Malindi Urban Economic Plan by Tetra Tech International Development Europe

MALINDI MUNICIPALIT Y URBAN ECONOMIC PLAN March 2020

The development of the Malindi Municipality Urban Economic Plan (UEP) has been made possible by funding from the UK government through UKaid’s Sustainable Urban Economic Development Programme (SUED) that is managed by Coffey, A Tetra Tech Company (“Coffey”).

This report was developed by Atkins.

ABBREVIATIONS & ACRONYMS ACCF

Africa Climate Change Fund

KALRO

Kenyan Agriculture and Livestock Research Organisation

NEMA

National Environmental Management Authority

Accredited Entity

KAM

Kenyan Association of Manufacturers

NGO

Non-Governmental Organisation

Adaptation Fund

KCCA

Kampala Capital City Authority

NIE

National Implementing Entity

ASAL

Arid and Semi-Arid Land

KCGS

Kenya Coast Guard Service

NSP

National Spatial Plan

ASAP

Adaption for Smallholder Agricultural Programme

KFRI

Kenya Forestry Research Institute

OFP

Operational Focal Points

BID

Business Improvement District

KFS

Kenya Forestry Service

PAJ

Port Authority of Jamaica

BSFL

Black Soldier Fly Larva

KMA

Kenya Maritime Authority

PPCR

Pilot Programme for Climate Resilience

CBD

Central Business District

KMD

Kenya Meteorological Department

PPE

Personal Protective Equipment

CBO

Community Based Organisations

KMFRI

Kenya Marine and Fisheries Research Institute

PPP

Public-Private Partnership

CCCF

County Climate Change Fund

KOM

Kick Off Meeting

PWDs

People Living with Disabilities

CDM

Construction Design Management

KPLC

Kenya Power

Quality Assurance

CEMPRE

Compromisso Empresarial para Reciclagem

KURA

Kenyan Urban Roads Authority

Quality Control

CIDP

County Integrated Development Plan

KUSP

Kenya Urban Support Programme

REWAS

Revised early warning and analysis system

CIF

Climate Investment Funds

LDCF

Least Developed Countries Fund

SACCO

Savings and Credit Co-operative

DAP

Diversification Action Plan

LHG

Livestock Holding Ground

SCCF

Special Climate Change Fund

DfID

Department for International Development

MAWASCO

Malindi Water and Sewerage Company

SCF

Strategic Climate Fund

ESCR

East Side Coastal Resiliency

MISUDP

Malindi Integrated Strategic Urban Development Plan

SGR

Standard Gauge Railway

FAO

Food and Agricultural Organisation of the United Nations

MMC

Malindi Municipal Charter

SIDs

Small Island Developing States

FTE

Full-Time Equivalent

MSP

Malindi Spatial Plan

SIGs

Special Interest Groups

GCP

Gross County Product

MRF

Material Recycling Facility

SMEs

Small and Medium-Sized Enterprises

GCF

Green Climate Fund

MSW

Municipal Solid Waste

SuDS

Sustainable Drainage Systems

GEF

Global Environment Facility

Medium Voltage

SUED

Sustainable Urban Economic Development

ICIPE

International Centre for Insect Physiology and Ecology

NAWASCO

Nakuru Water and Sanitation Services Company

SWOT

Strengths, Weaknesses, Threats, Opportunities

IFAD

International Fund for Agricultural Development

NAC

National Adaptive Capacity

TAP

Tourism Action Plan

IFI

Internationally Funded Institute

NAFIS

National Farmers Information Service

UEP

Urban Economic Plan

ISUDP

Integrated Strategic Urban Development Plan

NAP

National Adaptations Plan

UNDP

United Nations Development Programme

IVC

In-Vessel Composting

NAPAs

National Adaptions Programme of Actions

UNFCC

United Nations Framework Convention on Climate Change

JKP

Jumuiya ya Kaunti za Pwani

NCCAP

National Climate Change Action Plan

Value Chain Opportunity

Joint Venture

NDA

National Designated Authority

The World Bank

KACCAL

Kenya Adaptation to Climate Change in Arid and Semi-Arid Lands

NDMA

National Drought Management Authority

WWTP

Waste-water Treatment Plant

CONTENTS

Executive Summary

1 Introduction

1.1 Background

1.2

Purpose of the Plan

1.3 Approach

1.4

Key Principles

1.5

Structure of this Report

Malindi Urban Diagnostics

2.1

Study Area

2.2

National Policies and Strategies

2.3

State of Malindi

2.4

Key Challenges / Risks

2.5

Key Opportunities and Drivers for Growth

Economic Development Plan

3.1

Economic Visioning

3.2

Development Framework Plan

3.3

Tourism Action Plan

3.4

Diversification Action Plan

3.5

Prioritised Value Chain Projects

104

Implementation Plan

118

4.1

Partners & Institutional Structures

118

4.2

Implementation Costs and Potential Funding Sources

120

4.3

Recommendations for Capacity Building

129

4.4

Next Steps

133

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY The Urban Economic Plan (UEP) is an advisory document that builds on existing work and priorities identified under the County Integrated Development Plan (CIDP), the Integrated Strategic Urban Development Plan (ISUDP), the Municipal Development Plan, and the Spatial Development Plan, as well as aligning and complementing work done by other donors and organisations. In doing so, it will provide a focused urban and economic development strategy for the Municipal Board and Departments to deliver balanced and sustainable growth for Malindi Municipality. The purpose of the plan is to: › provide an inclusive economic strategy that can guide future development towards increasing prosperity in Malindi; › prioritise economic activities and climate resilient infrastructure that can maximise benefits and support the development of a sustainable economic future of Malindi; › bring together stakeholders on deciding the economic future of Malindi and implementing it; and › identify and prepare projects that can be considered further in terms of their feasibility and bankability before SUED seed financing is committed.

Stakeholders’ interests and insights have been considered throughout the development of the Malindi Municipality UEP. Section 2 of this document sets out the Diagnostic Assessment of Malindi, where the social, economic, infrastructure and environmental baseline has provided an understanding of the barriers and drivers to sustainable economic growth. There has been rapid population growth which has not been matched with effective urban planning and development, where infrastructure provision has been inadequate and the supporting sectoral and market linkages limited. The Social Inclusion Study was a key part of the diagnostic, providing recommendations for meeting the aims of the SUED programme - to advance inclusion of PWDs, women and youth - as well as other identified groups who are currently excluded. The prioritised projects embed recommendations for overcoming communication, physical, attitudinal and organisational barriers to inclusion. The diagnostic identified Key Sectors that Malindi should prioritise for development, as: › Agriculture › Fishing › Tourism › Industry and Trade

Through the diagnostics assessment it has been shown that tourism remains a core potential offering for the town. It is also a key objective of the Kilifi County to increase tourism spend within the county through a tourism strategy implementation. This UEP includes a Tourism Action Plan (TAP), the aim of which is to build on this strategic direction and develop a series of interventions that can advance the tourism offer within Malindi. It will therefore be important to base this plan on the comparative and competitive advantages of the town that differentiate from other destinations within Kenya and focus on developing some of its unique characteristics such as the strong cultural and natural environments the town has to offer. Malindi’s aspirations to revitalise its tourism sector must be complemented by a suitable strategy that helps the town become more resilient to cyclical market trends. As such, the UEP also includes a Diversification Action Plan (DAP) which considers opportunities and activities within the other identified Key sectors. Addressing these challenges can enable the town to establish itself as an effective multifunctioning centre, and lay foundations for sustainable economic growth.

Section 3 presents the Economic Development Plan. This is driven by the economic vision that has been developed for Malindi:

“Developing a diverse Blue-Green Economy whilst harnessing and managing Malindi’s abundant natural resources”. This vision is underlined with objectives to: › Ensure resilient and resource efficient urban and economic growth; › Create an attractive and vibrant business environment; › Develop an enabling and responsive Municipal organisation; › Promote opportunities for all members of the community.

MALINDI URBAN ECONOMIC PLAN

Section 3 also presents the Development Framework, organised around the TAP and the DAP. A set of projects have been identified across urban design, power, transport, waste management and water management. The proposed projects have been assessed against climate vulnerability and a number of adaptation measures have been identified to ensure resilience. The report then provides a programming and sequencing of the various projects along with high level cost estimations and suggestions on the sources of funding to finance them. Six potential projects were identified in the assessment and in consultation with local stakeholders, by performing most strongly against the project’s evaluation criteria and Malindi’s established priority criteria - job creation, bankability and climate resilience. All these opportunities would be suitable for development in Malindi Municipality, however, two priority Value Chain opportunities have been selected to maximise benefits: › The establishment of a processing and packaging facility for pond fish, sea fish and crustacea; › The commercialisation of sewage sludge, either through processing with black soldier fly larva (BSFL) to produce protein and compost, or carbonising and pressing into charcoal briquettes.

These VC opportunities are presented in Appendix B with detail on: their key activities and supply chain, the capacity and competitiveness factors, the investment requirements and financials, potential partners, the infrastructure and land requirements, and overall impacts. Section 4 sets out further considerations for implementation across: partners and institutional structures; funding; capacity building; social inclusion; and climate change resilience. Following the completion of the UEP, during the next phase of the SUED programme, the identified value chain and climate resilient infrastructure projects will be developed further by: › Capacity building specialists to enhance municipal and local capacity to implement the projects and ensure revenue generation; › Investment climate experts to address policy and regulatory constraints; and to develop feasibility studies, business cases and investment promotion strategies for the projects.

EXECUTIVE SUMMARY

Figure 1 - Overall Development Strategy Plan

INTRODUCTION

1. INTRODUCTION 1.1. Background WS Atkins International Limited was commissioned to develop the Urban Economic Plan for Malindi Municipality as part of the UK’s Department for International Development Sustainable Urban Economic Development Programme (SUED). The aim of the programme is to support urban and market driven growth in emerging towns and cities in Kenya. Supporting these smaller centres provides an environment to create economic opportunities and job creation in a way that balances growth across the country, develops economic sectors that can contribute towards increasing the national output and provide an incentive for minimising uncontrolled migration. In order to enable the above, the programme will identify climate resilient infrastructure development that responds to the town’s urbanisation pressures and needs.

Provides an inclusive economic strategy that can guide future development towards increasing prosperity in Malindi;

Prioritises economic activities and climate resilient infrastructure that can maximise benefits and support the development of a sustainable economic future of Malindi and introduce international best practice and innovation;

Brings together stakeholders on deciding the economic future of Malindi and implementing it; and

1.2. Purpose of the plan Combining local knowledge and international expertise, the Malindi Urban Economic Plan:

Identifies and prepares value chain projects that can be considered further in terms of their feasibility and bankability before SUED seed financing is committed.

The UEP is an advisory document that builds on existing work and priorities identified under the CIDP and ISUDP, as well as complementing work done by donors and development agencies. In doing so, it will provide a focused infrastructure development and economic strategy for the Municipal Board and Municipal Departments to enable them to deliver sustainable urban and economic development within the Municipality.

1.3. Approach The approach and methodology have been developed in response to the DFID terms of reference and in consultation with the SUED Team and DFID and has been tailored to consider local conditions in Malindi. The aim was to allow a collaborative approach between different stakeholders and the consultant team to assess Malindi’s economy in a systematic way, develop an agreed economic vision and prioritise actions that will have maximum impact and are ready to attract donor co-financing. The preparation of the UEP comprised four main phases:

› Phase 1 - Inception Phase which focused on the Kick off Meeting. The aim was to present the approach of the UEP and capture key opportunities and challenges affecting urban development and economic growth in Malindi as defined by local stakeholders; › Phase 2 - The Diagnostics Phase was developed to provide a comprehensive and wide-ranging assessment of Malindi’s economy, demographics, infrastructure, environment and climate change risk profile against a local, national and international context; › Phase 3 - The UEP Technical Briefing Paper identified, assessed and prioritised economic growth opportunities and infrastructure needs and their respective requirements; › Phase 4 - Development of the Final UEP which sets out in detail economic opportunities and actions and prioritises climate resilient infrastructure projects for implementation. It should be noted that this report is founded on the culmination of the preceding studies and phases which are all appendices to this report.

MALINDI URBAN ECONOMIC PLAN

Figure 2 - UEP Development Phases

Inception Phase

Gather initial comments through stakeholder engagement - KOM

Diagnostics Phase

UEP Technical Briefing Phase

Policy Framework International/ National trends

Setting the principles for the development of the UEP

Economic and Demographic

Evaluating and prioritising VC opportunities

Infrastructure and Transportation provision

UEP Phase

Setting Vision & key economic sector actions

Analysis of Strengths, Weaknesses, Opportunities and Threats of key economic sectors

Environmental & Climate change risk profile

Assessing requirements & impact of shortlisted VC opportunities

Evaluating climate resilient green infrastructure opportunities

Identification of VC opportunities and climate resilient infrastructure

Consultation with Municipal Board, Municipality & County officers, Businesses, Special Interest Groups

Development Framework & Climate resilient infrastructure

Anchor projects: Value chain opportunities

INTRODUCTION

The Malindi Municipality UEP has been developed utilising primary and secondary research and analysis, ranging from local and national strategies and international studies to statistical analyses, focus discussions with stakeholders and surveys. A key component has been consultation with local stakeholders.

Stakeholder Engagement The purpose of stakeholder engagement was to ensure that stakeholders’ interests are taken into consideration throughout the development of and reflected in the Malindi Municipality Urban Economic Plan. More specifically, the aims were: › To ensure that the development of the Urban Economic Plan is inclusive and is undertaken in a manner that fits with Malindi’s business and community culture; › To ensure that all stakeholders are clear on the purpose, scope, recommendations and outcomes of the Urban Economic Plan as well as meeting key stakeholder’s aspirations and gain buy-in from them; › To understand better the interests of specific groups and how the Urban Economic Plan can benefit them, and; › To provide a regular flow of information to and from key stakeholders. A critical process in developing the UEP report has been stakeholder engagement including:

› Stakeholder workshops; › Formal social consultations; and › Business consultations. Three separate workshops were undertaken, including the Kick off Meeting (KOM), to gather feedback from stakeholders throughout the project. The KOM presented the project and process and collated information from over 80 stakeholders in terms of key characteristics, strengths and challenges within Malindi (captured within the Malindi Inception Report). Stakeholders included Municipal Board, Municipality and County officers, private sector, civil society groups and non-government organisations and representatives from Special Interest Groups. The second workshop focused on gathering feedback from the Malindi Municipal Head of Departments on the findings of the diagnostics evaluation, including sectoral SWOTs and identification of emerging economic opportunities. The feedback is in the Diagnostic Report and the UEP Technical Briefing Paper Report appended to this document. The third workshop focused on presenting and reaching consensus with stakeholders on economic opportunities that help leverage investment and support sustainable development in Malindi. The social inclusion study involved primary research, covering interviews with key project informants and focus group discussions, which together resulted in the identification of socially excluded groups and the development of recommendations.

Business consultation was undertaken to understand how Malindi’s businesses operate and their views on future growth opportunities and constraints. This consultation, through a detailed questionnaire, covered a range of respondents, including business and community groups that covered numerous enterprises, across Malindi’s main sectors.

Policy and Legal Framework Whilst the UEP is a non-statutory document that is purposed to provide advisory services to the Malindi Municipality, it takes cognisance of the existing policy and legal framework. It builds on policies such as Vision 2030 and the JKP Regional Economic Bloc which seek to promote

economic sectors and social cohesion with the potential unlocking the economic growth of Malindi Municipality. Further, it enhances the aspirations captured in the National Spatial Plan (NSP), the CIDP, the Malindi Municipal Charter (MMC), the Malindi Integrated Strategic Urban Development Plan (MISUDP) and the Malindi Spatial Plan (MSP). The rationale of the adopted context-based approach is to ensure that the UEP builds on the existing strengths of the town in order to provide a focused and robust plan that will promote the sustainable urban and economic growth of Malindi Municipality.

Figure 3 - UEP Statutory Context

Policy Framework › Vision 2030

Legal Framework

UEP

Spatial Plans

› Physical and Land Use Act, 2009

› NSP

› Urban Areas and Cities Act, 2012

› ISUDP

› The Land Act, 2012

› CIDP › CIP

MALINDI URBAN ECONOMIC PLAN

1.4. Key principles It is important that the development of the UEP and evaluation of proposed projects are grounded on key principles that support the Programme’s aim to create market driven growth and build resilience. The Atkins SUED Team has defined these principles as:

Resilient

Resource Efficient

› Shifts in the economy

› Circular economy and zero waste

› Adaptive infrastructure to climate change

› Water and energy management

Resilience:

Resource efficient:

The prioritised projects will have to be resilient against shifts in the economy both for domestic and international markets as applicable to remain competitive. They will also need to be adaptive to potential climate change impacts, while ensuring technological advancement can be introduced where possible.

The projects will need to be resource efficient promoting minimisation of waste (or zero waste where possible) and optimising the use of water and energy.

Socially inclusive:

Sustainable:

The UEP will need to be socially inclusive through a thorough understanding of who lives and works in Malindi and how all groups, including women, people living with disabilities and youth, can be engaged moving forward.

The UEP promotes green infrastructure and minimisation of environmental impacts.

› Rural - urban linkages

› Smart Solutions

Resilient

Resource Efficient

Socially Inclusive

Sustainable

Socially Inclusive

Sustainable

› Socio-economic trends

› Low carbon development

› Vulnerable groups

› Green energy

› Immigration / migration

› Green infrastructure

While these principles are closely linked and overlap in their definition, each one of them emphasizes a different aspect that is not fully captured by the others. Thus, it is important that all four principles are embedded in the UEP and its implementation. In addition to these principles, it is critical to ensure the UEP develops the competitiveness of the Municipality to promote and sustain economic growth.

INTRODUCTION

1.5. Structure of this report Following this introduction, the report is structured as follows: › Section 2 provides a summary of key findings from the Malindi Diagnostics Report which forms the basis for the development of the Malindi Municipality UEP. Summaries of the demographic and economic profiles and the infrastructure and environmental assessments are presented. The section details the key challenges and drivers for growth, identifying Malindi’s key sectors; › Section 3 set outs the Urban Economic Development Plan, which is underlined by Malindi’s economic vision. The Development Plan is distinguished into two Action Plans: Tourism Action Plan and Diversification Action Plan. Each Action Plan provides a description of relevant economic sectors and proposed interventions including identified value chain projects and climate resilient infrastructure projects to enable economic growth within Malindi; › Section 4 presents a range of implementation considerations to support the next stages of the SUED Programme.

