Kwale County Priority Business Agenda by Kenya Association of Manufactures

KWALE COUNTY PRIORITY BUSINESS AGENDA An Advocacy Tool for the Kwale County Business Coalition

Creating Economic Prosperity for Investors in a Pleasurable Regional Destination

Kwale Business Coalition

Mombasa County Priority Agenda 2014

Kwale County Priority 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.

Kwale County Priority Agenda 2014

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Map Showing Kwale County

Kwale County Priority Agenda 2014

Contents Foreword by Chairman Remarks by the Governor Acknowledgments From Millicent Abbreviations PART 1

Kwale County Priority Agenda 2014

Foreword

Kwale County Priority Agenda 2014

Remarks by the Governor

Kwale County Priority Agenda 2014

Acknowledgements

Kwale County Priority Agenda 2014

Abbreviations

Kwale County Priority 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 it's 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: th 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.

Kwale County Priority Agenda 2014

Main objective of the BMOs' coalition 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. To jointly identify common issues of interest, affecting business specific to the county. Key Objectives of Kwale County Governor's Round Table To create a platform for advocacy on business related issues in Kwale County through frequent dialogue and engagement mechanisms with the Kwale County Government: To ensure the business community in Mombasa County will be better placed to influence the county leadership towards the creation of a business friendly environment; To establish a platform for expanding a trade and investment framework in Kwale County; To provide stakeholders in Kwale County with an opportunity to critically participate in the governance and growth of their county;

Kwale County Priority Agenda 2014

To identify key flagship projects within Kwale county in line with vision 2030 and To discuss incentives that can be extended to investors in the County by county government.

Kwale County Priority Agenda 2014

KWALE COUNTY GOVERNOR'S ROUND TABLE In the light of the resolutions from the BMOs' national consultative meeting of the 18th April 2013, Kenya Coast Tourist Association (KCTA) mobilized BMOs from Kwale County under the auspices of Kwale County Regional Business Agenda to th organize the county round table on the 25 September 2013. The Kwale county Governor's Round table was attended among others the ----------- and the Kwale County Business Community under the umbrella of the Kwale 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 Kwale 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 Kwale County Business coalition will be able to actively engage the County Government during its 20132017 tenure. That the Kwale County Business coalition will coordinate and support efforts by the entire business community in Kwale County to influence the county government to implement business friendly regulations and encourage investment, this making Kwale county the most competitive county. That the issues identified in this guide will inform the development of a check list of actionable issues by the Kwale County Government for the next five years.

Kwale County Priority Agenda 2014

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 Kwale that the county government will use this guide as a reference document in developing Kwale County Integrated development plan as contemplated by the County Government Act.

Kwale County Priority Agenda 2014

PART 11 Kwale County Fact File Kwale County is located in Coast province and constitutes 3 constituencies (Msambweni, Matuga and Kinango). Msambweni, Kinango and Matuga districts were mapped to this county for the purposes of generating county estimates. Kwale County is located in Southern Kenya. Average temperature is 24.2Â°C while rainfall amounts range between 400mm and 1,680mm per annum. It has 2 Local Authorities (Kwale Town Council and Kwale County Council) Kwale Town is the administrative capital. Kwale County is one of the six Counties in the Coastal region of the Republic of Kenya. It consists of four sub-counties namely; Matuga, Kinango and Msambweni and Lungalunga. Geographically, Kwale County is at a vantage location opening it up for internal and cross border regional and international trade. It borders TaitaTaveta County to the West, Kilifi County to the Northwest, Mombasa County and Indian Ocean to the East and the United Republic of Tanzania to the South. The position of the County puts it in a strategic location to access inputs from other Counties and neighboring Republic of Tanzania not to mention a ready market for the County's productsâ&#x20AC;Ś Kwale County is one of the six Counties in the Coastal region of the Republic of Kenya. It consists of four sub-counties namely; Matuga, Kinango and Msambweni and Lungalunga. Geographically, Kwale County is at a vantage location opening it up for internal and cross border regional and international trade. It borders TaitaTaveta County to the West, Kilifi County to the

Northwest, Mombasa County and Indian Ocean to the East and the United Republic of Tanzania to the South. The position of the County puts it in a strategic location to access inputs from other Counties and neighboring Republic of Tanzania not to mention a ready market for the County's products.

