Nakuru County Business Agenda

44
NAKURU COUNTY BUSINESS AGENDA An Advocacy Tool for Nakuru Business Coalition Pursuing a Model Destination for Investors Worldwide

description

An Advocacy Tool for Nakuru Business Coalition

Transcript of Nakuru County Business Agenda

Page 1: Nakuru County Business Agenda

NAKURU COUNTY BUSINESS AGENDA

An Advocacy Tool for Nakuru Business Coalition

Pursuing a Model Destination for Investors Worldwide

Page 2: Nakuru County Business Agenda
Page 3: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 i

Compiled by Serah Kimani

Nakuru Business Association

Nakuru Business Coalition

Page 4: Nakuru County Business Agenda

Nakuru County Business Agenda 2014ii

Page 5: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 iii

Kenya Association of Manufacturers (KAM)P.O. Box 30225 - 00100 GPO Nairobi86 Riverside Lane, Off Riverside Drive, Riverside (currently)Mwanzi Road, Opposite Nakumatt Westgate, Westlands (from June 2014)Tel:+254 020 2324817/8; 020 8155531/2; 020 2166657Mobile:+254 722-201368, 0706-612384, 0734 646004/5Email: [email protected]: www.kam.co.ke

All Rights ReservedA publication of the Kenya Association of Manufacturers

CopyrightsThe material in this work is copyrighted. Except for the quotation of short passages andsections for which due acknowledgement MUST be made, no part of this report maybe reproduced, stored in a retrieval system or transmitted in any form or by any meanselectronic, mechanical, photo copying or otherwise, without prior authority of the KenyaAssociation of Manufacturers.

Page 6: Nakuru County Business Agenda

Nakuru County Business Agenda 2014iv

Map Showing Nakuru County

Page 7: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 1

ContentsForeword ...............................................................................................2

Remarks by the Governor ......................................................................3

Acknowledgments .................................................................................5

Abbreviations ........................................................................................6

PART I........................................................................... ........7

Introduction ..........................................................................................7

PART II........................................................................... ...............11

Nakuru County Fact File .........................................................................11

Current Issues Facing Nakuru County .....................................................12

PART III........................................................................... ..............21

Proposals on Way Forward in Each Sector ..............................................21

Low-lying Fruits from the Way Forward .................................................31

Conclusion ..........................................................................................33

References ............................................................................................34

List of BMO’s in Attendance ...................................................................35

Page 8: Nakuru County Business Agenda

Nakuru County Business Agenda 20142

Foreword

It is my pleasure to present to you the first edition of the Nakuru County Guide.

This guide is a product of interactions between the business community operating in Nakuru County under the auspices of the Nakuru Business Coalition and the Nakuru County Government under the leadership of the duly elected Governor H.E. Kinuthia Mbugua.

The Nakuru County Business Agenda is the main tool for business advocacy for all Business Membership Organizations in Nakuru County. The business agenda will also be useful to the Nakuru County Government to identify key initiatives and areas of improvement that can make Nakuru County the most attractive and business competitive destination for

investors in Kenya and the wider East African Community region.

This business agenda adopts a sectoral approach in the identification of issues of interest to the business community. However, some of the recommendations proposed in the business agenda cut across different thematic areas while still retaining a sectoral focus.

The business agenda is divided in three parts. Part I gives the background of the County Round Tables in Kenya and expounds on the expectations that were raised from the Nakuru Governor’s Round Table. Part II contains facts about Nakuru County and explores the issues that face various sectors in the County. Part III makes recommendations on the identified issues and highlights key issues that the county government can address immediately towards making a model county in Kenya. The business agenda concludes by emphasizing the importance of Public Private Dialogue (PPDs) and consistent collaboration between the two parties in Nakuru County to achieve the goals of Kenya Vision 2030.

As the Chairman of Nakuru Business Coalition, I share the Nakuru County Government’s dream of making Nakuru County the model location for any investor in the world. Together we can make this happen!

Mr. Rajan ShahChairman, Nakuru County Business Coalition

Page 9: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 3

Remarks by the Governor

The concept of a Public Private Dialogue (PPD) with the business community will be very critical to my government in the next five years. As a government, we are committed to working closely with the private sector, ensuring consultations and inclusion in decision making especially on matters that affect the business climate of the county. We intend to actualize this through quarterly round table meetings with the private sector grouped around broad thematic areas, that is, a) Investment opportunities & incentives for economic growth; b) Infrastructure; c) Service delivery in the county; d) Agri-business promotion; e) Land, physical planning & housing; and f) Promotion of trade,

tourism & industrial growth. My government, through the specific county executives has every intention of coordinating with the private sector to get stakeholders’ views and work towards implementation of the same during my term in office. I therefore urge the private sector to continuously air their views to ensure easier follow up and collaboration with my government.

Specifically, during my tenure, I will ensure that my government facilitates the Quarterly Round Table Initiative for all private sector stakeholders in Nakuru to evaluate progress on issues identified through direct meetings with the or through memorandums presented by the Nakuru County Business Coalition on specific advocacy issues.

As the government, it is our objective, to work closely with the private sector to showcase Nakuru County as a favorable investment destination. Jointly, we will organize a major investment forum that will present key investment opportunities and incentives for the promotion of economic growth in Nakuru County. This forum will act as an opportunity for existing investors to exhibit their products and for residents to market their products. As such, this is expected to open up a larger market for Nakuru County. I therefore urge the business community from the county to join relevant membership organizations and assist in promoting trade and investment in the county, uphold standards, encourage the formulation, enactment and administration of sound policies that facilitate a competitive business environment and reduce the cost of doing business in Nakuru County and the Country as a whole.

In order to realize our promise to the people of Nakuru County, my government requires partnership and the good will of all stakeholders. I therefore urge the private sector to work together with the county leadership to create employment and facilitate the development of relevant skills for graduates both from TVET and other institutions of higher learning including universities within the county.

Finally, my government recognizes the need to develop a checklist of issues that it

Page 10: Nakuru County Business Agenda

Nakuru County Business Agenda 20144

intends to address in the next five years. However, we realize that some issues are critical and require our immediate attention. As such, the county government pledges to move with haste to ease traffic congestion on the Nairobi - Nakuru highway, especially on the Gilgil toll station; renovate the existing road network in Nakuru County through tarmacking the existing urban roads and rehabilitating rural access roads; and, install an Enterprise Resource Planning (ERP) to facilitate efficiency, transparency and controls in the operations of the county including licensing and payment of fees and charges to the county government.

It is my conviction that through sustained collaboration with the private sector, my government will transform Nakuru County by creating a business friendly environment to make Nakuru County the most competitive place to invest and conduct business in Kenya, and the whole of Africa.