The report is supported by a series of appendices, in which: › Appendix A - Malindi Diagnostic Report The purpose of the report is to assess the current position of the economy and state of infrastructure, alongside the regional, national and international context, before the consideration of emerging economic growth opportunities and infrastructure needs; › Appendix B - UEP Technical Briefing Paper Provides a Briefing Paper that captures the process followed from identification to assessment of growth opportunities for Malindi Municipality and provides recommendations on those with the greatest potential to maximise benefits and be developed further. The contents of this report will form the backbone of the Malindi UEP;

› Appendix C - Malindi Social Inclusion Study This study was a key part of the diagnostic process and engaged with special interest groups through interviews and focus group discussions. The study identified the groups that are excluded in socio-economic activities in Malindi and explored how and why they are excluded. The Study made a series of recommendations for the SUED programme to ensure inclusion and to address the multiple barriers (communication, physical, attitudinal and organisational) that these groups face; › Appendix D - Climate Vulnerability Assessment Has been undertaken to outline the climate vulnerability context for the selected infrastructure projects to be developed in Malindi. The Climate Vulnerability Assessment will complement associated pre-feasibility and feasibility study assessments.

MALINDI URBAN DIAGNOSTICS

2. MALINDI URBAN DIAGNOSTICS 2.1. Study area Malindi Municipality is one of seven constituencies within Kilifi County, which falls into the Coastal Province of Kenya and the JKP economic bloc. Malindi sits below the Galana River and is situated on Kenya’s Indian Ocean coast. Malindi is well suited to agricultural activities with a good supply of arable land, with a hot and humid climate and high average annual rainfall.1 Malindi town is the largest urban area in Kilifi covering an area of 56.6km.2

Figure 4 - Malindi growth areas

choice destination for industrial business in the region. A good trade potential exists given its geographical positioning along the coast, with access to the international Sea Ports in Mombasa and Lamu, as well as to the Standard Gauge Railway (SGR) and the Mombasa freight line. Malindi Municipality is home to its own airport providing regular national flights to Lamu and Nairobi. There are also plans for a dry port in Voi, which will complement the traditional cargo freight in Mombasa port.

Mambrui Growth Centre

Kenya A7

Galana-Sabaki River

Sabaki Trading Centre Ganda Growth Centre

Kakuyuni Growth Centre C103

The six counties make up 14% of Kenya’s total land area and contribute 8.6% of total national output, and represent some of Kenya’s poorest counties, despite a wealth of natural resources. Kilifi and Mombasa are the only JKP economies with significant shares of their output derived from manufacturing and with a lower dependence on agriculture, where they are more diversified than other coastal areas.

Malindi Town

Msabaha Growth Centre Gedi Growth Centre Muyungu Growth Centre

Kenya

The proximity of Malindi, and Kilifi, to the large markets in Mombasa and the availability of a relatively good road network can enable it to become a

Watamu Town

Malindi Matsangoni Trading Centre

Planning Boundary Airport Airport Expansion

1 Source: County Government of Kilifi, Kilifi County Integrated Development Plan, Section 1.2 (2018-2022) 2 Source: County Government of Kilifi, ISUDP, Table 2-12 (2015 draft)

MALINDI URBAN ECONOMIC PLAN

2.2. National Polices and Strategies The diagnostic process set the basis and context for the development of the UEP. The Malindi Diagnostic Report covers the key international and national trends, which are likely to influence Malindi’s growth trajectory, and the policy framework from national strategies through to Malindi’s own priorities and ambitions.

Economic planning context

The Malindi UEP aspires to build on and enhance the work already done

Economic Planning Policy Context

International trends; Urbanisation trends; Depletion of resources; Climate change; Impacts of the 4th Industrial Revolution.

National Polices and Strategies

Kenya Constitution 2010 (Chapters 5 & 12); County Governments Act No. 17 of 2012 (revised 2017); Urban Areas and Cities Act (2011); Physical Planning Act No. 6 of 1996 (revised 2012); Kenya Vision 2030; National Spatial Plan (NSP); Kenya Green Growth Strategy.

Local Plans

The Kitui UEP aspires to build on and enhance the work already done

Kilifi CIDP 2018-2022; Malindi ISUDP 2015; Malindi Municipal Charter (2018); Malindi spatial development Plan (2018).

Kilifi Priorities

Modernise agriculture and livestock production; Manage environmental degradation; Improve industrial capabilities.

Malindi Priorities

Develop physical and social infrastructure such as the expansion of Malindi airstrip and development of a coastal seaport; Sustainably exploit natural resources; Preserve Malindi’s rich culture; Greater development around key urban centres.

Malindi Golf & Country Club Existing Leisure and Recreation Facilities Existing Transport Hub Existing Museums and Chapels

Figure 5 - Malindi Context Plan

Existing Markets

Malindi Beach

Existing Utilities Existing Residential Areas: High Density Existing Residential Areas: Medium Density Existing Residential Areas: Low Density Malindi Marine Park Beaches Agricultural Land Recreational Land

Market

Educational Land Residential Land

Market

Commercial Land

Malindi Museum

Land for Public Purpose

Market National Museum of Kenya Malindi Market

Industrial Land

Land for Public Utilities

Portuguese Chapel

Bridge Beach Pier Vasco da Gama Pillar

Malindi Airport Vacant Land Malindi CBD

Malindi New Stage Bus Terminal

CBD Buffer (2km radius) Airport Buffer (2km radius)

Malindi Airport

Silversands Beach

Existing Carriageway (A9) Existing Roads (Major and Minor)

Market

Kenya

Casuarina Dumpsite

Casuarina Beach Malindi Marine Park

MALINDI URBAN ECONOMIC PLAN

2.3. State of Malindi Malindi’s population more than doubled between 1989 and 2009, that was partly driven by the tourism boom. Malindi has experienced rapid urbanisation, where the urban centre now reflects 70% of Malindi’s population, has overstretched social amenities in the urban areas. The municipality has a current population of 220,000,3 population growth is set to slow down to 3.1% per annum, though this will remain above the Kenya level, whilst the urban population is estimated to grow slightly quicker. Malindi has a high share of its population at working age, with higher densities of working age population close to the coast line. The average density for Malindi Constituency is 259 people per km2, whilst this increases towards the coast and substantially to 5,453 people per km2. Only 18% of Malindi’s working age population are educated above primary level, which is below the national level (23%), where net enrolment in Malindi drops off significantly after primary education. There are also high shares of the population with no formal education Kilifi and the Coastal Province rank poorly for poverty, welfare and Income inequality, whilst Kilifi has an average spend per person that is below the national average but at an average level amongst Kenya’s counties and significantly above other counties in the Coastal Province. The Coast’s counties have the worst income inequality across Kenya with a wealthiest to the poorest ratio of 20 to one and above in Lamu, Tana River, Kwale, and Kilifi.

2009 Census population estimate was

Malindi’s population is currently estimated to be around

162,712

2.4% Kenya

220,000

at 15% of the county

3.4% 3.4% Malindi

Kilifi County

Population Growth Malindi town population estimated to be by 2035

180,000

Population Density

Malindi Municipality: 259 people p/km² County: 89 people p/km² Nationally: 65 people p/km²

Kilifi ranks as the 17th

most diverse county of the 47 counties in Kenya

3 County Government of Kilifi, ISUDP, 2018 estimate (2015 draft)

Work Age 61% 55% Malindi Malindi Town

50% Kilifi

Secondary Education

Municipality

Monthly consumption expenditure of

KES 5,539 in Kilifi 83% of Kenya average

18% 13% Malindi Kilifi 23% Nationally 50% of Malindi’s population fall below poverty line, 58% in Kilifi, 54% Coastal Province, 45% nationally

economy in Kenya with respect to Gross County Product (GCP) at

KSh 15.85bn,

MALINDI URBAN DIAGNOSTICS

with the national average of KSh 160.1bn

Overview of the social inclusion report

Outline of Malindi’s Economy

The SUED Programme’s focus in terms of inclusion is PWDs, women and youth. Leaving no one behind is a central theme that underlines both the 17 UN Sustainable Development Goals adopted in 2015 and Kilifi’s core value of Inclusivity and public participation. As such the UEP’s proposed interventions need to be PWDs, gender and age-responsive.

Figure 6 - GCP per capita (2017 prices), 2017

Social Inclusion

400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Nyandarua Elgeyo Marakwet Niarobi Mombasa Nakuru Lamu Kiambu Nyeri Machakos Embu Bomet Tharaka Nithi Kisumu Kirinyaga Narok Muranga Laikipia Busia Meru Nyamira Kericho Taita Taveta Uasin-Gishu Baringo Nandi Kajiado Kisii Trans Nzoia Tana River Marsabit Makueni Kwale Isiolo Homa Bay Bungoma Kakamega Siaya Vihiga Kitui Samburu Garissa Kigori Kilifi Wajir Turkana West Pokot Mandera

A key part ofno theone UEPbehind diagnostic the that Kilifiunderlines Social Inclusion (Appendix C). Leaving is aprocess central was theme bothStudy the 17 UN ThisSustainable study engaged with special interest groups (SIGs) through interviews and focus group Development Goals adopted in 2015 and Kitui County’s aim of discussions. transforming Kitui for Inclusive and Sustainable Development.

Gross county product per capita, 2017 (KSh)

GCP per capita (2017)

Kenya average

Source: Kenya National Bureau of Statistics, Gross County product 2019

Women - mostly excluded in decision making, having no say about the proceeds from their economic activities.

Youth - excluded in award of major contract, as perceived as unable to manage huge amounts of funds.

People Living with Disabilities (PWDs) - Are left out in important information sharing forums and often denied employment because people view them as unable.

Recovering substance abusers - Excluded in all areas including cases of them being denied medical care because they are perceived as dirty and ‘insane’.

Recommendations: 1. Attitudinal barriers - SUED Programme staff to be change agents who foster positive and inclusive culture; 2. Communication and information barriers - In conjunction with private sector players the SUED Programme can map out rehabilitated PWDs, build their capacity and offer them jobs; 3. Organisational barriers - The SUED Programme should offer capacity building and interview opportunities to all interested groups equally.

MALINDI URBAN ECONOMIC PLAN

GCP growth 2013-2017

Malindi’s economy sits in the JKP economic region, alongside Tana River, Taita Taveta, Lamu, Kilifi, Kwale and Mombasa. Malindi is well placed to utilise its strategic position and the national economic ambitions, with accompanying infrastructure developments. Despite reasonably high output levels, where Kilifi is the 17th largest county in Gross County Product (GCP) and contributes 1.6% nationally, GCP per capita is low, ranking 43rd of Kenya’s counties.4

Mandera Turkana

Marsabit

Wajir West Pokot

Real GCP growth slowed in 2015, as a result of the national level shock in the tourism sector, whilst across 2013-17 the growth averaged 5% per annum. The slowdown in the tourism industry has had a knock-on effect through the rest of Malindi’s economy, both from tourist owner and employee incomes and sectoral linkages. Malindi has previously been highly dependent of the tourism industry and needs to diversify its economy. Agriculture, fishing and forestry (32%), real estate activities (12%), transport and storage (10%), manufacturing (7%) and education (8%) are the main components of Kilifi’s GCP. Kilifi’s manufacturing and agricultural output both contributed 1.3% of the Kenya total each. Malindi’s key sectors have been assessed as agriculture, fishing, tourism and industry and trade.

Samburu Trans Nzoia

ElgeyoMarakwet

Bungoma Uasin Gishu

Busia Kakamega Siaya

Vihiga

Laikipia

Migori

Meru

Nandi

Kisumu

Tharaka-Nithi

Nyandarua Kericho

Homa Bay

Isiolo

Baringo

Nakuru

Nyeri

Kirinyaga

Nyamira Kisii

Garissa

Embu Murang'a

Bomet Narok

Kiambu

Nairobi

Retail, Hospitality & Other Services

Public Services

Tana River

Machakos

Makueni Kajiado

Lamu

Technical Services

GCP Change 2013-17 < 10% 10 - 20% 20 - 30% 30 - 40%

Kilifi

Malindi

Economic Structure of Kilifi County, 2017 Construction & Logistics

Taita Taveta

Mombasa

Agriculture

Mining & Utilities Manufacturing

Kwale

> 40%

Source: KNBS Gross County Product 2019 4 KNBS (2019) Gross County Product report Source: KNBS, Gross County Product report (2019)

Source: KNBS Gross County Product 2019

MALINDI URBAN DIAGNOSTICS

The labour force in Kilifi has a large share of the population making a livelihood in the informal economy, though Malindi has a higher share of people in work for pay than other urban areas

Headline economic statistics

Low capital investment has and remains a limitation to the development of Malindi’s economy, leaving it more dependent on non-tradable goods and on the consumption from locals, with limited spending power, and the tourist market, which has been declining. Figure 7 - Breakdown of employment status Malindi and Kilifi, 2009

Breakdown of employment by status 2009

0% Malindi Constituency

10%

20%

30%

30.9%

40%

50%

16.3%

Kilifi County

24.8%

12.2%

Kenya

23.7%

13.1%

60%

12.4% 22.3%

70%

80%

18.7% 17.1%

32%

9.2%

90%

100%

12%

13.7%

8.1%

12.8%

7.7%

9% Work for pay

Family Business

Family Agricultural Holding

Intern/Volunteer

Retired/Homemaker

Fulltime student

Incapacitated

No work

Kilifi County contributes to 1.6% of Kenya’s total GCP making it the 17th largest county in economic output.

Kilifi’s economic growth slowed to just 1% between 2015-2016.

Informal sector accounts for 45% of Kilifi’s total employment.

Malindi has high shares of its population working for pay (31%), as a result of the tourism industry.

Source: Kilifi county, exploring Kenya’s inequality report, 2013

DR Infrastructure overview At present, Malindi Town has no sewerage system, the majority of Malindi town does not have an adequate storm water drainage system, flooding is common and particularly disruptive to the tourist industry, waste generation is greater than the capacity for waste storage and collection and road condition tends to be compromised by dusty conditions, uneven surfacing and potholes, and they are prone to flooding.

MALINDI URBAN ECONOMIC PLAN

Water Nationally

58%

Drainage

Irrigation of the population receive clean safe water.

Malindi is experiencing the largest gap between demand and supply of water of all the sub counties in Kilifi, with a water gap of 25,738m3/day.

The majority of crops are rainfed and there are no rain water harvesting / storage facilities used for irrigation in the county.

75%

Approximately of Kilifiâ&#x20AC;&#x2122;s population receive clean safe water,5 58% in Kenya.6

Waste Water & Sanitation

The county toilet coverage is estimated at 65.3% is the national average.

67%,

At present, Malindi Town has no sewerage system. The use of on-plot sanitation systems such as pit latrines and septic tanks for disposal of effluent is prevalent. Lack of a proper sludge management system such as a Sludge Handling Facility.

There are currently no major irrigation infrastructure schemes in the county.

Solid Waste Management

Currently waste generation is greater than the capacity for waste storage and collection and as such dumping of waste in open areas occurs frequently. Municipal solid waste generation in Malindi Town is tonnes per annum, around 0.5kg per person per day.

33,000

Waste infrastructure is limited with few containers (outside of the town centre) and limited formal recycling.

5 Source: KNBS, Kilifi County Statistical Abstract (2015) 6 UNICEF KMP (2015) Wash Data Base. Available at https://washdata.org/data/household#!/table?geo0=country&geo1=KEN 7 Source: County Government of Kilifi ISUDP (2015 draft) 8 Source: County Government of Kilifi ISUDP (2015 draft)

Energy

Transportation

Malindi is served by the Kilifi substation with 2 times 23MVA capacity as well as the Gede substation with 2 times 7.5MVA transformers in Malindi on the 33/11kV substation.

Malindi and the town is connected by Malindi airport that serves domestic flights and national highway that links the town to other major towns and ports.

16,000

It is estimated to reach approximately tonnes per annum by 2035.7

The majority of Malindi town does not have an adequate storm water drainage system, flooding is common and particularly disruptive to the tourist industry.

The is significant potential for renewable energy generation which, if utilised, will reduce energy consumption and carbon emissions.

Malindi residents (56.2%) walk as their main mode of transport followed closely by motorcycle use at 20.6%. Unpaved roads form 82% of the total road network.8

MALINDI URBAN DIAGNOSTICS

Environment overview Kilifi County has a moderately hot and dry climate throughout the year, and particularly sensitive to the impacts of extreme weather events such as drought due to weak coping strategies and high poverty levels. The long shoreline hosts numerous marine sites Malindi Marine National Park, Watamu Marine National Reserve and Kuruwitu Marine Area, which provide critical habitats. It is also a key piece of commercial and community infrastructure integral to the operation and activities of local businesses, fisheries, the hotel industry, and the community.

The water supply for Malindi Town is inadequate to serve the current demand let alone the future needs of its growing population and tourists.

Population growth and climate change will further increase pressures on healthcare as a result of more and stronger heat waves, spreading of vector - and waterborne diseases and food insecurity9,10

Changes in the magnitude and severity of extreme events, sea level rise and coastal erosion are significant risks to energy, transportation and building infrastructure.

It is estimated that at least $5.7 million p.a. (2016-2030) of investment is required in Malindi infrastructure to adapt to climate change.11

9 Source: USAID, Climate Change Adaptation in Kenya (2011). Available: https://www.climatelinks.org/sites/default/files/asset/document/kenya_adaptation_fact_sheet_jan2012.pdf 10 Phong, V. et al., Predicting the direct and indirect impacts of climate change on malaria in coastal Kenya (2019). Available:https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0211258 11 Source: Pro-rata estimate developed using estimated national adaptation investment need (World Bank (2010) Economics of Adaptation to Climate Change) and the proportion of Malindi countyâ&#x20AC;&#x2122;s population relative to the national population (2009 census)

MALINDI URBAN ECONOMIC PLAN

There will be a need to employ sustainable and efficient practices utilising local resources as the economy diversifies and grows as well as appropriate economic opportunities promoted and infrastructure in place that minimises exposure to climate change risks. There are increasing pressures on ecosystems as a result of unsustainable practices within the county, which are likely to worsen into the future. Climate change effects Sea level rise, changes in precipitation patterns and increasing temperatures are only expected to further exacerbate the regions water scarcity challenges, impacting both water quality and quantity. Climate change will also drive further pressure to Malindi’s ecosystems, through rising seas, increasing ocean temperatures and heat stress.

economic growth. Malindi’s economy has been overly dependent on the tourism sector and needs to diversify its activities. The economic slowdown in 2015, resulting from a national level shock in the tourism sector, impacted many tourism centres in the country. In order for Malindi to better enable economic diversification, it will be important to improve both an understanding of sectoral linkages and access to supply chains across the economic sectors.

