Uasin Gishu County Business Agenda by Kenya Association of Manufactures

UASIN GISHU COUNTY BUSINESS AGENDA An Advocacy Tool for the Uasin Gishu County Business Community Unlocking the Business Potential of Uasin Gishu County,

“The Champions”

Uasin Gishu Business Coalition

Compiled by Serah Kimani

Uasin Gishu County Business Agenda 2014

Kenya Association of Manufacturers (KAM) P.O. Box 30225 - 00100 GPO Nairobi 86 Riverside Lane, Off Riverside Drive, Riverside (currently) Mwanzi Road, Opposite Nakumatt Westgate, Westlands (from June 2014) Tel:+254 020 2324817/8; 020 8155531/2; 020 2166657 Mobile:+254 722-201368, 0706-612384, 0734 646004/5 Email: info@kam.co.ke Website: www.kam.co.ke All Rights Reserved A publication of the Kenya Association of Manufacturers Copyrights 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, photo copying or otherwise, without prior authority of the Kenya Association of Manufacturers.

Uasin Gishu County Business Agenda 2014

III

Map Showing Uasin Gishu County

Uasin Gishu County Business Agenda 2014

Contents Abbreviations......................................................................................... 2 Foreword................................................................................................ 3 Remarks by the Governor....................................................................... 4 Acknowledgments.................................................................................. 6

PART I............................................................................................ 7 Introduction........................................................................................... 7

PART II........................................................................................... 11 Uasin Gishu County Fact File................................................................... 11 Issues Facing Uasin Gishu County........................................................... 14

PART III.......................................................................................... 24 Proposals on Way Forward in Each Sector............................................... 24 Low Lying Fruits from the Way Forward.................................................. 37 Conclusion ........................................................................................... 39 References............................................................................................. 40 List of BMOâ&#x20AC;&#x2122;s in Attendance.................................................................... 41

Uasin Gishu County Business Agenda 2014

Abbreviations AFC CBA BMO BPOs CCTV EAC EAGC ECD EMACAK ERP ESMAP FKE FPE FSE GDP ICTs ILO JICA KAM KENFAP KEPSA KESOFO KNBS KNCC KNCC&I MICE NCPB NRTA PPD PPP SMEs TVET UG WHO

Agriculture Finance Corporation County Business Agenda Business Membership Association Business Processes Outsourcing Closed Circuit Television East African Community East African Grain Council Early Childhood Development Eldoret Matatu and Conductors Association of Kenya Enterprise Resource Planning Energy Sector Management Assistance Program Federation of Kenya Employers Free Primary Education Free Secondary Education Gross Domestic Produce Information Communication Technologies International Labor Organization Japan International Cooperation Agency Kenya Association of Manufacturers Kenya National Federation of Agricultural Producers Kenya Private Sector Association Kenya Community Sports Foundation Kenya National Bureau of Statistics Kenya National Chamber of Commerce Kenya National Chamber of Commerce and Industry Meetings, Incentives, Conferences and Exhibitions National Cereals and Produce Board North Rift Tourist Association Public Private Dialogue Public Private Partnership Small and Medium Enterprises Technical and Vocational Education Training Institutions Uasin Gishu County World Health Organization

Uasin Gishu County Business Agenda 2014

Foreword It is my pleasure to present to you the first edition of the Uasin Gishu county Business Agenda. This Business Agenda is a product of interactions between the business community operating in Uasin Gishu County and the Uasin Gishu County Government. The Uasin Gishu County Business Agenda is meant to act as a tool for business advocacy for the business community in Uasin Gishu County. The Business Agenda will also be useful to the Uasin Gishu County Government in identifying key initiatives and areas of improvement towards creating a conducive business environment to ensure that Uasin Gishu County lives to its fame of being “the home of champions”. It is worth noting that business championship and prosperity can only be achieved in a competitive environment, which Uasin Gishu County aspires to be. However, to be effective in business advocacy, I urge the business community in Uasin Gishu County to join relevant business membership organizations to facilitate the formation of a business coalition. The Business Agenda adopts a sectoral approach in its identification of issues of interest to the business community. However, recommendations proposed in this Business Agenda cut across different thematic areas, while retaining a sectoral focus. This Business Agenda is divided in three parts. Part I lays a background of the County Round Tables in Kenya, and expounds on the expectations from the Uasin Gishu Governor’s Round Table. Part II contains facts about Uasin Gishu County and explores the issues that face various sectors in the County. Part III makes recommendations of 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 Business Agenda concludes by emphasizing the importance of Public Private Dialogue and consistent collaborations between the county leadership and the business community in Uasin Gishu County towards achievement of Kenya Vision 2030. As the Chairman of Kenya Association of Manufacturers, the BMO which is charged with spearheading the formation of Uasin Gishu Business Coalition, I share the Uasin Gishu County Government’s dream of ensuring that Uasin Gishu County will live to its fame of being “the champions” , including champions of business and economic prosperity! Mr. Albert Kimwatan, Chairman, KAM Eldoret Chapter

Uasin Gishu County Business Agenda 2014

Remarks by the Governor My government is committed to ensuring that Uasin Gishu County will be known for its economic prosperity, in addition to its fame for athletic championships globally. As such, Uasin Gishu County leadership realizes the importance of Public Private Dialogue, and the critical role that is to be played by the business community as a partner in development. As a government, we are committed to working closely with the private sector, ensuring consultations and inclusion in decision making especially on matters that affect the business climate of the county, through regular round table meetings. I therefore urge the private sector in Uasin Gishu to coalesce around broad thematic areas in line with the existing ministries of my government, that is, a) Agriculture, Livestock Development and Fisheries; b) Education, Culture, Youth Affairs and Social Services; c) Lands, Housing and Physical Planning d) Health; e) Transport, Infrastructure & Communication ; e) Trade, Industry, Enterprise Development, Tourism & Wildlife Management; f) ICT & E-Government; g) Finance & Planning h) Public Services i) Water, Environment, Energy & Natural Resources. This will enable my government, through the specific county executives to coordinate with the private sector in getting stakeholdersâ&#x20AC;&#x2122; views, and to work towards implementing the same during my tenure. I therefore urge the private sector to continuously document their views to ensure easier follow up and collaboration with my government. To be effective and efficient, and for easier coordination on my governmentâ&#x20AC;&#x2122;s part, it will be imperative for private sector to be consistent and united in its recommendations to my government. I therefore urge the private sector in Uasin Gishu to adopt business advocacy models that have been tested and proven to work in other counties and countries. Specifically, during my tenure, I will ensure that my government facilitates a Quarterly Round Table Initiative for all private sector stakeholders in Uasin Gishu to evaluate progress on issues identified in through direct meetings with stakeholders or memorandums presented on specific advocacy issues by the Uasin Gishu County Business Coalition. As the government, it is our objective, in collaboration with the private sector, to showcase Uasin Gishu County as a favorable investment destination. Jointly, we will organize for a major investment forum to showcase key investment opportunities and incentives for promotion of economic growth in Uasin Gishu County. This forum should act as an opportunity for already in place investors to showcase their products and also residents to market their products. As such, this is expected to open up a larger market for the Uasin Gishu County products to the rest of the counties and the nation at large. I therefore urge the business community from the county to endeavor 4

Uasin Gishu County Business Agenda 2014

to join membership of the relevant organizations so as to assist them promote trade and investment in the county, uphold standards, while encouraging the formulation, enactment and administration of sound policies that facilitate a competitive business environment and reduce the cost of doing business in Uasin Gishu County, and in Kenya as a whole. To realize our promise to the people of Uasin Gishu County, my government acknowledges that it requires partnership and the good will of all its stakeholders and neighboring counties. I therefore urge the private sector to work together with the county leadership of Uasin Gishu, and its neighboring counties to develop value-add industries in agriculture and livestock sector, and to capitalize on our global fame in athletics to market Uasin Gishu County products to global export markets, including new ones. Towards this goal, the role of the private sector in the development of relevant skills for graduates from both TVET and other institutions of higher learning including universities within the county, to meet the industrial needs of exporting entities is already cut out. Finally, my government recognizes the need to develop a checklist of issues that it intends to address in the next five years. However, we realize that as an agricultural county, the issue of affordability of agricultural inputs including fertilizers and seeds is urgent and require our immediate action. As a government, we will endeavor to ensure that Uasin Gishu County gets a fertilizer manufacturing plant to ease access and cost of this important agricultural input. It is my conviction that through sustained dialogue and collaboration with the business community and our neighboring counties, my government will transform Uasin Gishu County into a home of business giants, and establish valuable economic linkages with our neighboring counties in the greater rift valley region. Hon. Jackson Mandago Governor of Uasin Gishu County