H.E. Kinuthia MbuguaGovernor Nakuru County

Page 11: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 5

Acknowledgments

The Nakuru County Business Guide was prepared from views presented by various Business Membership Organizations from the Nakuru County.

Valuable input was also provided by the Office of the Governor of Nakuru County.

The guide was complied through concerted efforts of a dedicated team at the Kenya Association of Manufacturers including Tobias Alando, Fridah Mbugua, John Kamau, Anne Ndung’u and Bella Akinyi, under the guidance of Serah Kimani,

a consultant. It benefited immensely from reviews done by a number of County Business Agenda which make up the Nakuru County Business Coalition. They include: Kenya Association of Manufacturers (KAM), Nakuru Business Association (NBA), Kenya National Chamber of Commerce and Industry (KNCCI), Federation of Kenya Employers (FKE), Kenya National Federation of Agricultural Producers (KENFAP), Agricultural Employers Association (AEA), Kenya Budget Hotels Association, Nakuru Residents Association, Nakuru Street Traders and Hawkers Association (NASTHA), Motorcycle & Tuk-Tuk Owners Association, Nakuru Residents Forum, Jua-Kali Association, Matatu Association, Timber Manufacturers Association, Professional & Business Women Club (PBWC) and the Bar Owners Association.

I am grateful to Business Advocacy Fund (BAF) for the financial and technical support accorded to this project. The preparation of this Business Agenda would not have been possible without their support. I especially thank Mr. Clive Davis, the BAF Fund Manager for his dedication to the project and for his valued insights.

Ms. Betty Maina, MBSChief Executive OfficerKenya Association of Manufacturers

Page 12: Nakuru County Business Agenda

Nakuru County Business Agenda 20146

Abbreviations

AFC Agriculture Finance CorporationBAF Business Advocacy FundCBA County Business AgendaBMO Business Membership Association BPOs Business Processes OutsourcingCCTV Closed Circuit TelevisionEAC East African CommunityERP Enterprise Resource PlanningESMAP Energy Sector Management Assistance Program FKE Federation of Kenya EmployersGDP Gross Domestic ProduceICTs Information Communication TechnologiesKAM Kenya Association of ManufacturersKENFAP Kenya National Federation of Agricultural ProducersKEPSA Kenya Private Sector AssociationKNBS Kenya National Bureau of StatisticsKNCC Kenya National Chamber of CommerceMICE Meetings, Incentives, Conferences and ExhibitionNCPB National Cereals and Produce BoardPPD Public Private DialoguePPP Public Private PartnershipSMEs Small and Medium EnterprisesTVET Technical and Vocational Education Training InstitutionsUNEP United Nation Environmental Program

Page 13: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 7

PART I

Introduction

Background of County Round Tables in Kenya

With the concept of devolution firmly enshrined in The Constitution of Kenya, 2010, the private sector reckons the urgent need for reorganizing its advocacy approach to ensure that devolution works for businesses without interruption or taking away from gains already reaped from similar past endeavors.

Armed with this realization while at the same time appreciating the importance of solidarity in advocacy, Business Membership Associations (BMOs) jointly1 organized a national consultative forum dubbed Ensuring devolution delivers for business: building coalitions in pursuit of business interest on 18th April 2013. This national forum resolved that “devolution must not interrupt business; it must deliver for business and the country at large.”

To ensure that devolution delivers for businesses, it was further resolved to adopt a new advocacy strategy for lobbying county governments during the meeting. The BMOs agreed to formulate clear, structured channels and paths of engaging county governments to ensure coherence and consistency in their advocacy. In line with this, BMOs in each county agreed to create coalitions through which to pursue advocacy in county governments. One of the proposed ways was through well organized forums and preferably, county round-tables. The national meeting also resolved that BMOs in each region in Kenya would strive towards establishing a regional business agenda to avoid multiple and repetitive encounters with the county leadership. This in turn, would ensure the coherent and consistent statement of business issues in one strong and united voice.

1 The meeting, held in Nairobi, was organized by FKE, KAM, KCCI, KEPSA & KENFAP, under the leadership of KAM.

Page 14: Nakuru County Business Agenda

Nakuru County Business Agenda 20148

Main Objectives of the BMOs’ Coalition

• To create a platform for business advocacy and deal with issues in the counties through frequent dialogue and engagement mechanisms;

• To better place the business community so as to influence county governments on business climate issues;

• To establish a platform for expanding a trade and investment framework in each county; and

• To provide stakeholders with an opportunity to critically participate in the governance and growth of the County as contemplated by Chapter Eleven of

the Constitution.

Key Objectives of Nakuru County Governor’s Round Table

• To create a platform for advocacy on business related issues in Nakuru County through frequent dialogue and engagement mechanisms with the Nakuru County Government;

• To ensure that the business community in Nakuru County will be better placed to influence the county leadership towards the creation of a business friendly environment;

• To establish a platform for expanding a trade and investment framework in Nakuru County;

• To provide the stakeholders in Nakuru County with an opportunity to critically participate in the governance and growth of their County;

• To identify key flagship projects within Nakuru County in line with Kenya Vision 2030; and

• To discuss incentives that can be extended to investors in the County by county government.

Page 15: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 9

Nakuru County Governor’s Round Table

Infrastructure

Service Delivery

Land, Planning &Housing

Governor

Figure 1 – the 6 focus groups formed during the roundtable

In light of the resolutions made at the BMOs’ national consultative meeting of 18th April 2013, Kenya Association of Manufacturers (KAM) mobilized BMOs from the Nakuru under the auspices of Nakuru Regional Business Agenda to organize the first county round table on 25th May 2013. The Nakuru County Governor’s Roundtable was attended by among others the County Governor, the Executive Committee, Members of Parliament from the various constituencies of the County, County Assembly Members and Business Membership Organizations (BMOs) including: Kenya Association of Manufacturers (KAM), Nakuru Business Association (NBA), Kenya National Chamber of Commerce and Industry (KNCCI), Federation of Kenya Employers (FKE), Kenya National Federation of Agricultural Producers (KENFAP), Agricultural Employers Association (AEA), Kenya Budget Hotels Association, Nakuru Residents Association, Nakuru Street Traders and Hawkers Association (NASTHA), Motorcycle & Tuk-Tuk Owners Association, Nakuru Residents Forum, Jua-Kali Association, Matatu Association, Timber Manufacturers Association, Professional & Business Women Club (PBWC) and the Bar Owners Association.

These 16 BMOs from the Nakuru Business community all come under the umbrella of the Nakuru County Business Coalition and other non affiliated business people .