2.4. Key challenges / risks

There is also a general lack of skill availability and transfer of knowledge (both traditional and new technology) between people, businesses and sectors and a need to distribute sector skills and practice knowledge across community groups and to the youth. Agriculture, fishing and production are constrained by the lack of post-harvest capacity including coldstorage, large scale collection, process and packaging.

In order to achieve sustainable growth, there are a number of key challenges for Malindi to overcome.

2.5. Key opportunities and drivers for growth

There has been rapid population growth which hasn’t been matched with effective urban planning and development, where infrastructure provision has been inadequate and the supporting sectoral and market linkages limited. Some of the current urban environment issues include unreliable power, inadequate water and sanitation and lack of formal employment for many residents; all of which have been exacerbated by rapid urbanisation and represent a significant barrier to sustainable

Malindi is an attractive and buzzing centre along the coast providing goods and services to the county and the country. There is great potential for Malindi, situated on Kenya’s coast line, with and abundance of natural and cultural resources and strong links Nairobi and Mombasa. Malindi’s Diagnostics Report identified four key sectors with the greatest potential for Value Chain opportunities:

Tourism

Agriculture

Fishing

Manufacturing & Industries

A SWOT analysis based on the detailed analysis and consultations of the diagnostic process was undertaken for these sectors. This considered the strengths and weaknesses of the sectors’ existing activity and economic linkages, as well as the future opportunities and threats that will need to be addressed. This process set a baseline for developing Sector Action Plans, to drive economic growth in Malindi and support the identified Value Chain opportunities. The following section provides summaries of the SWOTs and details the Sector Action Plans.

ECONOMIC DEVELOPMENT PLAN

3. ECONOMIC DEVELOPMENT PLAN The model for development for Malindi Municipality is founded on the UEP principles set out in Section 1 and in collaboration with Malindi stakeholders. It aims to strengthen Malindi’s economic position based on its competitive and comparative advantages and taking a citizen centred approach to green growth and sustainable investment. The Malindi Municipality Urban Economic Plan sets out an economic Vision and economic action plan which will support the Municipal Board and the Municipality deliver a more cohesive, holistic and

sustainable economic future for Malindi. A number of potential value chain projects have been identified which can act as anchor projects while a development framework prioritises key climate resilient infrastructure projects that will be required to support economic growth.

› 3.3 presents the Tourism Action Plan › 3.4 introduces the Diversification Action Pan › 3.5 provides more detail in terms of scope for those value chain projects that present the highest positive impact

The Vision is supported by a series of objectives to be adopted by the Municipality which will provide direction and clarity in its decision making and future activities. These are:

Objectives

This section is set out as follows: › 3.1 sets out Malindi’s economic vision and objectives › 3.2 explains how the development framework is set out

Vision & Objectives

Economic Sector Action Plan & Value Chain Project Opportunities

Development Framework & Priority Infrastructure Projects

3.1. Economic Visioning To promote diverse economic development within an attractive investment business environment, Malindi must focus on its key economic sectors and competitive advantages that can support growth within the Municipality, and throughout the County, and facilitate both sustainable growth and the adoption of latest best practices. As a result, the Economic Vision for Malindi Municipality is as follows:

“Developing a diverse Blue-Green Economy whilst harnessing and managing Malindi’s abundant natural resources”.

Ensure resilient and resource efficient urban and economic growth

Create an attractive and vibrant business environment

Develop an enabling and responsive Municipal organisation

Promote opportunities for all members of the community

MALINDI URBAN ECONOMIC PLAN

3.2. Development Framework Plan Based on the diagnostics of Malindi’s socio economic conditions, the urban morphology, character and infrastructure provision, as well as the economic sector priorities that have been set out, this section brings together proposals that will support economic growth, optimise the impact infrastructure development and tackle the most pressing needs of the Municipality in order to respond to the pressures of urban growth whilst building climate resilience and sustainability. Malindi’s coast line can broadly be subdivided in three distinct character areas marked by natural and manmade landmarks namely, the Galana River to the north, the Vasco Da Gama pillar and the fishing pier in the central zone, the Marine National Park and Mayungu beach to the south. The northern stretch of the coastline is both populated by resorts and leisure activities and visitors typically stop at bird and animal sighting spots, particularly around the

mouth of the Galana River. The southern stretch of the coast, between the Vasco Da Gama pillar and the Mayungu beach, hosts typically high-end resort destinations with properties running along the coastal zone. To the centre, is the more urbanised waterfront section, where locals come together for leisure and informal sport activities making the most of improvised and informal play spaces between the sand dune and Silversands road. Some museums and markets are also located in proximity of the fishing pier and the Vasco Da Gama pillar effectively marks the southern end of the central zone. However, whilst the monumental Vasco Da Gama pillar is currently managed as a tourist destination, the fishing pier is left mainly unmanaged and is fast deteriorating. Nevertheless, the pier is still used as the key ‘hang-out’ and visitation spot on the waterfront by people of all ages and is also the backdrop for small businesses (i.e.: photographers, informal street vendors, makeshift touristguide pick-up point, and so on) that benefit from its visitor attraction. A small

fish market and cold store facilities are also located at the land side of the structure. The pier’s location is strategic, directly opposite Shella old town, it’s a nodal space for the whole waterfront being barycentric and in proximity to other local attractions such as the Curio market, Malindi Museum and the Mskiti Jumaa Mosque. This area is also being upgraded through a World Bank funded waterfront transformation project which includes some sport pitches and much needed food and beverage and leisure spaces. Set back away from the coastline is Malindi’s Central Business District (CBD) which has a diverse trade and commerce activity of both the formal and informal sectors. This area offers the full range of commercial, civic and public amenity opportunities. Beyond the CBD to the north, south and west adjacent to the main road corridors that feed into the centre are residential areas which also accommodate various business activities not always conducive to maintaining

residential amenity. To the west of the central area is the Malindi International Airport which provides access to the wider national, regional and international tourism markets and has significant potential for upgrading and the development of an air cargo logistics centre to enable export activities to wider markets as part of the Municipality’s drive for diversification. Malindi still very much considers itself a holiday destination for both local and international markets despite having suffered consistent and significant decline over the past 15 years or so. As a result, the development strategy plan has considered two Action Plan approaches premised on revitalising Tourism and Diversification of the local economic base.

ECONOMIC DEVELOPMENT PLAN

Figure 8 - Existing Urban Framework

MALINDI URBAN ECONOMIC PLAN

Figure 9 - Overall Development Strategy Plan

ECONOMIC DEVELOPMENT PLAN

3.3 TOURISM ACTION PLAN Malindi’s growth and prosperity has been anchored on tourism and the influx of both international and national visitors to its shores coming to experience the Swahili culture, sandy beaches and rich history as a stopover for Vasco da Gamma and home to Portuguese settlers. Over the past 20 years it has seen a significant and impactful decline in tourist numbers mostly due to safety and security concerns but also as a result of evolving trends in international travel demanding new types of experiences. The development of new beach destinations such as Watamu and further south in Mombasa increased competition for the already decreasing international tourist arrivals. This has led to the consequential decline in revenue, and the erosion of the Town’s urban fabric and character through a lack of investment in public and private building and infrastructure. Through the diagnostics assessment it has been shown that tourism remains a core potential offering for the Town. In fact, tourism has been identified as one of the main growth areas within the Kenyan economy and tourism growth and diversification is supported within the Vision 2030, the NSP and the ISUDP. It is also a key objective of the Kilifi County to increase tourism spend within the County through a tourism strategy implementation. The aim of the Tourism Action Plan (TAP) is to build on this strategic direction and develop a series of interventions that can advance the tourism offer within Malindi Municipality. It will therefore be important to base this plan on the comparative and competitive advantages of the Municipality that differentiate from other destinations within Kenya and focus on developing some of its unique characteristics such as the strong cultural and natural environments Malindi has to offer. At the same time, it would be critical to consider the customer base and move beyond just international tourists to include an offer for regional and local visitors that can sustain activity in between seasons. The interventions outlined within the TAP consider both ‘soft’ and ‘hard’ actions that will support the development of the tourism sector in a comprehensive manner.

ECONOMIC DEVELOPMENT PLAN

Tourism The purpose of the tourism action plan is to provide guidance on the measures and present ideas that should be considered to improve and enhance the local offer, however it does not replace the need for the development of a comprehensive strategy for the sector within Malindi. The latter would be essential to engage and mobilise stakeholders and investments to implement collectively. Figure 10 is an outline of the assessment of sectorâ&#x20AC;&#x2122;s performance as this was developed during the Diagnostics phase. This was key to establish the basis for developing the proposed interventions.

Figure 10 - Tourism sector

Strengths

Weaknesses

Malindi is a well-established tourist town that has good growth in the recent past.

Beach erosion from the development of tourist facilities.

Local tours, guides and attractions - safaris, forests, water sports and marine activity.

Limited local training, few skilled hospitality workers from Malindi.

Airport with regular flights to Lamu and Nairobi.

Hotels and restaurants often use food from elsewhere.

Good opportunities and engagement with different social groups.

Sector has contributed to the increase of undesirable activities.

Sectoral links - transport, agriculture, fishing, arts and leisure, real estate.

Past growth attracted high level of urbanisation and immigration - falling incomes and lack of investment.

Challenges to address The continued decay of the town's charm / aesthetic qualities from rapid urbanisation.

Risk of over-dependence on the sector, where it is vulnerable to shocks.

Climate change effects - biodiversity, loss of tourist attractions / activities.

Competition from neighbouring towns such as Watamu, and eco-friendly and high-quality tourism.

Poor condition road areas and inadequate drainage. Unreliable electricity supply - energy demand gap.

Malindi and Watamu marine parks constraints.

For tourism sector interventions to be successful it will be critical to address existing challenges in a systematic and holistic way capturing both soft and hard initiatives.

MALINDI URBAN ECONOMIC PLAN

Soft Initiatives:

Soft initiatives that can prepare and support local stakeholders in delivering an improved tourism offer

› Establish working group with key representatives from the public sector, businesses and communities (consensus on offer through informed decision making - research into international best practice, coordination); › Marketing (linking key offer and developing a unique brand); › Skills (developing core competencies); › Develop events; › Engage community actively;

Infrastructure projects that improve the image of Malindi

Anchor projects that can generate the critical interest and highlight Malindi’s unique characteristics

› Regulations and incentives. Anchor Project Developing key public realm interventions premised around its core offering being the waterfront, cultural areas such as the Shella Village, and the natural coastal and dune areas up to Galana River. These are supported by rejuvenating the central area and creating a new nodal attraction (to the south) and physically linking these assets to promote a complete and connected range of varying experiences and visitor opportunities. These anchor projects will need to be sequenced and managed in order to ensure their success. These include: › The Waterfront and Jetty redevelopment; › The Shella Village regeneration;

› The north shoreline nature based activities; and › Fishing village. Infrastructure Projects The perception of a city is mostly given by the images that visitors and residents alike retain when using and visiting it. The arrival experience, the ease of movement and security, cleanliness, quality of the public realm and access to supporting facilities are all elements concurring to deliver an attractive and vibrant urban holiday environment that stimulates repeat visits and creates an attractive “economic milieu” for investment and business. › Waste; › Sanitation; › SuDS; › Road upgrade; › Transportation (water, road). These are described and considered in further detail in the following sections of this report. The TAP has been sequenced in such a way that the first priorities are aimed at improving the Town’s touristic offer, its safety and visual amenity in order to make it more attractive for visitors and residents as well as developing strong local capacity to maintain momentum and improve inclusivity in the delivery of the plan.

ECONOMIC DEVELOPMENT PLAN

SOFT INITIATIVES Establish working group with key representatives from the public sector, businesses and communities Tourism is a complex sector involving various stakeholders and players in delivering services as well as being affected by activities. It is imperative that from an early stage of planning all relevant stakeholders through the development of a working group / forum to ensure informed decision making in the design of tourism offer and effective levels of cooperation in its delivery. The purpose of the working group would be to raise awareness and knowledge of tourism amongst stakeholders that can influence development of the sector, its competitiveness and sustainability. Key actors include: › Public sector officials from the department of trade and industry, tourism, environment and transportation are critical to ensure integrated planning and effective implementation; › Private sector and tourism industry representatives and associations within Malindi, such as local businesses active within the sector, local businesses seeking to develop activities in the sector, local businesses within the sector supply chain and financial investors. It would be important to engage with alternative structures for private sector engagement such as property owners, when public land availability to support

the tourism sector is an issue and requires access to land; › Community groups particularly from areas affected positively or negatively from tourism and NGOs and other civil society interest groups. Additionally, it would be important to maintain close links at national level with key ministries and agencies such as the Kenya Tourism Fund and Kenya Airports Authority who are extending the Malindi airport to international standards.

Strategy and Marketing In a highly competitive global market, it is imperative to create a unique tourism offer that differentiates itself from the rest. Malindi is unique in cultural and historic context within Kenya combined with its abundant natural resources both on the coast, within the core town area and further inland. A first step would be to develop a longterm strategy that links Malindi’s offer with a unique brand and translates into tangible actions, including focusing infrastructure requirements and tourism development areas. To achieve this, it would be necessary to understand current tourism flows and performance within the region and further afield, the type and scale of target markets and Malindi’s potential to capture and increase tourist arrivals. While international tourism is seen as a target market, domestic tourism can also become an important source of considerable activity covering different seasons and providing continuity

throughout the year. With a clear strategy in place and development of a unique brand for Malindi it would be easier to strengthen media engagement and develop a network of national and international partners that will provide a platform to market the local offer. Image building events such as creation of festivals could provide a starting point to attract attention, as will the development and opening of landmark developments which provide added value to the overall offer.

Training Tourism is a labour-intensive activity which focuses on customer service skills. The higher the standard of the services provided, the better the tourist’s experience, thus education and training is of paramount importance. This does not only apply to services directly related to tourism such as hotels and guest houses, but also within the supply chain such as trade, transportation and recreation, both active and passive.

Regulations and incentives Two key requirements for the implementation of a successful tourism strategy are: policy and regulations to promote appropriate tourism practices and provision of incentives that can attract and guide development activity. Tourism policy should take full account of socio-cultural, environmental and economic impacts as well as resource management issues such as water, waste and energy.

Equally important is the consideration of potential climate change impacts and how resilience and risk management can be built in particularly for vulnerable areas such as coastal areas. Ensuring good coordination and appropriate incentives can nurture successful public and private sector partnerships which is important for property/area restoration, regeneration and new developments. The local government should provide a clear framework to promote this type of engagement which is necessary in cases where finance and land is scarce.

MALINDI URBAN ECONOMIC PLAN

ANCHOR PROJECT: TOWN CENTRE & WATERFRONT These tourism-based anchor projects include the upgrading of the waterfront area around the existing jetty which is currently the subject of a World Bank (WB) funded initiative to introduce new public amenities and facilities. The proposals within TAP, whilst leveraging, acknowledging and integrating the WB funded infrastructure developments, take a broader view with regards to climate resilient initiatives (mitigations for sea level rise for example) and linking the waterfront with the other activity zones within the Town such as Shella Village, the central area, the northern shoreline and even south to Mayungu Beach. The Shella Village proposals are to improve its touristic potential through better access and circulation linking it to the wider area with targeted signage and upgraded streets and public realm. This will open up opportunities for the areas cultural and artisanal assets to be developed and exposed to a wider visitor audience. This will also introduce opportunities for local tours, artisan workshops & demonstrations, as well as homestays and accommodation focused on women empowerment and job creation within the local community. A village cooperative can be set up in conjunction with the Municipality to manage the upgrading and future operations within the village as well as

the neighbouring areas. The TAP also identifies the opportunities within the more natural areas and landscapes of the northern shoreline which stretch up to the Galana River. This is considered to be an â&#x20AC;&#x153;untappedâ&#x20AC;? natural resource which when sensitively developed and well managed can become a significant added Figure 11 - Town Centre and Waterfront

attraction to the Malindi tourism offer. Low impact, eco-friendly facilities have been proposed which will create greater access into the area whilst encouraging visitors to experience the natural coastal beauty in terms of landscape, views, flora and fauna. To the south of Malindi at Mayungu Beach it is proposed to develop a small

destination facility anchored around the fishing village activities and offering visitors an eco-friendly adventure experience based on non-motorised water sports, food and beverages, low cost accommodation, arts and crafts and marine educational zones.

ECONOMIC DEVELOPMENT PLAN

ANCHOR PROJECT: TOWN CENTRE & WATERFRONT (DETAIL STUDY) Figure 12 - Town Centre and Waterfront Detail Study

MALINDI URBAN ECONOMIC PLAN

ANCHOR PROJECT: TOWN CENTRE & WATERFRONT

Waterfront Improvements and Leisure Pier Figure 13 - Waterfront Improvements and Leisure Pier

ECONOMIC DEVELOPMENT PLAN

TOWN CENTRE & WATERFRONT Waterfront Improvements and Leisure Pier

The central stretch of the Malindi’s waterfront is the first regeneration opportunity which includes the transformation and upgrade of both the pier and its interface with the town. The proposal takes in account local business needs, space and impact of the climate crisis, namely sea level rise and potential storm surge effects. The waterfront will be “iterated” by a series of pedestrian boardwalks stretching between the Vasco da Gama Pillar and the Galana river to the North. The proposals include a new set of pedestrian links connecting open spaces, light structures (shelters, kiosks, rest points, etc) sport, social and leisure spaces in the urban section. The arrangements of such places are sensibly located away from the ecologically sensitive dune which will be protected and enhanced to maintain and improve its dual function of biodiversity bank and coastal protection zone. In the central (urban) portion of the coast, the dune should be remodelled, and its heights increased to help shelter Malindi from storm surges. In doing so, new spaces can be carved out and developed with low cost infrastructure to both expedite development and minimise cost of reconstruction in case of extreme events. The pier should also undergo enhancement and redevelopment in order to become a more welcoming landmark and unique tourist attraction for Malindi. It can be used for multiple purposes and offerings, for example, a unique event space suspended on the sea and still functioning partially as a fishing pier. It will also act as the main maritime stop for the LamuMombasa sea link. A new, contemporary market structure is to be located on the waterfront promenade where both fish trade, learning and fish-based restaurants can be co-located with a brand-new visitor centre - the first destination for tourists in Malindi. All these proposals should be integrated with the existing World Bank funded projects being undertaken within the waterfront area. It is recommended that the existing overall design of the area should be further validated in order to ensure that it is climate resilient, functional and cost effective in its implementation. The pier and the new proposed fish market structure interface with the village. This is the original Old Town in Malindi where a fishing and artisan community has settled over the centuries. The Old Town has been left in disrepair with poor facilities, infrastructure and public realm. The maze of old buildings, some monuments and landmarks are not on the visitor map. Our proposal fully integrates both the renewed waterfront with this historic and rich part of town to enable both visitors and local business to benefit from the culture, craftmanship and resources that Malindi has to offer. More details about the Shella Village strategy are included in the section: TOWN CENTRE & WATERFRONT Shella Artisan Village, Curio Market 4.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Ensure design integration and validation with WB project

› KES 52,650,000

› State of the art and attractive waterfront destination

› Public Authority

› Possible extension to WB funded project to incorporate UEP proposals

› Pier - Pier revamp including maritime facilities for LamuMombasa sea link

› Better fishing supporting facilities › New tourist facility (visitor centre)

› Pier - Fish market re-development into Visitor centre, Contemporary fish market, retail F&B

› Potential for concession of leased areas to Private operator › Design and Build, Operate & Maintain (DBOM) approach

› High-quality sport and relax spaces › Protection of biodiversity

› Pier - Integration of urban storm water drainage facility

› Public Realm & Utilities by LPA › Following completion: additional revenue from leasable spaces, parking, temporary events, etc

› New retail spaces

› WF - Integration of paths, kiosks, play areas and other facilities visitor facilities (small pocket car parking) between Vasco Da Gama Pillar and Galana River mouth › Natural dunes remodeling and increase of height

Challenges

Data Gaps

Time Frame

Phasing Project Priority

Operations & Maintenance

› May require some land acquisition

› Pre-feasibility and feasibility studies

› Short term

› Multi-phase

› Public zones by Municipality (i.e.: cleaning, etc)

› Integration with ongoing project › Funding

› Actual storm surge levels, flood risk

› Urban Development Proposals supporting Economic Growth

› Leased spaces / facilities by private operator

MALINDI URBAN ECONOMIC PLAN

Malindi Pier Zone Existing pier extended and redesigned with improved high-quality finishes, viewing platforms and attractive design. The design draws inspiration from the traditional fishermanâ&#x20AC;&#x2122;s boat and sand dunes and is respectful of the local surrounding. It includes an amphitheatre for small performances, a seaside market and highquality sitting and recreational spaces.

