3.2. Economic Sector Action Plans

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Having identified the three key sectors for further assessment (see page 22) the Economic Development Plan has formulated the following Action Plans for each sector. These are premised on the Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis that was part of the Diagnostics Reporting stage (Appendix A). Summaries of the SWOTs are presented below for each sector (with strengths, weaknesses and challenges).

Agriculture and Livestock Sector The livestock sector is described as the “backbone of the County’s economy”, with over 80% of the population reliant on the livestock sector for their livelihood. Only 26% practice agro-pastoralism due to poor environmental conditions, including drought and high temperatures, this increases the reliance of the economy on the livestock sector. The sector is crucial to a large share of the population’s livelihood, though it makes a smaller contribution to the County’s GCP (21%) and represents low value addition and productivity. Improving the livestock sector in Isiolo will have wide reaching benefits for the County, and there is strong potential for value chain opportunities such as camel milk and meat processing which utilise local products and natural resources better, as well as the upstream activities in transportation, process and trading. Isiolo County also produces some processed agriculture products. The County does not have an optimal climate for growing many agricultural products, with 80% of the land non-arable, however it is well suited to grow the raw materials for gums, resins and aloe products, which are then further processed within the County and the wider region. Vision 2030 and the Medium Term Plan (MTP III) both identify increasing the productivity of livestock with new opportunities for processing and value addition as key goals for the future of Kenya.

SWOT Analysis Summary for Agriculture and Livestock Sector

Strengths

Thriving camel milk industry, with distribution to Nairobi.

Existing processing of aloe, gums and resins. Abundant land availability for livestock.

Presence of modern livestock market in Isiolo town centre.

Good road linkages to the north and south of Isiolo (A2). Good endowment of livestock, with strong community traditions.

Weaknesses

Lack of marketing, packaging and branding of produce.

Farmers lack knowledge on livestock production best practices. Lack of equipment and facilities, including cold storage and production technologies. Uncontrolled livestock diseases and lack of safe water for livestock. Livestock productivity is poor and output is low value, whilst prices are fluctuate. Poor marketing and market information, with lacking supply chain infrastructure. Poor management and lack of holding/fattening pens for livestock. A local culture of patriarchy, women are neglected from business decisions. Negative views on PWDs, they are not seen as capable for work in this sector.

Challenges to address

Environment of violence and conflict, due to land grabbing and encroachment.

Vulnerability to drought, unpredictable rainfall and floods resulting in soil erosion. Lack of access to credit, where farmers are unable to expand operations. Water scarcity, with drought a critical risk to production capability. Overreliance on livestock sector, due to being in an ASAL region, with limited suitable land for growing crops (as output and feed). Workforce population may decline further in rural areas. Continued exclusion of certain groups from employment and business opportunities.

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Area Action

Best practice for value addition SR: Better utilisation of the Agricultural Training College (ATC) and regional partners to ensure farmers can adopt best practices.

MR: Support local producers and traders in being active participants in the supply chain for camel’s milk and meat trade.

Market access and development SR: Support the expansion of exports to Nairobi, using road network and building on current export linkages, especially in the camel milk industry.

LR: Expand exportation to outside of Kenya. Isiolo is one of the few locations in the north of Kenya which has an airport, this should be better utilised to promote the development of the sector toward exports. Detail

Support from the ATC can develop skills and knowhow in production and management, whilst the Municipality can promote these training opportunities to help unlock growth in the sector. Areas for focus may include herd and land management, with guidance for farmers’ value development, reflecting resource efficiency with farmers already practising feed conservation and water harvesting. Local livestock farmers and traders should be supported to be more active participants in the supply chain, to benefit from the value addition activities and remove exploitation and the leakage of these benefits. The abattoir construction is a catalyst here, where farmers can understand the expected quality and values and have clear routes and access to the abattoir for stable prices. Local business should then be central to the meat process, trade and marketing next stages. Further, common information share such as prices and weather is important. There has been Drought Early Warning Systems in Isiolo County from 2016 National Drought Management Authority (NDMA) and one part of the World Bank’s Climate Smart Agricultural Project in Kenya is weather and market information systems and advisory. Partners: Experts in the sector should be worked with to support best practice knowledge share, and access funding where possible. This could include the Kenya Agriculture and Livestock Research Organisation (KALRO) and the World Bank’s Climate Smart Agricultural project. It will be important to work closely with USAID’s Feed the Future project, with livestock market systems, to strengthen farmers’ resilience to shocks in Isiolo and ensure increased benefits are realised.