Page 16: Nakuru County Business Agenda

Nakuru County Business Agenda 201410

Issues affecting the business community in the county, opportunities for investment in the county and governance issues were explored through presentations made by both the business community and the county leadership. The private sector grouped itself into six thematic areas chaired by nominated members of the county executive committee as well as other Government Officials as follows:

1. Investment opportunities & incentives for economic growth;

2. Infrastructure;

3. Service delivery in the county;

4. Agri-business promotion;

5. Land, physical planning & housing; and

6. Promotion of trade, tourism & industrial growth.

The contents of this business agenda reflect the outcome of discussions in these six thematic areas, and recommendations that were arrived at by each group. The way forward in the business agenda reflects the consensus arrived at by the county government and the private sector after each thematic group made presentations of discussions and recommendations for issues falling under each thematic area.

Expectations of the Business Community from the Nakuru County Governor’s Round Table

• That following the first round table in Nakuru County, a foundation for a lasting relationship between the business community and the County government will have been established, and that going forward, the Nakuru County Business Coalition be able to actively engage the County Government during its 2013 -2017 tenure .

• That the Nakuru County Business Coalition will co-ordinate and support efforts by the entire business community in Nakuru County to influence the County Government to implement business-friendly regulations that encourage investment, thus making Nakuru County the most competitive county in Kenya.

• That the issues identified in this guide will inform the development of a checklist of actionable issues by the Nakuru County Government for the next five years.

• Despite the fact that some of the issues identified in this guide will evolve, with some being addressed within a year of the date of this guide or even a shorter period, it is the expectation of the business community in Nakuru that the county government will use this guide as a reference document in developing Nakuru County Integrated Plan as contemplated by the County Government Act.

Page 17: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 11

PART II

Nakuru County Fact File

• Nakuru is amongst the largest counties the Kenya occupying 7,495 square kilometers in the Rift Valley, with a population of 1,603,325 (the 5th highest in the country).2 Nakuru County is in the former Rift Valley Province of Kenya. Nakuru County borders Kiambu County to the East, Baringo county to the North, Kericho county to the West, Laikipia County to the North East, Nyandarua County to the East, Narok County to the South West and Kajiado County to the South.

• It is made up of eleven constituencies (Molo, Njoro, Naivasha, Gilgil, Kuresoi South, Kuresoi North, Subukia, Rongai, Bahati, Nakuru Town West, Nakuru Town East).

• It is also home to Nakuru, the fourth largest town in Kenya with a population of over 200,000, and an even bigger rural population estimated at 65% of the total population. Nakuru has been identified as one of the fastest growing towns in the EAC region and in Africa. 3

• The county acts as a host to smaller towns including Molo, Njoro, Gilgil and Naivasha, which are popular tourist destinations.

• It can be considered one of the most cosmopolitan counties in Kenya, as it is called home by Kenyans from many communities, and a sizable population of Kenyans of Indian and European descent.

2. Kenya 2009 National Population Census, Kenya National Bureau of Statistics. 3. See Un Habitat Report, 2010. The growth has been attributed to a number of factors including the opening of the

new Naivasha-Nakuru road, which links the town with Nairobi. Post-election violence of 2008 is said to be one of the contributing factors, since many displaced people from neighbouring towns saw Nakuru as a safe haven.

Nakuru town is located 160 kilometers to the north west of Nairobi and is the fourth largest urban centre in Kenya after Nairobi, Mombasa and Kisumu. It is situated at an altitude of 1859m above sea level and it is within the region of the Great Rift Valley whose formation gave rise to a unique natural structure. The town started as a railway station on Kenyan-Uganda railway at the turn of the 19th century. The name ‘Nakuru’ is derived from ‘Nakurro’, a Maasai word meaning ‘a dusty place’. The town is located in an environmentally sensitive area. It is sandwiched between Lake Nakuru National Park to the south and the Menengai Crater and its associated volcanic landscapes. Further to the North East of the town is the Bahati Escarpment forming the western fridge of the Aberdares Escarpment (Source - Physical Kenya )

Page 18: Nakuru County Business Agenda

Nakuru County Business Agenda 201412

• Agriculture is the backbone of the county’s economy with food crops, horticulture and cash crops, dairy and beef as common products.4

• Tourism contributes to the county’s economy accounting for almost 70% of income to the county. The County is famous for flamingos at Lake Nakuru which are a popular tourist attraction. It is also host to a large number of animal and bird species.

• The county enjoys favorable climatic conditions with forests cover in large sections, which are the sources of many streams and rivers which drain into Lake Nakuru, Lake Naivasha and Lake Elementaita, some of the county’s water catchment areas.

• A sizeable manufacturing sector, approximated at over 100, with the potential for further growth, exists in the county.5

Current Issues Facing Nakuru County

Energy Sector

Due to its geographical location on the Rift Valley, the Nakuru County is endowed with abundant geothermal resources. The abundance of this transformative resource in the county notwithstanding, the residents of Nakuru County, especially the business community, face the persistent challenge posed by regular power outages that disrupt production, leading to reduction on the income. Often, profits made by companies go towards the purchase and operation of generators.

4. Kenya Investment Authority.5. See information from Kenya Association of Manufacturers, Nakuru Chapter.

The Kenya Olkaria Geothermal Plant, on the boundaries of Hell’s Gate National Park is part of Kenya’s plan to substantially increase the contribution of geothermal to the country’s energy mix. Only 16% of Kenyans have access to electricity, but with evidence of abundant geothermal resources beneath the country’s share of East Africa’s Rift Valley, the government plans to double geothermal generation. Already, geothermal—developed with $300 million in support from the World Bank since 1978 —delivers about 13% of Kenya’s electricity; the goal is to raise that proportion to close to 30% by 2020. Geothermal is also delivering carbon-free access to electricity.

The Menengai Geothermal Power Plan near Nakuru town is expected to inject 400 megawatts into the National Grid by 2017, helping to shore up the persistent power shortages experienced by households, schools, hospitals, military camps and businesses which mainly rely on energy from hydro-electric power. This new source of energy will lead to lower electricity tariffs, a production factor that has continued to erode the competitiveness of Kenya’s products in the domestic, regional and international markets.

( World Bank’s Energy Sector Management Assistance Program - ESMAP).

Page 19: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 13

The consumers of electricity pay large amounts to Kenya Power, yet the outages are not factored in to reduce these tariffs.

Investment opportunities in energy sector

Nakuru County has the largest reserves of Geo-thermal energy in the world amounting to 7000MW. 6 Currently only 240MW is being tapped, meaning that there is room for growth and expansion. The County should capitalize on these reserves to facilitate growth of its key sectors through reduction of energy tariffs, especially for agricultural and manufacturing concerns. Investment opportunities in this sector are innumerable including generation, transmission and distribution.

Agricultural Sector

Due to its favorable climatic conditions, agriculture is the backbone of the county’s economy with food crops, horticulture and cash crops, dairy and beef as common products. In fact, Nakuru is the largest agri-business exporter in Kenya.7 During the colonial period, the county was known as the White Highlands primarily due to its potential in agriculture.

