NYANDARUA COUNTY BUSINESS AGENDA An advocacy tool for enhancing the Economic growth of Nyandarua County
The land of milk’
Nyandarua County Business Coalition Members
Ziwani women group
Umoja Dairy cooperative
Nyandarua Jua Kali association
Njambini Boda Boda association
Tree is life trust
Nyandarua County Doctors union
Aberdare bee keepers
Nyandarua county potato farmers
Quary Miners
REMARKS BY GOVERNOR
My government is committed to ensuring that Nyandarua County will be known for its Economic prosperity as the Land of milk and potatoes with apple farming, mining and tourism as key emerging sectors that the government will pay special attention to in the effort to jumpstart the economy of the County. Infrastructure development remains as the greatest challenge to realizing most of the targets set out and as a government we have invested a lot of resources in the upgrading of the roads across the county and construction of market outlets that will make it easy for smallholder farmers to market their produce. In the first year in office, the county government had undertaken a massive construction of rural access roads in an exercise that has seen the opening up of over 1000 kilometers of rural roads in all the five sub counties. The county government will also protect farmers from exploitation by middlemen especially potato farmers by ensuring that the law requiring potatoes to be packaged in the 50kg bag is enforced. The county will also ensure that milk prices are not controlled by brokers who for a long time have been exploiting farmers. To ensure that farmers are well linked to the market, the county will support any efforts geared towards the strengthening of cooperatives and farmer groups. As an agricultural county, the issues of affordability of agricultural inputs including fertilizer and seeds are urgent and require immediate action. As a government we shall ensure that farmers have access to seeds at the right time and price to increase the production level. We intend to procure seedlings and sell them to farmers at subsidized rates. We shall also work closely with existing cooperative and the national government to ease access of the government subsidized fertilizer by partnering with farmer cooperatives to store the commodity to reduce on the cost of transportation. As a government we are committed to working closely with the private sector, ensuring consultations and inclusion in decision making especially in matters that affect business. The business committee should also advice their members to pay the agreed rates so that the county government can carry out its mandate without interference.
In order to realize our promise to the people of Nyandarua County, my government requires partnership and good will of stakeholders. I therefore urge the private sector to work together with the county leadership in improving the living standards of the residents of the county. It is my conviction that through sustained dialogue and collaboration with the business community and our neighboring counties, my government will transform Nyandarua County into an economic hub that will transform the lives of the people of the county.
H.E. Hon Daniel Waithaka Mwangi Governor of Nyandarua County
Foreword
It is my pleasure to present to you the first edition of the Nyandarua county business guide. This guide is a product of interactions between the business community operating in Nyandarua County under the auspices of the Nyandarua county business coalition and the Nyandarua County under the leadership of the dully elected Governor H.E Daniel Waithaka. The county business agenda is the main tool for business advocacy for all business membership organizations in Nyandarua County. The business agenda will also be useful to the Nyandarua County Government to identify key initiatives and areas of improvement that can make Nyandarua the most attractive and business competitive destination for investors. Nyandarua County is majorly an agricultural county with the capacity of producing enough to feed its own people and sell to the neighboring counties and even for export. The business agenda is divided in three parts. Part 1 lays the background of the county Round Tables in Kenya and expounds on the expectations from the Nyandarua county Governor’s round table. Part II contains facts about Nyandarua County and explores the issues that face the various sectors in the county. Part III makes recommendations on the way forward on the identified issues and highlights key issues that the county government can address immediately towards making a model county in Kenya. The Nyandarua county business coalition is ready and willing to partner with the county government and be the link between the county government and the business community in Nyandarua. This is to avoid various cases in court that should have been arbitrated outside the court. Wananchi should be well educated by the county government on how Nyandarua County government is doing their business. Citizens and more so the business community should be involved in drafting any financial bill. Eng. Moses Maina Director KNCCI-Nyandarua
ACKNOWLEDMENTS
The Nyandarua County Business guide was prepared from views presented by various Business membership Organizations from Nyandarua County. Valuable input was provided by the Office of the Governor of the county. The guide was compiled through concerted efforts of a dedicated team at the Kenya National Farmers Federation (KENAFF), including Phelix Rapando, Fridah Kathure, Reginah Muhia and Kevin Maina. It benefited immensely from the views provided by a number business coalition which included: KNCCI, Umoja dairy cooperative, Nyandarua potato farmers, Ziwani women group, KAPAP, Boda Boda, Quarry Miners, Aberdare Bee keepers, Jua Kali association, Tree is life trust and the Doctors union, Nyandarua county. The role of the business coalition in addressing the challenges facing their respective sectors can -not be over-emphasized, with the devolved system of governance, BMOs need to align themselves so that they can take lead in engaging the county governments on various issues that affect their members. The federation will continue playing a major role in creating an enabling environment that will make farming a profitable venture. The enforcement of the potato produce and marketing bill is one of the areas the federation will work closely with the relevant authorities to ensure that it is fully implemented to the benefit of farmers. I am grateful to Business Advocacy Fund (BAF) for the financial and technical support accorded to this project. The preparation of this Business agenda would not have been possible without their support.
