Lamu County Business Agenda by Kenya Association of Manufactures

LAMU COUNTY BUSINESS AGENDA An Advocacy Tool for the Lamu County Business Coalition

Creating Economic Prosperity for Investors in a Pleasurable Regional Destination

Lamu Business Coalition

Lamu County Business Agenda 2014

Kenya Coast Tourist Association (KCTA) Head Office KCTA Building Moi Avenue and Agakhan Road Junction P.O Box 99574 80107, Mombasa Telephone: +254 722 475796, 041 2225428 Email: kenyacoastta@gmail.com ceo@kenyacoast.net All Rights Reserved A publication of the Kenya Coast Tourist Association

Copyright The material in this work is copyrighted. Except for the quotation of short passages and sections for which due acknowledgement MUST be made, no part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying or otherwise, without prior authority of The Kenya Coast Tourist Association.

Lamu County Business Agenda 2014

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Map Showing Mombasa County

Lamu County Business Agenda 2014

Contents

Lamu County Business Agenda 2014

Foreword by Chairman

Lamu County Business Agenda 2014

Remarks by the Governor

Lamu County Business Agenda 2014

Ackowledgements

Lamu County Business Agenda 2014

From Millicent

Lamu County Business Agenda 2014

Abbreviations

Lamu County Business Agenda 2014

PART 1 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 devolution works for business, without interrupting them or taking away from gains already reaped from the previous business advocacy. Armed with this realization and appreciating the importance of solidarity in advocacy, Business Membership Organizations (BMOs) jointly organized a national consultative forum dibbed ensuring devolution delivers for business: Building Coalitions in pursuit of business interest on th the 18 April 2013. This national forum resolves that â&#x20AC;&#x153;devolution must not interrupt business: it must deliver for business and the county at largeâ&#x20AC;? To ensure that devolution delivers for business, the national consultative meetings for Business Membership Organizations further resolved to adopt a new advocacy strategy for lobbying county governments. The BMOs agreed to formulate clear, structured and workable ways and channels to engaging county government to ensure coherence and consistency in their advocacy. In this line, BMOs in each county would create coalitions to pursue advocacy in the county governments through well organized forums, 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 county leadership. Thos would in turn ensure coherent and consistent statement of business issues with a strong and united voice.

Lamu County Business Agenda 2014

Main objective of the BMOs' coalition 1. To create a platform for continuous dialogue and enhance the cooperation between the Private sector and the County Government and ensure we have an inclusive, sustainable development agenda with social cohesion and stability. 2. To develop clear, formal and well known mechanism of engagement with the county leadership, and clear channeling of pertinent issues. 3. To ensure that the representatives of the business community in a specific county are involved in a unified and coordinated manner in the identification and presentation of issues to the county governor in a collective manner as this makes the adoption of issues/ recommendations easier. 4. To develop a unified concrete recommendations on issues to facilitate the creation of a conducive business environment in the county. 5. To jointly identify common issues of interest, affecting business specific to the county. Key Objectives of Lamu County Governor's Round Table • To create a platform for continuous dialogue and enhance the cooperation between the Private sector and the County Government and ensure there is an inclusive, sustainable development agenda with social cohesion and stability. • To develop clear, formal and well-known mechanisms of engagement with the county leadership, and clear channeling of pertinent issues. • To ensure that the representatives of the business community in a specific county are involved in a unified and coordinated manner in the identification and presentation of issues to the county governor in a collective manner as this makes the adoption of issues/ recommendations easier. • To develop a unified concrete recommendations on issues to facilitate the creation of a conducive business environment in the county.