The Municipality should support local businesses through facilitating communications between businesses and public bodies outside the County, providing market access support, and linking up businesses that are transporting goods to similar areas to establish distribution channels. The Municipality should facilitate/provide training and education to help local businesses become more competitive at a national level and to be active and informed participants in the supply chain. Local businesses should be provided with information on regulations and the extra costs associated with international export. Partners: National Farmers Information Service (NaFIS) provides ad-hoc support to farmers, whilst the Settled Internally Displaced People (SIDP) has been supporting the position and income of dairy farmers by giving them the possibility of selling to new markets.

SR: Short Range MR: Medium Range LR: Long Range

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Area Action

Financial security and opportunity SR: Support cooperative savings and borrowing funds. The Municipal Board can identify and help facilitate collaboration between key players to establish and signpost for potential new members.

MR-LR: Facilitate collaboration between key stakeholders and financial institutions to promote and explore the benefits of suitable mechanisms. Detail

There are two aspects to financial support – that which protects farmers under drought and shocks; and the financial support to aid equipment purchases and support engagement in Isiolo’s developing markets and value chain. First, the Municipal Board should consider providing dedicated resources for overseeing business support and protection services to support farmers’ resilience and access to financial support. Farmers in Isiolo are covered by the Kenya Livestock Insurance Program (KLIP), this should be supported with advice to local farmers on how to optimally invest any insurance pay-outs from the scheme. Second, financial mechanisms should be explored with partners for Isiolo’s livestock and milk producers. For example, value chain financing where a lead actor will typically be responsible for the distribution and collection of finance and represent small scale farmers in identifying where in the value chain the investment will have maximum benefit. The Board can also play an important role in facilitating the requirements of Sharia finance. Partners: SIDP and USAid have developed a guarantee programme to increase lending in the agricultural sector with the Kenya Commercial Bank and microfinance institutions to share risk. This is part of the Agricultural Sector Development Support Programme (ASDSP). United States Agency for International Development (USAID), Development Alternatives, Inc. (DAI) and other agencies have supported innovative financial mechanisms such as Variant Call Format (VCF).

Land management and rights

Water Infrastructure SR: To provide land for required water and feeding points for livestock. To secure some land around the abattoir, for fattening grounds.

LR: More farmers to own land which they can invest in to optimise their produce.

SR: Strategically located drinking points should be established on key routes, such as to the abattoir and to the livestock market.

MR: Irrigation infrastructure provision will provide a reliable water source to farmers, which will give livestock a sustainable drinking source and enable farmers to grow fodder to feed herds. Authority to determine early land rights for strategic locations where possible, the Municipal Board will need to work with the County government to ensure this land is selected and used in a way that minimises conflict and is fair across Isiolo’s society and farmers. This has been recognised in the CIDP. The Municipal Board could consider using public land ownership to support farmers’ collective needs early on, whilst supporting a revenue stream to re-invest in the sector. In the longer term, land can be managed and owned by private businesses to encourage investment and growth of incomes. Key challenge: approaching land rights from the principle of not increasing conflict to ensure there is a smooth transition - this must be inclusive.

Improving water security will involve investing in water harvesting and storage infrastructure, such as ponds, micro dams, wells, hand pumps and drip irrigation. Partners: It will be important to for the Municipality and County government to ensure funding that is invested in irrigation provides the optimal benefit for the sector. It is important to engage with water providers, utilising their expert advice on effective implementation. Investment in water infrastructure should complement existing and planned infrastructure within the County, including the multiple irrigation schemes currently active in the County.

SR: Short Range MR: Medium Range LR: Long Range

Retail and Trade

Isiolo Town is the main location for trade and commerce in the County. There is a diverse mix of businesses in the Town centre and a large retail market here selling a variety of items There are several markets in Isiolo County, including 5 retail markets in Isiolo Town, Kinna, Merti, Kipsing and Oldonyiro. The main traded goods in these markets are livestock, fruit, vegetables, maize, beans, wheat and millet. Isiolo is seen as the gateway to northern Kenya and the construction of more transport links with LAPSSET will benefit the commercial role of Isiolo.