Traditional fishing boat

Amphitheatre/viewing platform towards the sea

Amphitheatre inspired by fishing boat

Market space towards the city pier

ECONOMIC DEVELOPMENT PLAN

Precedents images Performance and Gathering Spaces

Viewing Pavilions

Piers

Seating Areas

MALINDI URBAN ECONOMIC PLAN

Figure 14 - Malindi Pier Zone - current situation and key areas. The waterfront zones have developed in an organic way leading to poor space planning and poor facilities.

ECONOMIC DEVELOPMENT PLAN

Figure 15 - Malindi Pier Zone - proposed approach. The proposal includes measures to re-develop the pier, Shella village and adapt the natural coastal zone to climate change and sea level rise. These measures should be incorporated in to the current WB waterfront projects.

MALINDI URBAN ECONOMIC PLAN

Impact of Sea Level Rise Climate change is going to affect Malindi in many ways. Sea level rise in coastal locations is a key issue, particularly during storm surges. The following three diagrams illustrate conceptually the possible impacts that climate change might have on a sample study area around the Malindi pier. Further studies are required to detail the best solution and prepare for extreme events.

Current sea level and coastal transect illustrating both functional and ecological component of the waterfront in the urban section. The conceptual illustration includes the current waterfront proposals promoted by the WB.

Simulation of sea level rise based on expert advice (i.e.: +1m by 2050)

Simulation of extreme event combination of new sea level and storm surge. In such cases the sea could affect and damage the properties being currently developed in the area around the Malindi pier. It is recommended that a more detailed study and review of the on-going projects are conducted to ensure climatic resilience of the new facilities.

ECONOMIC DEVELOPMENT PLAN

Figure 16 - Waterfront Zones

The identification of the Waterfront Zones acknowledges the project designs and implementation being undertaken by WB. However, it is recommended that all upgrading and redevelopment of the waterfront should ensure it is integrated and connected to the adjoining Shella Village as well as the coastal areas to the north and south as proposed within the UEP.

MALINDI URBAN ECONOMIC PLAN

Case Study:

Geelong Waterfront Leisure activities - Victoria, Australia

East Side Coastal Resiliency Project - New York

Waterfront Geelong is a vibrant recreational and tourism precinct located on Corio Bay. Itâ&#x20AC;&#x2122;s unique North facing aspect, range of restaurants,

The East Side Coastal Resiliency (ESCR) Project is a coastal protection initiative, jointly funded by the City of New York and the federal government, aimed

cafes, activities and public art has seen Waterfront Geelong become an iconic location for the local community and visitors to the region.

at reducing flood risk due to coastal storms and sea level rise on Manhattanâ&#x20AC;&#x2122;s East Side from East 25th Street to Montgomery Street.

ECONOMIC DEVELOPMENT PLAN

ANCHOR PROJECT: TOWN CENTRE & WATERFRONT

Malindi High Street and Sustainable Urban Drainage Systems (SuDS) Figure 17 - Malindi High Street and SuDS

MALINDI URBAN ECONOMIC PLAN

TOWN CENTRE & WATERFRONT Malindi High Street and Sustainable Urban Drainage Systems (SuDS) 2 Malindi High Street: re-design of the street to address the local flooding issue affecting the area around the round-about. The proposal considers improved drainage and streetscape. Malindi High Street is the first part of town that visitors experience on arrival in Malindi (including from the airport). The High street is also one of thriving spots of town where businesses, stalls and markets regularly locate. From here, side streets branch-off to both north and south leading to the new market area and the bus station. Further down a roundabout split the High Street in two main directions, eastbound toward the waterfront and southbound toward Casuarina Road and later on, along the southern coast. The High Street in its current configuration is broadly unregimented with poor space for pedestrian and, occasionally, unsafe spaces for business. The overall impression on arrival is less attractive that what it could be. The High Street area around the roundabout, for a radius of 400m, is also affected by localised floods. This is understood as being one of the most pressing issues affecting the local livelihood of the businesses as when this area floods, trade stops with consequent loss in income. As such the High Street development strategy seeks to address both the structure and space articulation issue and overall perception of the high street as well as minimise the exposure to flood. Two strategies have been adopted: a. Re-structure of the high street spaces to allow for more orderly and safe spaces for both pedestrians and businesses. This it is expected to allow for better, greener features to be fully integrated. The proposed layout includes re-arrangement of spaces fronting the shops, and reduction of on-street car parking to make room for people and pop-up stalls. Car parking can be re-located in the back lanes, fully integrated with business operations where possible. A new green central reservation in proximity of the roundabout is introduced (see detail at b below); b. An innovative and holistic approach to storm-water surface drainage is proposed, this is known as Sustainable Urban Drainage system and entails taking a strategic approach to fully integrated green infrastructure within the new High Street layout to better capture and convey storm water and make fully integrated systems with other neighbouring open spaces in the area surrounding the high street. In this case the central space of the roundabout itself is transformed into a drainage dry pond and other open space plots nearby can become receptors of such storm water (for the detailed approach see SuDS section opposite).

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Upgraded streetscape and activities zones layout

› KES 88,630,000

› Tackling localised flash flooding

› Public Authority or a mix Public Private such as Business Improvement District (BID)

› Public Funding

› Improved and safer trade zones

› Integration of Sustainable Urban Drainage facilities

› Enhanced Malindi’s image / brand

› DBOM

› Better frontage and footfall

› Integration of more greenery and permeable paved surfaces

› Climate resilient street

Challenges

Data Gaps

Time Frame

Phasing Project Priority

Operations & Maintenance

› May require some land acquisition

› Short term

› Multi-phase

› Municipality (i.e.: cleaning, etc)

› Funding

› Pre-feasibility and feasibility studies

› Ground infiltration rates (low)

› Impact on road traffic

› Urban Development Proposals supporting Economic Growth

ECONOMIC DEVELOPMENT PLAN

Figure 18 - As existing arrangement of the main roundabout

Informal/unplanned use of space

Existing roundabout

Access to petrol station too close to roundabout causing traffic congestion.

Petrol Station

MALINDI URBAN ECONOMIC PLAN

Figure 19 - Proposed view of the roundabout showing SuDS elements and some other public realm enhancements

Improved roundabout design to better accommodate rainwater runoff

A new green central reservation in proximity of the roundabout to better channel excess rainwater

Dedicated cycle lanes

Informal but planned use of footway space

Dedicated bus /matatu stops

Petrol Station

ECONOMIC DEVELOPMENT PLAN

Case Study: Uptown Water Circle, Normal - Illinois A roundabout with a park at its centre is used to improve traffic flow and create a public gathering space. The circle also serves as a gateway to Normal for those arriving through its new Multimodal Centre. Sustainable stormwater

management (SuDS) was implemented by collecting and reusing urban runoff from two of the radial streets in a bog and fountain feature. The sound of the flowing water also helps to make traffic noise less noticeable.

MALINDI URBAN ECONOMIC PLAN

Case Study:

Bourke Street - Sydney, Australia

21st Street - Paso Robles, USA

Bourke Street is Sydneyâ&#x20AC;&#x2122;s first large-scale bidirectional, separated cycle track, and is part of the cityâ&#x20AC;&#x2122;s strategy to increase the quality and scope of the cycle network in the Sydney area. The 3.4km project is an upgrade of an existing

cycle route connecting Cowper Wharf Road in Woolloomooloo Bay to Phillip Street, Waterloo. The design provides improved safety and amenities for cyclists and pedestrians.

Early in the design process, team members recognised the overlapping benefits of designing for safety, environmental sustainability, and high-quality public spaces. The newly reconfigured corridor transformed five

city blocks by calming traffic, improving cycle and pedestrian mobility, and introducing a natural drainage into the transportation network, increasing groundwater recharge.

ECONOMIC DEVELOPMENT PLAN

ANCHOR PROJECT: TOWN CENTRE & WATERFRONT Road Upgrade Figure 20 - Road Upgrade

MALINDI URBAN ECONOMIC PLAN

ANCHOR PROJECT: TOWN CENTRE & WATERFRONT Shella Artisan Village, Curio Market Figure 21 - Shella Artisan Village, Curio Market

ECONOMIC DEVELOPMENT PLAN

TOWN CENTRE & WATERFRONT Shella Artisan Village, Curio Market

Potential community led projects: 4

Further inland, Shella Village will offer an alternative to the waterfront buzz and leisure activities with an injection of traditional crafting and cultural discovery which will elevate the local identity of the area. The village is currently suffering from unmanaged public realm, poor-quality property maintenance and complicated access. As many businesses and workshops are already located here, the community would substantially benefit from an integrated urban regeneration strategy. The necessary upgrade of the public realm, derelict open spaces, crumbling buildings and streets winding through the intricate and historic urban fabric of the old town, will facilitate the exploration of “Shella Old Town”. In any urban revitalisation project community development and cohesion and the provision of appropriate measures for existing and future residents and businesses is a central focus. In the case of Shella village safeguarding the existing community is of paramount importance. › To enable creation of economic opportunities in line with the wider development trends in the area (e.g. lodging, food, activities) through meaningful employment for community members; › To provide means of revitalising intangible or tangible culture (e.g. cultural events, local handicrafts, traditional practices) through making them tourism products. Community led development provides local people with the opportunity to influence and become involved in developing their own communities. It brings about improvements in local social, recreational, environmental and historic amenities for both locals and visitors alike and creates an environmentally sensitive and locally controlled tourism sector, which develops business and employment opportunities for local people, and keeps money within the local economy. It is important that any interventions and projects implemented are carefully designed and managed to avoid any negative impacts on the local community such as unrestrained movement of tourists. Good design parameters developed in collaboration with local residents, should ensure that access to private quarters of Shella village is restricted and at the same time allow for an authentic experience for visitors.

› Development of outpost of museums or oral history museum. Community operated museum in collaboration with museums around the country. It would serve as decentralised facility, presenting a limited collection as an introduction to national history and culture and specifically preserve the historic Swahili culture of the Kenyan and showcase past and current livelihoods linked to fishing activities and trade; › Community operated and managed hotel. A business venture favoured by rural communities to generate income, preserve cultural and environmental assets and control tourism. Shella Town could provide for this type of activity benefiting from the historic urban environment and offering an original local experience in a market that concentrates on mainly high-end modern hotels or 2 and 3 star uninspiring accommodation; › Cultural centre. In collaboration with external partners the development of a centre that is operated by the community and showcases arts and crafts from around the country as well as hosting art performances at specific times; › Food and beverage. Central to any travel is a local culinary experience. There are currently few examples of local traditional restaurants accessible to tourists; › Showcasing local products. Artisan workshops, market stalls, artists and makers of all backgrounds will consolidate and expand their businesses to welcome more visitors and expand the “Malindi crafting” brand nationally and potentially internationally, building on existing successes such as the sandal making cooperative.

MALINDI URBAN ECONOMIC PLAN

Figure 22 - Shella Artisan Village, Curio Market Proposals

ECONOMIC DEVELOPMENT PLAN

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Development of Public Realm including, paving of streets and sidewalks

› KES 1.12 billion

› Improved access and perception

› Public Authority or a mix Public Private such as Business Improvement District (BID)

› Public Realm & Utilities by Local Authority

› Better and safe pedestrian facilities for residents, businesses and tourists alike

› Wayfinding and lighting › Plazas an parks redevelopment

› DBOM

› Attraction of footfall supporting an authentic neighbourhood and experiences

› Key historical / strategic buildings repurposing and refurbishment (excluded from costing and proposals - subject to feasibility study)

› IFIs › Value capture following completion: levies on properties and temporary events

› Improved land value › Potential for attracting investments

Data Gaps

Time Frame

Phasing Project Priority

Operations & Maintenance

› May require some land acquisition

› Pre-feasibility and feasibility studies

› Immediate term

› Multi-phase

› Public zones by Municipality (i.e.: cleaning, etc)

› Funding

› Impact of road traffic due to this new road

Andaman Discoveries - Thailand One of the most referenced successful examples of community led tourism development. The project started at the back of the 2004 Tsunami aftermath developing projects for the community. These included over 120 projects in 12 Tsunami-affected communities including: › Community-based tourism development and marketing;

Challenges

› Would increase noise and air pollution due to increased motorised vehicles

Case Study:

› Urban Development Proposals supporting Economic Growth

› Making local products and crafts; › Youth-led conservation work and environmental education; › Traditional Thai music lessons; › Waste management and recycling; › Community centre to coordinate activities.

MALINDI URBAN ECONOMIC PLAN

Case Study:

Mdina - Malta

Craft villages - Vietnam

Mdina is the historic quarter of the Town of Rabat in Malta. Mdina has served as the island’s capital from antiquity to the medieval period and owes it urban pattern of narrow, winding streets to its Arabic influence. Its human scale, car free centre and tranquillity has gained it the nickname of ‘the Silent City’. Following gradual restoration of its buildings and public

spaces, Mdina has become one of Malta’s major tourist attractions, hosting about 750,000 tourists a year. Palazzos (ancient aristocratic homes) have been restored to welcome visitors which bring the ancient quarter to life. Some craft shops and traditional food venues and restaurant complete the visitor experience.

The term ‘craft village’ is widely used in Vietnam to identify villages whose key activity is the craft production with master artisans and households of traditional craft - often the tradition of the family. Some of these traditional handicraft villages have become famous in the tourism circuit, namely Bat Trang for the ceramic and porcelain production (see photos), Doi Drum, Non Nuoc for stone carving, etc. Today the term “Craft tourism” is becoming well-known and it refers to tourist visiting craft and artisanal destinations. This type of tourism contributes to the preservation and the development of craft villages in a

sustainable way as it both supports local products expansion and the preservation and promotion of the cultural values of these villages. From an economic perspective, the development of craft tourism supports local employment, increases community income, and contributes to poverty alleviation. Vietnam’s handicraft villages have become a reason of pride and income earning tool with products exported to more than 100 markets in the world (Hien 2012). From a cultural perspective, crafts become important factor to raise ethnic pride and maintain and protect cultural practices (Kerr 1995).

ECONOMIC DEVELOPMENT PLAN

ANCHOR PROJECT: TOWN CENTRE & WATERFRONT Nature Based Activities Figure 23 - Nature Based Activities

MALINDI URBAN ECONOMIC PLAN

TOWN CENTRE & WATERFRONT Nature Based Activities

Building on the existing strengths of the northern section of the coast, and connected to the central zone, a series of understated promenades on boardwalks will be sensitively weaved through dunes, woodlands and shrubs leading to activities nodes. Picnic areas, leisure/ adventure zones, pop-up sculptures and some viewing tower will be dotted along the trails and act as local landmarks. Links from the National Road down to the coast are also proposed as part of this comprehensive pedestrian network. These facilities are expected to both enhance pedestrian, beach side access to the Galana River mouth and stimulate the village socio-economic development.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Boardwalk promenades, activities nodes, picnic areas, leisure / adventure zones, pop-up sculptures and some viewing tower (subject to feasibility)

› KES 2.65 billion

› Better and safe pedestrian access to the wider river zone

› Public Authority or a mix Public Private such as BID

› Local Authority, IFIs,

› DBOM

› Formalised opportunities for local businesses

› Value capture following completion: levies, leases on temporary events and local businesses

› Attract international visitors

› Pedestrian access to the coastal zone from hinterland (including small pocket car parking)

› Central government

› Additional open natural space › Diversification of the Malindi tourist experience

Challenges

Data Gaps

Time Frame

Phasing Project Priority

Operations & Maintenance

› May require some minimal land acquisition

› Pre-feasibility and feasibility studies

› Short-medium term

› Multi-phase

› Public zones by Municipality (i.e.: cleaning, etc)

› Funding

› Site surveys and land ownership

› Urban Development Proposals supporting Economic Growth

ECONOMIC DEVELOPMENT PLAN

INFRASTRUCTURE INTERVENTIONS The infrastructure interventions outlined are proposed to take existing negative impacts within the Municipality as solid waste (littering and dumping) and sanitation (lack of sewer network) and exploiting them to not only improve Malindi’s health and amenity but also to create value chain opportunities through formalising management and implementation measures. The following proposals identify the opportunities for Figure 24 - Infrastructure Projects

solid waste management and recycling to be formally introduced at Municipal level thereby creating a waste stream from which potential recycling and waste disposal can be leveraged as commercial investment opportunities. This is a three-step process: › Managed waste collection throughout the Municipality; › Formal operation of a land fill site; › Introduction of a recycling facility.