It is worth noting that Vision 2030 has identified agriculture as one of the key sectors towards the achievement of its Economic Pillar. This means that Nakuru County is a key player in Kenya’s economic development plans.

6. See Geothermal Development Authority.7. Export Promotion Council.

Geothermal offers great promise, especially in East Africa, where the Rift Valley’s geothermal potential could power up to 150 million households. Further, the clean geothermal power is expected to reduce carbon dioxide emissions by close to two million tons per year, hence reducing the environmental impact by a significant margin (Kenya Economic Update, June 2013, The World Bank) in line with the Social Pillar of Vision 2030 which seeks to improve the social well being of Kenyans through various human welfare projects including environmental related ones.

The floriculture/horticulture business in Kenya employs over 100,000 persons and generates over Kshs.100 billion export sales annually. Nakuru County contributes 90% of Kenya’s revenue in floriculture and 60% of Kenya’s revenue in horticulture - Kenya National Bureau of Statistics

Economic Pillar of Vision 2030 seeks to improve the prosperity of all regions of the country and all Kenyans by achieving a 10% Gross Domestic Product (GDP) growth rate annually.

Page 20: Nakuru County Business Agenda

Nakuru County Business Agenda 201414

This, notwithstanding, agriculture continues to be viewed as an unprofitable venture by many, especially the small scale farmers. Farmers get little or no support from the government in terms of farm inputs and supplies, whose prices are prohibitive. Furthermore, institutions which were once important to farmers, including the Kenya Farmers Association, now offer little or no support to them. This is compounded by the fact that useful facilities, for example, the largest storage facilities for the National Cereals & Produce Board situated in Nakuru, are dilapidated and under-utilized. It is worth noting that most farmers from Nakuru County do not engage in any value addition to most of their agricultural products, and continue to be exploited by middle men in search of markets for their produce.

Investment opportunities in agriculture

Nakuru County is currently the largest exporter in agri-business in Kenya 8, and its potential in this sector has not been fully utilized.

• The pyrethrum sector, though currently mismanaged, has potential for global growth, especially since Kenyan pyrethrum is the most preferred globally.

• Wheat, barley, and sun-flower, French beans, soya beans, potatoes, tomatoes, maize, ground nuts, coffee, tea, herbs, spices farming present great potential for agribusiness in the county.

• Dairy farming/products present a huge potential for the county, especially the famous Molo Lamb. This also portends a lucrative industry for hides and skins.

• There is a huge potential for investment in a fish plant to tap into fishing from Lake Naivasha, and other meat products including beef, chicken, pork.

• Investment in fertilizer production plants towards realization of the Fertilizer Cost Reduction Initiative flagship project in line with the Economic Pillar of Vision 2030.

The Kenya Vision 2030 identifies ‘Consolidated Agricultural Reform’ as one of key flagship projects for the period 2008–2012. This initiative seeks to review and harmonize the legal framework to rationalize contradictory development, regulatory, licensing, processing, and roles of agricultural parastatals.

8. E.g. the highest percentage of floricultural exports from Kenya emanate from Naivasha, which has the largest flower farms in Kenya.

Page 21: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 15

Water Sector

Nakuru County is home to Lake Naivasha, one of the largest fresh water lakes in Africa. This notwithstanding, the county is faced with persistent water shortages. Residents experience inadequate water supply, poor distribution of the available water, lack of regulations on water distribution, poor water transport systems, high bills for water so supplied, fluoride in water problems and pollution.

Investment opportunities in water sector

To entrepreneurs, the above challenges present opportunities to invest in water harvesting technologies, and water treatment plants to rid water in Nakuru County of excess fluoride, which has been identified as the main cause of teeth discoloration to residents of Nakuru County.

Tourism Sector

Tourism forms one of the key sectors of development for Nakuru County, and Kenya as whole. It is worth noting that Vision 2030 identifies tourism as one of the key sectors that will drive its achievement under the Economic Pillar.

Lake Nakuru, Lake Elementaita and Lake Naivasha coupled with a variety of national parks and scenic sites are a beauty to behold. The volcanic activities at Mt. Longonot and the Menengai Craters are great tourist attractions.

However, many challenges continue to threaten the sector including diminishing lakes due to hyacinth, wildlife poaching, poor road infrastructure resulting into inaccessible of tourist destinations, environmental pollution, low investment in hotels and other accommodation facilities leading to limited bed capacities in the available facilities, and inadequate trained professionals in the industry.

Under Vision 2030, Kenya aims to be among the top 10 long -haul tourist destinations in the world offering a high end, diverse and distinctive visitor experience that few of her competitors can offer

Page 22: Nakuru County Business Agenda

Nakuru County Business Agenda 201416

Investment opportunities in the tourism sector

Tourism presents great investment potential for Nakuru County, and its close proximity to Nairobi presents a competitive advantage for this sector.

• In a county where tourism facilities are strained, with demand outweighing supply, opportunities exist for investment in resorts, lodges, parks, camps and motels.

• To take advantage of the scenic views in the county, opportunities exist for investment in golf courses, sports stadia and training grounds for athletes.

Land Sector

Nakuru County is endowed with huge tracts of land, most of which is under agricultural use, and some which remain unused.

However, many challenges prevail including land grabbing, corruption in lands offices, poor town planning and unmanaged subdivisions (zoning). The county continues to experience ad hoc subdivision of arable land for commercial use, leading to high cost of land due to speculation. Other challenges include family disputes and succession tussles and unfounded cultural practices especially on burial sites. The implementation of the new Land Act has also posed challenges due to ambiguities existing therein.

Investment opportunities in the land sector

As Nakuru County is endowed with large tracts of land, opportunities exist for the county to pursue Public Private Partnerships (PPPs) towards the development of industrial parks and industrial research centers. Towards this goal, the county ought to focus on developing laws that encourage investments on land which can then be leased to local and foreign investors who want to establish factories in the county.

Economic Pillar of Vision 2030 identifies investment in hotels and conference facilities as one of the ways in achieving the Meetings, Incentives, Conferences and Exhibitions (MICE) flagship project.

The Economic Pillar of Vision 2030 identifies manufacturing a key sector which will drive Kenya’s prosperity, with the development of SME parks being a flagship project.

Page 23: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 17

Infrastructure Sector

Nakuru County has the advantage of being served by the Nairobi –Nakuru highway, one factor which has contributed to the fast growth of Nakuru town.9 However, most of the physical infrastructure in the county including roads, power supply, sewerage systems, water supply and drainage system is wanting. Existing roads continue to be damaged by seasonal rains due to lack of drainage systems. Common climatic occurrences wreck havoc to the existing infrastructure due to poor maintenance of existing facilities.

Investment opportunities in infrastructure

Opportunities exist for the County to partner with the private sector in the development and maintenance of key infrastructure in the county including an airport, roads, power supply grids, water supply and sewerage systems.