Uasin Gishu County Business Agenda 2014

Acknowledgments The Uasin Gishu County Business Agenda was prepared from views and presentations of the business community from Uasin Gishu County. Valuable input and reviews were provided by the Office of the Governor of Uasin Gishu County. The Business Agenda was complied through concerted efforts of a dedicated team of my colleagues at the Kenya Association of Manufacturers including Kennedy Mohochi, Tobias Alando, Frida Mbugua, Edith Koske and Anne Ndungâ&#x20AC;&#x2122;u under the guidance of Serah Kimani, a consultant. The Uasin Gishu County Business Agenda benefited immensely from review by members of the business community in Uasin Gishu County including EAGC, NRTA, Keino Sports House, KESOFO, EMACAK, KNCC&I (Eldoret Chapter) among others. The preparation and publication of this Business Agenda would not have been possible without the financial support of Business Advocacy Fund. Ms. Betty Maina Chief Executive Officer Kenya Association of Manufacturers

Uasin Gishu County Business Agenda 2014

PART I 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 that devolution works for businesses, without interrupting them or taking away from gains already reaped from previous business advocacy. Armed with this realization, and appreciating the importance of solidarity in advocacy, usiness Membership Associations (BMOs) jointly1 organized a national consultative forum dubbed “Ensuring Devolution delivers for Business: Building Coalitions in Pursuit of Business Interests” on 18th 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 for 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 county governments through well organized 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 of business issues with a strong and united voice.

1. The meeting, held in Nairobi, was organized by FKE, KAM, KCCI, KEPSA & KENFAP, under the leadership of KAM.

Uasin Gishu County Business Agenda 2014

Main Objectives of the BMOs’ Coalition • 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 a trade and investment framework in each county; and • 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 Uasin Gishu County Governor’s Round Table • To lay the foundation for the formation of a Uasin Gishu County Business Coalition to advance a county business agenda; • To create a platform for advocacy on business related issues in Uasin Gishu County through frequent dialogue and engagement mechanisms with the Uasin Gishu County Government; • To ensure that the business community in Uasin Gishu 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 Uasin Gishu County; • To provide the stakeholders in Uasin Gishu County with an opportunity to critically participate in the governance and growth of their County; • To identify key flagship projects within Uasin Gishu County in line with Kenya Vision 2030; and • To discuss incentives that can be extended to investors in the County by the county government.

Uasin Gishu County Business Agenda 2014

In light of the resolutions from the BMOs’ national consultative meeting of 18th April 2013, Kenya Association of Manufacturers (KAM) mobilized the existing BMOs,2 the general business community and other stakeholders from Uasin Gishu County to organize the first county governor’s round table on 6th August 2013. However, one peculiarity of Uasin Gishu County is that most business people do not have membership of any BMO. The Uasin Gishu County Governor’s Round table was attended by among others the Deputy County Governor Hon./H.E. ……….. , Members of the Executive Committee, BMOs in the county and many non- affiliated business people. The business people were urged to join relevant BMOs to facilitate the formation of Uasin Gishu County Business Coalition so as to strengthen business advocacy at the county level. Issues affecting the business community in the county, opportunities for investment in the county and governance issues were explored through presentations by both the business community and the county leadership, and plenary discussions of issues and recommendations. The private sector was encouraged to group itself along the various sectors, with groups being chaired by members of the Uasin Gishu County Executive Committee as follows: 1. Agriculture; 2. Tourism, Culture and Sports; 3. Education; 4. Health; 5. Transport, Infrastructure & Communication /ICT; and, 6. Trade, Commerce & Industry.

2. There are very few BMOs in Uasin Gishu County, and as such KAM was largely responsible for this round table.

Uasin Gishu County Business Agenda 2014

The contents of this Business Agenda therefore reflects the outcome of discussions in the round table and recommendations arrived at during plenary. The way forward in this Business Agenda reflects the consensus arrived at by the county government and the private sector after the business community made its presentations and recommendations on issues falling under the sectors. Expectations of the Business Community from the Uasin Gishu County Governor’s Round Table • That following the first round table in Uasin Gishu County, a foundation for a lasting relationship between the business community and the County government will have been established, and that going forward, the Uasin Gishu County business community would form a County Business Coalition as a forum for active engagement with the County Government during its 2013 -2017 tenure . • That the Uasin Gishu County Business Coalition will co-ordinate and support efforts by the entire business community in Uasin Gishu County to influence the County Government to implement business-friendly regulations that encourage investment, thus making Uasin Gishu County the most competitive county in Kenya. • That the issues identified in this Business Agenda will inform the development of a County Integrated Plan and a checklist of actionable issues by the Uasin Gishu 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 an year from the date of this Business Agenda or even a shorter period, it is the expectation of the business community in Uasin Gishu that the county government will use this Business Agenda as a reference document in developing Uasin Gishu County Integrated Plan as contemplated by the County Government Act.

Uasin Gishu County Business Agenda 2014

PART II Uasin Gishu County Fact File • Uasin Gishu County is situated in the mid-west of the Rift Valley covering an area of 3,345.2 square kilometers and lies between longitude 34 degrees 50’ east and 35 degrees 37’ west and latitude 0 degrees 03’ south and 0 degrees 55’ north • The county has six constituencies namely Soy, Turbo, Moiben, Ainabkoi, Kapseret and Kesses. The sub-counties are further sub-divided into 51 locations and 97 sublocations. It borders six counties namely Elgeyo Marakwet County to the East, Trans Nzoia to the North, Kericho to the South, Baringo to the South East, Nandi to the South West and Bungoma to the West.3 • The county is home to Eldoret, the fifth largest town in Kenya. Eldoret town is home to renowned world champions and world record holders and breakers in athletics. Eldoret town is rated as the second best growing town in Kenya. 4

The name Eldoret is derived from the Maasai word ‘eldore’, which literally means stony river. The river bed of the Sosiani River is very stony, whence the town derives its name. The town started in 1910 with the construction of a post office on a site, which was known to the white settlers as Farm 64, 64 or Sisibo because the town of Eldoret was 64 miles away from the newly established Uganda Railway railhead, located at Kibigori. When the governor planned to build an administrative center, the Post Office was renamed from 64 to Eldoret, now the official name of the town. The extension of the Uganda Railway, from Kibigori toward Uganda, reached Eldoret in the year 1924, unleashing a period of prosperity and development. The year 1928 saw the introduction of the piped water supply from the Sosiani River. By the year 1933, Eldoret had a small airport of its own.