Dr John K. Mutunga, Chief Executive Officer Kenya National Farmers Federation (KENAFF)
List of abbreviations and acronyms BAF
Business Advocacy Fund
BMO
Business Membership Organization
ICT
Information Communication Technology
KNCCI
Kenya National Chamber of Commerce and Industry
KENAFF
Kenya National Farmers Federation
KALRO
Kenya Agricultural Livestock Research Organization
KAPAP
Kenya Agricultural Productivity and agribusiness Project
PPP
Public Private Partnership
TVET
Technical and vocational Education Training Institutions
PART I
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.
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
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 Nyandarua county Governor’s Round Table
To lay a foundation for the formation of Nyandarua county Business Coalition to advance county Business Agenda;
To create a platform for advocacy of business related issues in Nyandarua County through frequent dialogue and engagement mechanisms with Nyandarua County Government;
To ensure Business Community in Nyandarua 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 Nyandarua County;
To provide the stakeholders in Nyandarua County with an opportunity to critically participate in the governance and growth of their county;
To identify key flagship projects within Nyandarua County In Line With Kenya vision 2030;
To discuss incentives that can be extended to investors in the county by the county government.
The Nyandarua county Governor’s round table was graced by H.E Governor Daniel Waithaka and the County Executive for Agriculture M/s Agatha Thuo. In his speech during the event the Governor highlighted the importance of the youth joining groups for business purpose. Top on his agenda as the first Governor of the county was to ensure that the residents of the county have access to clean water both for consumption and for irrigation. He noted that though the county was the home of a large water tower that provides water to the residents of Nairobi, but the people of Nyandarua County had not benefited from the water. The Governor committed to ensuring that farmers have easy access to government subsidized fertilizer by devolving the collection points to areas which can easily be accessed by farmers. He said that Sacco’s with wellestablished structures could be considered as points of collection. To ensure that the county is easily accessible, construction of feeder roads and other infrastructure such as market stalls was on course. The governor also stressed on the importance of increasing electricity connectivity to help stimulate the Agro-industry. On her part the county executive for Agriculture M/s Agatha Thuo highlighted the importance of apple farming to the county and encouraged farmers to venture into apple farming as there was ready market, she said that the county was to procure seedlings which will be distributed to farmers at a subsidized price.
Governor Daniel Waithaka Mwangi addressing participants during the Governor’s Round table held in Ol’kalou town.
The issues focused on the following areas: 1. Agriculture 2. Transport and Infrastructure 3. Tourism 4. Health 5. Mining and minerals 6. Trade, commerce & industry 7. Security Expectation of the Business Community from the Nyandarua County Governor’s Round Table
That following the first round table in Nyandarua county, a foundation for a lasting relationship between the business community and the county government will have been established, and that going forward, the Nyandarua 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 Nyandarua County Business Coalition will co-ordinate and support efforts by the entire business community in Nyandarua county to influence the county government to implement business-friendly regulations that encourage investment, thus making Nyandarua county the most competitive county in Kenya.