Kwale County Priority Agenda 2014

The County is richly endowed with human and natural resources such as extractive resources like silica sand; building stones; building sand; limestone; rich deposits of iron ore, titanium, coal and rare earths; gold and gemstones and oil deposits amongst others. It also boasts a pristine coastline and beaches; rich agricultural soils; a rich history and cultural heritage and impressive flora and fauna. 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 telecommunication and road networks with increased investments in the latter to improve the status of the roads. Additionally, there are two airstrips; Diani and Lungalunga, with proximity to the Mombasa harbor and Mombasa's Moi International Airport. Small watercrafts can also use Shimoni, Vanga and Gazi seafronts as ports of entry and exit and mostly facilitate trade in fish products, spices and other consumables between Kenya and Tanzania. Furthermore, Shimoni provides an ideal site for investment in port development and high end holiday retreats like a marina. The County has low incidences of insecurity thereby fostering a conducive environment for investment. This is supported by the presence of several Police stations and Administration Police posts; other special police units which include the General Service, Marine Police, Tourist Police and Anti-Narcotics 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 Kwale 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 Shimba Hills National Reserve a small Park it but richly endowed in biodiversity. Hotels in the county offer both local and international tourists local and international culinary delights. The county has rich titanium deposits with extraction activities already ongoing. It also hosts small scale farming especially in the inland areas. A mixture of fruits, vegetables and cereals are grown.

Kwale County Priority Agenda 2014

The Monsoon type of climate in the region, that is characterized by hot and dry weather between January and April and cool weather between June and August, is favorable for livestock rearing which is a main activity in certain parts of the county. Being criss-crossed by rivers and streams some of which are seasonal, 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

Kwale County Priority Agenda 2014

Current Issues affecting Kwale County

Tourism The Tourism industry is by far the largest single export earner in Kenya. Tourism forms a vital foundation for the Kwale County's economy with vast untapped resources. Kwale tourism is a combination of unexploited beaches, Wildlife,Flora and Fauna, good accomodation facilities,Tours & Safari Services, Camping facilities, Water sporting,Cultural tourism- Hand crafts, local cuisine and cultural attires,Conference Tourism Kwale County is accessible via Moi International Airport, Mombasa Harbour, Shimoni and Vanga ports and airstrips at Diani and Lungalunga, the County is a favorite destination for international tourists who patronize scenic sites and experiences such as Shimba Hills game reserve and the Mwaluganje Elephant Sanctuary; historic sites of Shimoni, Fahamuni and Funzi amongst others; Kisite/Mpunguti game park and Marine reserve; the cultural shrines popularly known as 'kayas'; Marere cold water springs; 'Maji moto' hot water springs and the friendly coastal culture. Challenges facing the Tourism Sector Quality control and standards and Professionalism There is need to provide quality Service to gain customer satisfaction, and not compromise on standards. Diversification of Tourism products Improved Beach product Beach operators Over trading on the beach Reduction of Tourist harassment. Safety on the beach

Kwale County Priority Agenda 2014

Investment Opportunity Developing market centers Building of public amenities on the beaches Building of stalls Challenges on the all inclusive hotel packages All inclusive hotel Pricing strategy has made it difficult for the locals to obtain business from tourists visiting the hotels. Quality and Service of the product is compromised in the long run and benefits go to the hotel keeper only, it is a trend which, over the past 18 years, has proved to have affected the global future of the industry. Tourists are restricted to venturing to places outside the hotels. There is need to create employment for the local population, and ensure the benefits of tourism trickles down to the communities which will also increase the spend by visitors in the region. Ferry delays Marketing Marketing of the destination is important for the products offered to be visible and to increase tourist traffic flow. Marketing has in the past been centralized and from a national point. 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 Kwale county. 16