3. Independent Electoral and Boundaries Commission. 4. See UN Habitat Report, 2010.

Uasin Gishu County Business Agenda 2014

DEMOGRAPHIC FEATURES • The county has an estimated population of 894,179 with urban population contributing about 31% of the entire population. 6The population density is 267 persons per square Kilometer. • The County has potential labour force of 550,000 (56%) of the entire population. Hence 44% of the population is dependent. • Uasin Gishu County is a highland plateau with altitudes falling gently from 2,700 metres above sea level to about 1,500 metres above sea level. The County lies within the Lake Victoria catchment zone and all its rivers drain into the lake. The main rivers include; Sosiani, Kipkaren, Kerita, Nderugut, Daragwa and Sambu • Uasin Gishu County has an extensive road network comprising of over 300 kilometers of tarmac road, 549 kilometers of murrum and 377 kilometers of earth road. It also has 179 kilometers of railway line. • The County has 29,802 hectares of gazette forests out of which 13,184 hectares (i.e. 44%) is under plantation while 16,618 (i.e. 56%) are under indigenous forest cover. The gazetted forests are Nabkoi, Timboroa, Kipkurere, Lurenge, Singalo and Kapseret. • It is located in the plateau, a serene environment with many agricultural activities. An estimated 90% percent of the entire land area in the county is arable and can be classified as high potential. There are four major soil types in the area, all of which are suited for agricultural production. • The county has two rainy seasons with average rainfall from 900mm to 1,200mm per annum With two distinct peaks occurring between March and September; and May and August. Dry spells occur between November and February Temperatures range between 8.4 degrees Celsius and 27 degrees Celsius

6. As per 2009 national census, Kenya National Bureau of Statistics. In 2012, the population age group between 0 and 14 years was 41.4% of the total population while age group of between 15 and 64 years accounted for 55.7% of the population. Hence the county has a high dependency ratio and a high potential for labour force. The age group between 15 and 29 years is expected to grow from 284,278 to 385,273 by 2017. This comprises of the youth who contribute to the high dependency ratio due to limited employment and income generating opportunities. The age group under one year is projected to grow from 29,175 in 2009 to 39,539 by 2017, while that of the age between 2 and 5 years is expected to grow from 162,559 in 2009 to 220,311 by 2017.

Uasin Gishu County Business Agenda 2014

• The county’s economy is dominated by agriculture and is one of the largest contributors to the food security in Kenya, and thus the name the “bread basket of Kenya”. Agriculture takes the form of large scale farming in wheat, maize, dairy and livestock farming. Horticultural products include traditional vegetables and fruits. • There are 102 trading centres with six of them being urban centres and towns. These are Burnt Forest, Matunda, Turbo, Moiben, Kesses and Kapseret • The county has a relatively broad industrial base in agri-processing, textile, chemical, plastic, steel and timber, particularly around Eldoret town. • The county has a relatively well established infrastructure including Kenya’s third international airport that handles large amounts of cargo from the Middle East.7 • The county is home to a branch of Central Bank of Kenya, 21 commercial banks, 108 urban and four rural Sacco and five major micro financing institution. • The County has two public Universities that is Moi University and University of Eldoret. It also has two private universities and constituent colleges of major universities. There is also a national polytechnic, a technical training institute and several commercial colleges. • The county is home to 576 ECD Centres, 422 primary schools and 129 secondary schools.

7 The existence of the extensive road network, the railway, The Eldoret International Airport and two airstrips makes the County the region’s economic hub and a link to the western circuit.

Uasin Gishu County Business Agenda 2014

Issues Facing Uasin Gishu County Agricultural Sector Agriculture is one of the major economic activities in Uasin Gishu County, and includes wheat and maize farming. The region is best known for the high production of ….factors identified as major maize and wheat that is used to feed a large constraints to agricultural proportion of the population in the country, productivity in Uasin and thus the nick name “the bread basket of Gishu include high cost of Kenya.” Other activities include horticultural inputs(especially the price farming, with passion fruits and traditional of fertilizer and seeds), poor vegetables forming notable exports from this livestock husbandry, limited county. This sector accounts for over 40% of extension services, overthe County’s GDP.8 Agricultural activities in dependence on rain-fed this county are carried out on a large scale. agriculture, lack of markets, and Livestock farming, which is common, is known limited application of agricultural for the high production of milk and meat that technology and innovation. is processed and packed for sale in Nairobi and Kericho. The agricultural sector in Uasin Gishu county is however faced with numerous challenges. The most notable challenge is the high cost of inputs making them inaccessible to farmers, especially the small scale farmers. Other challenges include use of outdated farming methods and techniques which reduce the output and lack of education by the farmers on the best farming practices which affects productivity of the sector in the county. Farming has also been hit hard by the fluctuation in prices of commodities and farm produce in the global markets, reducing profitability. The high cost of land in the county poses a challenge to the sector making land scarce, with the available land being subjected to untenable subdivisions9. In the Medium Term Plan 2008-2012 of Kenya Vision 2030 has identified agriculture as one of the six priority sectors that will drive the Economic Pillar. Agriculture makes up the larger part of Kenya’s GDP at 57% and provide for nearly half of the country’s total informal employment.

8 Export Promotion Council. 9 Ibid

Uasin Gishu County Business Agenda 2014

Investment opportunities in agriculture • Investment in fertilizer production plants towards realization of the Fertilizer Cost Reduction Initiative flagship project in line with the Economic Pillar of Vision 2030. • Machinery leasing e.g. the zero tilling machine etc. • Value addition of agricultural produce from the county and branding these products as emanating from “the home of champions” for export to various regional and world destination including Uganda, etc Kenya Vision 2030 flagship project in agriculture and livestock ……….. the development and implementation of three tiered fertilizer cost reduction programs

Sports Sector Over the years, Uasin Gishu County has demonstrated its prowess in sports globally, especially in athletics. Some of the most celebrated sports people, who have put the country on the world map, call Uasin Gishu County home. The victories of runners from this county have exposed Kenya as a top sporting nation and consequently created opportunities for Kenya as a great tourist attraction. Further, earnings from athletics championships have contributed to notable investments in commercial buildings and residential houses in Eldoret town and other urban areas of Uasin Gishu county. Sportsmen from this county have also invested their running dollars in extensive farming projects. The county has also witnessed major investments in training camps for both local and international athletes due to its geographical location and climate, which are ideal for endurance training. However, this sector faces many challenges including lack of designated training facilities, equipment, exposure, and organization. The existing sporting facilities including Kipchoge Keino Stadium are in a deplorable state, with some already encroached on by individuals. It is also notable that plans to construct a new stadium have since stalled. Due to the limited sports facilities, athletes mainly train on roadsides, which exposes them to injuries. Vision 2030 highlights the importance of sports in the development of the youthful population in the country. The sports sector is also important towards the realization of national economic growth.

Uasin Gishu County Business Agenda 2014

Investment opportunities in Sports • To take advantage of the geographical location and climate of Uasin Gishu which is ideal for endurance training for sportsmen, opportunities exist for investment in training camps for most sports. • In a county rich in sports human resource, establish a training camp for sports managers and coaches, and sports management companies. • To take capitalize on fame of world renown athletics record holders and breakers who call Uasin Gishu County home, opportunities exist for advertising agencies to market local and international brands. Tourism Sector Tourism forms one of the key sectors of development for Uasin Gishu County, and Kenya as whole. It is worth noting that Vision 2030 identifies tourism as being one of the six sectors that will drive Kenya towards the achievement of its Economic Pillar. The main tourism attractions in Uasin Gishu County include the To fully exploit the potential of tourism, breathtaking scenic beauty, sports Uasin Gishu County government will need tourism, cultural tourism and eco- to market and conserve its existing cultural tourism. However, poor marketing heritage and scenic beauty in line with strategies have led to underutilization Vision 2030 goal of expanding Kenya’s of the county’s tourism and global and African market share through hospitality potential. Thus, the wealth offering new tourism products, expanding that lies in some of the historic sites the tourist expenditure per capital and in the county has only been beheld improving its international marketing by a handful of people, both locally strategies. and internationally as very few people are aware of their existence. Poor road infrastructure also contributes to the inaccessibility of some of the tourist destinations in this County. Sports tourism, a major potential for the county’s tourism has been adversely affected by the neglect of existing sporting facilities, for example Kipchoge Keino Stadium. Further, sports tourism is threatened by foreigners who are out to exploit the locals, through illegal use of intellectual property rights and other unfair practices as a result the County’s ignorance of the potential of its resources. Other challenges to the tourism sector are posed by low investment in hotels and other accommodation facilities leading to limited bed capacities in the available facilities, and inadequate trained professionals in the industry. Investment opportunities in the tourism sector • To take advantage of the scenic beauty of the county, invest in golf courses and sports stadias.

