawking which shall include–

(i) Regulation of trading areas for informal trade and hawking

(ii) Promoting integration of informal trade in the formal trade value chains

(iii)Designation of specific trading areas or zones for informal trade

(iv) Providing specific training and capacity building for traders operating in

the informal trade so as to facilitate business growth and integration in the

formal sector

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(v) Creating a conducive business environment for informal trade

(j) There shall be established a trade alternative dispute resolution committee which

shall consist of government and private sector for purposes of resolving disputes

between county government and wholesale and retail traders

(k) The county government shall promote development of organized retail trade in

neighbouhoods or residential areas

(l) The county government shall in collaboration with national government facilitate

capacity development for wholesale and retail traders on public procurement so

as to be integrated into public procurement system and processes

3.1.4. Trade and Investment

Context and Issues

Trade and investment is a driver of movement of capital, goods, services and labour.

Kenya is the fifth Foreign Direct Investment (FDI) destination in the region after Uganda,

Rwanda, Tanzania and Ethiopia. Local or foreign investment promoted emergence and

growth of industries and trade and employment creation. Whereas the national

government is responsible for coordinating investment promotion, the county government

is responsible for creating an enabling environment at local level for promoting

investment. Globally, cities compete for FDI inflows and investment establishment

locally and internationally. Nairobi city faces some challenges as a trade and investment

destination such as –

(a) Low physical infrastructure development for supporting investments e.g. reliable

water supply, usable arterial roads, drainage and storm water management,

sustainable planning and management of built environment, waste management

and environment management

(b) Poor spatial planning and enforcement of planning zoning and development

control

(c) Insecurity and low public safety

(d) High fees and charges for medium and large enterprises

(e) Poor transport and mobility which hinders labour productivity and movement of

goods and services within the city

(f) Weak forward and backward inter-linkages and integration between foreign direct

investments and local county traders

Policy Objectives

To improve trade and investment climate and increase investments in the county

Policy Measures

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In order to address the issues and challenges related to trade and investment, the

following policy measures shall be adopted–

(a) The county government shall in collaboration with national government and

relevant stakeholders –

(i) carryout research, audit and assessment of investment climate gaps and

weaknesses in Nairobi City County

(ii) develop and implement a county investment climate reforms strategy and

plan

(b) The county government shall in collaboration with national government and

relevant stakeholders–

(i) designate and delineate land for establishment of business parks and

special economic zones or investment processing zones

(ii) development of appropriate infrastructure for supporting the business

parks of special economic zones

(c) The county government shall, in collaboration with national government and

investors promote and facilitate establishment of backward and forward linkages

between investors and local county traders

3.1.5. Trade and Urban Spatial Planning and Development

Context and Issues

Save for e-commerce, trade takes place within physical locations. Such locations may or

may not be the appropriate designated places for carrying out the type of businesses.

Town centers or shopping centers have been instrumental in retail trade in proximity to

residential areas or commercial locations. Spatial planning has the potential to organize

economic activities to maintain sustainable urban development, or may result in chaotic

and unplanned establishment of trade or business activities. Spatial planning and urban

development may determine the vibrancy of the local economy e.g. operation of

businesses at night. Nairobi City County faces several challenges related to urban

development and planning–

(a) Poor spatial planning and enforcement of zoning laws development control plans

(b) Proliferation of unplanned settlements in areas that are designated for trade

(c) Proliferation of trading or economic activities on non designated areas such as

road reserves

(d) Unplanned and un-coordinated development in town centers or shopping centers

which has resulted in shopping centers losing their core role of facilitating retails

trade in residential localities

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Policy Objectives

(a) To increase compliance with spatial plans and development control in relation to

trade

(b) To promote sustainable planning and growth of specific trade centers and

localities

Policy Measures

In order to mitigate the challenges identified, the following policy measures shall be

adopted–

(a) In accordance with the spatial planning principles, the county government shall in

consultation with national government and private sector –

(i) carryout assessment or feasibility study for classification of different

trading areas in the county for purposes of declaring and delineating

relevant places as appropriate trading areas

(ii) classify, designate, delineate and gazette trading areas in the county as

commercial or industrial districts, mixed development districts, town

centers or shopping centers, industries or sector based districts, and in any

other relevant category

(iii)regulate economic activities allowable in each respective areas and adopt

appropriate development control plans

(iv) declare the commercial and industrial areas as Special Planning Areas in

accordance with the National Physical Planning Act (or Spatial Planning

Act), prepare and adopt appropriate Spatial plans for the Special Planning

Areas designated

(v) Redesign and upgrade through establishment of urban renewal and

regeneration programme, all town centers or shopping centers so as to

enable them provide retail trade opportunities

(b) Invest and provide adequate security and public safety infrastructure to enable

retail trade to be carried out at night

(c) Initiate a programme of sustainable operation of economic activities on road

reserves which shall include elimination of encroachment of non designated

businesses from road reserves

(d) There shall be established appropriate trade area based committees consisting of

government and private sector to promote and provide platform for public-private

dialogue and collaboration

3.1.6. Trade and Environment (Green Growth)

Context and Issues

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Trade or economic activities should be carried out in a manner that promotes sustainable

environmental management and conservation. Trade processes should not engage the

environment and contribute to externalities such as pollution, over-extraction of natural