The introduction of a waste-water treatment plant is essential to the Town’s future growth and its citizens health. As dumping of sewerage and sludge is currently undertaken at the existing solid waste dump site it is proposed that this site be utilised in a multi-functional manner in order to optimise on infrastructure and operational aspects of the overall facility. Linked to this is the value chain opportunity for the sludge to briquettes,

fertilisers and feed mill plant to be located on the same site to reduce travel and local impacts caused by extraneous traffic and activity Finally, the introduction of solar street lighting will improve the security of Malindi’s streets, particularly within the central and waterfront areas, and encourage night time trading and social activities through improved safety and security.

MALINDI URBAN ECONOMIC PLAN

INFRASTRUCTURE INTERVENTIONS Formalise Waste Collection and Segregation

Formalising and integrating the role of the informal sector into Malindi Town’s waste management system.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

› Formalising the Informal Waste Collection Services

› ~$50 - 100k USD annually

› Reduced wild dumping of waste and improved sanitation

› Introduction of Private Public Partnership (PPP) into waste collection effort

Introducing source segregation in households and commercial establishments.

› ~$50k to develop and implement smart app for town-wide waste collection

Encouraging Community Based Organisations to form operational partnerships with private or public waste collectors.

› Funding: Internationally Funded Institute (IFI) / Donor Finance

› Identifying roles in waste management;

› Provides an increased level of service and engages community and private sector › Improves sanitation and flood and surface water management ability. › Formal employment for waste pickers with adequate wages and health and safety training

› Maintain dialogue and interaction; › Maintaining employment.

› Involvement of waste picker organisations to provide support and supervision

Develop and implement a smart app / text message system to facilitate town-wide waste collection and segregation.

› Better working conditions for waste sorters

The facility will need to provide appropriate amenities for the truck drivers and operators, including vehicle maintenance facilities, toilets, and shops.

› More efficient segregation of recyclables › Higher quality materials which can be sold to recycling brokers

› Support from Non Governmental Organisations (NGOs), community groups, waste pickers › Employment and training by Malindi Municipality or private entity / Community Based Organisations (CBOs) › Funding for Personal Protective Equipment (PPE), collection carts, training and wages for the CBOs, etc › Maintenance responsibility of Municipal Government

› Improved understanding of waste collection and collection days, etc

Challenges

Data Gaps

Time Frame

› Non-biodegradable waste is left on the streets as litter

› Provide adequate training and support systems

› Short-term / Ongoing

› No formal recycling in place

› Convert existing infrastructure

› Lack of health and safety systems in place for collecting and sorting waste by informal sector (waste pickers)

› Launch public awareness campaign

› Not all residents have smart phones

› Develop smart app system

ECONOMIC DEVELOPMENT PLAN

Case Study: Developing an Integrated Waste Management System12 (Kampala, Uganda) In Kampala, Uganda, the development of an integrated waste system was prompted by the lack of formalisation in the waste sector. Much of the waste was disposed informally by dumping, burning or burying. Only 55% of the city’s solid waste was officially collected and transported to the city’s landfill by the Kampala Capital City Authority (KCCA). Several standalone CBO existed offering financial incentives to informal settlements for the collection of recyclable materials, however, the KCCA were not aware of many of these organisations. The KCCA developed a new Kampala City Integrated Waste Management System to improve the collection, transportation and treatment of the city’s waste and incorporate the informal

sector (predominately the landfill pickers and CBOs) as part of an integrated approach across the waste management value chain. As a result of the Integrated Waste Management System, a strategy was developed to identify, inform and consult stakeholders; clear objectives and measurable targets for education and knowledge sharing were created; activities were undertaken to educate waste pickers; a new contract was developed to ensure that new landfill operators would formally integrate registered waste pickers; and CBOs were encouraged to form partnerships with the KCCA in order make the System more integrated.

12 Waste Pickers Alliance, Uganda

MALINDI URBAN ECONOMIC PLAN

INFRASTRUCTURE INTERVENTIONS Remediation of Existing Landfill

Remediation and engineering into a sanitary landfill of the existing dumpsite at Casuarina approximately 10km south of Malindi. › Determine level of investment and secure funding (IFI, grant, PPP or direct by government);

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

› Construction of engineered landfill and excavation and haulage of existing dumped material into new cells

› USD $1 million to USD $4 million

› Improved ground and water quality around Casaurina

› Opportunity for collaboration with private sector

Funding: IFI / Donor Finance

› Improves local air quality

› Appoint private contractors to remediate and clean the site;

› Provides employment

› Engage with informal sector and CBOs.

› Provision of a sanitary and engineered landfill for future management of residual waste

Construct and install two barrier lining and leachate and landfill gas collection and treatment systems within the new engineered landfill cells. Construct a concrete slab on the remediated landfill to undertake recycling operations.

› Construction of concrete slab on remediated area

› USD $250k to USD $1 million

Remediation of open dumpsites in South Asia (What a Waste 2.0, World Bank Group, 2018) constructing new engineered disposal sites that can serve a number of islands (World Bank 2017).

› Reduced ground and water pollution around Casaurina

› Opportunity for collaboration with private sector

› Provides area for formalised recycling and waste composting to take place

Case Study:

Open dumping is common in South Asia with most open dumpsites lacking any form of leachate collection and treatment, landfill gas collection and many also lack any form of liner. However, the remediation of existing dumpsites and the construction of new engineered landfills is underway with the newer official and well operated landfills generally being privately operated. The Maldives is currently mitigating dumping of its waste by improving waste collection systems and

› Reduces methane production in the landfill

› Creating employment

Challenges

Data Gaps

Time Frame

› Malindi has waste being dumped on the road, uncontrolled fires and pollution of surrounding water bodies

› Obtain funding for remediation infrastructure

› Construction of new engineered landfill cells: Short-term

› Obtain funding for construction of new engineered landfill cells

› Removal of historical ‘dumped’ waste into new landfill cells: Short-term

› No formal means of treating and disposing of waste › Need to be mindful of employment and social impacts on informal sector that live and work on the existing dumpsite

› Construction of new concrete slab: Short-term

ECONOMIC DEVELOPMENT PLAN

INFRASTRUCTURE INTERVENTIONS Development of Recycling and Treatment Infrastructure

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

› MRF

› USD $250k to $750k

› Improve community waste awareness

› Opportunity for private or public sector to collaborate with informal sector

Developing basic recycling infrastructure. Construction of a simple material recycling facility (MRF) at the remediated Casaurina landfill to enable informal sector to recycle safely and increase waste awareness and education.

Funding: IFI / Donor Finance

› Formalises the sorting process

› Determine level of investment and secure funding (IFI, grant, PPP or direct by government);

› Employs informal waste pickers › Secures markets to sell the recovered outputs

› Engage with informal sector and CBOs (existing Casaurina dumpsite pickers, etc).

› Provide a safe and regulated environment for waste sorting

Development of composting facility for managing organic waste and fish processing waste.

› Recover and sell recyclable material (e.g. plastics, paper, glass, metals) and receive revenue from sales.

› Develop mechanism for implementing source segregation of organic waste (through waste collection and simple MRF); › Develop mechanism for developing in-vessel composting facility (PPP, funding, grants or direct by government) and identify opportunities / impacts of Construction Design Management (CDM) Develop the facility and secure / ensure end-markets are available - for recyclate and for compost on agricultural land.

› Provides an increased level of service and engages community and private sector

› In-vessel composting facility

› USD $250k to $500k Funding: IFI / Donor Finance

Develop mechanisms for payment / fees between collectors, municipality and pickers.

› Reduced wild dumping of waste and improved sanitation › Can produce usable fertiliser for agriculture

› Would enable wide spread source segregation to be implemented across the Town › Collaboration with recycling facilities to secure markets: locally in Malindi - paper / card and possibly plastics; nationally in Nairobi or Mombasa - metals and plastics

› Opportunity for private or public sector to collaborate with informal sector

› Reduces methane production in the landfill

› Would enable wide spread source segregation to be implemented

› Diverts organic waste from landfill

› Collaboration with farmers to secure local end markets

› Improves local air quality

› Collaboration with fish processors to provide treatment for wastes

› Provides a sustainable treatment method for fish processing waste

Challenges

Data Gaps

Time Frame

› Malindi has waste being dumped on the road, uncontrolled fires and pollution of surrounding water bodies.

› Secure markets for recyclates and land / area for the treatment facilities

› MRF: Short / medium-term

› No formal means of treating and disposing of waste. › Limited formal collection mechanisms

› Obtain funding for treatment infrastructures › Formalise collection process so that waste is sorted and transported to the appropriate facility

› In-vessel composting Facility: Short / medium-term

MALINDI URBAN ECONOMIC PLAN

Case Study:

CEMPRE (Brazil) (www.cempre.org.br)

Heron In-vessel Composting (IVC)

In Brazil, 800,000 waste pickers collect and sort 18% of the recycled waste in the country. In 1992, a group of companies created the Compromissa Empresarial para Reciclagem (CEMPRE) translated to Brazilian Recycling Commitment, which is a non-profit organisation funded by consumer goods corporations, who have partnered to promote recycling and provide safe conditions for waste pickers in Brazil.

CEMPRE trains waste pickers, also known as â&#x20AC;&#x2DC;catadoresâ&#x20AC;&#x2122;, through pictures and videos on how to build a business in waste picking and recycling while following health and safety guidelines. The organisation also removes the middle man from the selling transaction in order to allow waste pickers to deal directly with reprocessors and brokers and keep the entire value of the material they collect and sell.

The Heron IVC is a containerised South African composting technology that takes unwanted food waste and turns it into a soil conditioner. The technology shreds waste to increase its surface area before being mixed and fed into the composting vessel. The temperature of the material in the composting vessel reaches 60 degrees plus. The process reduces the net weight of the incoming feedstock by around 30%.

A 24 cubic meter Heron IVC machine costs around Rand 1.2 million and can process two tonnes of food waste a day. The plant is currently being effectively utilised in South Africa.

ECONOMIC DEVELOPMENT PLAN

INFRASTRUCTURE INTERVENTIONS Sewage Sludge Commercialisation This Value Chain (VC) opportunity is for the commercialisation of sewage sludge, either through processing with black soldier fly larva (BSFL) to produce protein and compost, or carbonising and pressing into charcoal briquettes. These two technologies are currently under review to evaluate which provides greater benefit for Malindi Municipality. This review is expected to be completed by the end of 2019. The key outcomes from this project would include: › Direct employment at the processing facility; › A suitable method of disposal for the Town’s sewage sludge that does not impact on the tourist sector; › Providing an income stream for the Municipality. › Supply of either: › Charcoal briquettes, providing a low-cost alternative to firewood and wood charcoal for cooking and brick making, thereby reducing pressure of woodlands, or; › BSFL as a clean low-cost protein for fish feed and a compost/fertiliser for farmers.

Base assessment For liquid waste there is no sewage network in Malindi, and the Town relies on septic tanks and pits. The emptying of tanks/pits is operated by the private sector, and many are left to overflow. Currently the sludge is dumped out by the municipal landfill site. For sewage sludge there are two technologies being reviewed by Malindi Water and Sewerage Company (MAWASCO) in partnership with Sanivation, with the assessment scheduled for completion by the end of 2019. The two technologies are: › Charcoal briquettes: the sewage sludge is sun-dried and then carbonised in a kiln. The resulting charcoal is then pressed into briquettes for use in domestic cooking or into logs for commercial use. Nakuru has a smallscale plant that is being expanded. The pilot plant, operated by Nakuru Water Sanitation and Services Company (NAWASCO), has a capacity of 2 tonnes of briquettes per month which is being expanded to 10 tonnes per month; › Black soldier fly larva: the eggs of black soldier fly are raised on sewage sludge, resulting in mature larva that are high in protein and can be used in animal or fish feed, and a neutralised organic matter that is suitable for use as a soil enhancer/ fertiliser. The BSFL have been approved by the EU as a fish feed. A pilot facility is operating in Nairobi.

Black soldier fly (hermetia illuciens) are indigenous to Kenya and many tropical / neotropical zones around the world. They thrive in temperatures between 24oc and 40oc, and have been farmed for many years, being used to compost waste, producing high protein pupae that is suitable for animal and fish feed. Most of the farming has centred on using food processing waste, but recently progress has been made in using BSF to process sewage sludge.

Location specific analysis No precise data on the land requirements are available as both technologies have not progressed beyond the pilot plant stage. A preliminary estimate puts the land required for charcoal briquette processing at around 2,000m2 to 2,500m2. This is based on: › 250 days per year of operations; › Production capacity of around 5,000m3 per year; › 5 days for dewatering the sludge; › 1 day for post-production drying. It is expected that the BSFL processing would require a plot of a similar size. The processing facility with either technology would not need to be permanent and could be moved to a new location if required:

› Charcoal processing: the polytunnels and drying racks can be readily moved. The key equipment (kilns, mixer, briquette making machine, packing machine) could all be installed on skids and moved as required; › BSFL: the polytunnels for dewatering and BSF breeding pens can be readily moved. The vessels for BSFL rearing could be designed to be moveable, together with the drying and packaging equipment. It is expected that there will be some odours from the facility, and as such it should be located away from residential and populous areas. For siting the facility, initially it could be located at the waste dump site, to the south of the Town, where sewage sludge and MSF is currently dumped. Later, the facility could be relocated at one of sites identified for WWTP in the 2017 wastewater master plan.

MALINDI URBAN ECONOMIC PLAN

Value chain opportunity Key activities The production flow for manufacturing the charcoal briquettes is outlined in Figure 25 below. Figure 25 - Charcoal production flow

Sludge Supply

Drying

› Emptying septic tanks

› Solar drying of sludge

› Trucking to processing site

› Geotubes to accelerate process

Mixing

› Combining with binder: waste oil or molasses

Forming

› Pressing charcoal into finished balls

Carbonisation

› Heating sludge to 300°c with limited oxygen

Drying

› Final air drying

Pulverising

› Grinding waste

Bagging

› Packing for sale in 5kg paper sacks

ECONOMIC DEVELOPMENT PLAN

The production flow for the BSFL processing of the sewage sludge is provided in Figure 26 below. Figure 26 - BSFL process flow

BSF Breeding Colonies

Compost

BSF Eggs BSF Pre-pupae

BSF Rearing

Drying Pre-pupae Sewage Sludge

Sludge Dewatering

Feed Mill

MALINDI URBAN ECONOMIC PLAN

Capacity

Potential partners

There is no data on sewage sludge production in Malindi and part of the initial assessment by Sanivation will be to assess the potential process volumes. Based on a survey of pit latrine sludge accumulation in Nakuru County, the total volume of sludge in the Municipality could be around 5,000m3 per year (based on an average of 42 litres per person per year). The sludge processing facility would then be scaled to cope with this volume.

The key partners for this VC project would be MAWASCO and Sanivation (undertaking the current assessment of the two options for processing the sewage waste), and possibly ICIPE.

With a 57% conversion ratio for charcoal, the current supply of sewage sludge in the Municipality could be used to produce some 2,850 tonnes of charcoal briquettes. This is in line with NAWASCO’s target for Nakuru of 10 tonnes of briquettes per day (2,500 per year). Indicative costs and revenues For the production of charcoal briquettes, Sanivation have a target production cost for the expansion of the plant in Nakuru of USD $150 per ton, equal to KES 62.5 per kg. This compares well against the average retail price of briquettes of KES 80 to KES 100 per kg. Assuming a sales price of KES 62.5 per kg, total revenues could be around KES 44.5 million per year. There are no cost and revenue estimates for the BSFL process.

› MAWASCO is the Malindi Water and Sewage Company responsible for sanitation in the municipality; › Sanivation is a social enterprise that partners with local governments to help meet the growing waste processing need from septic tanks and pit latrines. They design, build, and operate treatment plants, focussing on producing biomass fuels/briquettes; › ICIPE (the International Centre for Insect Physiology and Ecology) is the leading research institute for commercial use of insects and had undertaken much of research into the use of black soldier fly larvae.

ECONOMIC DEVELOPMENT PLAN

INFRASTRUCTURE INTERVENTIONS Street Lighting

› Improved provision of street lighting to urban areas and proposed park land area; › Increased safety for residents and improved business activities in lit areas.

Challenges

Data Gaps

Time Frame

› Long-term operability of stand-alone systems (i.e. maintenance requirements)

› No knowledge of current products on market and installation / maintenance workforce

› Short term

› Funding

Case Study:

Sub Component

Estimated Cost

Impacts

Delivery Mechanisms

› Study to determine extent of proposed lighting system picks up all key areas and routes

› Benchmark: £1,250 per pole,13 £30-40k per km depending on spacing

› Increased safety and security for all residents in newly lit areas

› Partner with Malindi Municipal Government to coordinate activities

› Allows street side businesses to stay open longer

› Partnering with equipment specialists to determine appropriate technology solutions

› Lighting design study to ensure suitable coverage of proposed areas › Equipment selection › Development of procurement and deployment / implementation plan › Maintenance plan

Actual: £60-80k Funding (eqpt, installation, maintenance): Part IFI, part public funded

› Avoided carbon emissions associated with urban street lighting › More grid power available for other uses › More revenue available for other municipal activities

Jinja is the main city in the district of Jinja, Uganda, with a population of 76,000 and a daily additional working population of 300,000. The Municipal Council has limited revenue generation from taxes and central government transfers, and ran up a significant debt with its electricity provider, so much so, that the provider cut off the street lights. Subsequently crime rates rose, and economic activity was limited to daylight hours. Jinja then became part of national level programmes designed to upgrade informal settlements and urban infrastructure and received over £0.5m to spend on improvement projects. Municipal decision makers indicated a preference for installing

solar street lighting over conventional. So far 92 solar street lights have been installed, including 70 along a 2.5km stretch of main road through the Town. The average cost per street light pole USD $1,600 compared to USD $2,350. This is a saving of roughly USD $50,000. Additionally, operating costs are zero compared to traditional streetlights, as they do not consume electricity, and maintenance costs are low, comprising cleaning of the panel, routine checks and servicing of components. The outcome has been that the Municipal Government has drastically reduced its monthly bill, allowing it to reduce its debt and finance other projects, including further streetlighting.14

› Maintenance - capacity building programme to ensure continued operation of systems › Maintenance - responsibility of Municipal govt

13 Africa and solar powered street lights, accessed 29th July 2019 https://www.engoplanet.com/single-post/2019/07/22/Africa-and-Solar-powered-Street-lights 14 ibid

MALINDI URBAN ECONOMIC PLAN

FISHING VILLAGE DEVELOPMENT Figure 27 - Fishing Village Development

ECONOMIC DEVELOPMENT PLAN

FISHING VILLAGE DEVELOPMENT Mayungu Fishing Village Enhancement

The southern anchor point along the coast will be the fishing village in Mayungu beach. Here an existing village living off fishing activities can be regenerated and expanded to become an out-of-town destination for those who want to experience the true life of a fishing community. For tourists and visitors alike, Mayungu fishing village will offer the opportunity to go fishing on traditional boats, live with local families and enjoy traditional coastal recipes with the backdrop of an incredibly varied natural landscape, namely the coral reef coast to the east, a Baobab woodland to the north of Mayungu public beach to the south and a vast and wild nature expanse to the west. Such natural development will contribute to expand and diversify the economy of the local village benefiting residents. New jobs and businesses in hospitality, tourism, eco-adventures and watersports, food and retail will complement and enrich the life of the fishing community and transform the isolated village into a thriving destination half-way between Malindi and Watamu.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Village expansion toward the peninsula including new, small-scale vernacular buildings and public spaces

› KES 2.2 billion

› Create a new destination

› Public Authority or a mix Public Private such as

› Mixed funding source: Public realm from Public sector

› Diversification of local economy › Bay regeneration › Increased income for local population

› Business Improvement District (BID) › DBOM

› Microcredit from IFIs › Social enterprise investing

› Better fishing facilities

› Low key coastal path promenade including informal seating areas and viewing points

› Private sector

› Revamped village green › Upgrade of cold store for local fish catch › Small scale clustered parking (bike, cars, coaches)

Challenges

Data Gaps

Time Frame

Phasing Project Priority

Operations & Maintenance

› Partial land acquisition

› Pre-feasibility and feasibility studies

› Medium Long term

› Multi-phase

› Public zones by Municipality (i.e.: cleaning, etc)

› Funding

› Land Ownership › Market study

› Urban Development Proposals supporting Economic Growth

MALINDI URBAN ECONOMIC PLAN

Figure 28 - Fishing Village enhancements

Village Green

Gateway to fishing village

Landscape area buffering properties

Mayungu Beach

Central piazzas

Overflow temporary carpark Plaza overlooking the bay

ECONOMIC DEVELOPMENT PLAN

Figure 29 - Phase Enhancements 1-3

Figure 30 - Phase 1

Figure 31 - Phase 2

Figure 32 - Phase 3

The development of the village should be phased to allow it to grow in an organic but structured fashion. This will occur by developing an initial core facility centred around a piazza and providing attractions such as seafood and other F&B outlets, a water sports centre for hiring of equipment, lessons and guiding, an outdoor market for local traders and artisans, a cultural centre relating to the fishing village and a boardwalk with coastal viewpoints. Future developments will include additional F&B, visitor short term accommodation (such as a back packers and guest lodges), events spaces and back of house facilities.