The implementation of LAPSSET corridor projects, including Isiolo airport will provide opportunities for wider trade linkages and an increase in visitors.

There is wider support to grow this sector by increasing market linkages, expanding export opportunities based on local products, such as camel milk, meat processing, gums and resins.

SWOT Analysis Summary for Retail and Trade

Strengths

Centrally positioned in the country, represents main trade and retail centre for the county.

Sector is considered more inclusive with women, youth and PWDs participants. Proximity to Nairobi, with key market and export access. Strong existing market in town. Examples of successful adoption of e-commerce.

Challenges to address

Limited access to credit for entrepreneurial activity. Competition from nearby Meru, a more established wholesale and retail centre.

Intercounty boundary conflicts that affect intercounty trade.

ECONOMIC DEVELOPMENT PLAN 28

Weaknesses

Lacking facilities for processing, packaging and storage of goods - low value trade. Basic and informal market, with stalls rather than shops. Market comprises individual sole traders rather than cooperatives, with limited market power. Many of the goods sold are imported into Isiolo from other counties.

Poor urban infrastructure, with flooding and waste build up. Road network and linkages to rural areas are poor.

General insecurity and conflict affect Isiolo's business environment. Existence of street children, substance abuse and commercial sex workers in the town - impacting the town's business environment. Cultural and community attitudes which discriminate against women.

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Area Action

Establish modern market

Business support MR: Establishment of a market group to facilitate evolution of the market over time. It will be important that the Municipality engages with key stakeholders in the sector to help shape the market and to ensure the market provides the space which sellers require. In order to support the development of the market, it would be beneficial for a local market group to be set up with the aim to promote the continuous evolvement of the market space. The plans for Isiolo market (Chapter 4) reflect some key principles, including easing access to the market for customers, through good transport links, pedestrian zones and disabled accessibility; providing stall holders with supporting infrastructure, such as access to electricity, water and gas; and improved opening hours, due to shelter and lighting. Further, it is also important for the market to be well positioned in respect of the bus station and future traffic and parking flows - ensuring a market flow and quality environment with some separation, as well as convenience and access with appropriate linkages. Key challenge: It is essential that the sellers are not priced out of utilising a modern market through stall and shop rental prices, therefore the benefits of being located there need to be greater than the rental cost.

MR: Creation of a market map to show where stalls are located, this encourages visitors to explore the markets and provides opportunities for stall owners to access new customers.

MR: Provision of a modern market in a strategically advantageous location in the Town.

SR: Set up business support services to provide information and training on best practice.

LR: Support businesses in exporting to other parts of Kenya and internationally, through training to help local businesses become more competitive at a national and international level. Implementation

The Municipality should set up and facilitate the support services or centre, initially to ensure it is effectively designed and operated to benefit the industry and its business stakeholders. To ensure the centre is effective the following should also be considered: › Industry experts need to be involved to provide training and knowledge to the industry; › Market data should be collected and analysed to inform training; › Good engagement from traders is needed to monitor how the service / centre is impacting the sector; and › The support should embed key principles such as resource efficiency and inclusion into the best practice provision. Key Challenge: How to fund the support services and enable them to be self-sufficient. In long term some membership fees, or market related revenue collections could fund these.

SR: Short Range MR: Medium Range LR: Long Range

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Area Action

Effective town planning SR-LR: It is important that the Town is effectively spatially planned throughout the development of the Town to create an attractive and accessible place to enable growth in the sector. The Municipality should engage with key stakeholders and the County Government’s planning department to ensure that the right plans are approved and integrated in ways that are beneficial to Isiolo’s communities as a whole. The Town’s spatial plans should be implemented in a way that minimises negative impacts and disruption to Isiolo Town. Place-making will be an important aspect, to make the urban market areas more accessible and empower citizens. Spaces for social gathering, parks and playgrounds, pedestrianised zones and such like may not directly support trade but can improve its appeal for locals and visitors.3 There needs to be specific space identified in the Town for truck parking to limit the amount of trucks parked along the roadside, which reduces access to retail and trade premises. Key challenge: It will be important to make the Town centre flood resistant, through methods such as effective river flow management, sustainable drainage systems (SuDS), permeable land and runoffs next to roads. Less flooding gives customers greater access to the market space and reduces damage caused by flood to retail and trade premises.

