Kilifi County Business Agenda by Kenya Association of Manufactures

KILIFI COUNTY BUSINESS AGENDA An Advocacy Tool for the Kilifi County Business Coalition

Creating Economic Prosperity for Investors in a Pleasurable Regional Destination

Kilifi Business Coalition

Kilifi 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.

Kilifi County Business Agenda 2014

III

Map Showing Mombasa County

Kilifi County Business Agenda 2014

Contents

Kilifi County Business Agenda 2014

Foreword by Chairman

Kilifi County Business Agenda 2014

Remarks by the Governor

Kilifi County Business Agenda 2014

Ackowledgements

Kilifi County Business Agenda 2014

From Millicent

Kilifi County Business Agenda 2014

Abbreviations

Kilifi 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 th business: Building Coalitions in pursuit of business interest on 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.

Kilifi 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 Kilifi County Governor's Round Table •

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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. To develop clear, formal and well known mechanism 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.

Kilifi County Business Agenda 2014

KILIFI 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 Kilifi 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 Kilifi County Business coalition will be able to actively engage the County Government during its 2013- 2017 tenure. That the Kilifi County Business coalition will coordinate and support efforts by the entire business community in Kilifi County to influence the county government to implement business friendly regulations and encourage investment, this making Kilifi county the most competitive county.

Kilifi County Business Agenda 2014

That the issues identified in this guide will inform the development of a check list of actionable issues by the Kilifi 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 Kilifi that the county government will use this guide as a reference document in developing Kilifi County Integrated development plan as contemplated by the County Government Act.

Kilifi County Business Agenda 2014

PART 11 Kilifi County Fact File Kilifi County is located in Coastal Kenya; it borders the Indian Ocean to the East, Tana River to the North, Taita Taveta to the West and Kwela and Mombasa to the South. The county has six sub counties namely, Kilifi, Ganze, Malindi, Magarini, Rabai and Kaloleni. It has 17 divisions, 54 locations, 175 sub-locations as shown in Table 6. In terms of administrative units Malindi District is the largest while Rabai is the smallest in terms of 2 area in Km . The population of the county was estimated to be 1,217,892 in 2012 as projected in the Kenya Population and Housing Census 2009, composed of 587,719 males and 630,172 females. The population is projected to rise to 1,336,590 and 1,466,856 in 2015 and 2017 respectively at growth rate of 3.1 percent per annum. The Language spoken is mostly Kiswahili mixed with mijikenda dialetes though some of our youths speak some foreign languages eg. German, French and Italian. Kilifi is served by several banks and financial institutions i.e. KCB, Equity, imperial, Kenya women finance trust, faulu Kenya among others. The county has a steady tap water system flowing from our major source, the Galana river with its pumping plant at Baricho in Malindi. However because most people consider tap water unsafe for human use, bottled water is always available to buy depending on one's budget. It is generally hot with temperatures ranging between 30 and 32 degrees when extremely high and up to 20 when low. Each district has a well furnished Government hospital that is well stocked with medicines. However if one would like to seek for more expensive medical attention, some private hospitals are available. Medical rescue services which include AAR are also available on call. All the major towns i.e. Mtwapa, Kilfi, Watamu and Malindi have modern fire engines with full time crew members who are alert incase of any fires within your area of stay.

Kilifi County Business Agenda 2014

Kilifi has beautiful beaches which are absolutely safe to walk or even go swimming. Security is guaranteed where by regular surveillance from both the Kenya police and community policing has been enhanced. Coast sea survival is a community based rescue organization team which works under the county government to ensure life is protected when tourists and locals go out to swim on our beaches. The county is endowed with a lot when it comes to tourism. Apart from the beaches it has cultural sites, educational sites, historical sites, marine parks, museum and gallery and breathtaking scenic views.For ease of transport the county has 3 airstrips (vipingo airstrip, mnarani airfield and kijipwa airfield) and Malindi airport with close proximity to Mombasa international airport. Malindi is easily accessible by road from the city of Mombasa which located 120 kilometers away. The Mombasa-Malindi highway is well maintained and a very busy road with traffic comprising personal cars, public transport "matatus" and commuter buses. Tour vans are also common feature on the road, transporting tourists to and from Mombasa hotels and other locations Kilifi has vast mineral deposits whose exploitation could boost the region's economy Kilifi has approximately 1.4 billion tones of titanium, the mining firm notes. The Vipingo, Mamburi and Sokoke area that has titanium deposits covers 450.7 kilometres in total. The discovery of rare minerals in the county including niobium is expected to generate a lot of revenue for Kilfi combined with the ongoing sand harvesting and extraction of gypsum.

