Tharaka Nithi County Business Strategy by Kenya Association of Manufactures

THARAKA NITHI COUNTY BUSINESS STRATEGY Constructive engagement for improved service delivery in Tharaka Nithi County

‘’The Stronghold’’

Tharaka Nithi County Business Coalition

Compiled by Phelix Rapando

Kenya National Farmers Federation P.O Box 43148-00100 Nairobi Kenya Tel +254-202180608/0202180652 Email: farmers@kenaff.org Website: www.kenaff.org All Rights Reserved A Publication of Kenya National Farmers Federation (KENAFF)

List of abbreviations AFC Agricultural finance cooperation BGAK Banana growers association of Kenya BMO Business membership organizations CDF Constituency development fund ICT Information communication technology KENAFF Kenya National Farmers Federation NGO Non-Governmental Organization PPPPrivate Public Partnership SME Small and Micro Enterprises TNC Tharaka Nithi County TVET Technical and Vocational Education Training Institutions

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Table of Contents List of abbreviations ................................................................................................................... iii Remarks by the Governor .......................................................................................................... vi Forward ......................................................................................................................................viii Acknowledgments ...................................................................................................................... ix Introduction .................................................................................................................................. 1 Background of the county Round Tables in Kenya ................................................................ 1 Main objectives of the BMOs Coalitions ................................................................................... 1 Key objectives of Tharaka Nithi county Governorâ&#x20AC;&#x2122;s Round Table ....................................... 2 Expectation of the Business Community from the Tharaka Nithi county Governorâ&#x20AC;&#x2122;s Round Table .................................................................................................................................. 3 PART I............................................................................................................................................ 4 Tharaka Nithi County Fact File.................................................................................................. 4 Demographic Features ................................................................................................................ 5 Part II.............................................................................................................................................. 6 Issues Facing Tharaka Nithi County ......................................................................................... 6 Agricultural Sector. ...................................................................................................................... 6 Investment opportunities in Agriculture ................................................................................. 7 Tourism sector .............................................................................................................................. 8 Investment opportunities in the tourism sector ...................................................................... 9 Trade, Commerce and Industry Sector ................................................................................... 10 Investment opportunities in manufacturing and trade industry ....................................... 11 Transport and infrastructure .................................................................................................... 11 Investment opportunities in infrastructure ............................................................................ 12 Education and youth employment .......................................................................................... 12 Investment opportunities in the education sector................................................................. 13 Health Sector............................................................................................................................... 13 Investment opportunities in the health sector ....................................................................... 14 Energy and Mining Sector ........................................................................................................ 14 Investment opportunities in Energy and Mining sector ...................................................... 14 PART III ....................................................................................................................................... 16 Proposals on way Forward in Each Sector ............................................................................. 16 Agriculture .................................................................................................................................. 16 Tourism Sector ............................................................................................................................ 16 Infrastructure .............................................................................................................................. 17 Manufacturing, trade and industry ......................................................................................... 17 iv

Low lying Fruits from the way forward ................................................................................. 18 1.0 Value for Taxes ..................................................................................................................... 18 2.0 Enhancing Agricultural productivity................................................................................ 18 3.0 Creating a business friendly environment ....................................................................... 19 4.0 Tourism sector ...................................................................................................................... 19 5.0 Energy Sector ........................................................................................................................ 19 Conclusion .................................................................................................................................. 20 Reference ..................................................................................................................................... 21 List of BMOs Present ................................................................................................................. 22 Key photographs ........................................................................................................................ 23

My government recognizes the critical role that Public Private Sector Engagement will play in ensuring that Tharaka Nithi County achieves sustained economic growth. As a government we are committed to providing an enabling environment for the growth of the business sector in the county with specific emphasis on agriculture and tourism sectors, which have got the greatest potential of unlocking the economic potential of the county. As a government, we are committed to working closely with the private sector, ensuring consultations and inclusion in decision making especially in matters affecting business climate. We consider the private sector as a major player in the development of the county. Remarks by the Governor

My government recognizes the key role that the agricultural sector will play in the economic growth of the county and to these end, the county in partnership with various private sector players has initiated agro-based development projects such as MultiBillion Muringa Banana Irrigation Project in Maara, Mbogoini Irrigation Projects In Chuka and the county hasalso Partnered with JICA to help in the development of Ksh 120Million irrigation scheme in Miomponi in Tharaka South sub-county. Value addition of our agricultural produce remains our main priority as well as revival of collapsed market centers. Construction of common collection center to serve our farmers is already in the pipeline of our development plans. The county has put in place plans to install street lights in all our major towns to enhance security and facilitate a 24hour economy. We are also in the process of engaging our neighboring counties to enter into agreements that will facilitate inter-county trade. The county has got the greatest potential of earning revenue from the tourism, but the main hindrance has always been inadequate accommodation and recreation facilities. As a government, it is our objective, in collaboration with the private sector to showcase Tharaka Nithi County as an investment county to both the local and foreign investors. Towards this end, my government will create policies and encourage formulation of laws that are friendly to investment. We plan to host major investment forums to showcase key investment opportunities within the County.