Lamu County Business Agenda 2014

LAMU COUNTY GOVERNOR'S ROUND TABLE In the light of the resolutions from the BMOs' national consultative th meeting of the 18 April 2013, Kenya Coast Tourist Association (KCTA) mobilized BMOs from Lamu County under the auspices of Lamu County th Regional Business Agenda to organize the county round table on the 19 December 2013. The Lamu a county Governor's Round table was attended among others the ---------- and the Mombasa County Business Community under the umbrella of the Lamu County Regional Agenda and other non affiliate business people. Issues affecting the business community in the county, opportunities for investment in the county and governance issues were explored through the presentations by both the business community and county leadership. The private sector grouped itself under ----- thematic areas, chaired by nominates county executive The content of this guide reflects the outcome of discussions in these thematic areas and recommendations that were arrived at by each group. The way forward in this guide reflects the consensus arrived at by the county government and private sector after follow ups made by each group. Expectations of the business community That following the first round table in Lamu County, a foundation for a lasting relationship between the business community and the county government will have been established and that the going forward , the Lamu County Business coalition will be able to actively engage the County Government during its 2013- 2017 tenure. That the Lamu County Business coalition will coordinate and support efforts by the entire business community in Lamu County to influence the county government to implement business friendly regulations and encourage investment, this making Lamu county the most competitive county

Lamu County Business Agenda 2014

That the issues identified in this guide will inform the development of a check list of actionable issues by the Lamu County Government for the next five years. Despite the fact that some of these issues identified in this guide will evolve, with some being addressed within a year of the date of this guide or even shorter or some having been addressed, it is the expectation of the business in Lamu that the county government will use this guide as a reference document in developing Lamu County Integrated development plan as contemplated by the County Government Act.

Lamu County Business Agenda 2014

PART 11 Lamu County Fact File Lamu County is a county in Kenya's former Coast Province. Its county headquarters is Lamu town. The county covers a strip of northeastern coastal mainland and the Lamu Archipelago. Lamu County has a population of 101,539 [1] (2009 census) and its land area is 6,167 km.Lamu County has only one local authority, Lamu county council. The county has two constituencies: Lamu West and Lamu East. Lamu County is located in the northern coast of Kenya. It borders the following counties; Garissa to the North, The Indian Ocean to the South and South East, and Tana River to the South West and West. The average temperature is 27.3 Â°C and rainfall averages 950mm per annum. Lamu County will soon have one of the largest port in east Africa therefore the LAPSET project puts the County in a strategic location to access inputs from other countries beyond not to mention a ready market for the County's productsâ&#x20AC;Ś The County is richly endowed with and natural resources such as wildlife and water amongst others. It also boasts a pristine coastline and beaches; rich agricultural soils; a rich history and cultural heritage and impressive flora and fauna. Lamu has plenty of tourist attraction sites like pate ruins; Manda Island mauled festival and the famous lamu cultural festival. If well harnessed, all these can contribute to wealth creation and turn around the fortunes of the County's residents and investors. The County's infrastructure consists of the ongoing construction of LAPSET, telecommunication and road networks with increased investments in the latter to improve the status of the roads. Additionally, there is airstrip Manda with proximity to the Mombasa harbor and Mombasa's Moi International Airport. Small water vessels are available to facilitate transport between islands and support fishing which is one of the main economic activities.

Lamu County Business Agenda 2014

The County has peaceful population. There is the presence of several Police stations and Administration Police posts; other special police units which include the General Service, Marine Police, Tourist Police and AntiNarcotics and further complimented by other security agents like the Kenya Army, Kenya Navy, Kenya Wildlife Service and Forest Guards. This investment profile analytically presents the business and investment opportunities available in Lamu County. The profile will play a big role alongside other County Government short â&#x20AC;&#x201C; term and long â&#x20AC;&#x201C; term development blue prints such as the County Integrated Development Plan and sector development plans in advising and guiding various investors, programmes and development partners in doing business and/or implementing various projects in the county. The county is home to Boni forest richly endowed in biodiversity. Hotels in the county offer both local and international tourists local and international culinary delights. The county has sand deposits with extraction activities already dating historical days. It also boosts of agriculture as part of its economic backbone. The main food crops grown include maize, sorghum, cow pees, green grams, d. lablab, rice and cassava. The cash crops are cotton, sim sim, coconut, cashew nuts, bixa, vegetables and mangoes. Horticulture is also a major enterprise in the County producing vegetables such as amaranth, kales, tomatoes and capsicums. Fruits crop such citrus and bananas for both local market and other markets in the coast province. The favorable weather conditions and vast tracks of land are favorable for livestock rearing which is a main activity in certain parts of the county. Being home to water aquifers and water catchment tanks the county has water resources giving the county huge agricultural potential. Fisheries also play a major role in the economic arena of the county accounting for more than half of the income of households along the coastline of the county