Kilifi County Business Agenda 2014

Agriculture is a major economic activity in Kilifi. Cash crops grown in the county include cashew nuts, sisal, coconut palms, pineapples and mangoes. Staples like banana, cassava, maize, green grams, cow peas are also cultivated. Along the coastal plains, farmers grow horticultural crops and vegetables such as tomatoes, chillis, onions, brinjals and okra. Dairy and beef farming is also practised, accounting to a significant quantity of beef and milk consumed in the county and beyond. Buzeki Dairy, which produces the popular Molo Milk brand, has a milk processing plant in Kilifi Plantations. Small-scale farmers also keep sheep, goats, rabbits, pigs and bees. The county boosts of a dozen of supermarkets and retail shops for ease of shoping.The curio shops open air markets are found all around selling fruits, vegetables, vikoi,mats and carvings. Current Issues affecting Kilifi County ENVIRONMENT -

Lack of defined waste collection and disposal points Lack of collection capacity and recycling facilities Lack of awareness on waste management issues Lack of a central sewage system and storm water drainage system leading to constant flooding when it rains. Storm water drains are used as sewage drainage. There are no sewerage facilities UN habitat gave Malindi grants to develop central sewage system which did not take off due to political influence. World Bank would wish to support the County develop a sewerage system Lack of proper way of managing and collecting garbage No designated dumping points which is bad for tourism.

Kilifi County Business Agenda 2014

Destruction of natural habitats and bio-diversity sites Discharge of effluent is killing our beaches especially around Vasco da Gama pillar and Baobab Illegal Bars and structures and Bandas on the beach and road reserves Buildings has too many illegal structures and illegal traders There are over 1500 pubs in Mtwapa and 80% of pubs and bars in Mtwapa do not pay taxes offering unfair competition to establishments that pay their taxes 2% bed levy. Salt works to be using wood instead of electricity.-high demand Malindi's environment is degrading at fast rate. Green Kilifi County and keep it clean Conflicting policies within Government agencies e.g. KWS and Fisheries on ring net fishing Poisons Board and KWS on control of crows High water mark range riparian area to be observed The rampant use of plastics is destroying the environment. lack of markets for the recycled products Massive cutting down of trees for the provision of energy especially the Arabuko Sokoke forest Massive deforestation of Mnazi and Mkilifi trees relying only on cutting down of trees instead looking on the other option of sustainability

AGRICULTURE Agricultural inputs -

Inadequate inputs Subsidized inputs come (after onset of rains)

Agricultural markets -Quality and viability of inputs ( seeds and seedlings -Unorganized markets

Kilifi County Business Agenda 2014

Land farming methods -

Poor land usage and farming methods, poor livestock husbandry practices/ production Lack of lack ownership (Title deeds) Inadequacy of extension services

Agricultural products -No set up plant for packaging mangoes Farmer's co-operative society - Lack of support for the Malindi Farmers Cooperative Society to develop agricultural products. Dairy farming -

Livestock - Dairy farming is underutilized. Coast region has a deficit on milk

Irrigation scheme -Irrigation â&#x20AC;&#x201C; Sabaki river WATER, INFRSTRUCTURE AND POWER Water -

Quality of water is of great concern -Factor in the expansion of the water structures -Mida Creek and Majaoni have inadequate supply of water due to lack infrastructure -Frequent water shortages caused by failed pumps or lack of power. -Lack of adequate stand by pipes High Charges

Kilifi County Business Agenda 2014

Infrastructure - Quality of repair work done on the 174m to repair the road from Gede to Temple Point sub standard and not completed. - Lack of street lighting - No road signages and markings - Lack of Pedestrian sidewalks - Roads need to be re-carpeted - Mombasa Malindi Road is narrow and unmarked despite being a highway. - No bus stage or bus stops in Mtwapa - No Market space in Mtwapa - Feeder roads in pathetic condition Electricity -

Constant power failure due to frequent breakdown of equipments and unstable power. High cost of energy and connections The weekly maintenance carried out by Kenya Power is costly Non gazetted power cuts Emergency lines are not working No street lighting

TOURISM The Tourism industry is by far the largest single export earner in Kenya. Tourism forms a vital foundation for the Kilifi County's economy with vast untapped resources. Kilifi 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.