That the issues identified in this Business Agenda will form part of the county integrated plan and a checklist of actionable issues by the Nyandarua 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 Nyandarua County that the county government will use this Business Agenda as reference document in mapping out investment plans for the county.
PART II Nyandarua County Fact File
The county covers a total area of 3,245 Km2
Ol Kalou town is the county’s headquarters
2009 census put the county’s population at 596, 268
The county is divided into
5 sub-counties namely Kipipiri, Ndaragwa,
Kinangop, Ol Jororok, and Ol Kalou
Agriculture is the main economic activity in the county
The county experience moderate to low temperatures
The county experiences two rainfall seasons, long rains in March that end in May and short rains that start in the months of September to December.
It is the home of the largest water tower in the country, the Aberdare ranges
Key Economic sectors in the County Agricultural Sector. Nyandarua County is endowed with rich and fertile soils with 80% of farmers in the county being small scale farmers. Farmers in the county are mainly engaged in Dairy production and the production of crops such as potatoes, garden peas, cabbages, carrots, vegetables and to small extent maize. These farmers are mostly reliant on rainfed agriculture and hence during the rainy seasons, there is the occurrence of market glut and during the dry spell, there is low produce. This inconsistency of production has led to unstable prices characterized by low prices of produce during good harvest seasons and high prices of produce during dry seasons hence not cushioning the farmers from price fluctuations. Farmers are still reliant on brokers for marketing as a result of poor market information and no access to sustainable and profitable markets. This is also a major factor in the sector deteriorating and being viewed as a poor mans’ job as it grapples with so many
challenges and hence the farmers get discouraged. The farmers hence do not invest financially into the enterprise through certified inputs and equipment as no profits are realized. They also do not engage in commercial farming and produce is mostly for household consumption. In the case of potatoes which are the highest produced crop in the county, the farmers grapple with unavailability and the high prices of certified seeds. 50kg bag of certified seeds of potatoes from KARLO goes for Kshs. 3000 which is expensive for an ordinary local farmer. This forces the farmers to use their previous seeds which have brought about the reoccurrence of diseases such as bacterial wilt and late blight in potatoes. This further weakens the fertility of the soils and production levels decrease. The County government of Nyandarua has passed laws which are aimed at ensuring that the farmers are cushioned against exploitation and ensuring profits are achieved. This has been done through the passing of the quantity bag regulation bill which put the 50kg bag as the standard of measure for all farm produce for commercial purposes. This law despite being passed, the enforcement is poor hence the farmers are still being exploited by the brokers. Improvement of rural feeder roads has also been prioritised by the county government with a substantial amount of the county’s budget being allocated to the roads sector. Challenges faced The agricultural sector in Nyandarua County is however faced with numerous challenges. The most notable are
High cost of farm inputs,
The compliance with the new potato produce and marketing law by the county has made farmers in the county to incur huge losses as other potato producing counties ate yet to start enforcing the law.
High number of brokers who exploit farmers
Lack of cooling storage facilities in the county is also a key challenge that needs the collaboration of the farmers and the county government so as to encourage value addition as a key strategy in capturing new markets and avoiding wastage.
Declining soil fertility and low access to soil testing facilities among smallholder farmers
Low access to potato seedlings or expensive seedlings that affect the sector
Farmer institutions at the local level are weak and lack the necessary support to be able to expand and grow into more established entities. They lack leadership and governance structures, financial support and mentorship so that they can evolve into profitable entities
High dependency on rain fed agriculture
High post-harvest losses,
Low market prices especially during the times of over production
Poor state of feeder roads that lead to high losses during transportation of farm produce to markets,
Low number of youth involvement in agriculture,
Inadequate market information and marketing skills among farmers
Way forward and Investment opportunities in Agriculture The county has great potential given it is endowed with fertile soils and receives well distributed rainfall.