I urge the private sector to invest more in the hospitality industry and as a government we shall offer the necessary support to ensure the growth of this sector. There are a few recreational facilities in the county such as Kilimo Talii Resort, Baobab Resort, Transit Motel, Legacy, Godka, and Kinondoni Lodge which need a face lift to ensure that they are able to serve our visitors. As a government, it is our objective, in collaboration with the private sector to utilize the diversity in our culture and showcase Tharaka Nithi County as a preferred tourist destination. Jointly we will work together with the private sector to deliver service to our people. It is my conviction that through sustained dialogue and collaboration with the private sector, my government will transform Tharaka Nithi County (TNC) into a preferred investment destination for most investors. Hon. Samuel Mbae Ragwa Governor of Tharaka Nithi County

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Forward

It is my pleasure to present to you the first edition of Tharaka Nithi county Business strategy. This business strategy is a product of interactions between the business community operating in Tharaka Nithi County under the auspices of the Tharaka Nithi Business coalition and the Tharaka Nithi county Government. Tharaka Nithi Business strategy is the main tool for Business engagement for all Business Membership Organizations in Tharaka Nithi County.

This business agenda adopts a sectoral approach in the identification of issues of interest to the business community. Some of the recommendations proposed in the business agenda cut across different thematic areas while retaining a sectoral focus.The agenda is divided into three parts. Part 1 gives the background of the County Round Tables in Kenya and the expectations that were raised from Tharaka Nithi Governorâ&#x20AC;&#x2122;s Round Table. Part II contains facts about Tharaka Nithi County and critically looks at the issues that face various sectors in the County. Part III makes recommendations on the challenges identified that the county government and the private sector can jointly address to ensure that Tharaka Nithi County becomes a preferred destination for investors and delivers on its promise of Poverty alleviation.As the Chairperson of Green Gold, an organization that strongly believes in agriculture as an avenue that will deliver Tharaka Nithi county to the promised land of abundance, I share the County government dream of making Tharaka Nithi county the model destination for any investor and urge our people in the county to take the lead in participating in the development initiatives. We have a chance as residents of the county to fully take charge of our destiny. Mrs. Catherine Karaikwa Chairperson Tharaka Green Gold

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Acknowledgments

Tharaka Nithi County Business strategy was prepared from the views and presentations of the business community from Tharaka Nithi County. Valuable input and reviews were provided by the Office of the Governor of Tharaka Nithi County. The Business strategy was compiled through the concerted efforts of a dedicated team of my colleagues at the Kenya National Farmers Federation (KENAFF) including: Phelix Rapando, Doris Ngure,

Mercy Mburu, George Wakesho, Reginah Mwihia, and Stellah Nyaga. As the Kenya National Farmers Federation, we shall continue lobbying and advocating for the provision of anenabling environment for the business sector to thrive especially the agricultural sector that has got the greatest potential of unlocking the economic performance of most counties.My interaction with various Governors has showed me that most of them have a clear vision on how to make Agriculture an engine for development in their respective counties. That makes me very hopeful. To take that forward, we need to create a platform that brings together various BMOs to engage with county governments on provision of enabling business environment that cuts across all the sectors. The agenda benefitted immensely from the review by members of the business community in Tharaka Nithi County including, The County Ministry of trade, Minister of Agriculture and the County economic advisor, Tharaka Green Gold, African Harvest, Banana Growers Association of Kenya (BGAK), professionals of tharaka nithi county and Tharaka Nithi county Chamber of Commerce among others. The preparation and publication of this Business strategy would not have been possible without the financial support of the Business Advocacy Fund (BAF). I especially thank Mr Clive Davis the BAF fund Manager and Kariuki Waweru for their dedication towards the project Dr John K. Mutunga Chief Executive Officer Kenya National Farmers Federation

Introduction Background of the 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 interrupting them or taking away the gains already from previous business advocacy. Armed with this realization, and appreciating the importance of the solidarity in advocacy, Business Membership Organizations (BMOs) jointly organized a national consultative forum dubbed ‘Ensuring Devolution delivers for the Business: Building Coalitions in the pursuit of Business Interests’ in 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 to businesses, the national consultative meeting for Business Membership Organizations further resolved to adopt a new advocacy strategy for lobbying county governments. This, the BMOs agreed to formulate clear, structured and workable ways and channels of engaging county governments to ensure coherence and consistency in their advocacy. In line with this, BMOs in each county would create coalitions through which to pursue advocacy in the county governments through wellorganized forums preferably, county Governor’s 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 county leadership. This would in turn ensure coherent and consistent statement on business issues with a strong united voice.With a united voice, BMOs are able to influence the kind of regulations that counties develop hence ensuring that devolution does not interfere with the business environment but instead enhances the growth of the sector. The BMOs need to identify key issues that affect their specific sector and approach the authorities with a united voice. For a long time, governments have used divide and rule method in tackling issues affecting various sector especially in situations where BMOs are not united. Main objectives of the BMOs Coalitions  To create a platform for advocacy to deal with business 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 1