Uasin Gishu County Business Agenda 2014

• In a county where tourism facilities are strained, with demand outweighing supply, opportunities exist for investment in resorts, lodges, parks, camps and motels. • To market Uasin Gishu County to the world, while capitalizing on its fame as the home to world renown athletes, organize an annual Uasin Gishu County Marathon which would be an attraction for both local and international athletes. Energy Sector As a county whose main activity is agriculture, Uasin Gishu County has the potential to generate electricity from hydros, wind and solar sources. This potential notwithstanding, the business community in Uasin Gishu County faces the persistent challenge posed by regular power outages that disrupt production, leading to reduction on the income. Often, profits made by companies go towards the purchase and operation of generators. The consumers of electricity pay large amounts to Kenya Power, yet the outages are not factored in to reduce these tariffs. It is worth noting that access to electricity is still very low in the County. The number of households with access to electricity is 7,738, representing 15.6% of the total number of households in the county10. The use of alternative power sources such as solar power is very minimal as most residents use kerosene, firewood and charcoal for cooking and lighting up their households. These choices of fuel pose a great deal of danger to the county’s forest cover. Investment opportunities in energy • Setting up small hydro-power plants on Sosiani, Kipkaren, Moiben and Chepkoilel rivers. • To take advantage of the windy season, setting up turbines to generate wind power especially along Uasin Gishu /Keiyo-Marakwet border and areas around Ilula, Sergoit, and Keiyo Escarpment. • Solar photovoltaic power has a very high potential although still expensive to deploy on a large scale. Need to explore Feed-in PV system for the future

Key challenges to export trade in Uasin Gishu County include: Lack of entrepreneural export culture; Lack capacity of consistent quality production; Stringent standards on horticultural crops production; Lack of cold chain infrastructure leading to high postharvest loses; Inability to meet market requirements; Slow adoption of technology; Over-reliance on a handful of export products and export enterprises in the region; Costly and inefficient distribution infrastructure; Underutilisation of the Eldoret International Airport for export trade; Minimal youth involvement in export value chain; and, Minimal participation in export trade capacity buildings. Source- Export Promotion Council

10 www.softkenya.com/uasingishu/

Uasin Gishu County Business Agenda 2014

Manufacturing and Industry In Uasin Gishu County, the manufacturing sector consists of agri-processing, textile, chemical, steel and timber industries. The county also has a rife agri-based formal and informal manufacturing sector, with a huge potential for accessing regional and global export markets. The productive agricultural sector ensures a reliable source of raw materials for the agri-processing industries in the county, and Kenya as a whole. The county boasts of the Eldoret International Airport which gives the county an opportunity to grow and expand its export market share. The Eldoret International Airport has the potential of acting as a distribution hub of exports to various destinations including the Middle East, Uganda, Egypt and DRC Congo. Despite the existence of such an important infrastructure, the industrial and manufacturing sector in Uasin Gishu County face numerous challenges including high costs of inputs, rising costs of labor, unreliable and expensive energy, poor infrastructure resulting in inefficiency in the local transport and logistics sector (e.g. port, rail and road transport services) thus hampering the ability of local manufacturers to access and be competitive in regional and global markets, unfavorable business environment due to heavy regulation and taxes, weak enforcement mechanisms, incidences of insecurity, as well as limited access to capital for the growing SMEs in agri-processing. Under Vision 2030, the manufacturing sector is expected to play a critical role in propelling the economy by 10% growth rate under the Economic Pillar to support the country’s social development agenda through the creation of jobs, the generation of foreign exchange, and by attracting foreign direct investment. To meet those goals, the sector has to be more efficiency driven, raising productivity per unit of input (especially of labor and capital) closer to those of Kenya’s external competitors.

Investment opportunities in manufacturing and Industry Value addition to agricultural products through processing, packaging and branding of bulk agricultural produce including milk, fruits and vegetables for regional and global export markets.

“Value addition is the way to go to make agriculture profitable” One Village One Product, a project supported by JICA, that focuses and supports value addition activities at the grass root level in Kenya.

Uasin Gishu County Business Agenda 2014

Infrastructure Sector In Uasin Gishu County, the total classified road “Infrastructure is an effective network covers a distance of 328.5 km, with factor of production” – The 53% being earth surface, 14% being murrum World Bank and 33% being tarmac surface11. With regard to communication, the County enjoys 65% mobile network connectivity due to the presence of Safaricom, Zain, Telecom, Orange, and Econet12. Access to electricity is still very low in many areas of the County. The number of households with access to electricity is 7,738, representing 15.6% of the total number of households in the county13. The use of alternative power sources such as solar power is very minimal as most residents use kerosene, firewood and charcoal for cooking and lighting up their households, which pose a great danger to the county’s forest cover. Only 0.3% of the residents have access to piped water, 2.5% have access to portable water14, and only 35% of the Eldoret residents are connected to the main sewer line. It is worth noting that, due to poor maintenance of existing facilities, the existing infrastructure in the county continues to be damaged by common climatic occurrences. Vision 2030 identifies Infrastructure as one of the foundations for social economic transformation Kenya, aspiring for “….. a country firmly interconnected through a network of roads, railways, ports, airports, water and sanitation facilities, and telecommunications “ - Vision 2030 Foundations for Social Economic Transformation”.

Investment opportunities in infrastructure Opportunities exist for the County to partner with the private sector in the development and maintenance of key infrastructure including the airport, roads, power supply grids, water supply and sewerage systems.

11 See www.uasingishucounty.blogspot.com. 12 Ibid 13 Ibid 14 Ibid

Uasin Gishu County Business Agenda 2014

Ethnic Diversity and Security Sector Uasin Gishu County boasts of diversity and multiculturalism with many ethnic communities calling this their county home. Ethnic diversity brings with it the advantage of learning about different cultures and how cultures relate. However, ethnic diversity in Uasin Gishu County has been a recipe for insecurity due to ethnic conflicts especially during the election periods.

People may be said to resemble not the bricks of which a house is built, but the pieces of a picture puzzle, each differing in shape, but matching the rest, and thus bringing out the picture. -Felix Adler Differences challenge assumptions. -Anne Wilson Schaef

In addition to ethnic conflicts, the county experiences other elements of insecurity which are more prevalent in urban areas due to high unemployment and school dropout rates by the youth, lack of lighting, corruption by enforcement officers, low morale on the part of law enforcement officers and lack of coordinated efforts in all sectors responsible for enhancing security. There is need to beef up security by providing police patrols, improved street lighting and security cameras at strategic points of the county particularly in the industrial zones. Vision 2030 notes the need for acknowledgment of the ethnic diversity of Kenyans in pursuit of economic, social and political aspirations. Kenya will be a state in which equality is entrenched, irrespective of one’s race, ethnicity, religion, gender or socio-economic status; a nation that not only respects but also harnesses the diversity of its peoples’ values, traditions and aspirations for the benefit of all. The Vision aims to move all Kenyans to the future as one nation …. “free from danger and fear.”

Environmental Sector Waste management including collection and disposal continue to pose a great challenge to Uasin Gishu County. The factors that contribute to this problem include Kenya aims to be a nation that has “…a clean, secure and sustainable environment by 2030.” This is premised on the fact that most sectors including agriculture and manufacturing can only do well in a healthy environment. At a national level, Kenya continues to face challenges in relation to sustainable management of natural resources and the ever growing demand for farmland and forest products. Vision 2030 notes the adverse impact of environmental degradation on the country’s environment and related resources.