Great potential exist in the development of agro-industry due to availability of raw materials.
Revival of collapsed agricultural cooperatives.
Investment in high value crops especially in the drier parts of the county
The gap between research and farmers has to be closed through supporting the access to information by the farmers so as to improve production through new and upcoming trends.
Enforcing laws on agriculture is a key aspect in boosting the sector and also ensuring that it remains profitable to the farmers. The county should liaise with other potato producing counties to ensure that the potato produce and marketing law in enforced uniformly across the counties.
Investment in improving rural access roads to boast agricultural productivity.
Formation of farmer groups and strengthening the existing ones, for joint collective aggregation and marketing
Through public private partnerships, there is so much potential through investment in agricultural cooling facilities which would decrease wastage and foster the development of value addition as an income generating activity for the local population.
There is need to identify strong farmer groups or cooperatives that can multiply the seedlings and sell them to farmers.
Subsidize the cost of A.I services to improve on the quality and quantity of milk being produced by training farmers on administration of A.I servicers to members.
Identification of farm input stores to facilitate a more decentralized subsidized fertilizer distribution system.
Partner with other potato growing counties to ensure that the legal notice of potato packaging is enforced.
Introduction of irrigation farming to enable farmers carry out farming all-round the year.
Farmers should be encouraged to carry out soil testing of their soils to ensure they understand the conditions of their soils.
Putting up cold storage facilities and bulking centers for potato farmers which can be utilized at a fee.
Tourism and Hospitality sector Tourism forms one of the key sectors that have the potential of earning Nyandarua County revenue. Tourism attraction sites in the county include: The Aberdare National Park, Thomsons falls and Lake Ol bolossat. The Aberdare Mountain Ranges, located about 150km from Nairobi, offer spectacular waterfalls and views and are a great place for
camping,
hiking
and
bird
watching.
Thomson’s Falls, situated just a Kilometre from Nyahururu town, some 160km from Nairobi, offers a great stopover for those travelling to the Aberdare National Park from Nakuru. The falls, which drop 72 metres on the Ewaso Narok River, have one of the highest hippo pools in the country.
Thomson’s Falls
Kichaki paradise situated at Lake OL bolossat Lake Ol bolossat, the only lake in the former Central Province, is an internationally recognized habitat for birds, with 180 species of birds. It is also home to 15 species of animals including hippopotamus. The lake is a popular destination among lovers of birdlife. Challenges facing the tourism and hospitality sector
Lack of a clear marketing strategy that can promote the sector
Poor road network also contribute to the inaccessibility of some tourist destination.
Low investment in hotels and other accommodation facilities.
Investment opportunities in the tourism sector
Mapping and extensive marketing of all the tourist attraction sites in the county.
Opening up of the tourist sites through improvement of the road network
Bird and animal watching platforms;
Setting up of tourist class hotels to promote the sector.
Development of picnic sites and nature trails in Kinangop and other potential areas
Investment in Reclamation and preservation of historical sites.
Investment in tour guide industry to take advantage of the many tourist attraction areas in the county.
Mining and Minerals Quarrying activities are found in a number of places within the County while sand harvesting is limited to Miharati and south-western parts of Kinangop along Nakuru – Nairobi highway. In spite of their economic contributions, these activities have a potential to socially and economically destroy and degrade the environment beyond limits hence the need for controls. Investment opportunities
Environmental audit to establish the impacts of the activities to the environment Investment in exploration to determine the kind of minerals available in the county Proper licensing and tax collection to ensure that the county benefits from the activities
Trade a, Commerce and Industry Despite its high agricultural potential, Nyandarua County does not have any single industry. The Jua kali sector is the only sector that currently offers employment to the youth but most of the areas that had been set aside for Jua Kali sector have been grabbed hence no space for expansion. The sector also operates in an uncoordinated manner. Cases of land grabbing and double allocation of land parcels have negatively affected the development of the county especially Ol’kalou town hindering development and scaring away investors. Speaking during the Governor’s round table the governor said that his government was keen to working with relevant authorities to ensure that all grabbed land is repossessed for development purposes’. Poor roads and infrastructure in the county have hindered investment
There is also need to develop an industrial park in the County mainly for the purpose of providing incubation services to SME’s and setting up an SME Data base for both retail and manufacturing enterprises. Insecurity in the region has been a major concern to business people in the region. Investment opportunities
Thread milling in Kinangop area due to availability of raw materials (wool).