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To establish a platform for expanding trade and investment framework in each county. 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 Tharaka Nithi county Governor’s Round Table  To lay a foundation for the formation of Tharaka Nithi county Business Coalition to advance county Business Agenda;  To create a platform for advocacy of business related issues in Tharaka Nithi County through frequent dialogue and engagement mechanisms with Tharaka Nithi County Government;  To ensure Business Community in Tharaka Nithi County will be better placed to influence the county leadership towards the creation of business friendly environment;  To establish a platform for expanding agribusiness, trade and investment framework in Tharaka Nithi County;  To provide the stakeholders in Tharaka Nithi County with an opportunity to critically participate in the governance and growth of their county;  To identify key flagship projects to grow the local economy and align it to Kenya vision 2030  To discuss incentives that can be extended to local and foreign investors in the county by the county government. Tharaka Nithi county Governor’s Round table was attended by among others the county Governor Samuel Mbae Ragwa, county Minister of trade, county Minister of Agriculture, , Chief officer: agriculture, County Economic Advisor, Tharaka Nithi chamber of commerce and industry, BMOs in the county and many non -affiliated business people. The business people from the county were urged by the Governor to invest more in the hospitality industry as the county was short of hotels that could accommodate visitors. Farmers were also urged to form farmer groups to strengthen their bargaining power in the liberalized market. Issues affecting the Business community in the county, opportunities for investment in the county and governance issues were explored through presentations by both the business community and the county leadership.

The issues focused on the following areas: 1. Agri-business 2. Infrastructure 3. Tourism 4. Education and youth employment-empowerment programs 5. Trade, commerce & industry 6. Energy and mining. 7. ICT Expectation of the Business Community from the Tharaka Nithi county Governor’s Round Table  That following the first round table in Tharaka Nithi county, a foundation for a lasting relationship between the business community and the county government will have been established, and that going forward, the Tharaka Nithi county business community would form a county coalition as a forum for active engagement with the county government during the 2013-2017 tenure.  That the Tharaka Nithi County Business Coalition will co-ordinate and support efforts by the entire business community in Tharaka Nithi county to influence the county government to implement business-friendly regulations that encourage investment, thus making Tharaka Nithi county the most competitive county in Kenya.  That the issues identified in this Business Agenda will inform the development of the county integrated plan and a checklist of actionable issues by the Tharaka Nithi county Government for the next five years.  Despite the fact that some of the issues identified in this Business Agenda will evolve, with some being addressed within one year from the date of this Business Agenda or even shorter period, it is the expectation of the business community in Tharaka Nithi county that the county government will use this Business Agenda as reference document in developing Tharaka Nithi county integrated plan as contemplated by the county government Act.

PART I Tharaka Nithi County Fact File  Tharaka Nithi County is located in the former Eastern Province of Kenya; it borders Meru County to the North and North East, Kitui County to the East and South East, Embu County to the South and South West. It covers an area of approximately 2638.8 Km 2.  The county has three constituencies namely, Maara, Tharaka and Chuka/igambang’ombe. The sub-counties are further divided into 15 wards  The county is the home of the tallest tree in Africa approximately 84m and have rich cultural heritage which among others is friendly, easy to adapt to and hospitable, it’s also in this county that access to the mount Kenya( second gate) is located, 23km from Chogoria town  High unemployment rate among the youth in the county has been blamed on apathy. The youth canprovide investors with apool of well-educated cheap labour. The county government and the private sector intend to empower youth through introduction of tertiary institutions fees subsidy and skills transfer based value addition agro-industries.  The county is well known for its ability to produce good quality sorghum which earns the county residents sustained income. EABL is one of the major markets for sorghum from the county.  The lower Tharaka area also borders the Meru National park and has high potential for eco/cultural tourism. Kijege and Ntugi Hills, have a well-known history as a stopover points for migration of highland Bantus (Meru, Kikuyu, Embu). Hence it is a reference point for historians  The existence viable cooperatives, societies, and self-help groups involved in various economic activities of dairy, coffee, tea, grains, fish farming, beef, horticultural farming, craft and trading brought together will form one of the biggest economic jump starts for the county.  Tharaka-Nithi County is strategically located making it suitable for investment and distribution of goods and services within Kenya.  85% of the county population is involved in agricultural production, though most of the farmers do not specialize in production making access to lucrative markets impossible.  The county has got the potential of attracting large number of tourists’ dues to its hospitable people and various tourist attraction sites such as the presence of 4

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elephant maternity sites at Gituri Kia Njimi in Gitombani and Gaketha catchment area in Mitheru. The productivity level of Tea, coffee, bananas, beans and maize is high in the upper zone of the county while the productivity of green grams, millet, sorghum and black beans is high in the lower zone of the county.