resources so as to meet the rising consumption demands. The county faces the following

challenges related to trade and environment–

(a) Pollution of environment through poor waste management processes

(b) Over-exploitation of natural resources

(c) Utilization of energy inefficient production processes

(d) Excessive consumption of products

Policy Objectives

To promote realization of green growth and green economy

Policy Measures

In order to mitigate environmental challenges related to trade, the following policy

measures shall be adopted–

(a) The county government shall, collaboration with national government and

relevant stakeholders –

(i) Promote and facilitate the adoption of clean and renewable energy

utilization by traders or businesses

(ii) Promote and facilitate zero waste aspiration and circular economy in

relation to solid waste management

(iii) Promote and adopt legal measures under development control laws, for

utilization of green technologies in built areas

(b) The county government shall in collaboration with relevant stakeholders design

and develop green spaces across the city for purposes of improving environment

and promoting the city as a green investment destination

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Chapter 4

Policy Implementation, Monitoring and

Evaluation

4.1. Introduction This chapter outlines the mechanisms for implementing, monitoring and evaluating the

policy. For intended policy outcomes to be achieved, there is need for effective policy

implementation, monitoring and evaluation. This will require strong institutional

development, inclusion of stakeholders in governance, legal and administrative reforms

and integration with the county performance management system.

4.2. Policy Implementation

4.2.1. Institutional framework

There shall be established an interdepartmental committee on trade which shall consist of

departments responsible for –

(a) Trade

(b) Finance

(c) Economic Planning

(d) Urban planning and development

(e) Enforcement

(f) Health

(g) Roads

(h) Transport

The committee shall be responsible for coordinating implementation of this policy.

4.2.2. Planning and Performance Management

Implementation of the policy shall be undertaken through development of trade sectoral

plan (or sectoral plan dealing with trade). In accordance with the County Governments

Act, the trade sectoral plan shall be part of the County Integrated Development Plan

(CIDP 2018-2022). The county Medium Term Expenditure Framework (MTEF) and the

County Fiscal Strategy Paper shall adequately cover the strategies and programmes

provided under the trade sectoral plan. The sectoral plan shall be implemented annually

through the annual development plan.

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Implementation of this policy shall be integrated with the county performance

management system through the sectoral plan. The annual performance contracting and

targets for respective departments responsible for implementation of this policy shall be

aligned to activities and programmes in the trade sectoral plan so as to ensure

complementarity and inter-sectoral approach in implementing this policy. Data related to

policy implementation shall be collected on a continuous basis in order to inform

decision-making by the county executive and other sector stakeholders.

4.2.3. Legal and Administrative Reforms

In addition to programmes and projects to be designed under the trade sectoral plan (or

sectoral plan dealing with trade), appropriate legal reforms related to trade shall be

undertaken. There shall be prepared for enactment or adoption laws, guidelines,

standards and frameworks. Key among them shall be enactment of County Trade Bill and

other Bills relevant to the implementation of this policy.

4.2.4. Collaboration with National Government

As stipulated under Article 6 and 189 of the Constitution, the county government shall

institute measures to cooperate, collaborate, consult and partner with the national

government in implementing this policy as well as implementing national policies, laws

and standards related to trade. In this regard, the department responsible for trade shall

initiate intergovernmental collaboration mechanisms with the national government

ministry responsible for trade and other agencies responsible for matters related to trade.

4.2.5. Staff Capacity Development

The department responsible for trade shall in collaboration with the department

responsible for human resource management and the County Public Service Board

resource the department as well as other county departments responsible for

implementing this policy, with highly qualified professional staff in line with respective

policy measures. In addition, the department responsible for trade and department

responsible for human resource management shall develop and facilitate continuous

professional and capacity development for all relevant officers in various departments

responsible for implementing this policy.

4.3. Policy Monitoring and Evaluation

4.3.1. Design of indicators

In order to ensure effective implementation of this policy, there shall be a continuous

monitoring of the results of programmes and activities undertaken to implement this

policy. The department responsible for trade

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shall in collaboration with national and county stakeholders design the core outcome

indicators to be adopted in measuring the results of implementing this policy. The

indicators shall measure key variables such as growth in trade and business and

improvement in trade regulatory environment among others.

4.3.2. Monitoring and evaluation framework and system

This policy shall be evaluated in accordance with overall county monitoring and

evaluation framework, standards and system. The following requirements shall apply in

regard to policy monitoring and evaluation–

a) The department responsible for trade shall designate staff to be responsible

for coordinating monitoring and evaluation of implementation of this

policy.

b) In each period of 3 months, the department responsible for trade shall

prepare a report on the progress made in implementing the policy, which

shall be submitted to county executive committee for consideration and

decision-making.

c) There shall be annual policy review, which shall involve all trade

stakeholders. The review shall provide feedback on successes, progress and

challenges related to policy implementation and whether policy outcome

have been met in each year. The policy review report shall be submitted to

county executive committee for consideration and decision-making

d) The policy shall be evaluated at the end of each period of 5 years to assess

the extent to which policy outcomes have been realized including policy

impact

e) The department responsible for trade shall disseminate policy evaluation

reports to county trade stakeholders.

f) The Trade Advisory Committee shall support the department responsible

for trade in monitoring, reviewing and evaluating this policy and advising

on appropriate policies and programmes to be adopted