Uasin Gishu County Business Agenda 2014

lack of enforcement of environmental regulations, absence of designated dump sites, lack of coordinated and adequate collection mechanisms, absence of sewerage and waste management systems and policies, and a general lack of discipline and awareness among the general public. Further, environmental challenges facing the county emanate from the effects of global warming, resulting in erratic weather patterns characterized by devastating floods and frequent and intense cycles of droughts. This continues to affect the agriculture and tourism sectors among other key sectors in the county.15 Investment opportunities in environmental sector • The proliferation of unmanaged waste in the county, especially in the urban areas, present opportunities for investors to set up waste management plant. • The agricultural waste also portends potential for investment in a bio fuel generation plant. Health Sector Health is an essential part of any community which intends to attain economic growth. Despite its size, Uasin Gishu County has eighty dispensaries and twenty three health centers.16 The doctor to patient ratio in this county is 1:10,034. Although the County has some government dispensaries, rural health centers and private hospitals, the county citizens mostly residents rely on Moi Teaching and Referral Hospital for in-patient services and specialized treatment. It is worth noting that Uasin Gishu County does not have other modern medical facilities. The existing few are dilapidated with inadequate staff and outdated equipment. This increase the cost of medical care making health care is inaccessible by the residents. The number and quality of medical facilities in Uasin Gishu County is a source of major concern as evidenced by the congestion at the Moi Teaching and Referral Hospital, the main hospital in the county.

“Decisions regarding the allocation of public funds in the Health sector and health- related areas must consider Their intrinsic and instrumental value of health. Health is an asset, a component of what economists define as ‘human capital’. Investment in health has marked deficiencies (in the amount as well as its allocation) that limit the potential impact that improvements in health can have on economic development.” Source: Investing in Health for Economic Development, WHO.

15 See http://www.unep.org/roa/Programmes/KenyaCountryProgramme/ClimateChangeinKenya/. According to UNEP. economic losses due to this environmental vulnerability have been estimated to cost up to 40% of the national GDP. 16 See www.uasingishucounty.blogspot.com

Uasin Gishu County Business Agenda 2014

“Kenya’s Vision 2030, which is a blueprint for economic and human development, makes particular reference to good education and to healthcare for all. The quality of education and health services will in fact determine whether the promise of Vision 2030 will be shared by everybody, especially those who live under the poverty line today.” Source - World Bank Report, 2012, Are Kenyans Being Served? New Data Sheds Light on Health and Education.

Housing and Sanitation Sector Due to the growth witnessed in the rift valley region generally, Uasin Gishu County continues to experience rapid urban population growth. This has presented a challenge in meeting the housing needs of its residents. Athletes, among other investors from this County have responded to this demand by investing their sports earnings in construction and residential developments. Thus, in the last decade, urban areas in the County, especially Eldoret town, have witnessed a proliferation of high rise residential and commercial developments. Further, the county has witnessed frequent change of user of agricultural land to residential and commercial areas by investors and property speculators. Investment opportunities in housing and sanitation • Development of modern affordable residential dwelling units. • PPP with private sector to develop an efficient water supply and sewerage systems. • Urban planners and surveyors can offer professional services in planning of towns in the County. Education Sector As already stated in this Business Agenda, Uasin Gishu County is endowed with a high population, a sizeable percentage being children and the youth. Both the government and private sector are major players in providing early childhood, primary and secondary education.

Uasin Gishu County Business Agenda 2014

“Education and training have long been recognized as key drivers of social and economic development.” - ILO

Uasin Gishu County has 771 primary schools and 158 secondary schools.17 However, the transition rate from primary to secondary school is approximately 50%. Some of the factors that account for this situation include lack of school fees and poor academic performance among students. Although the government institutions offer Free Primary Education (FPE) and Free Secondary Education (FSE) which have helped to ease the burden of fees, quality of education is affected by low staffing, poor facilities, high poverty levels, poor management in schools, and high dropout rates. These issues ultimately contribute to the poor quality of education, leading to a preference for private schools by most parents. It is the general view among the residents of Uasin Gishu County, as is of most Kenyans, that private schools offer better quality of education as they have better facilities which are often lacking in public schools . Uasin Gishu County also has sufficient number of institutions of higher learning to accommodate the increasing number of students graduating from secondary schools and to meet the ever evolving needs of industry. The county also lacks sufficient relevant technical and vocational education and training (TVET) institutions focusing on inculcating skills that are relevant to the county’s specific needs in the development of agriculture, livestock and fisheries, value chain and value addition and tourism. Opportunities in education sector • Investment in building and fully equipping new secondary schools to accommodate the increasing graduates from primary schools in the County and the entire rift valley region. • PPP with county government in establishing TVET institutions & specialization centers, developing curricula and impacting practical knowledge to students in such colleges/centers.

“Under vision 2030, Kenya aims at providing globally competitive education, while raising the quality and relevance .Kenya’s Vision 2030, which is a blueprint for economic and human development, makes particular reference to good education and to healthcare for all. The quality of education and health services will in fact determine whether the promise of Vision 2030 will be shared by everybody, especially those who live under the poverty line today.” – Kenya Business Review, June 2013, The World Bank

17 See uasingishucounty.blogspot.com

Uasin Gishu County Business Agenda 2014

PART III Proposals on Way Forward in Each Sector Agriculture To diversify and improve agricultural productivity, marketing and value addition, the county government should: • Facilitate the availability of cheaper farm inputs including fertilizers while encouraging use of high quality seeds and livestock breeds to increase yield. • Put in place subsidy schemes to facilitate farmers to afford necessary farm inputs e.g. seeds, fertilizers and other necessary farm equipment. In line with development and implementation of 3 tiered fertilizer cost reduction program. • In line with the Economic Pillar of Vision 2030, institute incentives to encourage investors to set up fertilizer manufacturing plants in line with the Fertilizer Cost Reduction Initiative flagship projects. • Set up a demo center to show case farming methods, train farmers on productivity and be a resource center for leasing out farming equipment to farmers at subsidized rates. This can be achieved through a PPP. Further, the county government should encourage farmers to focus on professional farming through establishing centers where individuals and groups can sub-contract farming services “Distant Farming.” • Partner with neighboring counties and form collaborations to achieve economies of scale in farming methods and addressing demands of large markets. • Train and encourage farmers to adopt new technologies such as zero tillage which will increase the productivity of the available land resources. In line with this, the government should encourage farmers to adopt technological methods of drying maize and wheat as opposed to popular traditional ways of (which lower quality of produce). • In line with Vision 2030,18spearhead the introduction of friendly agricultural policies so as to promote and safeguard agriculture and livestock development in Uasin Gishu County. • The Governor to use his “Bully Pulpit” to ensure partnerships with financial institutions to facilitate cheap credit facilities to farmers. • Develop a master plan for agricultural land use,19 and put in place measures that discourage the untenable subdivision of agricultural land. 18 Vision 2030 flagship project for 2012 in agriculture and livestock 19 Vision 2030 flagship project for 2012 in agriculture and livestock

Uasin Gishu County Business Agenda 2014

• Provide direct market linkages between farmers and manufacturers e.g. of passion fruits, saga, managu etc, so as to eliminate the often exploitative middle men, thus ensuring that farmers get more value for their produce. • Form marketing bodies to assist in advising farmers on available markets and consumer needs, required quality, negotiate favorable prices for farm produce, educate and create awareness to farmers and the youth. • Create necessary agricultural infrastructure e.g. storage facilities, with warehouse receipt systems to maintain high scale farming which in turn creates employment for the youth in the county. Further, county should focus on creating value addition units so as to increase returns for the farmers. • Improve the dilapidated roads network in the county to facilitate the transport of agricultural products, which are perishable in nature, from the farms to the cities/towns. • Specifically allocate land for agricultural activities only, while reviewing the land rates and rents in the county which are prohibitive. • Improving the value gained in the production and supply chain through branding farm products 20 to take advantage of the popularity of the county in athletics. • Develop a County Horticulture Strategy. • Partner with the private sector to establish and equip existing institutions of higher learning with requisite technical and infrastructural capacity to test agricultural products • Reduce over-dependence on rain for farming Sports • Development of a County Sports Development Strategy which will essentially create pathways for people to progress in sports from learning the foundations, performance, participation and excellence. • Capitalize on the outstanding sports performance of athletes to create and promote sports tourism. • Development and maintenance of modern sports training facilities including stadiums, training camps and training tracks and high altitude training locations in the County. • Partner with the private sector to encourage the youths to participate in sports and initiating participation in other cultural activities which are beneficial.