Demographic Features  The county has an estimated population of 365,330 with 48% of the population being male and 52% being female.  The county’s climatic temperature ranges from a minimum of 11 to a maximum of 25.9.The rainfall ranges from 200mm to 800mm per annum  The county has 451 EDCE centres, 471 primary schools and 111 secondary schools. There are five youth polytechnics and five training institutions spread across the county. The county has one full-fledged university namely Chuka University while Kenya Methodist University has established a satellite campus at Marimanti.  Majority of the county population is literate with only 16.9% of the population completely illiterate.

PART II Issues Facing Tharaka Nithi County Agricultural Sector. Agriculture is one of the major economic activities in Tharaka Nithi County. The sector comprises of tea, green grams, sorghum, coffee, Bananas, Mangoes, millet,macadamia and livestock production that include, dairy, beef, sheep, goats and fish. At the moment, 80% of the county land mass can be said to arable. The rest of the land mass is composed of dry semi-arid flat land with scattered hills and dry valleys. The county has more agricultural land but most of it remains underutilized due to low adoption of modern agricultural practices. The agricultural sector in Tharaka Nithi County is however faced with numerous challenges. The most notable is high cost of farm inputs, low agricultural mechanization, inadequate market information and marketing skills among farmers and these has hampered the expansion of the produce markets, lack of specialization among farmers that has made bulking of produce from the county difficult. It has also exposed farmers to exploitation by middlemen and brokers; rampant tree felling that has an effect on climate change, lack of education among farmers on the best agricultural practices to be applied to ensure maximum productivity and low adoption of improved agricultural technology among the farmers. The low involvement of youth in agriculture has also had an effect on agricultural productivity.Most of the market centers such as Mitheru, Karaa, Kabeche,Ciakanyinga,Nguruki,Mwiria, ( include markets katunga, mkothima among others that used to serve as market outlets for farmers have since collapsed due to poor infrastructure. Chogoria,marimanti and Chuka remain as the only main market centers that serve the entire county. Tea and coffee sector have greatly been affected due to delayed payments to farmers and most farmers have switched to banana, sorghum, green gram and dairy farming. The county government plans to promote fish farming by setting up a fish factory at Tunyai, agrobased development projects like National Irrigation Board Multi-Billions Muringa Banana Irrigation Project in Maara, Mbogoini Irrigation Projects In Chuka and the county has Partnered with JICA to help in the development of Ksh 120Million irrigation scheme in Miomponi in Tharaka South sub-county.The areas are some of the driest parts in the county and the irrigation scheme would go a long way in helping farmers boost food production. To ensure that more youth are involvement is more gainful economic activities, there is need for the private sector and the county government to initiate the process of organizing them into groups and provide them with incentives which can enable them start dairy, poultry, fish farming or horticulture production. 6

Investment opportunities in Agriculture  Investment in cheap simple farm machineries such as tractors, milking machines, zero tillage machines and chauffeurs cutters, and green house farming.  Private consultancies service to educate farmers on modern farming technologies.  Processing of animal feeds within the county as the county is endowed with much food stalk residues.  Investment in the construction of bio-gas plants  Establishment in business advisory services in each sub-county to equip farmers with agri-business skills.  Investment into organic coffee farming, processing and marketing.  With more farmers venturing into banana production, Tissue Culture Banana (TCB) production is a viable lucrative business in the county.  The youth have an opportunity to engage in fish farming since there will be ready market once the construction of a fish factory at Tunyai is completed.  Investment in the provision of farm inputs  Investment in the development of common collection center which can provide ware house receipt system at a fee to farmers  Invest in tissue culture banana nurseries to promote banana production  Promotion of one village one product concept to increase productivity hence easy marketing.  Setting up of a commodity exchange center where farmers can get information on marketing.  With so many lenders putting so many checks and conditional ties to the farmers due to high risk nature of agricultural activities micro lending remains a good business  Devolving the supply of government subsidy fertilizer to sub-county and ward level for easy access by smallholder farmers.  Setting up a farmers training center where farmers can be trained on modern methods of agricultural production to improve productivity  Successful farmers can set up model farms to act as learning centers for other farmers at a fee.  Green house farming, drip irrigation, preparation of organic fertilizer and small scale food processing are good investments opportunity  Value addition of agricultural produce from the county especially Bananas, dairy products, green grams and coffee for export to neighboring counties and outside the country 7