Security Sector

Security continues to pose a threat to a conducive business environment in Nakuru County. This problem is prevalent in urban areas due to high unemployment and school dropout rates by the youth, lack of lighting, corruption by enforcement officer, low morale on the part of law enforcement officers and lack of coordinated efforts in all sectors responsible for enhancing security.

“Kenya has not been an attractive destination of FDI. Infrastructure bottlenecks both in energy and roads have been a major constraint on FDI. The Word Bank, Kenya Economic Update June 2013. Good infrastructure lowers the transaction costs, which enable investors to earn returns on their investments, as their enterprises are able to generate profits.”

“The long delays in resolving disputes in the judiciary and other cumbersome compliance items, have discouraged FDI. In addition, the regulations that require foreign firms to enter into mandatory joint ventures partnerships (30 percent share) with locals in order to invest in Kenya, makes it a less favorable investment destination.”

Source - Kenya Economic Update, June 2013, The World Bank

The vision for security in Kenya by 2030 is “a society free from danger and fear.” Thus the need for installation of surveillance cameras in Nakuru as an enabling project towards the achievement of security in Kenya.

9. UN Habitat Report 2010.

Page 24: Nakuru County Business Agenda

Nakuru County Business Agenda 201418

Other factors that have fueled low security levels include negative ethnicity, few resources which often lead to scramble and land disputes. There is need to beef up security by providing police patrols, improved street lighting and installation of security cameras at strategic points of the county particularly in the industrial zones.

Environmental Sector

Waste management including collection and disposal continue to pose a great challenge to Nakuru County. The factors that contribute to this problem include lack of enforcement of environmental regulations, absence of designated dump site, lack of coordinated and adequate collection mechanisms, absence of sewerage and waste management systems and policies, and a general lack of discipline and awareness among the general public. Further environmental challenges facing the county emanate from the effects of global warming, resulting in erratic weather patterns characterized by devastating floods and frequent and intense cycles of droughts. This continues to affect the agriculture and tourism sectors among other key sectors in the county.10

Investment opportunities in environmental sector

• The proliferation of unmanaged waste in the county, especially in the urban areas, present opportunities for investors to set up waste management plant.

• The agricultural waste also portends potential for investment in a bio fuel generation plants.

Health Sector

Nakuru County has two level 3 hospitals at Naivasha and Nakuru towns. Other urban centers in this county are served by dispensaries and health centers. The county is also home to a number of private hospitals and medical facilities situated in urban areas especially in Nakuru and Naivasha.

However, despite its size and economic importance to Kenya, Nakuru County does not have any modern medical facilities.

“Kenya’s Vision 2030, which is a blueprint for economic and human development, makes particular reference to good education and to healthcare for all. The quality of education and health services will in fact determine whether the promise of Vision 2030 will be shared by everybody, especially those who live under the poverty line today.”

Source - World Bank Report, 2012, Are Kenyans Being Served? New Data Sheds Light on Health and Education.

10. See http://www.unep.org/roa/Programmes/KenyaCountryProgramme/ClimateChangeinKenya/. According to UNEP. economic losses due to this environmental vulnerability have been estimated to cost up to 40% of the national GDP.

Page 25: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 19

Most hospitals have dilapidated medical facilities with inadequate staff and outdated equipment. This increases the cost of medical care making health care inaccessible by the residents. Health is an essential part of any community which intends to attain economic growth.

Housing and Sanitation Sector

As the fastest growing region in Kenya, Nakuru County continues to experience rapid urban population growth. This presents a challenge in meeting the housing needs of its residents.

In the last ten years, the urban areas in the County have witnessed a proliferation of high rise residential developments in an effort to satisfy the demand.11 This has resulted in straining an already stretched service infrastructure. Further, the county has witnessed change of user of agricultural properties to residential and commercial areas in an effort to meet the housing needs of the growing population.

Investment opportunities in housing and sanitation

• Development of modern affordable residential dwelling units.

• PPP with private sector to develop an efficient water supply and sewerage systems

• Urban planners and surveyors can offer professional services in planning of towns in the County

Education

As already stated in this guide, Nakuru County is endowed with a high population, a sizeable percentage being children and the youth. Both the government and private sector are major players in providing early childhood, primary and secondary education.

However, the county lacks sufficient number of institutions of higher learning to accommodate the increasing number of students graduating from secondary schools and to meet the ever evolving needs of industry. The county also lacks sufficient relevant technical and vocational education and training (TVET) institutions focusing on inculcating skills that are relevant to the county specific needs in the development of agriculture, livestock and fisheries, value chain and value addition and tourism.

“Kenya’s labor productivity has been falling in the recent past, while at the same time, labor costs have been rising fast as compared to productivity”.

Kenya Business Review, June 2013, The World Bank.

11. See Construction Review at www.constructionreviewonline.com, June 2012.

Page 26: Nakuru County Business Agenda

Nakuru County Business Agenda 201420

Opportunities in education sector

• Investment in building and fully equipping new secondary schools to accommodate the increasing graduates from primary schools in the entire rift valley region.

• PPP with county government in establishing TVET institutions & specialization centers, developing curricula and impacting practical knowledge to students in such colleges/centers.

“Under vision 2030, Kenya aims at providing globally competitive education, while raising the quality and relevance .Kenya’s Vision 2030, which is a blueprint for economic and human development, makes particular reference to good education and to healthcare for all. The quality of education and health services will in fact determine whether the promise of Vision 2030 will be shared by everybody, especially those who live under the poverty line today.” – Kenya Business Review,

June 2013, The World Bank

Page 27: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 21

PART III

Proposals on Way Forward in Each Sector

Energy Sector

• The county should explore alternative sources of energy. There is urgent need for the county to enter service agreements with energy providers in order to ensure supply of affordable, sufficient, reliable, quality and clean energy to power industry and to serve the county’s population.

• In developing its Integrated County Plan, Nakuru County should mirror the draft National Energy Policy in line with Vision 2030.

• The county government should negotiate with the relevant authorities so that the power generated within Nakuru is supplied to Nakuru County residents first before it is transmitted to other areas.

• As starting point in order to achieve the above, the County Government should set up a County Energy Committee, with a large membership of the business community to coordinate with energy agencies in Kenya for improved power supply.

Agricultural Sector

• The county should capitalize on the agricultural sector as a key source of revenue, and encourage farmers to engage in value addition ventures to diversify their products so as to reap the full benefits of agriculture. Value addition ought to be done within the county instead of selling the raw materials to other counties.

• The stalled institutions including farmers’ cooperative societies, Agricultural Finance Corporation, and National Cereals & Produce Board storage facilities need to be revitalized to support the agri-business agenda in the county. Further, the county should encourage farmers to utilize the services of the agricultural bodies including Kenya Agricultural Research Institute.