20 Vision 2030 flagship project for 2012 in agriculture and livestock

Uasin Gishu County Business Agenda 2014

• Partner with the private sector to develop and sustain sports programs for all cadres of people, including establishing an annual Uasin Gishu Marathon, Eldoret International Marathon, major soccer tournaments, Uasin Gishu Sports festival and also hold a mini common wealth games in Eldoret. • Partner with the private sector to diversify sports by exploring other sporting activities within the county e.g. boat rowing. • Collaborate with existing sports organizations in the county towards the education, training and development of talented sportsmen and sportswomen of Uasin Gishu County to achieve success in major games and international sporting events. • Facilitate investments in sports science and sports medical services facilities which can serve elite athletes and coaches, and cater for the needs of athletes undergoing sports training program in the county’s training facilities. • Establish policies and implement laws that protect sports facilities • Establish a sports museum in the county to showcase rare historical sports gems and trophies. Vision 2030 notes that Kenya enjoys a great international reputation in sports. This potential has not been fully exploited, and provides a good foundation for promotion of various types of sports tourism. Deliberate efforts should be made to promote Kenya as a popular destination for sports tourism – Vision 2030 Tourism Sector (Niche Products)

Tourism • Promote sports tourism 21 by capitalizing on the outstanding sports performances and prowess of athletes from this county to grow volumes of visitors into the county. • There is urgent need to improve security 22 in Uasin Gishu including correcting the perception of insecurity resulting from ethnic tension, as tourists need to be assured of their safety and security. • Improve under-utilized parks 23 through maintenance of the often unknown tourist attractions within the county. Further, the county should initiate initiatives for beautification of existing parks and protection of such parks from encroachment in line with the Under-utilized Park Initiative of Vision 2030 Economic Pillar. In line with this, the County government needs to carry an audit of all existing tourism resources in the County and how they are being utilized. 21 Vision 2030 Tourism Sector (Niche Products). 22 Vision 2030 Tourism Sector (Challenges and opportunities). 23 Vision 2030 Tourism sector (Flagship projects and key initiatives in Tourism)

Uasin Gishu County Business Agenda 2014

• Provision of incentives to the private sector to propel them to invest in tourism related businesses including sports training camps and sports injuries medical facilities. Further, the County Government should create incentives including availing land at zero land rates to attract investors in hostels, conference facilities, lodges and other world class tourism and sports resorts. • Encourage domestic tourism by offering affordable or subsidized rates to locals to allow the local community to partake of the benefits of the various tourism sites as a way to motivate them to participate in the county initiative of promoting tourism. • County government in collaboration with the business community should work towards improving transport infrastructure to ease access to the county tourist attraction points. Further, as a county which is popular for its athletic prowess, the county government should seek partnerships with the private sector towards rehabilitating the existing sports facilities, before considering to put up new ones. • Establish a museum that will capture historical artifacts and focus on profiling and protecting historical locations e.g. the oldest post office, administrative structures, culture etc. • Establish a tourist information centre at the County with accurate and up to date information. • In collaboration with the private sector, rehabilitate Sosiani River into a recreation park and arboretum. • Facilitate investments and establishment of recreation facilities for children within the county. Energy Sector • The county should explore alternative sources of energy. There is urgent need for the county to enter service agreements with energy providers in order to ensure supply of affordable, sufficient, reliable, quality and clean energy to power industry and to serve the county’s population. • In developing its Integrated County Plan, Uasin Gishu County should mirror the draft National Energy Policy in line with Vision 2030. • As a starting point in order to achieve the above, the County Government should set up a County Energy Committee, with a large membership of the business community to coordinate with energy agencies in Kenya for improved power supply.

Uasin Gishu County Business Agenda 2014

Manufacturing & Industry Uasin Gishu County has the vision of developing a robust, diversified and competitive manufacturing sector in line with the Economic Pillar of Vision 2030.24 To support the expansion of industries, which will in turn create more employment opportunities for the youth, who are turning to alcohol abuse because of idleness, the county government should: • Strengthen local production capacity of local industries 25 through the creation of an enabling environment for industrial development and growth for instance by instituting incentives to manufacturers, and working with various key partners to ensure the supply of affordable and reliable energy. • Further, the county should explore alternative sources of energy. There is urgent need for the county to enter service agreements with energy providers in order to ensure supply of affordable, sufficient, reliable, quality and clean energy to power industry and increase productivity. • The county should capitalize on the agricultural sector as a key source of revenue, and encourage farmers to engage in value addition ventures to diversify their products so as to reap the full benefits of agriculture. Value addition ought to be done within the county instead of selling the raw materials to other counties. The county government should put in place policies that foster healthy or potentially healthy industries, especially those involved in value addition through agro-processing (cereal and dairy) within the county. • Demarcate land and invest in the development of industrial parks and industrial research centers, and the requisite physical infrastructure for such zones, with adequate budget being allocated to ensure establishment of the zones under PPPs. 26 • Reduce the cost of setting up industries through ensuring that the charges and process of licensing should be less tedious and there should also be guaranteed security • Improve critical infrastructure including main roads and rural access roads and rural electrification in villages to spur small and medium industrial development. This will improve the dilapidated road networks in the county to facilitate the transport of mostly agricultural products, which are perishable in nature, from the farms to the cities/towns.

24 Vision 2030 Manufacturing Sector (Vision for the manufacturing sector). 25 Vision 2030 Manufacturing sector (Goals for 2012). 26 Development of industrial and manufacturing zones, Vision 2030 Manufacturing Sector (flagship projects and key initiatives)

Uasin Gishu County Business Agenda 2014

• Involve and partner with the private sector in industrial development, including generation of affordable and green energy. • Focus resources towards the development of niche product 27 and raising productive efficiencies of local firms through facilitating comprehensive training and research & development investments and industrial restructuring. • Focus on automation in cottage industries so as increase efficiency and productivity Export Sector Development • Increasing market access through value addition by processing, packaging and branding the bulk of agricultural produce as emanating from “the County of Champions” and pro-actively exporting value-added goods to regional and global markets. 28 • Using the “bully pulpit” of the Governor, facilitate export financing for upcoming SMEs. This includes putting in place initiatives to facilitate the hand holding of SMEs as they venture into export markets. • Put in place business friendly regulations to reduce cost of manufacturing thus making products from the county competitive on the national and global trade • Market the county as the ideal investment destination for potential sectors to exploit the export business. • Actively participate in export market linkage activities in Africa and beyond to develop ‘Uasin Gishu’ product destinations. • Capitalize on Eldoret International Airport to market Eldoret as a cargo distribution hub which will in turn raise economic growth of the county by an approximate rate of 10%. 29 Infrastructure To provide infrastructural support to enhance economic development, the county government should: • Enhance the existing road networks to improve transportation and marketing of farm produce and ensure continued access to all regions.30 • Improving efficiency and effectiveness of the infrastructure development process at all levels including planning, contracting and construction. 31 27 Vision 2030 Manufacturing sector (Goals for 2012) 28 Vision 203 (Vision for the Agriculture Sector) 29 Export Promotion Council. 30 See Developing and maintaining an integrated, safe and efficient transport network, Vision 2030 Foundations for Social Economic Transformation (Infrastructure). 31 Vision 2030 Foundations for Social Economic Transformation (Infrastructure).