Phase 01

Phase 02

Phase 03

MALINDI URBAN ECONOMIC PLAN

Figure 33 - Fishing village precedents

ECONOMIC DEVELOPMENT PLAN

Case Study:

The Ocho Rios Fishing Village

Akwidda Fishing Village - Ghana

The Port Authority of Jamaica (PAJ) is spending $220 million to develop a fishing village in Ocho Rios, St. Ann.

Akwidaa is a small town and fishing village in Ahanta West district, a district in the Western Region of south-west Ghana and is one of the southernmost places in Ghana. The economy is primarily based upon fishing, with many fishing boats lining the beach. The Town and fishing village has Ezile bay village and the Green Turtle Lodge with eight thatched solar powered huts facing the beach alongside a bar and dining annex. It is named after the many green turtles that lay their eggs on Akwidaa beach, which has also seen a rare sighting of the species Jaminus

Sluginus. Most business is conducted in the village without legal paperwork and many of the surrounding village chiefs own the land and the coconut trees and all purchases must be transacted through them. Business deals are based on trust and spoken words. A new landowner can buy a tree from the village chiefs and has the options of felling it, or keeping the trees standing and harvesting the coconuts on a farm. The recent oil discovery in Ghana also has made Akwidaa a new place for investment due to its oil reserved (Block) near Cape Three Point.

MALINDI URBAN ECONOMIC PLAN

Case Study: Portscatho Fishing Village - UK The fishing village of Portscatho lies in the south west corner of Gerrans Bay on the Roseland peninsula. Portscatho is still a working fishing port. There is safe swimming in the cove itself and many fine sandy beaches close by, including

Porthcurnick Sands, a twenty-minute walk north along the cliffs and owned by the National Trust. A short walk in the other direction will bring you to St Anthony Head, with a light house. Portscatho has an annual fish festival.

ECONOMIC DEVELOPMENT PLAN

FISHING VILLAGE DEVELOPMENT

Challenges

Data Gaps

Time Frame

Priority

Road Upgrade

› May require some land acquisition

› Pre-feasibility and feasibility studies

› Immediate term

› Must have enabling infrastructure

Silversand road will be critical for the proposed waterfront improvement proposal. The road provides the only access to the waterfront. The road is paved; however, the current condition is poor. The drainage along the road is not comprehensive. Due to the waterfront, the road will experience high pedestrian movement. Around 3km of the road has been identified for rehabilitation, as shown in the figure below. The section starts from the Silversand Road-Uhuru Road junction to the Silversand Road-Casuarina Road junction. There would be a possibility of increased through traffic due to the improved condition. Several traffic calming measures need to be taken so that Casuarina road, which is parallel to Silversand Road, remain attractive for through traffic. The traffic-calming measures should include lower speed limit, regular speed humps, and potentially creating a one-way traffic flow and restricting access to heavy goods vehicles. The rehabilitation will need to include resurfacing of the road, appropriate stormwater drainage, sidewalk, and appropriate on-street parking space. Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Resurfacing 3km road

› CAPEX of resurfacing KES 60m

› Easy all-weather access to the waterfront

› Drainage facility

› OPEX of resurfaced road KES 21m

› Better and safe pedestrian facilities

› Potentially Kenya Urban Roads Authority (KURA) as road falls under agency’s jurisdiction

› Covered drainage to create footways

› CAPEX of footways (covered drainage) KES 30m

› Improved land value along the road

› Public funding - potentially from National government or international development partners

› On-street parking facility

› OPEX of footways KES 3m

› Speed humps

› CAPEX of Stormwater drain KES 45m

› Provide pedestrian walkway

› Bus stops

› OPEX of stormwater drain KES 6m (covered drainage) › CAPEX of two bus stops KES 2m › OPEX of two bus stops KES 500k

› Standard procurement procedure as outlined in Public Procurement Regulations 2013 and The Public Procurement and Asset Disposal Act, 2015 › PPP Act 2013

› Potential for some contributions from the developers of the waterfront or creation of business improvement district at the waterfront area

› Would increase noise and air pollution due to increased motorised vehicles › Funding

› Impact of road traffic due to this rehabilitated road including traffic calming measures

› Traffic flow in the surrounding network

› Public consultation

Figure 34 - Proposed bus stops

MALINDI URBAN ECONOMIC PLAN

FISHING VILLAGE DEVELOPMENT New Bus Stops

Figure 35 - Proposed bus stops

Part of Casuarina Road, leading to the fishing village, is gravel. The road will be an important linkage to the proposed fishermen village improvement proposal. With the increase of tourist and other economic activities at the fishermen village, the traffic is likely to increase on that road. The proposal is to upgrade the gravel section, which is 4.4km in length, to a paved road. The proposed section of the upgrade is presented in the figure below. There are a number of high-end luxury resorts along that road. By upgrading the road, businesses along the road will also be benefited. Improved road surface would attract public transport along that route. Hence, installing four bus stops (two in each direction at two locations) would benefit the mobility. Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› 4.4km gravel road upgrade to bitumen standard

› CAPEX of upgrading road KES 490m

› Better access to the fishing village by bus

› Kenya Urban Road Authority (KURA)

› Annual OPEX of road KES 32m

› Improved access road to the finish village and other economic activities

› Public funding - potentially from National government or international development partners

› Four bus shelters

› CAPEX of four sheltered bus stops KES 4 million › Annual OPEX of the bus stops and boda-shelter KES 1 million

› Some revenue can be generated through leasing or selling of advertising rights at bus stops. That would contribute towards maintenance

› Improved land value along the road

Challenges

Data Gaps

Time Frame

Priority

› Local stakeholder buy-in

› Pre-feasibility and feasibility studies

› Immediate term

› Essential enabling infrastructure

› Would increase noise and air pollution due to increased motorised vehicles

› Bus route rationalisation

› Funding › Attract bus / matatu services on the new upgraded road Source: Malindi ISUDP

ECONOMIC DEVELOPMENT PLAN

FISHING VILLAGE DEVELOPMENT Water Transport (along coastline)

The proposal for the waterfront and the fishing village development presents an additional opportunity to develop water transport along the shoreline of Malindi. The route can potentially support both the tourist movements and passengers. The water along the shore is understandably navigable for small to medium size boats. However, a detailed study will be required to create the specification of the boat size and the navigation route. The Kilifi County Investment Guide, 2019, has already identified a major project to introduce water transport along the 264km coastline. The document identified the following locations which the water transport route would serve: Maya, Kilifi, Takaungu, Kikambala, Mtwapa, Mombasa, and the stretch between Malindi and Lamu. The investment guide also proposed to construct a cruise ship terminal at Kilifi to attract international tourists.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Develop loading bays along the routes

› To be determined following detailed study

› Increase international tourism

› Malindi Municipal Council

› Public funding potentially from National government or international development partners

› Develop designated mooring and maintenance facilities for the boats › Developing ticket kiosks with amenities

› Increase local tourism › Provide alternative to road transport

› Private sector funded public projects procured in accordance with the PPP act 2013

› Support local economy

› Good potential for Private sector funding through concession for operation

The Kilifi county development pipeline presents an excellent opportunity for Malindi to leverage these facilities. Hence, the proposal is to create at least two water transport routes that would mainly attract tourists to Malindi. The proposed routes are:

Challenges

Data Gaps

Time Frame

Priority

› Ecological impact

› Medium term

Short route

› Buy-in from the local stakeholders

› Pre-feasibility and feasibility studies to identify routes and navigability

› Must have enabling infrastructure such as loading / unloading facilities

A route that would attract tourists already visiting Malindi and would like to enjoy a sea experience while visiting some of the attractions in Malindi. The proposed route is: The new waterfront Development - Vasco De Gama pillar - Fishing Village - Watamu Beach.

Long route A route that would connect Malindi with the Cruise Terminal at Kilifi as proposed by the Kilifi Investment Guide. The route would bring the international tourists to Malindi from the cruise terminal. It would also be attractive to the tourists who already landed in Malindi and interested to visit some different attractions than the Short route. Due to the length (more than 50km), the long route might even provide a better alternative to road transport for some regular passengers. The proposed route is: The new waterfront development Fishing Village - Watamu Marine National Park - Kilifi Cruise Terminal (Future). It is recommended that this water transport proposal is developed along with the Kilifi County Investment plan, therefore, the Malindi water transport proposal is in sync with the regional development.

› Funding › Attract private sector for investment › Time-scale for development to allow to integrate with the regional developments

› Demand and revenue forecasting › Public consultation

MALINDI URBAN ECONOMIC PLAN

Figure 36 - Short Route: Malindi Water Transport

Figure 37 - Long Route: Malindi Water Transport

3.4 DIVERSIFICATION ACTION PLAN Tourism has been a key economic activity in Malindi, however the recent decline in tourist arrivals and change in Malindi’s competitive and comparative position as a destination within Kenya and globally makes it important to seek ways to promote economic resilience through the diversification of Malindi’s economy. Malindi is endowed with rich natural resources from sea and land which can provide a good basis to expand into different sectors and economic activities, particularly those that promote value addition and provide a more stable path to economic development minimising exposure to global shifts in tourism. The following section outline actions that can help develop Malindi’s economy, particularly in agriculture, fishing and manufacturing. While these actions and interventions are focused on the municipality’s capacity to advance these sectors, it would be imperative to align with County level and wider coastal region plans for sectoral growth to maximise returns and avoid duplication of efforts.

ECONOMIC DEVELOPMENT PLAN

Malindi - Diversification Action Plan Agriculture Developing agriculture is a priority for the County. The Malindi coast line is an area of high potential but farming in Malindi is still used mainly for subsistence living15 rather than as a higher economic value activity, with a few companies undertaking large scale farming.16 The ISUDP recognises that agriculture is underutilised in Malindi, though climate change has, and will, impact the sector and where itâ&#x20AC;&#x2122;s focus may be. Currently the main crops grown in Kilifi include maize, cassava, cowpeas, green grams, cashew nuts, coconuts. Cash crops such as cassava and fruits such as water melon, banana, citrus and mango bring in the highest price, however they tend to be crops that require more water and are more sensitive to drought. Malindi has the water resources to develop irrigation, but there is limited infrastructure currently in place.

Figure 38 - Agriculture sector

Strengths

Weaknesses

Diverse output. Key - coconut, cashew, cassava, mango.

High dependence on rainfed agriculture, only 1 major river.

Lack of good post-harvesting practices and storage facilities.

Some irrigation of land by the river.

Malindi hotels and restaurants buy only small quantities from local farmers.

Strategic location. Linked to good markets in Malindi and the wider area.

Challenges to address Pressure on agricultural land. Climate change - floods, drought, crop pests and disease incidence.

Lack of equipment and vehicles.

16 Source: County Government of Kilifi, Kilifi Spatial Plan (2018)

High youth unemployment, preference for tourist / white-collar jobs.

Some agro-processing cashew, mango juice, moringa, coconut oil, chillies.

Unsustainable practices - pressure on ecosystems.

15 Source: Workshop 2, Inception meeting with stakeholders (20/03/2019)

Unreliable electricity, energy needs for pumping water for irrigation. Urban migration - reduces labour and skills availability and knowledge pass-on.

Poor condition areas of road network - limits market access. Poor marketing and market information.

MALINDI URBAN ECONOMIC PLAN

Two key sectoral action areas have been identified for Malindiâ&#x20AC;&#x2122;s agricultural sector irrigation and an agricultural centre - with short to long term actions identified below.

A Centre for Malindiâ&#x20AC;&#x2122;s Agricultural Activity An agricultural centre, farmers can go to have their goods valued, to source agricultural inputs, connect with suppliers, access financial support and best practice guidance. In the medium-longer term the centre could provide storage for agricultural produce, support agri-processing businesses and integrate technology into Malindi. Access to finance is particularly difficult for farmers wishing to expand to more mechanised activities given the high seasonality, risks related to weather conditions and the lack of secured land and property rights.

Aim of the intervention Provide agricultural inputs and equipment

Period

Detail

Short term

Establish and provide farmers with the agricultural inputs such as seeds and fertilisers best suited to Malindi's environment. The Grow BioIntensive Agricultural Centre of Kenya worked with the Tumaini Womenâ&#x20AC;&#x2122;s Group to help provide them with the right seeds and equip them with the knowledge on how to use and maintain them, helping them to move closer to food sovereignty.

Long term

Once strong agricultural practices are in place in Malindi, consideration can be given to integrating technology such as tractors to farmers to maximise agricultural outputs.

ECONOMIC DEVELOPMENT PLAN

Aim of the intervention Better connect buyers and sellers

Period

Detail

Short term

Provide expertise within the centre to fairly assess the quality and value of the produce, providing product certifications can help differentiate crops in the market-place, and justify selling them at a premium. This will also incentivise improved production and can ensure inputs to agri-processing are of a high-quality. Connect farmers and facilitate better corporation across the network of farmers, small businesses and markets. This could be based on a vouching system or advertising farmers and buyers in the centre.

Medium term

Encourage and educate farmers to aim for fair trade status on their produce, this will improve the welfare of farmers and the sustainability of the sector alongside the increased produce values. There are examples of promoter farmers working with and training farmers to promote high standards, communication and ties. Such cooperatives have successfully used fair trade certification and farm supply shops. Organisation is crucial to this delivery. In order for processors to efficiently produce products they need reliable inputs, local farmers, tend to struggle to consistently supply agricultural inputs in the right time frame, to the right quality and the right amounts, connecting with farming cooperative could ensure a diversified stream of inputs to avoid some of these risks. This can be achieved through: â&#x20AC;ş The cooperative been able to ensure the supply and its quality for processors, through buying connecting a collective of farmers and goods; â&#x20AC;ş Encouraging and facilitating primary processing, value addition, post-harvest management and empowerment of women and young farmers will help to reduce post-harvest losses; â&#x20AC;ş Encourage supply of goods with different seasonality, that require similar processing equipment to enable a link all year round (mangoes are only processed for 6 months October - March). Provide marketing and business advise and training on topics such as accessing markets, providing inputs to processing and enabling value addition. This can enable farmers to sell their own produce.

MALINDI URBAN ECONOMIC PLAN

Aim of the intervention Provide information, training and best practice guidance

Period

Detail

Short term

Establish ties with local education institutions and experts to provide sessions for farmers in the area, the farms could even act as a test bed for agricultural students and professionals. Examples have seen yields on participating farms improve greatly where academia and students collaborate with farmers.

Medium term

Support businesses who engage with the agri-processing sector, considering the processing steps, packaging, market access, export and marketing. The Manufacturing Priority Agenda highlights the importance of facilitating stronger supply chain linkages and sectoral ties with manufacturing for Small and Medium-sized Enterprises (SMEs) and infant industries. The Kenya Association of Manufacturers (KAM) also provide training and courses to help small businesses develop their business strategy. For the cooperative to be self -sustaining, training could incorporate aspects of production management, crop harvesting technology, handling and repair. Partners could include NAFIS (the National Farmers Information Service), whilst Farmer Field Schools have been set up to educate farmers on sustainable and profitable farming across Kenya. Training can also develop understanding of the importance of resilient, sustainable and inclusive farming practices to short term and long-term benefits.

Help farmers access finance and financial advice

Short term

Offer farmers advice on how they can access and manage finance, this could involve offering impartial drop in sessions or training sessions to farmers.

Short term

Establish simple ways for farmers to access finance in emergencies, this could take the form of Malindiâ&#x20AC;&#x2122;s fishing cooperative where each member pays a share of their monthly wage into a pot and when one member needs help, they can access this saving.

Long term

Establish secure storage facilities so farmers can use surplus as collateral. The Food and Agriculture Organisations provided support to cooperatives in Niger by ensuring there were sufficient secure warehouses where local farmers can store any end-of-season surplus. The cooperatives and bank/microfinance institution retain a key each for the storage facility, where a loan can be negotiated by the cooperative to be given to the farmers when they store their surplus here.