• Put in place subsidy schemes to facilitate farmers to afford necessary farm inputs e.g. seeds, fertilizers and other necessary farm equipment.

• In line with the Economic Pillar of Vision 2030, institute incentives to encourage investors to set up fertilizer manufacturing industries in line with the Fertilizer Cost Reduction Initiative flagship projects.

• Work with existing bodies 12 to provide direct market linkages between farmers and manufacturers e.g. for tomatoes and pyrethrum, so as to eliminate the often exploitative middle men, thus ensuring that farmers get more value for their produce.

11. Kenya Investment Authority and Kenya Export Promotion Council.

Page 28: Nakuru County Business Agenda

Nakuru County Business Agenda 201422

• Facilitate the formation of marketing bodies to educate and advise farmers on available markets, consumer needs, required standards and quality, negotiate favorable prices for farm produce, and create awareness to the youth.

• Create necessary agricultural infrastructure, including storage facilities, with warehouse receipt systems to maintain high scale farming which in turn creates employment for the youth in the county.

• Improve the dilapidated roads network in the county to facilitate the transport of agricultural products, which are perishable in nature, from the farms to the cities/towns.

• The County government should allocate land for agricultural activities, while reviewing the land rates and rents in the county which are prohibitive to potential investors.

Water Sector

• The county needs to explore all the available technologies for water harvesting to make Nakuru self-sufficient with affordable water supply for all its residents. This will be beneficial to all the sectors that are key in supporting the county’s economic development. Further, affordable and reliable water supply will attract investors to the County, thus making it competitive.

• The county administration should explore other policy strategies to facilitate the harvesting of rain water and dams e.g. borrow a leaf from Spain’s policy where every building must have gutters.

• The county should conserve the existing water catchment areas.

• The county government should also create a proper treatment system of any water being supplied and used in the county. Public awareness will also be an important component of all these efforts as well as legislations regulating water use and maintenance in the County.

Tourism

• County government in collaboration with the business community should work towards improving transport infrastructure to ease access to the county tourist attraction points.

The Kenya Vision 2030 identifies ‘Consolidated Agricultural Reform’ as one of key flagship projects for the period 2008–2012. This initiative seeks to review and harmonize the legal framework to rationalize contradictory development, regulatory, licensing, processing, and roles of agricultural parastatals.

Page 29: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 23

• Promotion of tourism and natural scenes through beautification of existing parks and protection of such parks from encroachment in line with the Under-utilized Park Initiative of Vision 2030 Economic Pillar. In line with this, the County government needs to carry an audit of all existing tourism resources and how they are being utilized.

• County government should establish a County Coordination Board for Trade, Tourism and Industrialization activities, with wide representation from the business community.

• The county should facilitate the establishment of County College of Tourism to leverage the tourism industry.

• There is need for deliberate actions by the County government to encourage local tourism and the establishment of local restaurants so as to promote local cuisine.

• Nakuru County government should lobby the national government to fast track the classification of all physical tourist facilities in Kenya in line with EAC regional integration vision. 13

• There is need to develop a scheme to allow the local community to partake of the benefits of the various tourism sites as a way to motivate them to participate in the county initiative of promoting tourism.

• There is need for concerted effort at the county level to lobby the national government to operationalize the Wildlife Policy and promote conservation of wildlife and other natural resources such as Lake Elementaita, Lake Nakuru and lake Naivasha and also, protect of riparian land.. In line with this, the county should ensure that its annual budget includes a line item for conservation to ensure protection and preservation of natural tourist attractions for the benefit of future generations.

• The County Government should create incentives such as zero land rates to attract investors and promote business in hostels, conference facilities, lodges and other world class tourism and sports resorts.

Economic Pillar of Vision 2030 identifies investment in hotels and conference facilities as one of the ways in achieving the Meetings, Incentives, Conferences and Exhibitions (MICE) flagship project.

13. See the EAC Tourism Forum. Uganda, Burundi, Rwanda and Tanzania have completed the classification of their facilities.

Page 30: Nakuru County Business Agenda

Nakuru County Business Agenda 201424

Land Sector

• The County should demarcate land and invest in the development of industrial parks and industrial research centers and the requisite physical infrastructure for such zones. This can be done by allocating sufficient funds in the budget to ensure establishment of the zones under PPPs.

• In light of the fact that land in Nakuru county is very expensive due to speculation, the County needs to put in place laws that will encourage locals to lease it to foreign investors who want to build factories in the county.

• It is important to zone the county and define residential areas, commercial/retail areas, industrial areas, agricultural areas, open-spaces and public parks. Further, the county should review the physical planning system currently in place and engage qualified physical planners so as to curb the unnecessary land subdivision and change of land use.

• There county needs to develop necessary infrastructure including roads and information communication technology facilities.

• Prevailing land rates and charges should be revised to make them affordable to the business community.

• The corruption menace which has been eating away at the county land offices should be eradicated, preferably through computerization of records and operation systems.

• At the national level, there is need to expunge ambiguities in the Land Act to ensure transparency, consistency, predictability and enforceability.

Infrastructure Sector

In collaboration with relevant stakeholders and the national government, the county government should implement the following solutions:

a. Roads

• Rehabilitate key roads in the county including those in the industrial area, rural access roads,specifically the Njoro-Mau Narok road, Sungura road in Naivasha, Kikopey-Miti Mingi to Mau Narok road and Mau-Kiptumba to Elburgon road.

• Develop a proper parking system for vehicles in order to decongest Nakuru town along Kenyatta Avenue.

• Initiate a road expansion project to relieve the few existing roads of heavy traffic and damage associated with such traffic, especially on the Nakuru/Gilgil/Naivasha Road.

• Fast track the construction of the Nakuru bypass to decongest the Central Business District.

Page 31: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 25

b. Airport

• Fast track the construction of Nakuru airport for easier and faster accessibility. This will also boost tourism and the horticulture industry.

c. Railway system

• In line with Kenya Vision 2030, the county should lobby the national government to fast track the construction of the standard gauge rail connecting Mombasa - Nairobi – Nakuru – Kisumu - Malaba to decongest the existing road network road in and aid the freight of dairy and agricultural produce and other goods from the county.

• Rail passenger transport would also ease traffic on the Nairobi - Nakuru highway, and reduce the instances of road carnage.

d. Matatus and motorcycles

• The county government should establish Bus Stop Shelters at all Bus stop stages where public service vehicle operate.

• The government can also to work with stakeholders in this sector to harmonize public transport and ensure that it is affordable and certain in and around the county.

• Regulate motorcycles (boda bodas) and tuk tuks operators. The county government should establish a specific department at the county office to serve operators in this widely used category of transport.

e. Public markets and parks

• The existing wholesale market in the Central Business District of Nakuru town should be relocated to Free Area so as to decongest Nakuru town.