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Investment in the setting up of early warning systems of climate change related areas Investment in the provision of Artificial Insemination services (A.I) for improved animal breeds. Animal feeds processing. Dairy farming Veterinary products and services Animal breeding Milk products value addition. Goat raring and milk processing. Hide and skins tannery Ranching Meat processing Bones and horns products Tea growing and processing Fortified flours milling Fruits juices and fruits drying. Peas processing/ Ndegu processing. Roots crops processing. Horticultural exports. Large scale irrigation schemes. Fish and fish products Fish ponds and related structures Beekeeping

Tourism sector Tourism forms one of the key sectors of development for Tharaka Nithi county and Kenya as a whole. It is worth noting that vision 2030 identifies tourism as being one of the six sectors that will drive Kenya towards achieving its economic pillar. The historical sites, rivers and forests are potential sites for tourism. Sites along the river Tana are particularly suited for tourism such as the proposed hydroelectric dam at the confluence of Mutonga and Tana rivers. Another potential site is the Ura falls and wetland at the confluence of the Ura River and Tana River. The lower Tharaka area also borders the Meru National park and has high potential for eco/cultural tourism. The main tourist attractions in Tharaka Nithi County include:  Kibuuka, iruruni and Ikwa waterfalls in Tharaka,  Machui, Ngoko and Mwanyange waterfalls in Chuka Igambang'ombe, 8

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Kandakame, Munyiithi Katheruka and Mwita waterfalls in Maara, Mururi Swamp (Devils home), Caves like Inanduru, Kiangati, ithembe and Muka wa Nkaria at Mutunguruni. At Ndagani Chuka, there is the tallest tree in Africa called Mutunguru. It is 84 meters tall. Meru and Mt Kenya National Parks.

The main concerns in the tourism sector are the low numbers of recreational facilities; low investment in hotels and other accommodation facilities leading to limited bed capacity, poor state of roads that connect to the main tourism attraction sites and inadequate trained professionals in the industry. Efforts are being made by the county government to address the concerns. Tharaka Nithi can attract many tourists if its leaders can exploit its untapped potential. The region has many natural attractions and a rich culture. There are great opportunities in the tourism industry with the county government getting into partnership with a Chinese investor to construct lodges and hotels on Chogoria-Mt Kenya route. In conjunction with the local forest association and a Germany investor, the county is constructing a five star Chuka eco-lodge at the former nithi timber. Local investor have not been left out, as one of the local business man is to construct a 5 star camp at Ikwa water falls. The county government also plans to establish the Tharaka Nithi College of hospitality management at Kathwana. Investment opportunities in the tourism sector  Taking advantage of the hospitable residents of the county and invest in the golf courses.  Investment in the hotel industry as there are very few hotels in the county  Investment in tour guide industry to take advantage of the many tourist attraction areas in the county.  Training institutions to offer tourism courses  Development of Eco-lodges and water sports around dams  Cottage industry and art-facts  Mountain climbing and tours.  Camping and events.  Scuba diving.  High altitude training camps  Film making  Modern Theatre  Invest in the improvement of roads that lead to the main tourist attraction areas 9

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Market the county as a preferred tourist attraction both locally, regionally and globally Establish a tourist information center at the county with accurate and up to date information Development of Kibuuka falls as a tourism attraction center Improve under-utilized parks through maintenance of the often unknown tourist attractions within the county The lower Tharaka area that borders the Meru conservation area has high potential for eco/cultural tourism that the county government can develop

Trade, Commerce and Industry Sector In Tharaka Nithi County, manufacturing sector consist of Agri-processing industries such as Weru Tea Factory that serve tea farmers in the county, Elins water packaging factory, Tharaka Nithi coffee millers, Bairunyi honey processors, Muthiru dairy cooperative, Kaka Maize millers, Mwaka honey processors. The upcoming fish industry in Tunyai will offer the residents with a great opportunity to engage in fish farming. There are 6 major banks that have wide branch network in the country which include Co-operative Bank, Post Bank, Equity Bank, Kenya Commercial Bank, K-Rep bank and Barclays bank. However there are no established banks in Tharaka with the Cooperative Bank which provides mobile banking services at Marimanti once in a week. In addition several established SACCOs, micro finance institutions and mobile money transfer services especially Mpesa are accessible to many people who have no access to banking services. Tharaka sub-county also have equity agent, Mkodima Sacco and Tharaka Nithi Teachers Sacco and Chogoria has Dhamana Sacco, cooperative bank agent, KCB which is a fully operational branch, equity agent, southern star Sacco and Agricultural Finance Cooperation (AFC). The commerce, trade and industry sector in Tharaka Nithi County face concerns including low farm productivity that cannot sustain the operation of the agroindustries, poor infrastructure, unreliable and expensive energy, limited access to capital for SMEs and Lean extension services. The county government plans to address the above concerns through mapping of the county on crop production to ensure that farmers grow crops that are adopted to perform well in specific regions and these will boost crop productivity hence the growth of the agro-industry, development of incubation centers in each sub-county, link the business community to both local and international market and capacity building of business people to empower them with entrepreneurship skills. 10