Kwale County Priority Agenda 2014

Economic Pillar of Vision 2030 identifies investments in Hotels an conference facilities as one the ways in achieving the meetings, Incentives, and conferences and Exhibitions (MICE) flagship project. EDUCATION Girl child education in Kwale is challenged with many girls missing out on school days due to lack of sanitary towels. Lack of courses that build skills for the available jobs in Kwale. Low numbers enroll in education institutions. The youth undergo training but are not employed. Investment Opportunity Private â&#x20AC;&#x201C;pre primary schools Private primary schools Private secondary schools Establishment of tertiary colleges & village polytechnics CONSERVATION Kinango bypass is meant to run right through Shimba Hills. This is a serious issue, threatening the livelihood of the animals. Poaching is a National disaster. Noise, Pollution and Congestion encourages poaching. Mrima Hill - Destruction of the forests destroys the breeding ground for the endangered Colobus monkeys, which is as a result of licences being issued for the mining of Nobium and Uranium. Deforestation - Only 2% of forest cover left in Diani Resort City. Investment Opportunity Seedling Production Mangrove conservation and sustainable harvesting

Kwale County Priority Agenda 2014

LAND USE AND GARBAGE Land is a motive issue.

PLASTICS MANAGEMENT as a whole is detrimental to our Coastal Marine Life and environment. Public Toilets between Leopard Beach and Leisure Lodge Access roads are in terrible condition and not managed at all. The only well functioning public toilets are by Nakumatt Likoni-need ownership. TAXES AND LEVIES High taxes make the destination expensive, thereby making it hard to sell. Increase in Black Market Trade where there is no taxation (Beaches and Streets). KWS Marine Park Fees are too high – one of the highest in the World. Marine Parks function on charges if $5 equivalent per person for the whole year in Indonesia. LAND SAFARIS PRICING: Tsavo East 1 day with lunch and $65 Park Fees was $180. With new VAT BILL new price will be $209 to maintain Status Quo. Beach Operators will remain $125. Impossible to compete. Land Based Safaris Business Registration – Ksh.8,500 Memorandum of Understanding – Ksh.20,000(varying from lawyer to lawyer) Tourism License – Ksh.8,000 County Council License on Tourism – Ksh.10,500 Roadside banner for advertising – Ksh.22, 000 Total Ksh.69,000 + Taxes Marine based Safaris- County: Single Business Permit Annually – Kshs 49,000 Boats- Kshs 10,500 per boat Bar & Restaurant Kshs 10,500, Boutique Kshs 7,000) Signposts – Kshs 20,000

Kwale County Priority Agenda 2014

SECURITY AND SAFETY Attacks and robbing of tourists Increase surveillance in specific areas such as the Congo Mosque, and Tiwi, Kona ya Musa, and Forty Thieves by putting up mobile police kiosks.

INCREASED NUMBER OF ORPHANAGES Orphanages have become a tool in themselves as majority are privately owned or illegally established. This is achieved through visitors coming specifically to see the orphanages, either to donate, or to adopt. Infrastructure Development 路 Most roads are seasonal. 路 Substantial amount of farm produce rots in the farms as it cannot get to the market. 路 The county is dependent on Kilindini harbor in Mombasa County thus causing congestion both at the Likoni ferry crossing and at the harbour itself. Trade and investment The cost of doing business is too high for businesses to strive. The business community needs to know how the cost has been spread and also come up with a formula on how to make the cost of doing business favorable. Investment opportunities Developing of cottage industries

Kwale County Priority 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 Kwale county. Capacity development within the tourism industry, training and skills development for tourism service providers Diversification of Tourism products Cultural Tourism - Promote Kwale cultural centre, advertise the cultural centers â&#x20AC;&#x201C; Kaya kinondo,Wasini and The poor infrastructure in these areas results to inaccessibility by the Tourists both local and international. Keep & promote ethnic Cultural Dancers for hotel entertainment-This can be achieved by involving the community which is well conversant with its culture. Sports Tourism - Sports Stadium for Diani Resort City. This would allow for growth in Domestic Tourism for sure, if not also International. Suggested sports which will make use of our already existing facilities: Golf, Volleyball, Beach football, Kite surfing, Sky diving, Sports fishing, Swimming, Interschool football at Word of Life and Inter-guest football on the beach.