ECONOMIC DEVELOPMENT PLAN

Key organisations and stakeholders for action

Approach principles

› The Municipal Board and County Government;

› Organisation. Corruption and mis-aligned incentives have prevented previous cooperatives from being successful. The Hub Model was re-established by Heifer International in Kenya to form a cooperative which wasn’t mismanaged. The Board may seek to identify key expertise and resource to support the initial set-up, with early partners and stakeholder engagement;

› Producers - Small, medium and large agricultural businesses; › Local market sellers; › Innovation networks could be established with higher education institutions close to Malindi, such as: Pwani University (Kilifi Main Campus), North Coast Medical Training Centre, Peretech college, Kipepeo Technical College and Kilifi Technical College - they could offer courses or use willing farms in Malindi as test beds. For example, the Manor House Agricultural Centre in Kitale provides training, student attachment programmes and mini training centres; › Key tourism players / hoteliers; › Banks and local finance players, engage with best practice initiatives such as the World Bank’s AgriFin programme; › Best practice organisations to support or inform early development of the centre, such as the Alliance for a Green Revolution in Africa (looking to strengthen key links in the agricultural supply chain); and Kenya Agriculture and Livestock Research Organisation (KALRO).

› Membership fees could ultimately be used to support the centre’s operation, whilst members would buy-in to the centre’s plan and provisions; › Value addition. To support Malindi’s development of its agri-processing sector, the centre can link up with new operations in supporting knowledge sharing across the supply chain to enhance effective input delivery and through to export. Best practice examples can be shared for produce storage, processing steps, packaging, market access and external marketing; › Labour market and education. Few young people in Malindi are interested in having a career in agriculture, where sector perceptions and opportunity access can be addressed. The current education system does not enable or encourage agriculture as a career. A greater integration and communication of agriculture production, processing, management and marketing can be useful, alongside stronger ties between education institutions and the sector to provide insights / experience to young people and ensure the curriculum meets the needs of the sector; › Female participation. Women tend to be excluded from business decisions and in accessing information to help increase yields, despite having an active role on the farm. Encourage female participation through the centre, offering training and financial advice to empower local women; › Land tenure. Farmers experience insecurity, which makes them reluctant to invest in their land. The problem around land rights will need to be addressed.

MALINDI URBAN ECONOMIC PLAN

Aim of the intervention Ensure Malindi has a resilient water supply capable of supporting its agriculture sector

Period

Detail

Short - long term

Ensure Malindi has the right irrigation infrastructure in place to ensure it can best utilise the abundant fresh water resources of the river Sabaki, take advantage of the natural environment for diverse crops and meet the demands of Malindi’s future ago-processing centres. The National Government is investigating the use of the Galana River to the north of Malindi for irrigation under the Galana-Kulalu mega food security project. The land that is more suitably positioned for irrigation would be best focused on production that will thrive with this enhancement. Appropriate training and guidance should be provided to farmers on utilising irrigation and raising production yields. Water harvesting, supplemental irrigation, deficit irrigation, precision irrigation techniques, and soil-water conservation practices have the potential to improve water productivity. In the short term to improve the ability to irrigate crops, solar irrigation and boreholes could provide a more suitable solution. This is presented in the following page.

Key organisations and stakeholders for action

Approach principles - to overcome barriers

› The Municipal Board and County Government;

› Land tenure. Farmers and partners will be reluctant to invest in land if it is not certain that land will remain theirs going forward. The County and the Municipality should recognise that land rights will be an important enabler for water infrastructure, and address this for land that is identified as strategic / suitable for irrigation;

› Malindi Water and Sewerage Company; › Kenya Water Services Regulatory Board; › Kilifi Mariakani Water and Sewerage Co. LTD.

› Combine with training. Alongside efforts to develop irrigation, appropriate training and guidance should be provided. For example, NAFIS is a government service that provides ad-hoc support to farmers; › Water pumping for irrigation also requires reliable energy supply for periods of low rainfall, these pumps could utilise solar energy. This will support the provision of high-quality produce into the future, as inputs to Malindi’s developing agri-processing industry.

ECONOMIC DEVELOPMENT PLAN

AGRICULTURE Solar Irrigation and Boreholes › Improved provision and ability to irrigate crops and provide drinking water to livestock in rural areas currently not served by the electricity grid or by the domestic water supply system;

Challenges

Data Gaps

Time Frame

› Effort needed to obtain comprehensive data on current situation

› No knowledge of current situation

› Short to mid-term

› Funding

› Reduced carbon emissions through replacement of diesel generators.

Case Study:

Sub-Component

Estimated Cost

Impacts

Delivery Mechanisms

› Mapping of ownership of all agricultural and livestock holdings and current status of their irrigation facilities

› Benchmark: USD $3,000 per system17

› Lower costs for farmers where current system is on grid

› Partner with regional / county government to coordinate activities

› Consistent service provision for farmers with no powered irrigation

› Partnering with local equipment specialists to determine solutions

› Review of abstraction volumes from each borehole › Establishment of needs for solar irrigation and borehole systems › Preparation of design brief for boreholes / irrigation systems › Development of procurement and deployment plan

Actual: USD $90,000 based on max 30 systems Funding (eqpt, installation): IFI / donor finance

› Reduced carbon emissions associated with farming sector

Grid Alternatives International Program has been helping farmers in Nicaragua with sustainable irrigation solutions for the last five years. One such solution helped the Valle family of Matagalpa. They grew squash, passion fruit and tomatoes on two acres of land to sell at the local market but had trouble making a profit due to high irrigation costs. The monthly electricity bill to run their pump was USD $33, but their income was only USD $103. Also, the supply quality was poor, meaning they could only irrigate on three days instead of every day. Other expenditure reduced their earnings to USD $25 a month. Working with Grid Alternatives and

local company Suni Solar, they installed a solar irrigation system. The total cost was USD $10,000, but Valle family was only asked to pay USD $2,000 which they financed via UNAG, their national agricultural organisation. Two solar panels power a pump that abstracts water from a nearby river into a cement tank and to a gravity fed pole mount system that drips onto the plants. With adequate water supply to the plants, they can now irrigate other crops including onions, pipian and pasturage, and also raise tilapia. Their monthly electricity bill is now USD $3, and their monthly earnings have now increased to USD $546.18

› Maintenance - capacity building programme to ensure continued operation of systems › Maintenance responsibility of individual farmer

› Maintenance plan

17 FAO The benefits and risks of solar-powered irrigation - a global overview (2018), accessed 30th July 2019 http://www.fao.org/3/I9047EN/i9047en.pdf 18 Solar Drip Irrigation Case Study - The Valle Family, accessed 29th July 2019 https://gridalternatives.org/sites/default/files/International%20Valle%20irrigation%20case%20study.pdf

MALINDI URBAN ECONOMIC PLAN

Fishing The estimated annual economic value of goods and services in the marine and coastal ecosystem of the Western Indian Ocean is greater than KES 2.2 trillion, and over KES 440 billion (20%) for Kenya.19 However, the fishing industry only accounts for about 0.5% of Kenyaâ&#x20AC;&#x2122;s GDP, despite Kenya owning a maritime territory of 230,000km2 and having the Victoria Basin and a long coastline. Lying on the coast of the Indian Ocean, Malindi has access to an abundance of fish. The Malindi-Ungwana bay is important to the marine fishery production in Kenya due to the shallow bathymetric formation and the freshwater, nutrients input by Rivers Tana and Galana.20 Around 150 vessels land in Malindi of the up to 300 operating in the County. There is a fish market in Malindi and a few fish shops across the Town. Malindi supplies a range of fish (mainly tuna) outside of the County, with the majority going to Nairobi and Mombasa. There are also exports mainly tuna (frozen), and some live crabs (through Chinese traders), that go out through Mombasa to Hong Kong or Singapore. The Kilifi County Government has planned to spend KES 5 billion on supporting the counties fishery activities. The CIDP highlights flagship projects aimed at developing fish ports and boat building yards and establishing fishery control and surveillance units. The facilitation of larger boats (with landing capability) would allow for the better managed exploitation of deep-sea fisheries, whilst the availability of more and better equipment would support the employment potential in the sector.

Figure 39 - Fishing sector

Strengths

Weaknesses

Substantial sea fisheries and good diversity of fish to local and national market. Established boat building and repairs facility.

No current fish market, poor marketing information and skills.

Some sport fishing experiences, and pond fish farming.

Limited storage and transport. Lack of resources and skills training.

Strategic position for ports and A7. Currently a jetty.

Limited facilities for preserving. Limited processing and packaging value additions.

Challenges to address Climate change effects - marine biodiversity.

Inadequate fishing knowledge and equipment.

Risk of rising illegal activities.

Risk of price rises beyond local affordability.

Heavy reliance on imported fuel for the sector.

Barriers to some groupsâ&#x20AC;&#x2122; participation e.g. women and PWDs.

Destruction of mangroves.

Unlicensed and unregulated fishing risk.

19 Source: Business Daily Article, Kenya yet to mine KES 440 bn eco coastal system (2018) https://www.businessdailyafrica.com/datahub/Kenya-yet-to-mine-its-Sh440-billion-coastal-ecosystem-/3815418-4597172-w0rikcz/index.html 20 Source: Kenya marine and fisheries research institute, Annual report (2009)

ECONOMIC DEVELOPMENT PLAN

Three action areas have been identified for Malindi’s fishing sector, where key partners and stakeholders and approach have been set out in the following tables. A series of actions under each area have been recommended, covering the short, medium and long term. These are presented as follows: Intervention

Aim of the intervention

Period

Detail

Help to better equip Malindi’s fishing sector

Ensure there are appropriately placed and sufficient cold, dry, and live storage facilities for catch

Short term

This is a cross sector intervention and leaders across the agriculture, energy, education and food sectors must work together to ensure the successful integration of cold chain technology. There are many options and technologies for cold storage food handling, processing, storage and transport. Some are simple and affordable, and others more complex to manage. There needs to be careful consideration around what cold storage will best suit Malindi’s climate, value chain projects, energy and transport infrastructure.

Med Term

Develop appropriate and sufficient cold storage to support food processing. This should be provided at the most effective points along the sector supply chain. Enable the required supporting aspects - logistics, maintenance, infrastructure, education and management for cold storage. Stronger ties should be facilitated between local markets, the visitor economy and the processing industries with cold transport for wholesale markets, food markets and food service operations.

Med Term

To achieve the greatest value addition of Malindi’s catch, there needs to be cold distribution infrastructure e.g. cold transport, considering the extent of travel for Malindi’s fish e.g. along the coastline, to Mombasa, to Nairobi and other regions, and as international exports.

Med Long Term

Larger fishing boats have the potential to hugely increase fishing output, with equipment that allows longer fishing ventures and the catch of better-quality fish. These boats could integrate technology to improve efficiency.

Consider the potential for fishing boats capable of deep-sea fishing

Key organisations and stakeholders for action

Approach principles

› The Municipal Board, County Government and national regulators

› Malindi is a diverse town with an imbalance in community inclusion, as such support and equipment needs to be fairly distributed to avoid conflicts;

› Work with hoteliers and local market sellers Malindi i.e Malindi fish shop and Abdul fish shop

› To successfully integrate cold storage and other technology there needs to be significant supporting services and know-how such as logistics, maintenance capabilities, education and management skills;

› Banks and local finance such as Kenya Women Microfinance bank, M-Pesa Eco Bank Kenya, Imperial Bank-Malindi

› There needs to be consideration around what storage would be most efficient for Malindi considering the weather and impact on storage costs and operation; › Difficulties in accessing finance Sharia finance may limit the potential for fisherfolk to take advantage of cold storage - financial access support is an important enabler; › Fisherfolk and farmers need to be confident that they will get a return on their investment in cold storage, there needs to be an assessment to understand where to best facilitate the investments and supporting services.

MALINDI URBAN ECONOMIC PLAN

Intervention

Aim of the intervention

Period

Detail

Develop an educated fishing skills base

Foster and establish new ties with NGOs and Education facilities with knowledge and interest in the sector

Short term

Basic fishing skills such as safety, boat navigation, repairs, engineering, marketing and basic processing are some of the required skills to enable sustainable growth in the sector. Continue to work with work with educational institutions and NGOs with specialisms in the sector, such as the Kenya Marine and Fisheries Research Institute (KMFRI) team and facilitate greater interaction between them and local fisheries to disseminate information and provide education and training on best practice.

Facilitate ongoing training and knowledge share. Embed resilience, sustainability and inclusion principles

Short Long term

› To facilitate greater inclusion of women and other communities in the fishing sector, the cooperative should support women into the sector and its supply chain. There are some successful case studies here with women trained in selling fish and negotiating with local hotels and restaurants; › Adult training could in the long run be integrated into a successful cooperatives agenda, to cover the fishing sector and sustainability, coast protection and the wider business opportunities.

Key organisations and stakeholders for action

Approach principles

› Key educational players in the fishing sector Kenyatta University of Agriculture and Technology, Technical University of Mombasa, National Maricultural Research & Training Centre in Shimoni, Kwale County

› Perceptions of fishing as a dangerous and ‘last chance’ career choice need to be changed as there is great potential in the sector;

› NGOs and businesses already engaged in the sector, such as M-PAYG, The International Institute of Refrigeration, The World Food Logistics Organisation and the Global Cold Chain Alliance

› Sea fishing is not currently a diverse community sector, it is dominated by Malindi’s Muslim community and going out to sea is exclusively a male activity. There needs to be awareness and education that fishing and related business activities are available for everyone, with training that empowers those currently excluded.

ECONOMIC DEVELOPMENT PLAN

Intervention

Aim of the intervention

Period

Detail

Make regulation of Malindi’s fishing sector a priority

Monitor and Regulate fishing activity

Short term

› Understanding, mapping and monitoring fishing grounds is critical for resource management. Local experts who can sample catch from these grounds will also be important to help understand stocks and trends;

› Commercial trawlers are overfishing in Malindi. There needs to be greater regulation to reduce the fish stock depletion and to protect local fisherfolk from these impacts. The Kenya Coast Guard Service, only established in 2018, are already having a positive impact on fish stock numbers, however further local support will be needed to monitor and regulate other practices such as beach seines and bottom trawling which are destructive. There needs to be greater enforcement in the area, this could be in the form of local sea policing along Malindi; › This will also be important in the longer term to reduce the risk of illegal activity on this part of the coast. Increase the awareness of locals of the importance of caring for their coast

Short Long term

A cooperative, made of fishermen, fishmongers, boat owners, sellers and other stakeholders, would be a useful way to develop a collective voice for the sector in Malindi. Some best practices from elsewhere include the allocation of areas into no fishing zones (this needs consideration around enforcement), individually stamp registered artisanal boats for identification (a first step in licensing and improving safety and response), development of fisheries management plans and the installation of a Vessel Monitoring System.

Increase the awareness of locals of the importance of caring for their coast

Long term

Consider how technology can be dispersed into the fishing sector to monitor vessels, for enforcing regulation and protecting smaller vessels with communication and safety additions, e.g. smart phones, can support regulation through photos and safety by providing contact. The World Bank’s West African Regional Fisheries Program is currently working to integrate this technology in West Africa, whilst the KMFRI have already begun to establish the use of technology such as an Acoustic wave and current profiler.

Key organisations and stakeholders for action

Approach principles

› Key organisations with expertise can help develop appropriate and effective regulation such as: International Maritime Organisation and Kenya Marine and Fisheries Research Institute

› Sufficient safety precautions to be in place for fisherfolk, with safety equipment and rescue vessels. This will help support its desirability as a career;

› Cooperate with existing fishing regulators such as the Kenya Coast Guard Service (KCGS)

› It is imperative that the fishing cooperative works in everyone’s best interest and is managed fairly and effectively;

› Local artisanal fisheries, key industries players › Key tourism players / hoteliers / recreational anglers › Key educational players in the fishing sector › Local market sellers and businesses e.g. Malindi fish shop and Abdul fish shop › Scientists, marine biologists who can help to monitor activity along the coast

› Many fisherfolk are suspicious of and reluctant to be involved with surveillance and monitoring, there needs to be trust established between fisherman and those managing / implementing monitoring equipment. An understanding of how the equipment works and can benefit the sector will be useful.

MALINDI URBAN ECONOMIC PLAN

Manufacturing At present, there is no high concentration of manufacturing activity in Malindi Municipality, however there is potential for growth in this sector. Kilifi manufacturing output was KES 8,456 million in 2017, accounting for 7% of Kilifiâ&#x20AC;&#x2122;s economy. Ongoing agricultural products processing in Malindi such as mango, moringa, coconut, pineapple, passion fruit, mango pulp production, moringa oil and coconut oil can provide the basis for value additions while the development of Kenya Industrial Estate near the airport has some business already renting premises for industrial activities including the production of moringa oil. Malindi has strategic connections to Nairobi and Mombasa, with a reasonably strong market and retail base to sell locally. The Municipality has the particular potential to a) grow medium sized industries with a focus on processing agricultural and fishing produce, b) support circular economy production, such as expanding plastic and waste recycling, and c) develop and formalise its smaller scale production, including crafts and the Jua Kali sector, for the local and visitor market.

Figure 40 - Industry and Trade sector

Strengths

Weaknesses

Vibrant town centre and markets, with various products.

Lack of training and skills development, especially in marketing and management.

Activities include mango juice, moringa and cashew processing, salt production and cotton production.

Unreliable power, where infrastructure is spread out. Little industry within Malindi, with limited marketing, logistics and supply chain links.

Deposits of natural minerals e.g. salt, silica corral, sand, ballast. Good road connectivity (A7) to the town to major towns and ports.

Sector dominated by micro and SMEs.

Challenges to address Overarching challenges - lacking employment and skills, inadequate markets, limited value addition and risk of environmental degradation. Large scale expansion risks soil, air and water contamination.

Pressure on land and potential conflict between industrial and tourism uses. Lack of supporting infrastructure - waste management, water supply, sewerage. Unreliable power and high costs.

Lack of parking facilities for heavy commercial vehicles. Road quality issues impact market access.

ECONOMIC DEVELOPMENT PLAN

Intervention

Aim of the intervention

Period

Detail

Ensure Malindi’s local businesses benefits from the growing sector, through business support

Facilitate marketing and business advice sessions for local manufacturers Improve business registry

Short term medium term

Facilitate local sessions for manufacturers that provide guidance on how they can better market and package their goods for value addition. This could range from early stage organising to later stage branding of goods. Malindi’s sandals are well known for example and there is an opportunity to expand and formalise shoes / sandal making. Taking advantage of the good reputation of Malindi’s sandals and emphasising the ‘Made in Malindi’ brand has the ability to increase the value of the good, in particular in international markets. Improve business registry: the national government is in charge of maintaining track of businesses, and has facilitated business registration through an online process. Micro businesses and the informal sector can be encouraged to register as part of these information sessions.