Investment opportunities in manufacturing and trade industry  Value addition to agricultural products through processing, packaging and branding of bulk agricultural produce including milk, green grams, millet, bananas, fruits and local vegetables for local, regional and global markets  Investment in consultancy services in Business Development.  Trade in livestock is yet to be exploited beyond the boundaries yet it is backbone of dry zone of the region. In achieving Vision 2030, Kenya plans to create at least 10 wholesale hubs, 1,000 – 1,500 Producer Business Groups and build at least 10 ‘tier 1’ retail markets. Tharaka Nithi County, with its agricultural potential, can benefit from these flagship projects  Investment of fully operational bank branches in Tharaka and Chogoria for the main banks is an investment opportunity that can be pursued.  Fertilizer manufacture.  Plastic manufacture.  Large agro-chem stores.  Ranching  Honey export.  Herbs & medicines.  Basketry  Pottery  Coffee export & value addition  Tea Export & Packaging Transport and infrastructure Infrastructure remains as a key priority area to the county government as the county had been sidelined for long period of time by successive regimes. The county has only 48 kilometers of tarmac road of which 30KM is road along Nairobi-Meru highway and 18km along Ishiara-Kathwana-Marimanti or the Mate road. The other roads are mainly earth surfaces and impassable especially during the rainy season.. The county’s maintainable road network covers 29,150 kilometer in Tharaka and 42,940 kilometers in Maara and Meru South Sub Counties. The county has 152.5 kilometers of bitumen standard, 36.4 km of gravel surface and 444.3 kilometers of earth surface. The county government of Tharaka Nithi County in an effort to promote access to markets by farmers has invested in the rehabilitation of katharaka-ciakanyinga, marima mumbuni kathwana/ kibugua/kamwimbi, giampampo-mwithenge roads.The ongoing construction of the Great Falls Dam in Kamanyaki will boost irrigation and tourism sector in Tharaka Nithi County. The county government allocated a large chunk of its budget to infrastructure to facilitate the construction of key roads in the county. 11

Investment opportunities in infrastructure Opportunities exist for the county to partner with the private sector in the development and maintenance of key infrastructure that include:  Development of ICT networks  Roads construction.  Buildings and housing.  Bridges construction  Water schemes  Dams and waterways  Events & amusement parks.  Sanitation infrastructures.  Town planning and allied services.  Revenue collection services.  Bio-waste re-cycling.  Shopping malls.  Management services.  Outdoor advertisements  Street lighting. Education and youth employment Education and youth employment remain as critical pillars in the development of the county.Pre-school enrolment level in the county are higher standing at 63.1% according to a research by Uwezo Kenya as compared to the national average of 59.5% in the same year. It is also important to note that school dropout rate has greatly reduced in the county at 6.0% in 2012 compared to a national average dropout rate of 9.3% in the same year. Access to information technology in primary schools remains a concern with only 6 out of 100 primary schools having access to computers, with Meru South sub-county being the most affected region. It is also important to note that the teacher attendance in the county is high at 89.2% in 2012 compared to the national average of 89.8% in the same year, reflecting the importance the county has placed on the education sector. The county has seen a remarkable increase in the number of primary students joining national schools and universities. Setting up of a bursary fund by the county to help the needy students will go a long way in promoting access to education. The county has inadequate 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 agribusiness, tourism and other technical skills. The county

government plans to introduce tertiary institutions in all the sub-counties to cater for students who are unable to secure places in universities and other colleges. Youth employment remains as a great concern in the county. To ensure that the youth who make up a large majority of the unemployed people in the county are gainfully involved in the productive economic activities, the county is set to develop a youth talent center where entrepreneurial skills will be nurtured. Horticulture is also another area where the county government is targeting to have the youth involved by training the youth on modern agricultural technologies and supporting access to both local and outside markets. Investment opportunities in the education sector  Investment in the development of a farmer training center that will be used by local farmers to equip them with modern farming technologies  Development of TVETs technical and vocation training institution through PPPs  Investment in tertiary institutions such as polytechnics to cater for the higher number of students who choose not to pursue higher education.  Investment in the development of ICT infrastructure in both primary and secondary schools  Opening up of more constituent colleges for universities Chuka University remains as the only higher institution of learning in the county. Health Sector Tharaka Nithi County has a significant health facilities network. Notable among them are the over 88 government run health facilities: Sub-District Hospitals, Dispensaries, Health Centers, Medical Clinics and other private facilities. Among the big hospitals is the Tharaka District Hospital, Magutuni Hospital, PCEA Chogoria hospital and Chuka District hospital. The Clive School of Nursing is also found here. The main concerns in the health sector are lack of modern equipment to address emergency cases. The county government allocated 27.5% to the health sector which surpassed the international standards of 15%, in an effort to streamline the health sector in the county. The purchase of 4 ambulance by the county has been done and these will help in the transportation of patients when need arises. The constituency development fund (CDF) saw the establishment of dispensaries across the county, making it easier for the rural population access health care. Plans are underway to establish referral hospital. The low number of medical personnel and 13