Kwale County Priority Agenda 2014

Improved Beach product Capacity builds the beach operators on soft skills to enable them handle the guests better. Come up with County Government Acts and framework to govern the beach management. Licensing and Establishment of Restricted Trading Zones Beach operators must belong to an association in order to obtain required assistance Enforcement by the County Government-Law to take its course. Strict penalties Levy the Beach operators reasonably. Continuous County Government's Kitty for capacity building and training for the Beach operators. Train Beach Operators to be lifeguards. Ensure all levels of Beach operators are registered and have relevant licenses. Put up DO NOT SWIM signs in areas renowned for drowning incidences such as Trade winds and Congo Mosque. Train more lifeguards. Have lifeguard stands with lifeguards on duty in at the public beaches and re- open public beach accesses to the public for safer swimming areas. Challenges on the all inclusive hotel packages Recommendation Scrap the idea of all Inclusive in Kwale County. Ferry delays Consider Tourist (crossing priority) during peak hours or Tourist Ferry Passes to allow for quick access and transport across, to and from hotels, to avoid missing flights and reduce the absurd lengths of travel time, also for safari destinations. Tourists can produce hotel bookings as proof. Allocate 10 slots per trip for emergency cases whereby a high fee is charged e.g. 1000Kshs for saloon vehicles to allow for speedier crossing.

Kwale County Priority Agenda 2014

Likoni Ferry delays- accessing south coast is a challenge due to the ferry delays. Kwale County to work closely with Mombasa County. Dongo Kundu by pass is intended to solve this challenge. Marketing To increase awareness of the regions product offers (water sportsâ&#x20AC;Ś) Increased marketing and promotion of the region, tourism products. Develop circuits that differentiate the tourism product offer in the region from other regions. Improve the quality of experience for visitors in the region, especially in the wildlife areas. Get KTB to increase focus to support marketing through improving the hotel facilities to encourage better services rendered to the tourists. Get KWS to do more to market themselves, and therefore indirectly us as operators. At the moment it is us marketing their products to tourists. The County Tourism Secretary should work with institutions like KCTA assist in marketing the county. Use the four key mediums to market, Print, Television, Media Radio, and the Web. EDUCATION Establish an educational scholarship fund project â&#x20AC;&#x201C; targeting students in secondary, tertiary and university education institutions Develop a public university, model schools and polytechnics Educate the artisans on unique selling propositions, so as to increase their diversity. Promote the Jua Kali trade. This includes beading and basket making as well as plumbers, masons, electricians which can be done at the Cultural Centre. Work with recognised institutions that we have within our area to provide for capacity building. 22

Kwale County Priority Agenda 2014

Get other Institutions to do courses geared towards the future manpower for the industry, providing recognised courses e.g. Mombasa Technical University, Diani. Develop a third college, or campus within the Diani Tourist City, to empower the community within the courses relevant to our resources. E.g. mining, environmental science, Marine Environment Encourage residents to enroll into Kwale campus an extension of Mombasa technical university The county government should enact on the Labor market and incorporate the trained youth. This should be backed up by good ECD centres as well Primary sector which needs support through girl child education scholarship for those going to secondary school. Those going to universities will also benefit in to the scholarship programme. By doing this we shall be training our own. CONSERVATION Motorists should avoid Shimba hills by pass and not tarmac the area from Marere Bridge to Kwale Town. NEMA and KWS organisations should work hand in hand to safeguard wildlife and action to be taken on poachers. County can collaborate more with KWS and help sensitise the public in the environs on the value of wildlife to themselves. Telling the public of the potential health risks (diseases) of eating these animals. Education of the general public. Land encroachment â&#x20AC;&#x201C; there is too much development on Park boundaries. Buffer zones should be created in order to prevent this problem. Revoking or limiting mining licenses, and using this area as another Tourist Attraction â&#x20AC;&#x201C; for Bird Watching of one of the world's largest bird species variation, Nature Walks, Local Culture and Cuisine for direct benefit to the local communities.