Kilifi County Business Agenda 2014

Challenges facing the Tourism Sector Beach Management -

Lack of a Beach Management Plan. Tourist harassment along the beaches, offer of Sex and drugs Uncoordinated and non regulated beaches leading to Environment degradation.TPU largely ineffective and collude with unlicensed Beach operators (e.g. drug peddlers Prostitution rampant in Mtwapa area-bad publicity Marketing & promoting tourism in Kilifi County ( Challenge) Women in Tourism empowerment Lack of tourism education, customer service & product knowledge, etc

Malindi Airport -

Short run way Airport standards need upgrading Airline scheduling is not conducive for business Seasonality

INVESTMENT Policy for investment -

There is no known policy for investment in the county

Areas for investment -

The government lack an outlined openly areas for investment

incentives for investment - There are no clear incentives for investors Utilization of opportunities - Opportunities are not marketed Local investors Local investors are ignored.

Kilifi County Business Agenda 2014

CONSERVATION -

Sustainable tourism (eco-tourism enforcement) Lack of government support and sponsorship

DISASTER MANAGEMENT -

Inadequate or No Fire and Rescue services. Fire outbreaks are frequent and we are losing people and property Flooding has become more frequent Lack of access roads due to poor planning

EDUCATION Learning facilities -

Lack of public quality secondary schools and facilities like the laboratories and libraries. Teachers shortage Lack of colleges and institutions of higher learning within the county

Bursaries -Bursary disbarment is not enough and is biased Promotion of child education -

Transition rate wanting as a result of high poverty levels Retrogressive Cultural practices Negative influence from the tourism sector Lack of alternative route for those who wish to progress academically and those who drop out of forth form

Kilifi County Business Agenda 2014

HEALTH -

No ambulance services within Watamu Lack of ARV' S drugs and oxygen. Lack of enough community health workers No mortuary facilities No public toilets; Available ones are poorly maintained. No prevention campaigns are held Gede hospital operates 24hrs but lacks Clinical Officers Medical charges in the public hospitals are too high

FISHERIES -

Diminishing fish stocks due to over fishing Use of destructive fishing practices e.g. ring net fishing. Politicisation of the ring net fishing

Lack of modern fishing vessels and gears for local fishermen e.g. refrigeration facilities, safety equipment and facilities No rescue and patrol boats Lack of 'muscle' in running of the BMU Other fish landing sites other than Ngomeni are not secure

Kilifi County Business Agenda 2014

PART 111 Recommendations ENVIRONMENT - Community operated waste collection vehicle to be established. - Construction of waste collection and recycling facilities - Community run education and awareness programmes supported by the county and private sector. - Support of beach and street cleanup initiatives -

World Bank is funding storm water drainage system and is in a position to fund the sewage system. A team composing private sector and government to be formed to follow up the World Bank support. - Inclusion of youths in garbage collection by coming up with a youth and women empowerment program-Job Creation - More vehicles to help in the collection of garbage. - More dustbins in Kilifi county especially where small business are located. - County government can adopt the idea of charging its household and Industry for the volume of rubbish they produce. Waste will only be collected by the city council if disposed in government issued rubbish bags. This will reduce the amount of waste the county produces. - Reduce county carbon foot print by using lead fuels, bio fuels, solar energy and wind energy to reduce air pollution. Come up with soil erosion prevention program. - Plant trees and grass in bare land to reduce the soil erosion - Relocate garbage collection points inside estates to remove the eyesore from our highways. - Development of zoning and development plans. - Enforce the law - The Governor to assist in ensuring all buildings plans in respect of the hospitality industry is properly approved by both the county government and the relevant regulatory authority like the NEMA. Kilifi County Business Agenda 2014