Reposes all public grabbed land for development purpose.
Revival of the collapsed pyrethrum processing industry
Streamline the business licensing process to make it faster
Development of Jua Kali sheds and Sensitizing all those in the Jua Kali sector to form associations
Construction of market stalls in the key towns within the county
Development of Jua Kali incubation centers to nature the talent of the youth
Milk processing and dairy product making should be expanded to enhance value addition
Investment in cut flower farming due to favorable weather in some parts of the county.
Security sector Security continues to pose a threat to the business community in Nyandarua County. This problem is prevalent along the major highways and towns within Nyandarua County. The high number of school dropouts and unemployed youth contribute to the insecurity threat in the county. Poor lighting of some of the towns also contribute to the increasing cases of insecurity. Investment opportunities
Strong Collaboration between the county government and the national government in handling security matters.
Street lighting of the major towns to improve security and encourage a 24hour economy.
Increased highway patrols to lower the cases of insecurity.
Transport and infrastructure The provision and maintenance of the road network and other infrastructure is key to the development of the county. Nyandarua County has for a long time been under developed in-terms of the road network and electricity connection. Of the 3400km road network that cuts across the county, 2651 KM are earth surface which become impassable during the rainy season. The county government should undertake road construction and upgrading as its number one priority since majority of the residents are farmers whose produce often go to waste owing to poor state of roads. Only 10.5% of the county is covered with electricity and is mainly concentrated in urban areas. Investment opportunities
Opportunities exist for the county government to partner with the private sector in the development and maintenance of roads, water supply and sewerage.
Education The education sector in Nyandarua County has been on the decline in the recent past. The county does not have any university on constituent college of the main stream universities in the country. Nyandarua institute of technology is the only higher institution of learning in the county. Investment opportunities
Establishment of youth polytechnics
Improving the infrastructure and capacity of Nyandarua institute of technology
Improving the infrastructure of both primary and secondary schools
PPP in establishing TVET institutions
Health sector Health is an essential part of any community which intends to attain economic growth. Investment in the health sector will greatly improve the human resource development of the county. Key projects that the county is focusing on to improve its health sector include: upgrading of Ol’kalou to a referral hospital and upgrading of Ndaragwa and Bamboo health centers. Staffing of health centers and hospitals and regular training of the medical staff on emerging diseases and technologies should also be given priority by the county government. Regular consultation with the medical fraternity to solve emerging issues and challenges will help in preventing unrest that has been witnessed in some counties. Procurement of medical drugs and facilities should be streamlined to avoid delays.
PART III Proposals on way Forward in Each Sector Agriculture
Facilitate the availability of cheaper farm inputs including fertilizer while encouraging the use of high quality certified seeds and livestock breeds.
Fast track the construction of a milk cooling plant in Kinangop by the National Government
Invest in value addition especially on potatoes and milk for increased income and revenue
Cushion farmers against the negative impacts of climate change by capacity development programs on climate smart agriculture
Improve the condition of rural feeder roads to facilitate easy access to market by smallholder farmers
Put in place subsidy schemes for seeds and fertilizer
Revival of farmer field schools to encourage technology adoption
Negotiate for inter-county trade partnerships for easy market access.
Negotiate for direct market linkage between farmers and processors
Reduce over-dependence on rain fed agriculture by utilizing the available water resources in the county
Investment in provision of cold storage facilities through PPP
Tourism Sector
County government in collaboration with the business community should work towards improving the transport infrastructure to ease access to county tourist attraction sites.