Kwale County Priority Agenda 2014

Alternative sources of energy need to be adopted for use, not just simply putting a ban on charcoal for instance electrification in rural areas, Briquette making and Solar Jikos. Promote tree planting. Subsidise farmers to plant trees for renewable energy- they can make $5000 per year. Have curio sellers provide information on where their wood comes from in order to curb destruction of trees that are not licensed for wood carving.This will indicate that they are ECO friendly, and not using trees from the wild. LAND USE AND GARBAGE Create awareness by having regular Beach Clean Ups, involving members of the public, hotel staff, and Beach Operators Put up signs: Help Keep Your City Clean! Because Diani/ Ukunda is growing it is necessary to have 2 more lorries to collect garbage. Introduce 'on-the-spot' fines for littering. Council askaris can use this opportunity to multi-task. Distribute litter bins within the City. Use Radio and Chiefs meetings (Baraaza's) in villages to enlighten the people. Introduce significant levies on plastic bags, to lessen their distribution and use. Promote Recycling, including and not limited to making kikapus from plastic. Place signposts with pictures 'This KILLS our Wildlife', 'This affects our Turtle Nesting Sites'. Relocate garbage dumps away from direct sight by the public and visitors, and clean them out regularly. The County Government can oversee garbage collection OR involve groups of unemployed to collect the rubbish (Outsourcing the services of the locals to organize) Ensure NEMA rules are enforced and adhered to. County Government should have and exercise the right to question NEMA. The Youth or Women Groups to take charge of of the public toilets stategically placed to ensure proper maintenance of the toilets.This can achieved by charging a fee to meet the costs invloved in the maintence. Land allocation flag ship for the county to have a resort city, beach access routes within our priorities means pushing together the boundaries.

Kwale County Priority Agenda 2014

Land Audit to be done so that public land is identified and used appropriately. This will be done to identifying expired leases and those close to expiry. Natural resources mapping to be done to enable the county government know the resources in Kwale County. E.g Mrima- there is a forest, Minerals â&#x20AC;&#x201C;looking at mining bill and insert a bill that will require a loyalty in the county cost benefit analysis will be conducted. TAXES AND LEVIES Review the taxes, and erase double taxation. Harmonise taxes and levies in order to attract more investors. Propose one collective licensing fee in Tourism and businesses. Widen the base for taxes to spread fairly and evenly across the border. Involve the stakeholders and enhance capacity building. Open market areas for locals along the safaris/day excursions circuits to sell their handicrafts (create livelihoods). The issue of inherited high rates in business licenses will be addressed in the finance bill to moderate the rates but until then the status quo will remain. Tourism Investment Programmes should be laid out and a budget drawn with reference to these programmes. Establishing county emergency fund Formation of Kwale county budget and economic fund Coastal county government to form an intercounty budget in which each county will be a member. This will enable finance and economic planning in order to meet needs in the sectors in which are of share concern e.g Tourism. There's a task force formed to collect data for all business operating in Kwale if or purpose of understanding and evaluating the kinds of business people are engaging.

Kwale County Priority Agenda 2014

The finance secretaries encourage all land rate debtors to pay up by August yearly which will enable the county to have finances to facilitate development. SECURITY AND SAFETY We suggest a Police Station in Diani Resort City, and recommend patrol of the Beach Road Motorbike patrols would be very effective and more economical than motor vehicles. Place traffic signs, notably by the Ukunda/ Diani junction by Nakumatt. Also markings on the roads, road signs established and place Bumps before all road cross sections. Inclusive of surveillance cameras in strategic areas within the town and a mobile police post establish to curb the rise in crimes and criminals in the county. Enhance inspection and check up in the apartments and cottages INCREASED NUMBER OF ORPHANAGES Regulate the number of orphanages as there are too many, and close down the ones that work inappropriately. Have controlled screening for those that want to start up, ensuring prevention of infiltration of pedophiles. INFRASTRUCTURE DEVELOPMENT Kwale Samburu road to be opened to ease congestion. Improving the feeder roads. Addressing on the expansion of airport to encourage direct flights into Ukunda. This is on course, the issue of noise will be discussed at a later date. TRADE AND INVESTMENT It was proposed that the county government to come up with a site where all farm produce from the county can be accesses considering all fruits and vegetables are available within the county eg Kongowea market.

Kwale County Priority Agenda 2014

Business community to come up with very viable business proposal that can be sold to the sell to financiers or attracted to other investors. Value addition- the county government should conduct a feasibility study to establish which raw materials are available throughout the year for the purpose in order to attract investors throughout the year. T he county to come with a schedule where the tourists are encouraged to eat out for locals to sell their foods thus share of tourism cake.

Kwale County Priority Agenda 2014

Conclusion

Kwale County Priority Agenda 2014

References

Kwale County Priority Agenda 2014

List of BMO's present

Kwale County Priority Agenda 2014

Photograph

Kwale County Priority Agenda 2014

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