Uasin Gishu County Business Agenda 2014

• Modernize infrastructural systems including expansion of existing roads, street lighting, construction of car parks in Eldoret town to decongest the town and construction of pedestrian paths in Eldoret. Further, the county should lobby the national government to fast track the modernization and expansion of the railway line passing through Eldoret, and expand Eldoret International Airport. • Review and /or enact and implement disaster preparedness laws and policies • Provide a utility sector (water, sewerage and electricity) that is modern, customer oriented and technologically-enabled to provide efficient, cost-effective, quality services to all citizens.32 Such an active sector is likely to encourage wider water supply through adequate water harvesting systems and the construction of water dams. • Adopt an integrated and coordinated approach to urban planning as this will help, in among other things, controlling the continued proliferation of informal settlements, and improve property management system for county owned properties. • County Government to re-look the Eldoret Town planning to provide proper zones for industry, small scale traders, parking for matatus etc • Adopt and encourage active stakeholder involvement in decision making and implementation process as the participation will encourage social innovation and generation of new ideas. Land Sector • The County should demarcate land and invest in the development of industrial parks and industrial research centers, and the requisite physical infrastructure for such zones, with adequate budget being allocated to ensure establishment of the zones under PPPs. • In light of the fact that land in Uasin Gishu County is very expensive due to speculators, the county assembly needs to put in place laws that will encourage locals to lease to foreign investors who want to build factories in the county. Further, the county leadership needs to revise the prevailing land rates and charges to make them affordable to the business community. • It is important to zone the county and define residential areas, commercial/ retail areas, industrial areas, agricultural areas and open spaces and public parks. Further, the county should review the physical planning systems currently in place, and engage qualified physical planners so as to curb the unnecessary land subdivisions and change of land use.

32 Vision 2030 Foundations for Social Economic Transformation (Infrastructure).

Uasin Gishu County Business Agenda 2014

• There is need to develop necessary infrastructure in the county including roads and information communication technology. • The corruption menace which is common in the county land offices should be eradicated, preferably through computerization of records and operation systems. • At the national level, there is need to lobby for the review of the Land Act to eliminate the ambiguities in the law thus ensuring transparency, consistency, predictability and enforceability. Security Sector • Creation of youth employment, to reduce poverty, idling and abuse of alcohol in the county. • Establish rapid response units within the county. • Establish an effective County Police Service in coordination with the national government. • Provide improved surveillance through technology such as CCTV cameras in all urban areas • Enhance the existing security systems in the county to ensure effectiveness and performance e.g. through performance contracting. • Continue peace building efforts in the county and emphasize on the beauty of celebrating ethnic diversity. • Lobby the national government to hasten the settlement of Internally Displaced Persons (IDP) in the county. Ethnic diversity • Promote processes for county and inter-community dialogue in order to build harmony among ethnic, racial and other interest groups through encouraging inhabitants to appreciate other ethnic communities since ethnic diversity is a great way of learning about people and different cultures. • Practice inclusive and participatory decision-making as this will enhance equality and harmonious living by all ethnic groups in the county. • Promote the acceptance of diverse ethnic cultures in schools, neighborhoods, centres and towns. • Organize inter-cultural festivals, sporting activities, and cultural exchanges for county citizens to interact and learn how their cultures can operate within one another. • Provide structures to support and promote ethnic diversity within the county.

Uasin Gishu County Business Agenda 2014

Environmental Sector The County government through the County Ministry of Environment, Water and Natural resources should adopt various pollution and waste management measures33 including: • Improve garbage collection and disposal, and put in place strict penalties for defaulters. • Encourage investors to put up waste management plants in Eldoret and other urban areas. • Set up a bio fuel generation plant • Upgrade the sewerage infrastructure and disposal systems in the county. • Improve drainage systems, by maintaining and upgrading the existing ones. • In collaboration with national government, build institutional capacity in environmental planning and environmental governance to improve the overall management of the environment through strict enforce all environmental regulations and standards. • Partner with the private sector in developing initiatives for mitigation and adaptation of climate change to strengthen the ability of Uasin Gishu County to integrate climate change responses into its county development processes. Focus should be on the reduction of greenhouse gas emissions and promoting climate resilience.

“Healthy workers are productive workers.” - ILO The quality of health and housing services will determine whether Uasin Gishu County will distinguish itself from other counties in Kenya.

Health Sector • Revitalize the health infrastructure 34- in line with Vision 2030, the county should endeavor to provide efficient, equitable, affordable and high quality health care, by having a functional health delivery infrastructure in place. This will entail building new healthcare facilities and upgrading of those already in existence to ensure accessibility of affordable healthcare opportunities for the majority of the county residents especially the rural residents of the county • Encourage investors to establish industries related to and with a direct impact to the health sector to serve the hospitals and health care centers within the county and the wider rift valley region e.g. setting up of a pharmaceutical plant in the county. 33 Vision 2030 initiatives of environmental management 34 Vision 2030 (Strategies to improve Health care)

Uasin Gishu County Business Agenda 2014

• Upgrading of existing health centres e.g. by raising the hospitals in the county to level 4 and level 5 hospitals so as to reduce congestion at the Moi Teaching Referral Hospital. In line with this, the county government should strengthen health services delivery in the county by putting in place mechanisms aimed at ensuring that the ratio of health workers to patients is appropriate to reduce the congestion that is being experienced in the few available healthcare facilities e.g. a medical workers’ volunteer program to help reduce the burden on the existing few health officers in the hospitals • Strengthen the inspectorate arm of the county to also focus on government hospitals, as well as private clinics. • Partner with the private sector to establish world class medical and health facilities, including sports injury medical centers. • Facilitate Moi Teaching & Referrals Hospital to pursue exchange programs with university hospitals from other countries like USA to increase the competence of health professionals in the county. Housing & Sanitation • To manage the problem posed by new residential estates, the county needs a proper housing policy. • The County needs to have a dedicated budget line for the development of affordable housing in the County. This can be achieved through a PPP. Education

To achieve Vision 2030, there is need to improve the quality and relevance of education at all levels by tailoring education to match the needs and requirements of the county, and incorporating ICT in the education sector with the aim of improving the quality of education. Vision 2030 realizes the need for the recruitment of more teaches to boast the teacher to student ration. To expand access and equity in education, Vision 2030 requires that measures be put in place to ensure that education is affordable to all ….., and building of new schools. Finally, relevance on training in employable skills is paramount.

• To raise the levels of transition rates from primary schools,35 Uasin Gishu county government has a daunting task in trying to change ensure that all primary school children get into secondary schools. Important initiatives will include conducting civic education to encourage increased enrollment and transition in all levels of education by the residents of the county, and provide adequate infrastructure in schools to accommodate all learners at all levels

35 Vision 2030 Education sector (Challenges and opportunities)

Uasin Gishu County Business Agenda 2014

• The county government should seek partnerships with the private sector and development agencies to construct quality public secondary schools to enhance the access to secondary education in the county to all residents. Vision 2030 provides for the need to raise the transition numbers from primary school education to other levels of education. • Strengthen the inspections of educational facilities and curricula to ensure and uphold quality. • Allocate a sufficient budget line to improve the existing educational facilities in the county. • Strengthen vocational training to ensure that graduates are equipped with skills that are relevant to the market and industrial needs. • Enter into PPPs with industry players towards the establishment of TVET institutions and specialization centers in the county. • Partner with the private sector to develop practical internship programs. • Developing sports academies to tap on the existing potential of the youth in athletics and other sports. • Encourage training institutions to partner with foreign universities and schools to develop sports leadership training/exchange programs for students from the county to ensure exposure. • Provide bursary and other assistance to subsidize educational expenses for the needy students. Under Vision 2030, Kenya intends to create a globally competitive and adaptive human resource base to meet the requirements of a rapidly industrializing economy.…….. ….steps include the establishing of new technical training institutions, as well as enhancement of closer collaboration between industry and training institutions.

Women & Youth Issues • Gender mainstreaming in county government policies, plans, budgets and programs will be key to support initiatives to enhance equality and participation of all members of the county thus breaching the inequality gap between all the genders and age brackets especially in access to opportunities in the county.