Implementation of existing government policies. Clear the Bay of squatters Enact legislations to curb illegal structures along the beach. Implementation of the laws by the county askari. All businesses must be registered, licensed and pay taxes indiscriminately. There should be all inclusive stakeholders engagement and agreement before imposing or enforcing such levies Create awareness on importance of the sites. Community participation in conservation management Shared benefits to the community of Biosphere revenue. Support and enhancement of existing regulations and enforcement Support of conservation organisations Enhanced protection of sensitive habitats The salt industry to use alternative means for energy. Legalise importation and controlled usage of stalactite Create legislations that regulate the transporting of wood and stop the trucks from transporting wood Governor to work with Business sector. Village cleaning competitions with rewards Collection of plastic bottles by setting up recycling enterprises for plastic bottles /flip-flops, polythenes, glasses and metals. Declare Kilifi Governor to work with Business sector and declare Kilifi County a no plastics county Come up with legislation that requires that before a tree is cut, permit must be obtained from the proper authorities. Harmonisation of laws and regulations. Community anti-poaching units who are well equipped Government to seek markets for the recycled products. Awareness on waste disposal to be carried out through the barazas

Kilifi County Business Agenda 2014

AGRICULTURE Agricultural inputs -

Build an input manufacturing industry e.g. the fertilizer industry Funding for subsidy to be released early (before onset of rains

Agricultural markets -

Provide research on seeds / seedlings and also do soil testing to the farms to suit seeds Farmers institutions to be supported and do capacity building to the farming communities and form producer marketing /business groups Work closely with hotel, institutions to secure market Exporting of horticulture Provision of irrigation facilities to farmers/ farmers groups Introduce value addition and improved production technology methods

Land, farming methods -

County government to provide some measures that will enhance the provision of title deeds within the farming communities within the county Provide extension services for both crops and livestock production provide funding to construction of cattle dips for pest control Employ more extensionists in the county

Agricultural products -

Support this initiative to develop ready to drink fruits for Passion and mango. Cottage industries.

Kilifi County Business Agenda 2014

Irrigation scheme -

Adopt a BOT system to develop both Cashew nut and Coconut factory. Studies are available for investor's information to enable them make informed decision. Support the process and enhance irrigation

WATER, INFRASTRUCTURE AND POWER Water -

Treatment of water to be consistent Water at Gede trading centre A reserve tank that can sustain the county while repairs are ongoing to be built.

Infrastructure - Street lighting to be done by Hotels and the advertisers pay rates to the county government - Develop a proper organised signage system. Allow private sector to steer it. - Mark the roads central and edges immediately - Clear the bushes - Increased bumps should have road signs within a reasonable distant - Need to decongest Malindi. - The trucks to use the by pass - By pass between BP Petrol station and Malindi Hospital. Watamu, Mayumgu, Malindi Gede, Mijomboni to the bridge. - Expansion of the highway - Space for market place already identified in Mtwapa and the county government should go ahead and buy the land from the private land owner where the market space has been identified. - The county government should at least provide murram roads where applicable and tarmac the roads where necessary to take care of the perennial flooding that is witnessed every time it rains

Kilifi County Business Agenda 2014

Power -

Purchase equipment from reliable suppliers and lobby with Kenya Power to provide quality services Lobby with power and government to reduce cost of energy and connections. Maintenance to be done twice a month Print notices on major dailies so that establishments take action necessary action. Send out Notice to KCTA who will in return circulate the notice to all. Ensure emergency lines are working and the public know. Light up the highways as CSR activity from KPL

TOURISM Beach Operators -

Goodwill from the County Government in supporting livelihoodsLocal community share in the Tourism cake. County Government Acts/ Laws and framework to govern the beach management e.g. Licensing and Establishment of Restricted Trading Zones Encourage self regulation by beach operators- Must belong to an Association Secure land and issue title deeds for land already identified for Beach Operators and Tourist Market in Mtwapa Law enforcement by County Government-Strict penalties Levy the Beach operators reasonably. Continuous County Government's Kitty for capacity building and training for the Beach operators County Government support and assistance in removing the bad elements amongst the beach operators Support of a multi-stakeholder participation in the development and implementation of a BMP