delayed payment of health staff in the county has not made the situation better but plans are underway to streamline the sector. The county is laying strategies on elimination of communicable diseases and efforts to equitable distribution of health services. The county health management team has managed to mark the national days like world feeding day,breast feeding day, contraceptive day, malezi bora and global handwashing day. Investment opportunities in the health sector  County government to partner with the private sector to develop a dialysis unit in the county.  Modernize the existing health facilities through PPPs to be able to handle complex cases.  Investment in the provision of medical consultancy services.  Ultramodern medical care Centre.  Diseases diagnostic centers  Ultrasounds and scans centers  Emergency Services  Funeral homes/Morgue services  Private clinics and care centers  Wellness centers and advisory.  Physiotherapy and health living services. Energy and Mining Sector Energy is very important when it comes to growth and development of any county.Rural electrification program has benefited the residents, this is in full support of the KPLC and REA and the programme to ensure installation is ongoing. There is need for the county government to negotiate with the national government to ensure that energy generated from the county also benefits the local residents. The county has discovered iron ore deposits and these will provide investment opportunities. Investment opportunities in Energy and Mining sector  There is high potential for hydro-electric power which if well harnessed, could help light up households, power local agro-industries and sell to the national grid. Kabiri Micro hydro power project on Tungu River proves this underlying potential. More potential for the development of micro-hydro -electric power stations exist in Gikwa; Naka River at Machui falls; Ururuni; Areni; Manyirani; Ruguti River; Nithi, South Mara and lower Mutonga rivers. 14

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Investment in bio-gas plants is a viable investment opportunity as most residents have livestock that can provide raw materials Investment in assembling of energy efficient jikos Investment in the use of municipal waste to generate energy Investment in carbon credit through planting of trees Investment in solar power especially in the dry parts of the county. Networks and services Cables and connectivity. Computer assembly. Computer trades and accessories ICT parks GPRS & general mapping Solar farms, Solar panel manufacture and allied products Wind energy ventures Micro hydro-power stations. Bio-gas equipment and support services.. Woodlots/Wood products and bamboo exploit. Iron ore mining and processing. Rare earth mining and processing. Sand harvesting/ tiles and blocks making. Mica and glass mining and processing. Quarrying

PART III Proposals on way Forward in Each Sector Agriculture  County government to put in place subsidy schemes to facilitate farmers to afford necessary farm inputs such as seeds and fertilizer  Farmers need to specialize in crop production and focus on crops that can perform well in their regions. There is need for the private sector and the county government to collaborate and ensure that the county is well mapped in-terms of crop production.  There is need for all NGOs working with farmers to collaborate to avoid duplication of roles and wastage of resources  The county government in partnership with the private sector to create necessary agricultural infrastructure such as storage facilities  Improve the dilapidated road network especially feeder roads to facilitate transport of agricultural produce from the farms to markets  County government facilitate direct market linkages between farmers and processors e.g. green grams, bananas, mangoes, sorghum and millet  Investment in agro-industries and energy to add value to agricultural produce produced in the county  Facilitate easy access to government subsidized fertilizer by opening up subcounty and ward fertilizer collection centers  Mainstream climate change adaptation strategies in the county government agricultural policies  Partner with neighboring counties and enter into agreements to facilitate intercounty trade  Market most of the produce produced in the county regionally and globally Tourism Sector  Provide incentive to local business people to invest in the hotel industry  Develop a robust website to help market the county as a preferred tourist destination.  County government in collaboration with the business community should work towards improving transport infrastructure to ease access to the county tourist attraction points.