36 Vision 2030 Education sector (Challenges and opportunities)

Uasin Gishu County Business Agenda 2014

• Enhance the participation and representation of women and youth in wage employment, enterprise ownership and decision-making processes. This will entail affirmative action for women in public sector employment and appointments. • Increase women representation at the executive level of Government and in the private sector. This will help minimize challenges associated with traditional and social practices, poverty and domestic violence. • Support training programs to empower women and youth to cope with prevailing social challenges including drug abuse, crime, sexuality, violence and poverty. Water Sector • The county needs to explore all the available technologies for water harvesting to make Uasin Gishu County self-sufficient with affordable water supply for all its residents. This will be beneficial to all the sectors that are key in supporting the county’s economic development. Further, affordable and reliable water supply will attract investors to the County, thus making it competitive. • The county administration should explore other policy strategies to facilitate the harvesting of rain water and dams e.g. borrow a leaf from Spain’s policy where every building must have gutters. • The county should conserve the existing water catchment areas. • The county government should also create a proper treatment system of any water being supplied and used in the county. Public awareness will also be an important component of all these efforts as well as legislations regulating water use and maintenance in the County. • Rehabilitation of existing dams within the county. Business Regulations and Taxes The cost of doing business in Uasin Gishu County is high which distorts the competitiveness of the county, thus discouraging investment in the county. Further, burdensome and complex regulations have acted as a hindrance to growth of businesses in Uasin Gishu County. Proposed way forward • In line with Vision 2030, the county should re-look at its taxes as well as establishing a one stop shop for business licensing. The County will need modern, competitive business taxes which are less complex and have the least administrative burden. New levies at the county should be guided by the Statutory Instruments Act No. 23 of 2013.

Uasin Gishu County Business Agenda 2014

• Furthermore, the county should utilize ICTs and other e-technologies to facilitate Online transactions thus reducing the risks associated with cash transactions. • There is need to review and simplify regulations and licensing to make them more effective. Powers and practices of various regulatory bodies with overlapping mandates within the county should be streamlined in order to stop such institutions from imposing new charges which have an equivalent effect to taxes. • To make the management of County regulations easier, the County should consider developing a mechanism that will effectively communicate any new laws to all stakeholders. The private sector needs to be sensitized to facilitate easier compliance. The county government should aim at establishing a single licensing regime within a year into office.

Uasin Gishu County Business Agenda 2014

“The regulatory environment in Kenya has been hostile to FDI and impeded it. Excessive regulations have hindered entrepreneurial activity, as firms spend more time and resources complying with rules and regulations.” (Kenya Economic Update, June 2013, The World Bank) “The long delays in resolving disputes in the judiciary and other cumbersome compliance items, have discouraged FDI. In addition, the regulations that require foreign firms to enter into mandatory joint ventures partnerships (30 percent share) with locals in order to invest in Kenya, makes it a less favorable investment destination.” (Kenya Economic Update, June 2013, The World Bank)

Low Lying Fruits from the Way Forward 1. Decentralization of services Further to the concept of devolution and the work of the Transition Authority, Uasin Gishu County needs to put in place systems and capabilities to enable it take over functions, including the enacting the requisite legal framework to facilitate the exercise of such functions once devolved. 2. Value for taxes The county government should ensure that Uasin Gishu County residents get value for their taxes. As such, the county government ought to put in place measures for: • Tracking and controlling collections, allocations and expenditure for all county government activities. • One stop shop for business pertinent information. • Embedding a preference scheme for locals in procuring for county projects. • Ensuring that the County Assembly releases all county bills with adequate notice for scrutiny by stakeholders. 3. Creating a business friendly environment A business environment is affected by multiple factors including the high cost of land, high cost of farm inputs, unreliable water and energy supply, unskilled human resource base, insecurity and poor infrastructure. To address issues, the county government should: • Adopt and localize the National Industrialization Policy • Develop an investment incentives schemes for investors in the manufacturing sector • Map out the available resources in Uasin Gishu County to kick start value addition and branding of Uasin Gishu County’s agricultural products as emanating from “The Champions”. • Governor to use his “Bully Pulpit” to enable and facilitate farmers and SMEs to obtain competitive lending rates from financial institutions. • Developing a robust website to help market and publicize the county as an ideal investment destination.

Uasin Gishu County Business Agenda 2014

4. Showcasing Uasin Gishu County to Potential Investors With all these investment opportunities abounding in Uasin Gishu, County it is important to formalize channels for marketing Uasin Gishu County as the ideal investment destination in Kenya, and the EAC region. This can be done through: a) Establishment of Uasin Gishu County Investment Committee This committee, with representation from the business community, will be tasked with marketing the county as the most ideal investment destination in Kenya. The committee should be mandated to: • Make proposals to the county government on the creation of business friendly environment, including on incentives. • Explore potential national and international markets for Uasin Gishu products, and develop marketing strategies. • Developing a single Business Agenda for the county. • Make proposals on improving security, access to energy. • Coordinate the production of an annual “Doing Business in Uasin Gishu report” b) Uasin Gishu County Investment Conference In conjunction with the business community, and other relevant stakeholders, Uasin Gishu County to organize a major investment conference targeting both local and international investors. This conference will be the starting point for promoting the county to potential investors. The conference will showcase the multiple opportunities available in Uasin Gishu County for doing business. The conference will also act as a forum for the county leadership to demonstrate its commitment to promoting business in the county. Potential investors will have an opportunity to make enquiries, seek clarifications and evaluate investment incentives available in the county. c) Meeting of County Governors from the Rift Valley Region The leadership of Uasin Gishu County is cognizant of the value of collaborative efforts by all counties in the Rift Valley Region. In light of this, Uasin Gishu County government, in collaboration with key stakeholders, will organize bi-annual meetings of governors of these counties to discuss issues of mutual interest that affect the economic prosperity of Rift Valley Region. This meeting will form a key advocacy platform for the regional Business Agenda.

Uasin Gishu County Business Agenda 2014

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 very few business membership organizations in Uasin Gishu County, there is urgent need for the business people in this county to join relevant business membership organizations and further, to come together and form an Uasin Gishu Business Coalition as a vehicle through which the business community will conduct its business advocacy with the county government. Such a coalition will be instrumental in ensuring that the County Government of Uasin Gishu 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. In the 2013-2017 tenure of the current county leadership, public private dialogue will be achieved through quarterly round table meetings focusing on six broad thematic areas, that is, a) Agriculture; b) Tourism, Culture and Sports; c) Education; d) Health; e) Transport, Infrastructure & Communication /ICT; and, f) Trade, Commerce & Industry. It is therefore important that once formed, the Uasin Gishu Business Coalition, through the BMOs and business people who are members of the six thematic groups, collates and coalesces these views and channel them to the county government, through the specific county executives. This will facilitate easier follow up by the private sector and faster requests to the private for input and engagement by the county government and speedy response by the private sector. Members of the business community in Uasin Gishu County who are not members of any BMO are therefore urged to pursue membership to relevant organizations to ensure their voice is heard and to strengthen the voice of business advocacy in the county.

Uasin Gishu County Business Agenda 2014

References Statutes The Constitution of Kenya, 2010 The Transition to Devolved Government Act 2012 The County Government Act, 2012 Documents/Reports The World Bank, Kenya Economic Update, Edition No. 8, June 2013 The World Bank, Doing Business 2013 World Health Organization, Investing in Health for Economic Development, 2012. Kenya Vision 2030 (Popular Version) Kenya Vision 2030 Progress Report as at 1st February 2013 Websites visited http://www.investmentkenya.com http://www.epckenya.org/ http://www.worldbank.org/en/country/kenya http://www.knbs.or.ke/ http://www.kam.co.ke/ http://www.ktb.go.ke/ http://www.transauthority.go.ke/ https://www.opendata.go.ke/facet/counties/Uasin Gishu http://www.kws.org/parks/parks_reserves/LNNP.html http://www.who.org http://www.ilo.org

Uasin Gishu County Business Agenda 2014

List of BMOs in Attendance Kenya Association of Manufactures North Rift Tourist Association Kenya National Chamber of Commerce and Industry Kenya Bankers Association Fresh Produce Exporters Association of Kenya Cereal Millers Association Kenya Private Schools Association East Africa Grain Council Export Promotion Council Kenya Sports Foundation Uasin Gishu County Local Urban Forum Kenya Medical Association Kenya Flower Council Uasin Gishu Journalist Association Athletics Kenya Kenya Association of Residents Uasin Gishu County Forum The Jau Kali Association

Uasin Gishu County Business Agenda 2014

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Uasin Gishu County Business Agenda 2014