Lamu County Business Agenda 2014

Current Issues affecting Lamu County TOURISM The Tourism industry is by far the largest single export earner in Kenya. Tourism forms a vital foundation for the Lamu County's economy with vast untapped resources. Lamu, a UNESCO World heritage site's tourism is a combination of unexploited Wildlife, Flora and Fauna, good accommodation facilities, Tours & Safari Services, Camping facilities, Water sporting, Cultural tourism- Hand crafts, local cuisine and cultural attires, Conference Tourism. Challenges facing the Tourism Sector Expand Lamu's tourism product Promotion of Lamu as a holiday destination has been insufficient. Lamu's tourism product has traditionally been limited to culture and beach holidays. Marketing No integrated marketing plan exists for Lamu as a tourist destination. Insufficient support on National and Local Government levels for the Tourism Industry Infrastructure Infrastructure in general is poor, especially roads. Waste management Lack of waste management is a major problem and is the biggest complaint overall made by tourists - this must be a priority issue. Conservation The importance of cultural, marine, environmental and wildlife conservation is not properly recognized and protective regulations and bylaws are not enforced.

Lamu County Business Agenda 2014

Insecurity External - Al Shabaab, Somalia - beyond local control. Internal â&#x20AC;&#x201C; dealing with local crime / theft / even rape - should be within local control. Drug abuse Leads to theft / harassment which has a direct impact on tourism Tourism Guides / Dhow Captains Beach boys' demand high commissions; they give wrong information to tourists and follow tourists even when the tourists complain. On the other hand no one guides tourists arriving at Mokowe or Airport or at the pier. Emergency Number - Hotline No established form of communication with County Government / Police. Utilities and Services Water and power supplies are irregular and insufficient. IT connectivity is insufficient for requirements. Licensing / Taxes / Regulations Licensing requirements are unclear and cumbersome Noise Pollution Negative impact on the tourism experience. NEMA Role of Government environmental body in County Government is not clear. Quality control and standards and Professionalism There is need to provide quality Service to gain customer satisfaction, and not compromise on standards.

Lamu County Business Agenda 2014

Investment Opportunities is Tourism Hotel industry Tours & Safari Services Camping facilities Water sporting Cultural tourism- Hand crafts, local cuisine and cultural attires Accommodation facilities Conference Tourism Cruise ship tourism Eco-tourism investments Establishment of tertiary institution for hospitality industry in Lamu County. TRADE Several issues were discussed concerning trading in lamu including: License fees charged to businesses are not categorized with regards to size of business. County workers clean Lamu town early morning but by the end of the day the town is already dirty. Street drainage is inefficient. Donkey waste is a nightmare. Shop owners do not make good profits as they pay more revenues than street vendors. During construction of buildings, traders often have to close down their businesses, as it is not clean and safe. Sign boards - What are the charges for and on what categories ... traders think this is a way of advertising their businesses? Security In case of fire, the county has no facilities to encounter the fire. Power/electricity - there are regular black outs closure of businesses and wait for them to return. Does Kengen produce enough power for the whole of Lamu town without rationing?

Lamu County Business Agenda 2014

CONSERVATION Wildlife is not recognized as a form of land use so funding cannot be accessed. Poaching of wildlife for both subsistence and commercial purposes is on the rise.Theres lack of community structures to support forest & wildlife management. Poor infrastructure does not help the situation. Illegal logging of forest resources. Increasing pressure on forest & wildlife resource due to population increase and extra influx associated with LAPSSET development. Wild fires are very common during dry seasons. Inadequate capacity building for the community to learn more on forest and wildlife conservation. There's little funding or support to maintain the UNESCO areas and tradional Swahili architecture. Poor interconnectivity hampers business and thus insufficient for tourism. Investment Opportunity Seedling Production Mangrove conservation and sustainable harvesting PUBLIC WORKS The Road network in Lamu is in a pathetic situation creating great challenges in connectivity, which grossly affects business. The airport needs to be expanded too. EDUCATION Lamu has low standards of education at all levels. With high levels of poverty there is a corresponding high rate of dropouts reducing transition numbers from primary to further education. LAND AND HOUSING Land is a motive issue. There are too many unplanned developments There is lack of proper housing and good offices in Lamu.