Access to finance, with a focus on women

Introduce certification of quality SR: Support women in accessing finance through a supported Savings and Credit Co-operative (SACCO).

MR: Create opportunities for women to be able to own property, which can be used as collateral for loans from financial institutions.

MR: Establish a service that certifies products, informing customers about production and quality. This certification of quality must be closely regulated to ensure standards are upheld, otherwise the certification loses value. As part of the certification process, there should be visits to sites where goods are being produced to check health and safety requirements are being met. The Municipal Board must be involved in setting up this facility and making regular checks to ensure the process is running optimally. It would be beneficial if certification meets international standards (Global Codex Alimentarius standards), as this would give businesses in Isiolo Town better opportunities to export products.

Implementation

The Municipal should support and promote a SACCO that it is inclusive to all women, regardless of their wealth, status, size of business, etc. Sharia compliant loans should be made available alongside normal loans, as the majority of the population in Isiolo County are Muslim. There are examples of financial mechanisms that provide finance to Small and medium-sized enterprises (SMEs) that are owned by women, such as the Gulf African Bank offering Sharia-compliant, women only accounts with dedicated tellers and banking centres.4

SR: Short Range MR: Medium Range LR: Long Range

3 Living Cities, 14 smart ways to create public space: real examples from sub-Saharan Africa (Stockholm: Living Cities, 2018) 4 https://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/news+and+events/news/za_ifc_a2f_islamic_finance

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Tourism

Tourism is very important to the Kenyan economy. It provides huge employment and foreign exchange earnings. In 2017 the total contribution of travel and tourism to the Kenyan economy was around 10% of the country’s GDP and 9% of total employment. In Vision 2030, tourism is identified as a priority sector. Within Isiolo County the main tourist attraction is nature and wildlife, with three main game reserves in the County: Shaba, Buffalo Springs, Bisanadi. There is also Samburu and Meru national parks which border the County and attract tourists. There are limited tourism activities currently taking place in the Town, however there is potential to expand this sector and support the wider activities. A number of projects planned could boost activity in the sector and other related sectors if opportunities are capitalised, including Isiolo resort city, use of Isiolo airport. Isiolo County aims to increase tourist arrivals by 20% year on year and increase tourism income by 10% per annum through tourism promotion, investment in tourism infrastructure and marketing. There is an opportunity to provide services and facility support for the nearby game reserves as well as capturing tourism spend passing through the Town.

SWOT Analysis Summary for Tourism

Strengths

County’s three game reserves - Shaba, Buffalo Springs, and Bisanadi, which are well known. Well connected to Nairobi via road, the airport offers another connectivity opportunity. Strong local history, culture and heritage. Good pool of young working age population. Some small-scale tourism activity at present.

Challenges to address

Conflict and insecurity make the town an unattractive tourist centre. Lack of appropriately skilled and trained workforce (services and hospitality), with high youth unemployment. Issues of overcrowding and unattractive activities within its central areas.

Weaknesses

Nairobi based tour operators do not stop in the town, as is not seen as a suitable destination.

High illiteracy levels and lack of service skills amongst local workforce.

Poor quality tourism facilities and amenities in the town, lacks a major tourist attraction.

Waste management practices are inadequate. Poor quality of more local roads. Widespread stigmatisation of PWDs by the employers and the community.

ECONOMIC DEVELOPMENT PLAN 32

Action Area Time Period

Urban Infrastructure

Establish tourist board and strategy SR: Set up a regular waste removal services for all households and markets within the Municipality.

SR: Relocate dumpsite outside of Isiolo Town and introduce measure to prevent locals from scavenging through it.

SR-LR: Protection and maintenance of green spaces

MR-LR: Increase coverage of the sewer network within the Municipality.

MR-LR: Improve access to clean water.

SR: Set up an Isiolo Town tourist board, bringing together key stakeholders.

SR: Support the Board in creating a tourism strategy which will give the sector direction and drive and encourage working towards a collective goal. This strategy will set out how Isiolo Town will build its brand and offer, including how it will attract and capitalise on tourists passing through the Town whole travelling to the County’s major attractions.

MR: Create a strategy for businesses in Isiolo Town becoming key suppliers for tourist facilities at local game reserves and national parks.

MR: Establish a peaceful solution to the conflict over land between pastoralists and owners of game reserves and national parks, so that tourist attractions are clear which land they can utilise.