Kilifi County Business Agenda 2014

Create awareness to the guests on Hotel brochures and websites to highlight on the importance of conserving our marine parks and stop buying shells. TAKE NOTHING BUT A PHOTO, LEAVE NOTHING BUT FOOTPRINTS ( Laws & Acts to attract stiff penalties) Rehabilitation centres for sex workers. Sex workers Empowerment through alternative methods of earning livelihoods. Provide & support more community based tourism related work in their own localities to reduce impact on the beach Support in developing a holistic marketing plan, strategy and County branding Governor to assist in engaging with Kenya Tourism Board to ensure that the Kilifi County has a reasonable share of the marketing of the tourism overseas / local. Tourism associations to work in collaboration with KTB and county government to market the region Develop an IT infrastructure that will market the region as an ideal tourist destination Develop a County Government Women Fund for easy access to all women & with 30% representation in the management boards. Capacity building of the Kilifi county women groups at the grass root

Malindi airport - Upgrading of the airport to international standards. - Negotiate with KAA to increase domestic flights to Malindi-Eng. Nduva off KAA promised to increase flights to Malindi by end of November. - Diversification of products and promote domestic tourism to fill in the gaps, develop conference tourism. - Put up a Conference Centre at Msabaha which will house a cultural centre, a theatre and art gallery

Kilifi County Business Agenda 2014

INVESTMENT -

Evolve an investment policy and framework Transparency for investment priorities Create and outline investments incentives Market the investment opportunities Strengthen local based investment and investors.

CONSERVATION -

Need for proper legislation Encourage local government to get involved and enforce conservation by formulating proper legislation. Ensure an integrated approach

DISASATER MANAGEMENT -

Equip fire stations with engines that can effectively tackle fire outbreaks and have trained staff Fire and Rescue act to be enacted Carry out consistent fire drills Training of the citizens on what to do in case off fire outbreak Form disaster managements committees from ward levels

Open up the access roads acquire well equipped ambulance.

EDUCATION Learning facilities -

Creation of land for the establishment of secondary schools Sponsoring more students joining TTC Give incentives for the private sector to invest in TTC .Colleges and institutions of higher learning should be set up in Mtwapa.

Kilifi County Business Agenda 2014

Bursaries -

Improve on the bursary structure by identifying the deserving cases No discrimination on bursary percentage of the assistance should be at least 80% The minimum amount for secondary school bursary to be 15,000/= To start a Bursary Trust Fund jointly with private sector Setting up of scholarship program

Promotion of child education -

Provision of feeding program in all schools Regulate tour operators business to check on age engaging in it Establishment of talent academies to nurture the gifted in : i) Sports ii) Music iii) Handcrafts / technical school

HEALTH -

Need for at least one ambulance Ensure consistent supply Enroll community health workers volunteers in all wards. Ensure each home and markets have a toilet. Legislation to enforce this. Wash hands campaign. Post a Clinical Officer at Gede hospital. Upgrade the existing hospitals and dispensaries CEM Health to follow up.

Kilifi County Business Agenda 2014

FISHERIES -

Need to develop enforceable regulations Introduce other methods of fishing mar culture( Fish farming).Regulation and awareness on proper sustainable fishing practices Provide a clear way forward on how to tackle the problem. Review the management plan-led by private sector Financial support in acquiring modern fishing vessels and gears for local fishermen and technical know-how on best practices Provide life boats. Work with Red Cross to conduct drills on the beach regularly Building lasting structures within the BMU Support of training initiatives for BMU's Liaise with Colleges to offer courses

SECURITY -

Provide office space for CID office to be established Drug awareness campaigns Support the public awareness campaigns Improve their remunerations, living conditions and conduct Police reservists Bumps near school to prevent accidents caused by over speeding cars. Put up Clear road signs Strengthen community policing. Nyumba kumi concept. Have Malindi against crime operational and recognised by County and Central Government and extend its borders beyond Malindi.

Kilifi County Business Agenda 2014

Conclusion

Kilifi County Business Agenda 2014

References

Kilifi County Business Agenda 2014

List of BMO's present

Kilifi County Business Agenda 2014

Photograph

Kilifi County Business Agenda 2014

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Kilifi County Business Agenda 2014