Lamu County Business Agenda 2014

HEALTH ND SANITATION Towns are dirty / there is no waste management County workers clean Lamu early morning but by daylight, the town is dirty. Drainages are too small thus they block most of the times. Donkey waste is a problem. ECONOMIC FACTORS Ignorance of the community on bank products that would assist in economic growth of the county. Low income for locals leading from lack of job creation. Lack of security to acquire loans. Unwillingness or lack of motivation for the locals to access bank services or to open banks accounts.

Lamu County Business Agenda 2014

PART 111 Recommendations TOURISM SECTOR Offering Refresher Courses (e.g. First Aid for boat crew and safari guides) and Guest Relations Training to help attain higher levels of professionalism. Refresher courses to our staff, Guest Service professionalism Establishment of tertiary institution for hospitality industry in Lamu County. Capacity development within the tourism industry, training and skills development for tourism service providers Expanding Lamus product Lamu Tourism Association to act as entry portal to Lamu County tourism. Promote festivals / wellness / water sports / beach sports and other sports / community conservation and wildlife as well as culture and beach holidays. Include the whole archipelago and other areas of the county in 'Lamu' promotions. Football stadium to be repaired. Marketing Integrated marketing plan required. Links to local and international tourism businesses / operators via social media to be developed. Representation needed at National / International travel shows. Lamu County Government to work with KTB to provide support to the local tourism operators and businesses in the County.

Lamu County Business Agenda 2014

Infrastructure Roads need improving - especially Malindi - Lamu / Lamu - Kiunga / within Pate Island.Airport - complete runway important for better services / KQ.Walkway - Lamu to Shela would assist access and also help with reducing crime. Waste management · · · · · · · ·

Town dumpsites to be properly planned and managed. Recycling plant required. Incinerator - especially for hazardous waste – required. Regular beachfront clean ups to be done. Waste collection sites required in Lamu town to prevent random dumping. Regulations regarding the dumping of rubbish to be implemented and enforced. Developers to be required to clear up their building waste. NB – waste management meeting planned 14th Jan 2014 (Lamu CountyGovt).

Conservation · · · · · ·

County Government to recognize the importance of Lamu's UNESCO World Heritage status and ensure it is protected by law. Support is required for cultural conservation via museum / festivals. Support is required for historical conservation via the museum. Support is required for wildlife and marine conservation. Support is required for all forms of conservation by planning and enforcement of law. Use NMK sites to extend the tourism experience beyond Lamu Island.

Lamu County Business Agenda 2014

Insecurity · · ·

Neighborhood watch - community policing to be initiated. Police and local authorities to recognize the huge impact that individual security incidents can have on tourism in general. Police to be sensitive when dealing with tourists

Drug abuse ·

No solutions were offered, however the issue is serious affecting much more than just tourism, and it requires attention.

Tourism guides · · ·

Need for professionalism / accreditation. Tourist information offices needed at the airport and in Lamu town. There should be a tourism information officer at hand at all times.

Emergency/hotline numbers ·

Emergency Hotline to be established at County Government level, with trickle down to Police, hospital and other authorities.

Utility and services · · ·

Power supply has too many interruptions; an alternative source of power is required. Clean water supply / proper water resource management is required. IT - better connectivity is required.

