“Kenya at the 30th Olympiad�
Kenya Investment Summit
a presidential investment summit hosted by
he hon mwai kibaki c.g.h, m.p, president and Commander-In-Chief of the defence Forces of the Republic of Kenya
Tuesday 31 July 2012 Mansion House London, UK
Kenya Investment Summit 31 July Mansion House, London
Delegation •
His Excellency, the Hon. Kibaki, MP, President of the Republic of Kenya
MINISTERS • • • • • • • •
The Hon. Prof. Sam Ongeri MP Minister for Foreign Affairs The Hon. Wycliffe Oparanya MP Minister of State for Planning, National Development and Vision 2030 The Hon. Moses Wetangula MP Minister for Trade The Hon. Amos Kimunya MP Minister for Transport The Hon. Kiraitu Murungi MP Minister for Energy The Hon. Soita Shitanda MP Minister for Housing The Samuel Poghisio MP Minister for Information and Communication The Hon. Danson Mwazo MP Minister for Tourism
PERMANENT SECRETARIES • • • • • • • • •
Mr. Thuita Mwangi, Permanent Secretary, Ministry of Foreign Affairs Mr. Joseph Kinyua, Permanent Secretary, Ministry of Finance Dr. Edward Sambili, Permanent Secretary, Ministry of Planning, National Development and Vision 2030 Eng. Abdulrazaq Adan Ali, Permanent Secretary, Ministry of Trade Mr. Patrick Nyoike, Permanent Secretary, Ministry of Energy Dr. Bitange Ndemo, Permanent Secretary, Ministry of Information and Communication Eng. Michael Kamau, Permanent Secretary, Ministry of Roads Mr. Tirop Kosgey, Permanent Secretary, Ministry of Housing Ms. Leah Adda Gwiyo, Permanent Secretary, Ministry of Tourism
BUSINESS AGENCIES AND ORGANISATIONS •
Vision 2030 Delivery Secretariat
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Central Bank of Kenya
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Kenya Commercial Bank
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Kenya Railways Corporation
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Nairobi Stock Exchange
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National Housing Corporation
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Capital Markets Authority
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Tatu City
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Kenya ICT Board
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Kenya Airports Authority
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Geothermal Development Corporation (GDC)
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Brand Kenya Board
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KenGen
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Kenya Investment Authority 2
Kenya Investment Summit 31 July Mansion House, London
WELCOME STATEMENT BY HIS EXCELLENCY THE HON. MWAI KIBAKI, PRESIDENT OF THE REPUBLIC OF KENYA On my own behalf and on behalf of the Government and the people of Kenya, I convey our warm greetings to you all. I take great pride in Kenya’s participation at the summer 2012 London Olympic Games and the Paralympics Games thereafter. As a committed Member of the Olympics fraternity, Kenya is proud to be not only the cradle of great Olympic athletes but also Africa’s leading athletics nation. The country has over the years won several world records in long distance athletic events. The Government of Kenya has laid out an elaborate programme to take advantage of our presence at the summer Olympics to reach out to the global trade and investment audience. To achieve this, the Government of Kenya and its partners will be co-hosting an Investment Summit seeking to attract International Investment capital into our country. I am particularly happy that the Lord Mayor of the City of London has agreed that this Investment Summit be held at his official residence at the Mansion House. The Kenya Investment Summit will be held on July 31st 2012 and will focus on specially selected bankable projects envisioned in our development blue-print, Kenya Vision 2030. Over ten eminent speakers and panellists, and nearly 200 delegates are expected to attend. The Summit, the first of its kind in London, will provide an extraordinary opportunity for investors, businesses executives and government officials to network and take part in a comprehensive dialogue geared to understanding the business and investment climate in Kenya and to enhance Foreign Direct Investment. On behalf of the Government of Kenya I look forward to welcoming you to this Summit, and also to the Kenya House, in Stratford city, near the Olympic Park where Kenya is showcasing her unique culture, art and other endowments. I join the co-hosts of the Investment Summit, the Right Honourable Alderman David Wootton, The Lord Mayor of the City of London and Sir Alan Collins, Director General of the Commonwealth Business Council in welcoming you. KARIBUNI - “WELCOME” 3
Kenya Investment Summit 31 July Mansion House, London
MESSAGE FROM ALDERMAN DAVID WOOTTON THE RT HON THE LORD MAYOR I am delighted to welcome His Excellency the President of Kenya, The Hon Mwai Kibaki, and all our partners and visitors from Kenya to the Mansion House for this important event. This Summit represents a great opportunity for Kenya and the City of London to develop further their partnership. I look forward to welcoming the President and his Ministers and providing a forum for engagement between Kenya and the City of London. We are glad to be working with the Commonwealth Business Council to facilitate this dialogue. The City of London remains the world’s pre-eminent financial centre and provides the whole cluster of people and services that can help make Kenya’s ambitious Vision 2030 Development Plan into reality. The City is no stranger to Kenya: last year my predecessor as Lord Mayor, Alderman Sir Michael Bear, led a high profile business delegation to Nairobi and other centres, establishing solid relationships with Government, business and trade bodies alike. The City has been impressed with the progress made by Kenya since then, in its economic growth and the development of the business and services sectors, but also in laying firm foundations for the transformation of its infrastructure, its energy sector and in urban development projects. We all look forward to hearing more about these developments at the Summit. I am confident that this investment summit will take that work further and lead to further fruitful co-operation between the Government of Kenya and the City of London.