• The county should also zone designated points for trading by hawkers.

• The county should prioritize the beautification of existing parks and protect them from encroachment.

f. Industrial and agricultural parks

• Using the PPP model, the county should set up an industrial park in Gilgil or Naivasha and an agricultural park in Rongai as land in these areas is available and affordable.

g. Public cemeteries

• The county government should set aside a bigger parcel of land outside Nakuru town for use as a public cemetery to meet the demand which has outgrown supply.

Page 32: Nakuru County Business Agenda

Nakuru County Business Agenda 201426

h. Building construction services

• There is urgent need to ensure that contractors and developers in the County, especially in urban areas, meet the requirements of the National Construction Authority, and that structures constructed in these areas meet the requisite legal, safety and health standards.

i. Social amenities

• Using the PPP framework, the county government to set up improved recreational centers for the county residents.

• The County should also pursue possible options including PPPs in order to put up modern stadium including water sports facilities in the county and help nurture the county’s sports talent.

• Street family shelters and rehabilitation centers should be put up in the county.

j. Information Communication Technology

• The County government should prioritize partnerships with relevant stakeholders to improve ICT connectivity, including mobile communication in all corners of this expansive county.

• They should set up a county website for information dissemination and as a link to the business community. In line with Vision 2030, the county should incorporate technology in governance to facilitate e-payment systems for license application and other payments and charges.

• Nakuru County should set up a Geographical Information System (GIS) to facilitate fast answers to location queries and other survey coordinates to interested persons in the county.

• They should also put up an ICT park as envisioned in Vision 2030 to take advantage of the Business Processes Outsourcing capabilities of the county’s educated but unemployed youth.

• Improved technology related education in the county especially in schools and colleges within the county will lead to an IT savvy workforce.

Page 33: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 27

Business Regulations and Taxes

The high cost of doing business in Nakuru County distorts the competitiveness of the county thus discouraging investment. Further, burdensome and complex regulations act as a hindrance to business growth in Nakuru County.

Proposed way forward

• In line with Vision 2030, the county should re-evaluate its taxes and in addition establish a one-stop shop for business licensing. The County will need modern, competitive business taxes which are less complex and decrease the administrative burden on businesses. New levies at the county should be guided by the Statutory Instruments Act, 2013.

• Furthermore, the county should utilize ICTs and other e-technologies to facilitate online transactions thus reducing the risks associated with cash transactions.

• There is need to review and simplify regulations and licensing to make them more effective. The Powers and practices of various regulatory bodies with overlapping mandates within the county should be streamlined in order to stop such institutions from imposing new charges leading to a multiplicity of fees for the same service.

• To ease the management of County regulations, Nakuru County should consider developing an effective mechanism to communicate new laws to all stakeholders. The private sector needs sensitization on such matters to facilitate faster compliance. The county government should aim at establishing a single licensing regime within one year of holding office.

“The regulatory environment in Kenya has been hostile to FDI and impeded it. Excessive regulations have hindered entrepreneurial activity, as firms spend more time and resources complying with rules and regulations.”

Kenya Economic Update, June 2013, The World Bank

“The long delays in resolving disputes in the judiciary and other cumbersome compliance items, have discouraged FDI. In addition, the regulations that require foreign firms to enter into mandatory joint ventures partnerships (30 percent share) with locals in order to invest in Kenya, makes it a less favorable investment destination.” Kenya Economic Update, June 2013, The World

Bank

Page 34: Nakuru County Business Agenda

Nakuru County Business Agenda 201428

Security Sector

The county government should address the insecurity through:

• Facilitating initiatives for the creation of youth employment to reduce poverty and idling in the county.

• Establish rapid response units to create a more secure environment within the county.

• Establish an effective County Police Service in coordination with the national government.

• Provide improved surveillance through the installation of CCTV cameras in all urban areas and known crime spots.

• Enhance the existing security systems in the county to ensure effectiveness and performance e.g. through performance contracting.

• Continue peace building efforts in the county and emphasize on the beauty of celebrating ethnic diversity.

• Lobby the national government to hasten the settlement of Internally Displaced Persons (IDP) in the county.

Environmental Sector

The County government, in collaboration with the Ministry of Environment, Water and Natural resources should adopt various measures to curb theses issues including:

• Encourage investors to put up waste management plants in Naivasha and Nakuru.

• Upgrade the sewerage infrastructure and disposal systems in the county.

• Improve drainage systems by maintaining and upgrading the existing ones.

• Partner with the private sector in setting up rest areas, equipped with garbage disposal bins, along the Nairobi-Nakuru highway. This will assist in managing waste generated by public transport vehicles and lorries/trucks.

• Improve garbage collection and disposal, and put in place strict penalties for defaulters.

• Partner with the private sector in developing initiatives for mitigation and adaptation of climate change to strengthen the ability of Nakuru County to integrate climate change responses into its county development processes.

Installation of surveillance cameras in Nakuru towards “a Nakuru free from danger and fear.”

Page 35: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 29

Focus should be on the reduction of greenhouse gas emissions and promoting climate resilience.

Health Sector

• Upgrade and expand the Nakuru and Naivasha district hospitals by staffing them with adequate doctors, nurses, medicine and high quality equipment. These hospitals serve a large number of the Nakuru County workforce and their families.

• Revive and establish new local health facilities and dispensaries in the county.

• Strengthen the inspectorate arm of the County so that it can focus on government hospitals as well as private clinics.

• Partner with the private sector to establish world class medical and health facilities.

• Pursue exchange programs with other countries like India to increase the competence of health professionals in the county.

• Put in place a medical workers’ volunteer program to help reduce the burden on the few existing health officers in the hospitals.

Housing and Sanitation

• To manage the problem posed by new residential estates, the county needs a proper housing policy.

The County also needs to have a dedicated budget line for the development of affordable housing in the County. This can be achieved through a PPP.

Education Sector

Under Kenya Vision 2030, Kenya aims at providing globally competitive education, while raising the quality and relevance of such education. Nakuru County government should therefore strive to:

• Strengthen vocational training to ensure that graduates are equipped with skills that are relevant to the market needs.

• Strengthen the inspections of educational facilities and curricula to ensure and uphold quality.

• Allocate a sufficient budget line to improve the existing educational facilities in the county.

“Healthy workers are productive workers.”

The quality of health and housing services will determine whether Nakuru County will distinguish itself from other counties in Kenya.

Page 36: Nakuru County Business Agenda

Nakuru County Business Agenda 201430

• Enter into PPPs with industry players towards the establishment of TVET institutions and specialization centers in the county.

• Partner with the private sector to develop practical internship programs.

• Developing sports academies to tap on the existing potential of the youth.

• Partner with foreign countries who have devolved systems of government to develop leadership training/exchange programs with for the students from the county to ensure exposure required for the development of the county

• Provide bursary and other assistances to subsidize educational expenses for the needy students.