Establish a museum that will capture historical artifacts and focus on profiling and protecting historical locations such as Mau Mau caves at Geta and Kimathi
Promote the county as a good training ground for both local and international athletes.
Development of cable cars between hills and mountaineering tracks in the Aberdare ranges.
Bird watching in the Aberdare ranges
Trade and commerce
County to ensure the business community is consulted in passing of policies and laws affecting their businesses especially on matters touching on taxation. New levies should be guided by the statutory instrument Act No 23 of 2013.
Any new laws enacted should be communicated to stakeholders on time
Ensure completion and operation of market stalls that are under construction
Repossessing of all grabbed land within the major towns in the county for development purpose
There is need to review and simplify regulations and licensing to make them more effective and business friendly
Putting in place a kitty that will lend money to business people at subsidized rates
Construction of Jua kali shades to promote the sector
Transport and infrastructure
The county government should prioritize the improvement of roads such as Kariamu-Shamata Road, Ol jororok- Ndundori Road, Njambini-Magumu Road among others.
The delayed construction of Mailu-Inya Shamata-Kariamu Road should be fast tracked to enable the opening up of the larger Ndaragwa Sub-county to enable residents have easy access to county headquarters in Ol’kalou.
Development of the ICT sector to create employment for the high number of unemployed youth
Security
Increased police patrols along the major highways in the county
Establish a rapid response units to create a more secure environment within the county
Make regulations requiring property developers to include security lighting in their premises
Security lights should be installed in all the major towns within the County
Health
Proper staffing of the existing medical facilities and dispensaries
Upgrading of existing medical facilities to enhance their capacity
Enter into PPP with other institutions in the provision of health services to the residents
Education
Introduction of agro-based courses in the tertiary institutions within the county
Though the education sector has not been devolved, the county government should introduce common tests in all schools across the county to help determine the level of education in the county. These will also help teachers in addressing weak areas in preparation for the national exams
Low lying fruits from the way forward 1. Investment in the agro-industry The economy of Nyandarua County is largely driven by agriculture. There is need for the county to invest heavily in the sector by: Improving the road network especially rural feeder roads, Putting in place investor friendly environment that will attract investors willing to invest in the agro-industry. The county should enter into inter-county governmental relations and coordination with other potato growing counties to ensure compliance with the 50kg potato packaging rule. Enhancing the capacity of farmer groups to be able to produce certified potato seeds which will make seed access cheaper Revival of the collapsed farmer cooperatives and strengthening of the existing ones. Provision of farm inputs such as fertilizer and seeds at subsidized rates Capacity building of farmers on climate smart agriculture will go a long way in cushioning the farmers against the effects of climate change. Direct linkage of farmers to markets will cut off brokers who exploit farmers. Construction of cold storage facilities in strategic locations will help in reduction of post-harvest losses. 2. Value for taxes The county government of Nyandarua should ensure that the county residents get
value for their taxes. As such, the county government ought to put in place measure for:
Tracking and controlling tax collection A one stop shop for pertinent business information Ensuring that the county assembly releases all county bills with adequate notice for scrutiny by stakeholders Giving priority to qualified locals in procurement process for county projects Developing a single business agenda for the County
Conclusion The benefits of collaborations and dialogue between any government and the private sector cannot be over emphasized. As such, and recognizing the fact that there are few business membership organizations in Nyandarua County, there is need for all the business people to form a coalition that will enable them engage with the county government and other institutions in a more structured manner as this is the best way of ensuring that their voices are heard. Such a coalition will be instrumental in ensuring that the county government of Nyandarua through the office of the Governor, works closely with the private sector, thus ensuring consultations and inclusion in decision making on matters that affect the business climate of the County, as provided by the constitution.
References The constitution of Kenya 2010 Nyandarua County Integrated Development Plan (CIDP) 2014 The World Bank, doing Business report 2013 The Kenya vision 2030 progress report 2013 http://www.investmentkenya.com