MESSAGE FROM SIR ALAN COLLINS, DIRECTORGENERAL, COMMONWEALTH BUSINESS COUNCIL The world is gathering in London for the Olympic Games with African nations in buoyant form, reflecting remarkable rates of economic growth and rising living standards. The Games provide a fitting backdrop for Kenya, triumphant in sport, and the message from His Excellency President Mwai Kibaki to the international business community on his nation’s own impressive performance, its economic and investment priorities and the specific project opportunities which they offer. The Commonwealth Business Council is proud to be associated with His Excellency’s visit to London and to be working with the Lord Mayor of London in the world’s finance and business hub to support a major player in the African renaissance. Central to the work of this Summit is the Kenya Government’s Vision 2030 programme for economic development which draws together the social and economic policies essential for eliminating poverty through investment-driven job-creation. The CBC is confident that, given an ongoing commitment to reform and innovation, Kenya is ready to make the next major step forward in expanding and diversifying its economy. The themes for discussion at the summit reflect the key priorities and the strong participation of the President and senior Ministers confirm the Government’s commitment to delivery. The CBC looks forward to working with His Excellency and the Kenyan public and private sectors in furthering their objectives and sharing in Kenya’s success.
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Kenya Investment Summit 31 July Mansion House, London Kenya Vision 2030 Investor—Ready Projects Case Study: Kenyan Airports Modernization Kenya Airports Authority Jomo Kenyatta International Airport (Greenfield Airport Terminal) This new terminal building will have capacity for 20 million passengers per annum and will provide connectivity for transiting passengers with 50 international and 10 domestic check-in stations, 32 contact and 8 remote gates, and an associated apron with 45 stands and linking taxi ways. New airport developments investment opportunities in Isiolo and Lamu and expansions for Mombasa and Kisumu airports
Case Study: Commuter Rail and Railway City Kenya Railways Corporation This project will provide for expanded, safe, affordable, and efficient rail commuter services in Nairobi with the additional benefit of decongesting the capital city’s roads. In addition, the initiative will include the redevelopment of existing rail stations into mini cities which include business parks for light manufacturing, hotels, shopping arcades, restaurants, and parking garages.
Case Study: Konza Technology City Ministry of Information and Communication Konza Technology City, will be developed on a Greenfield site 60kms from Nairobi, easily accessible via the major Mombasa Nairobi Highway. Kenya’s vision for the project, centrally positioned within a regional population hub of 110 million, is to create 200,000 in business processing outsourcing services and related sectors over 20 years.
Case Study: Urban Toll Road Kenya National Highway Authority Multiple toll road project investment opportunities including the construction of an elevated road section through the Nairobi Central Business District. The project will also include the extension of a dual carriageway to the proposed ICT City at Konza (50km from the capital) and the construction of four interchanges as well as tolling and maintenance operations for 30 years. Others include LAPSSET & Northern Corridors/ Thika Road – (1) Construction of 1,350 kms of 2- lane highway on the Lamu Port Southern Sudan - Ethiopia corridor (2) Upgrading the Northern Corridor over 910 kms to 4 - lane dual carriageway (including Seven (7) Interchanges) (3) Tolling and maintenance of Nairobi-Thika Road.