Taxes/regulations · ·

County Government to clarify what is applicable to local businesses. Immigration - photo registration requirement of tourists is a hassle. Lamu County Business Agenda 2014

Noise pollution · Laws and regulations to be enforced. · Accountability / transparency required on all levels. TRADE · The county office instead of ambushing traders should announce these fees early enough. · County workers should work 8-hourshifts like other county worker in order to maintain the town clean. · Drainage should be made deeper and wider and cleaned regularly and / or covered. · Donkey owners should be required to sweep away the waste at all times and put up dustbins all over the town. · Street vendors should have one common place and prices should be regulated. · Developers / builders should be required to cover any building under construction and also to remove their building waste during and after construction. · When new laws and regulations are put in place traders should be involved / informed. · Streetlights should be put in place to light up at night and tourists' police to patrol at all times. · There should be provision for a fire service. · The county should seek internal power suppliers thereby promoting the traders CONSERVATION Wildlife and forestry Put pressure on National Government to recognize wildlife as a form of land use and give it value. Support community conservation awareness (capacity building.) Assist communities to develop structures for supporting forest and wildlife management. Improve infrastructure in conservation areas – road network etc. to allow anti-poaching enforcement. Provide legal protection for forests. Lamu County Business Agenda 2014

· ·

Provide funds for fire and drought management. Encourage local government to get involved and enforce conservation of wildlife reserves and forests by formulating and enforcing proper legislation

Culture • • •

Appeal to the county government to support the museum and other cultural assets / activities. Encourage local government to enforce conservation of Swahili architecture by formulating and enforcing proper legislation. Show case Lamu festivals, traditional culture and Lamu stone town.

ICT •

Lamu requires a fiber optic cable for a Safaricom booster for faster Internet connection to improve communication for both tourists and businesses.

PUBLIC WORKS Roads • • • • · ·

The Mombasa to Lamu road should be tarmac and ideally made 4lane. Members recommend having it resurfaced with tarmac by the end of 2015. The government should give road tenders to reliable constructors so that quality is not compromised. Members recommend streetlights in town for security and provision of a police booth in every stage of the highway. Mokowe Kinga Highway should be tarmacked to the Kiunga boarder. The majority of people did not support cars on Lamu island but better access for pedestrians, mkokotenis etc would be helpful There should be better roads from Lamu to Shela, Lamu to Matondoni and Lamu to Kipungani to boost transport in villages / towns.

Lamu County Business Agenda 2014

• • • •

Seafront roads to have cabros from Wiyoni to Shela. All small roads in towns should be tarmacked and maintained. All villages and towns must have a plan for road access. Jetties should be expanded; hospital jetty should be repaired and expanded. All roads in Lamu should have streetlights

Airports · · · •

Manda airport to be expanded to increase capacity. Manda airport needs water and electricity. Manda Airport should have 2 landing sites: one for those using the airport and another one for the farmers. Airstrips should be upgraded to airports.

EDUCATION County Government to partner with banks to enhance standards of education through the banks wings to fly and pre-university programs. LAND AND HOUSING · ·

Introduce a town management plan that will be consolidated through the county government. The county government to partner with banks and real estate agents for construction of modern estates and offices for both local and international investors including the county. This facility is currently offered by ABC Bank.

HEALTH AND SANITATION · · · ·

Waste management including recycling must be a priority. Consistent town and beachfront clean ups and designated town dumping sites are urgently required. Street cleaners should work 8hours like other county workers in order to maintain the town clean. These should be made deeper and wider and covered. Donkey owners should be required to sweep away the waste at all times. Lamu County Business Agenda 2014

ECONOMIC FACTORS · · · ·

· · ·

County Government to partner with financial institution to negotiate for low interest rates for loans to empower the local people to do business or investments. County Government to assist Youth and women to access loans by helping them form groups and educating them on how to invest. This is done by Equity through financial literacy program. All banks to have CSR. County Government to form a secretariat to access Corporate Social Responsibility (CSR) funds for bursaries, environmental cleanliness and health awareness e.g. cancer, Aids awareness, blood donation etc. County Government to partner with banks to enhance standards of education through the banks wings to fly and pre-university programs. County Government to partner with banks to educate the community and tourists visiting Lamu to invest in stock exchange e.g buying of shares and debentures. County Government to partner with financial institutions for employment opportunities offered to the local community

Lamu County Business Agenda 2014

Conclusion

Lamu County Business Agenda 2014

References

Lamu County Business Agenda 2014

List of BMO's present

Lamu County Business Agenda 2014

Photograph

Lamu County Business Agenda 2014

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Lamu County Business Agenda 2014