Under Vision 2030 Kenya intends to create a globally competitive and adaptive human resource base to meet the requirements of a rapidly industrializing economy.……..

….steps include the establishing of new technical training institutions, as well as enhancement of closer collaboration between industry and training institutions.

Page 37: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 31

Low-lying Fruits from the Way Forward

1. Decentralization of services

This is to further the concept of devolution and the work of the Transition Authority. The county needs to put in place systems and capabilities to enable it take over functions, including enacting the requisite legal framework to facilitate the exercise of such functions once they are devolved.

2. Value for taxes

The county government should ensure that Nakuru County residents get value for their taxes. As such, the county government ought to put in place measures for:

• Tracking and controlling tax and levy collection, allocation and expenditure for all county government activities.

• A One-stop shop for pertinent business information.

• Embedding a preference scheme for locals in the procurement process for county projects.

• Ensuring that the County Assembly releases all county bills with adequate notice for scrutiny by stakeholders.

3. Creating a business friendly environment

A business environment is affected by multiple factors including the cost of land, high cost of farm inputs, erratic water and energy supply, an unskilled human resource base, insecurity and poor infrastructure. To address issues, the county government should:

• Adopt and localize the National Industrialization Policy

• Develop an investment incentives scheme for investors in the manufacturing sector

• Map out the available resources in Nakuru County to kick start value addition and branding of Nakuru agricultural products.

• Set up a county energy committee to coordinate with energy agencies in Kenya for improved power supply.

• The Governor to use his “Bully Pulpit” to enable and facilitate farmers and SMEs to obtain competitive lending rates from financial institutions.

• Develop a robust website to help market and publicize the county.

Page 38: Nakuru County Business Agenda

Nakuru County Business Agenda 201432

4. Showcasing Nakuru County to Potential Investors

With all these investment opportunities abounding in Nakuru, it is important to formalize channels for marketing Nakuru as the most preferred investment destination in Kenya and the EAC region. This can be done through:

a) Establishment of Nakuru County Investment Committee

This committee, with representation from the business community, will be tasked with marketing the county as the most ideal investment destination in Kenya. The committee will be mandated to:

• Make proposals to the county government on the creation of business friendly environment, including incentives to potential investors.

• Explore potential national and international markets for Nakuru products, and develop marketing strategies.

• Developing a single business agenda for the county.

• Make proposals on how security can be improved and how to create better access to energy.

• Coordinate the production of an annual “Doing Business in Nakuru report”

b) Nakuru County Investment Conference

In conjunction with the business community and other relevant stakeholders Nakuru County will organize a major investment conference targeting both local and international investors. This conference will be the starting point for promoting the county to potential investors. The conference will showcase the multiple opportunities available in Nakuru County for doing business and also act as a forum for the county leadership to demonstrate its commitment to promote business in the county. Potential investors will have an opportunity to make inquiries, seek clarifications and evaluate investment incentives available in the county.

Page 39: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 33

Conclusion The benefits of collaboration and dialogue between any government and the private sector cannot be over emphasized. As such, the formation of the Nakuru Business Coalition denotes a sound foundation to ensure that the County Government of Nakuru through the office of the Governor, works closely with the private sector, thus ensuring consultations and inclusion in decision making on matters that affect the business climate of the county, as provided by the Constitution.

In the 2013-2017 tenure of the current county leadership, public private dialogue will be achieved through quarterly round table meetings focusing on 6 broad thematic areas, that is, a) Investment opportunities & incentives for economic growth; b) Infrastructure; c) Service delivery in the county; d) Agri-business promotion; e) Land, physical planning & housing and f) Promotion of trade, tourism & industrial growth. It is therefore important that the Nakuru Business Coalition, through the BMOs who form part and are members of the six thematic groups, collates these views and channels them to the county government, through the specific county executives. This will facilitate easier follow up by the private sector and hasten input requests to the private sector. It will further enhance engagement by the county government and prompt speedy response by the private sector. Members of the business community in Nakuru who are not members of any BMO are therefore urged to seek membership in the relevant organizations to ensure inclusiveness, public participation on their part and to strengthen the voice of business advocacy in the county. Already, the progress is already evident as a testimony of the effectiveness of PPDs. The low lying fruits identified in the first Nakuru County Governor’s Round Table are to be implemented by the Nakuru County Government within 100 days of the meeting (i.e. from 25th May 2013).

Page 40: Nakuru County Business Agenda

Nakuru County Business Agenda 201434

References

Statutes

The Constitution of Kenya, 2010The Transition to Devolved Government Act 2012The County Government Act, 2012Documents/Reports

The World Bank, Kenya Economic Update, Edition No. 8, June 2013The World Bank, Doing Business 2013Kenya Vision 2030 (Popular Version)Kenya Vision 2030 Progress Report as at 1st February 2013Websites visited

http://www.investmentkenya.comhttp://www.epckenya.org/http://www.worldbank.org/en/country/kenyahttp://www.knbs.or.ke/http://www.kam.co.ke/http://www.ktb.go.ke/http://www.transauthority.go.ke/https://www.opendata.go.ke/facet/counties/Nakuruhttp://www.kws.org/parks/parks_reserves/LNNP.html

Page 41: Nakuru County Business Agenda

Nakuru County Business Agenda 2014 35

List of BMOs in Attendance

1. Kenya Association of Manufacturers (KAM)

2. Nakuru Business Association (NBA)

3. Kenya National Chamber of Commerce and Industry (KNCCI)

4. Federation of Kenya Employers (FKE)

5. Kenya National Federation of Agricultural Producers (KENFAP)

6. Agricultural Employers Association (AEA)

7. Kenya Budget Hotels Association

8. Nakuru Residents Association

9. Nakuru Street Traders and Hawkers Association (NASTHA)

10. Motorcycle & Tuk-Tuk Owners Association

11. Nakuru Residents Forum

12. Jua-Kali Association

13. Matatu Association

14. Timber Manufacturers Association

15. Professional & Business Women Club (PBWC),

16. Bar Owners Association.

Page 42: Nakuru County Business Agenda

Nakuru County Business Agenda 201436

Key Photographs

Attendants during the meeting

The governor making his address KENFAP member making a presentation

Round table

Page 43: Nakuru County Business Agenda
Page 44: Nakuru County Business Agenda

Kenya Association of Manufacturers (KAM)

P.O. Box 30225 - 00100 GPO Nairobi

86 Riverside Lane, Off Riverside Drive, Riverside (currently)

Mwanzi Road, Opposite Nakumatt Westgate, Westlands (from June 2014)

Tel:+254 020 2324817/8; 020 8155531/2; 020 2166657

Mobile:+254 722-201368, 0706-612384, 0734 646004/5

Email: [email protected]

Website: www.kam.co.ke