SR: Short Range MR: Medium Range LR: Long Range Implementation

Implementation This will require the engagement of the County government, to help plan and finance the upgrade of infrastructure. It will be important to follow inclusive principles while the for the upgrades is carried out, this will ensure that the most mutually benefit upgrades are done first rather than the upgrades that benefit the rich/powerful. It is crucial that upgrades in urban infrastructure are resilient to shifts in the economy and to changes in the climate. This will ensure that upgrades can adapt to different environments, making them future-proof and long lasting.

Implementation It is crucial that the Municipal Board is involved in the set up and running of the tourist board and the creation of the strategy for the tourism sector. The tourist board and strategy should encourage the key stakeholders in the industry to work together to increase Isiolo Town’s brand and offer. Businesses in Nairobi which organise tourist tours to key attractions in Isiolo County and nearby counties should be incentivised to make stop offs in Isiolo Town to allow tourists to spend some time in the Town and purchase some local goods and souvenirs. This needs to be aligned with the improved offer to visitors e.g. a market and refreshment stop, where people can relax. The tourist board should engage with major tourist attractions nearby, namely Shaba, Buffalo Springs and Bisandi game reserve and Meru and Samburu national parks, to identify where Isiolo Town can provide supplies and other goods and services to these attractions. In order to solve to conflict between pastoralists and owners of the local game reserves and national parks the tourist board needs to fully understand the problems each group face and approach this area with consideration, engagement and inclusion before working up an action plan or land use approach here. Key Challenge: Develop the sector and provide solutions which minimises conflict and ensure benefits are well distributed.

33 ISIOLO URBAN ECONOMIC PLAN

Action Area Time Period

Tourist training centre SR-MR: Establish a tourist sector training group, where key stakeholders in the sector can meet up to share information, advice and skills.

LR: Create a tourist training centre for workers to become trained up and employed in the tourism industry. This will provide skills to local workers and give the, employment opportunities to work at local tourist attractions.

Better utilise Isiolo airport MR-LR: Support the operators of Isiolo airport to become a fully operational airport with commercial flights. Implementation The Municipal Board should engage and work closely with the airport owners, Isiolo County and Meru County government officers to discuss how the airport can be better utilised to increase the number of visitors travelling to the area. A re-invigorated and well-structured airport task force can start the process of developing a longerterm plan, recognising the wide benefits potential and understanding the key barriers at present. Other regional airports in Kenya have made positive contributions to local economies, such as Kisumu International Airport, which after expansion promoted growth in tourism, as well as financial services and wholesale and retail. The upsurge of visitors has led to an increase in the number of hotels and car hire businesses.6 Another study in Kakamega county found that if the airport is in a poor state, this adversely affects the tourism industry.7

High-end tourist facilities MR-LR: Support the development of higher quality facilities for visitors, which is appropriate for the local area and communities. Implementation This is a longer-term action and requirement for the Town, this will require investment and local stakeholder involvement to ensure that the facilities that are wanted by tourists are built to attract more visitors. It will be important that these tourist facilities are well spatially planned within the Town to ensure that they are easily accessible by visitors and are located in an attractive location in the Town. New high-end facilities must not have negative impacts on the Town or the local residents and must complement other infrastructure projects.

Implementation

Implementation The Municipal Board needs to engage with local experts in tourism to help run advice, training and skills sessions. People should be trained in hospitality skills, as well as training and education to provide tours in the Town and at local nature and wildlife tourist attractions. It would be beneficial for local tourist businesses to share knowledge and information on visitor schedules, supply chains, useful contacts, effective marketing strategies and future plans. In Mombasa the Kenya Coast and Tourism Association provided training for local beach sellers in effective sales and customer engagement techniques, which lead to an increase in locals’ incomes and an improvement in the tourist reputation of Mombasa.5

5 https://profiles.uonbi.ac.ke/ogutum/files/effect_of_airport_expansion_on_business_opportunities_in_kisumu.pdf 6 https://pdfs.semanticscholar.org/2a18/6f8a5b2fa3f7f15c1e6fc6bc5389dc436a9e.pdf 7 https://s3-eu-west-1.amazonaws.com/travelfoundation/wp-content/uploads/2016/11/17103805/Mombasa-Case-Study.pdf