Case Study: Lamu Port, Southern Sudan, Ethiopia Transport Corridor (LAPSSET) Ministry of Transport Diverse investment opportunities within the largest infrastructure and multi-billion dollar project in Africa- LAPSSET corridor, which consists of seven components: (1) Dual carriage highway between Lamu port to Isiolo, to Ethiopia. (2) 1500 KM 1M Standard Gauge Rail (3) Oil Refinery (4) Oil Pipeline (5) Airports in Lamu and Isiolo (6) resort Cities (7) Lamu Port.
Case Study: Mombasa Convention Centre Ministry of Tourism Entails the development of a multi–purpose Convention Centre, with a contemporary design in Kenya’s second largest and seaport city – Mombasa. Project combines several conference Centre’s under one roof to accommodate high demands from more than 54% of total number of tourists visiting Kenya; domestic and international meetings and events.
Case Study: High Grand Falls Multipurpose Dam Tana River Development Authority/Ministry of Regional Development Entails upgrading of the High Grand Falls with a catchment area extending to 100,000 SKM. Contribution of 20% to national population (agriculture), Irrigation Development-expansion of up to 150,000 hectares and Power Generation to increase from 453MW to 800MW.
Case Study: Drilling of 900 Geothermal Wells in Kenya’s Great Rift-Menengai 150 wells 600 variable quantity Kenya Electricity Generating Company ltd (KENGEN) and Geothermal Development Company Construction of 3,200MWe power plants by 2016. 1,000 MWe by 2014, 2,200MWe by 2016. Provision of reliable base-load electricity supply, reduced cost of electricity to improve economic competitiveness. Reduced Country reliance on imported fossil fuels and weather-dependent hydro. Mitigate climate change and increase electrification access and reduce poverty. Cost is $525 million Expected Rate of Return on investment is 15.6%
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Kenya Investment Summit 31 July Mansion House, London Forum Programme JAMBO! Enjoying high growth, rapid sector development, a vibrant services and financial sector underpinned by an innovative business community and workforce, Kenya offers unprecedented opportunities for international and regional investors. The Government’s Vision 2030 Development Plan, designed to promote sustained economic growth and social development, will be supported by major infrastructure, power and energy projects and a surge in urban development. While global institutional investors plan to boost their asset allocation in African markets, they are shifting from speculative to sustainable long-term strategies creating a competitive environment, which plays directly to the strengths, diversity and potential of the Kenyan economy. A delegation of Ministers, senior officials and business executives will visit London, as the global centre of investment, business and finance, to present Kenya’s investment priorities and outstanding project opportunities. The Summit will feature in-depth round table discussions on energy, infrastructure and transport corridors, housing and urban development, information & communications technology.
0830-0900 Registration 0900-1015 Welcomes & Introduction Egyptian Hall Sir Alan Collins KCVO CMG, Director-General, Commonwealth Business Council
His Excellency Mr Ephraim W. Ngare, High Commissioner of Kenya to the UK Alderman David Wootton, The Right Honourable The Lord Mayor of the City of London UK Minister on Behalf of Her Majesty’s Government* Hon. Prof. Sam Ongeri, Minister for Foreign Affairs Keynote Address by His Excellency the Hon Mwai Kibaki, MP, President of the Republic of Kenya
1015-1030 Networking Break 1030-1130 Overview: Investment Climate Egyptian Hall An overview of Vision 2030 Projects, the Business and Investment Climate: Special Economic
Zones as centre of growth and opportunities in wholesale and retail trade. “People sometimes ask me if after 35 years of working in and with Africa I sometimes become despondent. The answer is a resounding no! Here is a continent with 850 million consumers with markets growing at 5% plus per annum despite all the difficulties. Imagine what happens when barriers to doing business are removed!” - Niall FitzGerald, KBE, Co-Chair ICF Board of Trustees Chair: Speakers:
Mr. Mugo Kibati, Director General, Vision 2030 Delivery Secretariat Hon. Wycliffe Oparanya, MP, Minister of State for Planning, National Development and Vision 2030 Hon. Moses Wetangula, MP, Minister for Trade Dr Manu Chandaria , Chairman, Comcraft Group of Companies (Kenya)*
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1130-1230 Financial Services Egyptian Hall Kenya's financial system is among the largest and most developed in Sub-Saharan Africa, with a large