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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. Infrastructure  Rehabilitate the collapsed market centers such as mitheru, karaa, Marima, Ciakanyinga, kirumi, Ikumbo, nguruki, kabeche, Mutindwa, Mwiria markets among others. to provide market for agricultural produce from the county.  Develop a one stop shop in the county where every agricultural produce in the county can be found.  Using the PPP model, the county should develop an industrial and agricultural park in chukka and Tharaka towns.  Rehabilitate key feeder roads such as:  Katharaka –kathwana road)  Katharaka /kirumi/ikumbo/kathwana road  Marima /muthambi/kathwana road  keria/magutuni/kaare/kathwana road  Chuka/kanwa/Kathwana road  Ciakariga Marimanti Gatunga/ura gate(to the national park) That link farmers to markets.  Improving efficiency and effectiveness of the infrastructure development process at all levels including planning, contracting and construction. Manufacturing, trade and industry  Sensitize farmers to increase productivity so that the agro-based industries can be sustained.  There is need for the BMOs in the county to come together and form a strong association whose mandate would include facilitating awareness among members on developing business trends.  Improve the critical infrastructure including main roads and rural access roads and rural electrification to spur small and medium industrial development  Construction of Jua kali shades in sub-counties so that the youth can benefit from such facilities  There is urgent need for the county to enter service agreement with energy provider’s in-order to ensure supply of affordable, sufficient, reliable and quality energy. Investment in alternative sources of energy such as solar power and wind power is also an option for the county.  Ensure accessible internet access to county citizens and businesses. 17

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Reduce the cost of setting up industries through ensuring that the charges and process of licensing should be less tedious and there should be guaranteed security.

Low lying Fruits from the way forward 1.0 Value for Taxes The County government of Tharaka Nithi should ensure that residents of Tharaka Nithi get value for their taxes, Measures such as:  Putting in place a tax collection system that will prevent loss of collected revenue.  One stop shop for business related information  Ensuring that the locals are given adequate time to scrutinize bills before they are passed  Devolving the process of licensing businesses to sub-counties to make the process easier  Locals to be given preference when tendering for county projects 2.0 Enhancing Agricultural productivity  Map out the county to understand the productivity level of the county  Revival of the collapsed markets  Development of cereal bank for farmers  Revival of the tea sector  Improvement of feeder roads to enhance access to market  One village one product concept to encourage agri-business  The county to enter into agreements with companies to ensure that such companies owner contracts signed with farmers,  The county to facilitate the formation of a cooperative movement that will cater for the needs of farmers.  Capacity building of farmers on conservation Agriculture  Encourage farmers to form groups for easy access to extension services and marketing.  Kick start value addition of agricultural produce from the county  County to start a tractor hire program at subsidized price  Investment in the construction of bio-gas plants to provide energy and reduce environmental degradation.

3.0 Creating a business friendly environment  Develop a robust website to help market and publicize the county as an ideal investment destination.  Construction of Jua Kali shades in each sub-county to utilize the available youth talent.  Development of industrial parks in the key major towns.  The county to set out a development fund that will be loaned to SMEs at affordable rates to encourage the growth of the sector.  Putting in place flood lights in major towns to encourage a 24hour economy and boost security. 4.0       5.0   

Tourism sector Mapping out of all key tourist attraction sites for easy marketing of the county as a key tourist attraction county. Development of a scheme that will enable communities around key tourist sites to benefit from the revenue collected from the sites. Investment in the tour guide industry Improvement of the road networks leading to the major tourist attraction sites Development of a one stop shop to showcase the rich culture of the people and other art-facts. Investment in the hotel and other recreational facilities. Energy Sector Investment in solar and wind power in the dry land parts of the county Recycling of municipal waste to generate power Subsidy program that will enable farmers construct bio-gas plants to generate energy for lighting and cooking and bio-slurry.

Conclusion Collaborations and dialogue between any government and the private sector is a critical factor in ensuring economic growth and development. As such, and recognizing the fact that there are very few business membership organizations in Tharaka Nithi county, there is urgent need for the business people in this county to join relevant business membership organizations to come together and form Tharaka Nithi Business coalition as a vehicle through which the business community will conduct its business advocacy with the county government. Such coalitions will be instrumental in ensuring that the county Government of Tharaka Nithi through the office of the Governor, works closely with the private sector, thus ensuring consultations and inclusion in decision making. In the 2013-2017 tenure of the current county leadership, public private dialogue will be achieved through quarterly round table meetings. Members of the business community in Tharaka Nithi County who are not members of any BMO are therefore urged to pursue membership to relevant Organizations to ensure their voice is heard and strengthen the voice of business advocacy in the county.

Reference The constitution of Kenya 2010. The county government act 2012. Kenya vision 2030 (Popular version). http://www.investmentkenya.com. http://www.knbs.or.ke. http://www.worldbank.org/en/country/kenya.

List of BMOs Present 1. Kenya National Farmers Federation (KENAFF). 2. Kenya National Chamber of Commerce and Industry. 3. Agricultural Dector DevelopmentSstrategy Programme (ASDSP). 4. Jua Kali association. 5. Matatu association. 6. Tharaka Green Gold. 7. Professional from Tharaka Nithi County. 8. Banana Growers Association of Kenya (BGAK). 9. African Harvest.

Key photographs

The governor making his address

Stakeholder from the Tharaka green gold BMO making her contribution