banking sector. Vision 2030 projects are aimed at strengthening and improving the country’s move towards a middle income nation. Nairobi is increasingly becoming the financial and business hub of the Eastern and Central African region. To augment this status, the Government has proposed to set up the Nairobi International Financial Centre. Even with this growth, a large portion of the population remains unbanked. The biggest mobile phone company, Safaricom, has introduced “M-PESA”— a service allowing customers to transfer money using a mobile phone. Kenya is the first country in the world to use this service and its runaway success has seen the system being replicated by local and international competitors. This session will seek to discuss the recent developments in the country’s financial services, and the challenges and future prospects. Chair: Speakers:
Prof. Njuguna Ndungu, Governor, Central Bank of Kenya Mr. Joseph Kinyua, Permanent Secretary, Ministry of Finance Mrs. Stella Kilinzo, Chief Executive Officer, Capital Markets Authority Project Profiles: Current and prospective opportunities in the Financial Services Sector and the Nairobi International Financial Centre
1230-1400 Networking Lunch The Salon
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Kenya Investment Summit 31 July Mansion House, London Forum Programme 1400-1530 Sector Roundtables Information & Communications Technology Ongoing liberalization and privatization offer important investment opportunities to private investors, particularly in the information technology and telecommunications sectors. Investors possessing the necessary skills in those sectors can form joint ventures, particularly for the provision of cellular phones and internet services. This session will examine the investment requirements for this sector. Fibre optics, broadband and information transfer will be major components discussed. Chair: Speakers:
Mr. Paul Kukubo, Chief Executive Officer, Kenya ICT Board Dr. Bitange Ndemo, Permanent Secretary, Ministry of Information and Communication
Project Profiles:
Current and prospective opportunities in Information and Communications Technology, and Konza ICT City
Infrastructure and Public Private Partnerships The development of transport infrastructure holds the key to effective socio-economic development of the country. In order to achieve this, it is proposed to improve the network by undertaking several projects. Potential opportunities exist in the form of developing airports, road networks, ports etc to cater for the ever-increasing passenger volumes and the growth of traffic. This session will examine the investment requirements for this sector and the current and potential growth. It will look at how the financial community can get more involved to progress the development of the sectors and analyse the current risks and challenges. Chair: Speakers:
Dr. Eng. Cyrus Njiru, Permanent Secretary, Ministry of Transport Hon. Amos Kimunya, MP, Minister for Transport
Project profiles:
Projects in Lamu Port South Sudan Ethiopia Transport and Development Corridor (LAPSSET), Kenya Railways, Jomo Kenyatta International Airport, Roads and Ports.
Chair: Speakers:
Energy and Public Private Partnerships Over the past five years Kenya‘s demand for electricity has grown by 10% annually, while supply has grown by 8%. According to the Ministry of Energy, demand is expected to grow by 7% annually over the next 10 years, reaching 3,066 MW by 2018 and 4,647 MW by 2022. The Government would like to see the private sector construct its first medium-sized nuclear plant by 2015. Investors would be offered a 30-year power purchase agreement on a Build-Own-Operate-Transfer (BOOT) arrangement Mr. Patrick Nyoike, Permanent Secretary, Ministry of Energy Hon. Kiraitu Murungi, MP, Minister for Energy
Project profiles:
Current and prospective opportunities in the Energy sector (Geo-thermal and wind energy)
Real Estate, Social Infrastructure & Tourism Social infrastructure remains a challenge in many African countries and Kenya is not unique. This session will identify development projects that will include housing, waste management, water and sewage infrastructure, medical service and education. Access to decent housing is now enshrined in the Constitution as Citizens’ Right. In the recent past, Government has been undertaking massive slum upgrading programmes, but we are still a long way off. We are therefore seeking Foreign Direct Investment in providing at least 200,000 housing units per year. Chair: Speakers:
Mr. Tirop Kosgey, Permanent Secretary, Ministry of Housing Hon. Soita Shitanda, MP, Minister for Housing Hon. Danson Mwazo MP, Minister for Tourism
Project profiles:
Overview of the housing and real estate sector: Current and prospective opportunities and challenges; investment opportunities in the tourism sector: Resort Cities, and Mombasa Convention Centre.
1530-1600 Plenary Concluding Remarks 1600-1730 One to One Meetings 1830-2130 Gala Dinner hosted by HE Hon Mwai Kibaki, President of the Republic of Kenya 7
Kenya Investment Summit 31 July Mansion House, London
HE President Mwai Kibaki, Republic of Kenya and Dr Mohan Kaul, Co-Chair, CBC
Dr Mohan Kaul, Co-Chair, CBC, Rt. Hon. Raila Odinga, Prime Minister of Kenya and Lord Malloch Brown Former Minister for Africa, UK
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