Educate and support local businesses to get into manufacturing and processing

Short term

Local businesses need to understand the next steps they will need to undertake in order to access wider markets, these will be different across sectors and complex concepts to those new to the idea of expansion. Extension officers and training sessions facilitated by experts and university figures should be offered and facilitated by the local authority; these should educate and empower local businesses on how to access wider markets, covering topics such as regulations and extra costs associated with international export, environmental impacts and mitigation, equipment requirements, handling standards, quality assurance, Fairtrade amongst other subjects. From these connections to higher education institutions such as colleges and universities work placements could be organised, and full-time roles could be provided to students after their studies.

Finance, access that is inclusive

Help to facilitate and promote a Savings and Credit Co-operative (SACCO) that it is inclusive of women, PWD, PID, regardless of their wealth, status, size of business, etc.

Provide a shared space where local businesses can start to process goods

Medium term

Within the industrial park, areas with shared processing equipment could be developed to enable local businesses who cannot afford to invest in equipment could pay a rental / membership to use this on a periodic basis. This could help local businesses make the first step to processing. This will require careful planning, education, security and monitoring to ensure that the facilities are used fairly and safely. Kenya’s first makerspace in Nairobi, Gearbox, has successfully provided a space for innovation and place to test ideas of Nairobi’s creative population. This type of space could also have training and links to local universities, offering sessions to local students and young people interested in the sector.

Support sector inclusivity, sustainability and resource efficiency

Short term long term

For the manufacturing sector to truly benefit locals, to protect Malindi’s environment and work with rather than against Malindi’s other key sectors, the sector should embed inclusion, sustainability and resource efficiency: › The current manufacturing sector in Malindi has high female participation, with sandal making and fish processing currently conducted almost entirely by women. The Board should establish a system where targets for female, PWD, young persons and other SIGs participation rates are set. Businesses that meet these targets can be rewarded through advertising or awarding; › For sustainability, the sector should be regulated in terms of pollution and waste, with the education of businesses on the importance of sustainability and how to embed this in their practices. An example approach is the instillation of solar panels on new buildings within the manufacturing areas; › The processing of seafood and agricultural inputs, in particular those of seasonal nature, can help to reduce waste especially by linking the sector up with business opportunities in municipal waste processing. Businesses should be encouraged to utilise local supply chains and produce that works with and not against Malindi’s environment, through education on value addition and Fairtrade.

MALINDI URBAN ECONOMIC PLAN

Intervention

Aim of the intervention

Period

Detail

Workforce and skills development

Source labour locally

Short term

Operators will need to make commitments to ensure that a certain amount of their labour is sourced from within the County, some examples of interventions to help encourage this could be of funding work relevant courses, facilitating career events or visitations from key business figures and lecturers within schools in Malindi. Businesses can be monitored (larger businesses) and rewarded (more for smaller businesses) on their employment and training of local, for example a Malindi certification or advertising / support for businesses that perform well here.

Develop expertise and long-term knowledge share

Establish ties with local education centres

Onsite training is effective to ensure there is delivery of relevant and targeted training, that is convenient for workers. The larger-scale manufacturing sector developments can train up locals from the early stages across key tasks, this will suitably include women, PWDs, youth and other SIGs and consider the requirement for a breadth of skills across the sector processes (e.g. operation, machine repair, management etc.) Institutions such as the KAM propose training for factory workers and middle management alike. Ensuring structures are in place to facilitate this ongoing internal training, will not only ensure a reliable stream of employment, it will provide locals with secure employment and transferable skills. Short term

The manufacturing sector will require a range of skills including marketing, machine maintenance and logistics. Facilitating connections to higher education institutions with focused collaboration with specific subject departments to support students to move into the sector, from which placements can be organised, could lead to full time roles for students after their studies, students will also pass their knowledge on to other workers. Engagement with local schools, colleges and universities can increase awareness of opportunities in the sector.

ECONOMIC DEVELOPMENT PLAN

The following projects were identified, assessed and prioritised as having the most potential within Malindi focusing key economic sectors and on value addition.

there is good potential for pond fish farming, both along the river and elsewhere in the County. While freshwater pond fish farming has focused on tilapia and catfish, there is also potential for freshwater shrimp.

Project: Fish processing, packaging and distribution centre

Several factors have held back the development of the fish farming and mariculture sector in Malindi, in particular:

Malindi is one of the key landing sites for catch for onshore fisheries, with around 150 vessels operating out of Malindi and some 300 across the County. The overall catch can be substantial (over 2,000 tonnes per year has been landed in Malindi and over 6,000 tonnes across the County) and much of it is high value (e.g. yellowfin tuna). However, the processing, storage and marketing infrastructure is limited. When selling their catch, fishermen are in a weak position, as in many instances they have no alternative but to sell to traders who take the product (and much of the value added) to Mombasa for export. When the catch is high, there is often no market (even at low prices) and post-catch wastage is high. This project then covers the establishment of a processing facility that would provide an alternative outlet for local catch and increase local value added.

Project: Fish hatchery with supplies and training The coast around Malindi and Kilifi County is well suited to mariculture, with a good range of species including shrimp, crab, lobster and several species of fish. Inland

› The lack of a ready market: this will be addressed with a fish processing facility; › General lack of skills and knowhow; › Availability of young, e.g. fry, fingerlings and zoea (baby crabs). This project sets out to address these last two issues by establishing a hatchery for fresh and saltwater fish and crustacea. By providing a stable supply of fingerlings, etc., for the farms, this project will support the expansion in the fisheries sector in Malindi.

Project: Feed mill There is potential for establishing a feed mill in Malindi that would take waste bi-products from fish and agri-products processing. In addition to the high-protein waste available from fish processing, some of the major crops grown around Malindi have substantial process waste that is of value in animal feed, including mango, cassava and coconut. At present, much of the waste bi-products are either composted, dumped or fed directly to cattle, chicken and goats. While this latter use is beneficial, there is greater

value to be obtained in providing animals with a proper feed mix that matches their dietary requirements. This project covers the establishment of a feed mill that would focus on taking processing waste from Malindi and the wider county and producing feed primarily for fish, crustacea and chicken farming (key value added sectors), but also for shoats and cattle.

This project is for the development of a cassava flour production facility, with potential to expand into other products later.

Project: Food processing centre for canning / jarring fruit

Project: Cassava processing centre

Malindi sub-County produces a wide range of fruit and vegetables, many of them suitable for canning and bottling. The key products include mango, pineapple, a range of citrus and passion fruit.

Cassava is one of the major crops grown around Malindi and across Kilifi County. There is substantial potential to raise production of this relatively droughttolerant crop, and there are county-level plans to raise the overall acreage and yield. Cassava has a lower water footprint than maize (approximately half), and it is the carbohydrate of choice among farmers in the County.

There is potential for raising production volumes for many of these valuable fruits, if the offtake / processing capacity is available. For example, for mango the CIDP for 2018-22 includes the “integrated mango value chain enhancement project” under which there are plans to raise the acreage under mango and yields, which together could result in a 50% rise in production.

Fresh cassava spoils rapidly (within a week) and processing capacity is required to support the expansion in production.

This project is for a food processing centre in Malindi that would have 3 or 4 colocated facilities, benefiting from some shared machinery, storage, marketing, distribution, manpower and supplies (foodstuffs and packaging materials). The first phase would be for a mango processing facility, producing cans and containers of pulp, sliced fruit and juice.

Cassava can be used to produce a wide range of products including flour, crisps, glue, animal feed, bioethanol and alcohol. Cassava is a good source of starch, and equally importantly has low or zero gluten. This opens up the potential for exports to Europe and North America where gluten intolerance is increasing and there is strong demand for cassava flour.

A mango processing facility has been built in Malindi but was never commissioned and has been mothballed since 2016 and is now in administration. There is potential for this

MALINDI URBAN ECONOMIC PLAN

facility being rehabilitated and commissioned. The position of this facility (financial, ownership and technical) needs to be assessed to identify how/if it could be incorporated into a general processing centre targeting a range of fruit products.

Project: Recycling of municipal waste As with many towns in Kenya, waste management is problematic. For municipal solid waste (MSW), council funds are stretched to cover regular collection operations, and as a result some of the MSW is dumped and/or burned. A number of waste pickers operate at the municipal landfill site and undertake organised separation of key waste streams (metals, glass - by colour, plastics, etc.). Remaining waste is burnt for hygiene reasons and to avoid an infestation of pests. These pickers work under harsh conditions and sell on to dealers at low prices due to their inability to consolidate volumes and their lack of alternative outlets. There is potential to upgrade the existing separation and recycling to raise local value added and reduce the need for landfill. For liquid waste there is no sewage network in Malindi, and the Town relies on septic tanks and pits. The emptying of tanks/pits is operated by the private sector, and many are left to overflow. The sludge is dumped out by the municipal landfill site. There are several technologies for processing sewage sludge into commercial products (biogas, fertiliser, charcoal briquettes, etc.), that would raise local value added and

reduce the need for landfill. This project is for co-located MSF and sewage sludge processing, creating commercial products. While the Malindi UEP is focusing on fish farming and municipal waste as opportunities that maximise benefit (section 3.5) the aim would be to combine elements and additional processes presented above as these are developed promoting principles of a circular economy - a diagrammatic representation given below. Figure 41 - Circular economy principle

MSW Recycling

Composted Organics

Fish Processing

Mango Processing

Cassava Processing

Other Agri Products

Fish Farming

Feed Mill

Poultry Farming

ECONOMIC DEVELOPMENT PLAN

INDUSTRIAL CLUSTER (AIRPORT) Malindiâ&#x20AC;&#x2122;s aspirations to revitalise its tourism sector must be complemented by a suitable strategy that helps the Municipality become more resilient to cyclical market trends that, risk to shatter the local economy. As such, the diversification action plan has been put in place which includes industrial activities located across the County.

Whilst some of these require proximity to existing or planned facilities (i.e.: waste dumping ground or water treatment plant), other industries can be co-located in clusters and benefit from single infrastructure investments. The study has identified the potential for an Airport industrial cluster, where land is relatively

Figure 42 - Industrial Cluster (Airport) and Detail Study (Inset)

abundant, access is good and the potential proximity to the airport and a future cargo service might attract further investors to locate and invest in Malindi. The plan illustrates the location in principle for the industrial cluster. To enable development, a road upgrade and the installation of suitable infrastructure (water treatment

and power plants) are included in the initial investment package. This is further supported by the announcement that in 2020 the airport main runway will be extended to allow international flights to fly directly into Malindi, thereby enabling greater tourism and cargo opportunities.

MALINDI URBAN ECONOMIC PLAN

Figure 43 - Industrial Cluster (Airport)

ECONOMIC DEVELOPMENT PLAN

INDUSTRIAL CLUSTER (AIRPORT) The plotting arrangement for the industrial cluster has been configured based on a phased development approach with access from the nearest point to the upgraded access road. This will minimise initial development costs and allow the servicing of up to ten plots of varying sizes to accommodate the proposed fish and food processing plants along with other private investments that may be triggered by the introduction of industrial infrastructure in the area. The cluster will be supported by a new low voltage distribution network aligned with the proposed new upgraded road and a waste-water treatment plant (WWTP) for the cleaning and re-use of waste-water for the industrial processes and irrigation purposes.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Industrial park plot subdivision

› UK to provide table for costing

› Single investment in infrastructure

› Design, Build, Operate, Maintain

› Coordinated industries benefiting from good access to roads and possible airport cargo

› Public infrastructure, private or PPP investments

› External Infrastructure Public authority, IFIs

› Enabling Infrastructure, namely access, power, waste, water treatment, etc (see following section for details)

› Industrial Cluster internal facilities and industries Private

› Off-the shelf investment opportunity

Future development phases can be introduced and extended moving southwards towards the WWTP.

› Self-contained eco-cluster development

High level costs for phase 1 and possible future phasing are shown in the adjacent table.

› Climate resilient infrastructure › Circular economy › Significant job opportunities

Challenges

Data Gaps

Time Frame

Phasing Project Priority

Operations & Maintenance

› May require some land acquisition:

› Pre-feasibility and feasibility studies

› Medium Long term

› Multi-phase

› Public zones by Municipality (i.e.: cleaning, etc)

› Upgrade access road; › Developable land › Would increase noise and air pollution due to increased motorised vehicles › Funding

› Land Ownership › Market study

› Urban Development Proposals supporting Economic Growth

100 MALINDI URBAN ECONOMIC PLAN

INDUSTRIAL CLUSTER (AIRPORT) Truck Park Facility (Potential Locations)

There is a high-volume heavy goods vehicle passes through Malindi. Due to the proximity of Kenya’s main seaport, Mombasa, and future port in Lamu, the truck volume is expected to increase. Due to the lack of appropriate parking facilities, a large number of trucks are parked along the local roads. Such an arrangement not only reduces the capacity of the road, but it also creates safety hazards for regular traffic. Malindi ISUDP already identified a location near the airport for a mega truck terminal (as shown in the Figure 44). The location, identified by ISUDP, 1km of the proposed the industrial cluster. The location is around 11km away from the Town Centre. The facility will need to provide appropriate amenities for the truck drivers and operators, including vehicle maintenance facilities, toilets, and shops. Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Develop a truck terminal

› (Cost of land acquisition not included)

› Easy access to the industrial cluster

› Malindi Municipal Council

› CAPEX of developing truck terminal + amenities KES 150k - 200k per sqm

› Ease road congestion at the Town centre

› Public funding - potentially from National government or international development partners

› Terminal amenities such as toilets, shops, vehicle maintenance facilities

› Annual OPEX of truck terminal KES 15k per sqm

› Improved road safety › Support local economy through trade at the station › Provision of public services such as health care at the station › Local tourism

› Private sector funded public projects procured in accordance with the PPP act 2013

› Private sector funding through concession private entity builds and maintains truck parking station and enjoys the rights to collect rental income from commercial space. In turn the private party pays a prescribed concession / lease fee to the city council

Challenges

Data Gaps

Time Frame

Priority

› May require land acquisition › Funding

› Pre-feasibility and feasibility studies

› Immediate term

› Buy-in from the local stakeholders

› Public consultation

› Must have enabling infrastructure

› Buy-in from the truck operators

Figure 44 - Proposed location for truck terminal

ECONOMIC DEVELOPMENT PLAN 101

INDUSTRIAL CLUSTER (AIRPORT) Solar Canopies for Truck Park and Car Parks

Provision of solar PV canopies over the new truck park and car parks.

Sub-Component

Estimated Cost

Impacts

Delivery Mechanisms

› Detailed study of commercial arrangement

› Benchmark: USD $1,600 per kW

› Reduced carbon emissions

› Coordination with Malindi Municipal Government and other interested parties

› Financial modelling › Community / stakeholder engagement plan › Initial technical design, economic, social and environmental analysis › Development of procurement and deployment / implementation plan › Operation plan (including revenue collection, maintenance etc.)

› Actual: Truck Park (100kW) USD $160,000 Car parks (100kW) USD $160,000

› More grid power available for other uses › Improved health, safety and security (through provision of under canopy lighting)

› Partnering with local / regional solution providers and equipment specialists to determine appropriate design and technology solutions › Maintenance - capacity building programme to ensure continued operation of systems

› Funding (eqpt, installation, maintenance): Part IFI, part public funded

› Maintenance - responsibility Municipal govt

Challenges

Data Gaps

Time Frame

› Perceived high cost of solar canopies

› Detailed information on truck / car park sizes and locations

› Short to mid-term

› Funding

Case Study: SolarAfrica is a solar energy solutions provider that offers tailored solutions for businesses, residential energy users and large commercial and industrial sites in Africa. They are based in South Africa, Kenya and Mauritius. They fund and own the solar panel system, but commit to provide the users with reliable energy that is cheaper than the utility supply, and take care of maintenance. The user doesn’t expend any capital, but enters into a long term contract with

SolarAfrica utilising one of two options; paying only for the energy they use, or paying a fixed monthly fee where they can use all the energy that the facility generates. SolarAfrica completed the installation of an 858kW solar PV system at Garden City Mall in Nairobi, Kenya. The system covers 32 acres of the mall car park, and provides electricity to the nearby mall and additionally provides shading to cars during the daytime, as well as lighting (underneath the canopy) during the evening/night.

102 MALINDI URBAN ECONOMIC PLAN

INDUSTRIAL CLUSTER (AIRPORT) Power to Service the Malindi Industrial Cluster site On-site distribution Power distribution on site will comprise a new Medium Voltage (MV) (11/0.4kV) 1,250kVA transformer at a main site entrance. This only needs to be a pole mounted transformer. New Low Voltage (0.4kV) distribution around the industrial cluster will follow the access roads with individual connections into each unit. This will only cover Phase 1, with no capacity for the future expansion of site.

Off-site connection

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

› Establishment of power demand for first stage of cluster

› Benchmark: KES 4.5 million per kilometre plus cost for substation works

› Consistent service provision for businesses in the cluster

› Engage with KPLC to help design, procure and deploy system

› Design of system from suitable connection point to site › Development of procurement and deployment plan › Maintenance plan

› Based on 4km distance from primary substation to site

› Maintenance responsibility of KPLC

› Funding (eqpt, installation): › IFI / donor finance

There are three options to get power to site: 1. Connect from an existing local MV supply. This is likely to be along the B8 road. The capacity of the 11kV distribution infrastructure could be too small, and until tested it should be assumed that it lacks suitable capacity; 2. Upgrade of existing MV distribution from main alignment on B8 road with new spur to site; 3. New MV distribution from Primary 33/11kV substation to site. MV distribution for both options 2 and 3 should be sized for future demands beyond phase 1, estimated at around 6-8MVA. There is not potentially much difference between options 2 and 3. At this stage, option 3 has been selected as a worst case, but the technical solution will need to be confirmed with Kenya Power (KPLC) at the appropriate time.

Challenges

Data Gaps

Time Frame

› Engagement with KPLC

› No knowledge of correct technical solution

› Short term

› Funding

ECONOMIC DEVELOPMENT PLAN 103

INDUSTRIAL CLUSTER (AIRPORT)

Table 1 - Required Volumes of Water for Phases 1 and 2

Waste-Water Treatment Plant Public water supply from Malindi may not be adequate to support the activities of the industrial cluster and a private source and additional treatment is likely to be needed. Groundwater from boreholes will be better quality (subject to confirmation through lab tests) and more resilient to drought and climate change than surface water sources. Volumes of water needed for the planned development in phase 1 and phase 2 are included in Table 1. Limited data on borehole yields in the area was available, therefore further investigations in this area are required. For cost purposes a yield of 11m3/hr is assumed, equating to 2 boreholes in Phase 1 and an additional 2 boreholes in Phase 2. Additionally, an allowance has been made for storage of a days water demand. Due to the proximity of the industrial cluster to the airport, wastewater will be treated in a closed package plant. The plant will not utilise open ponds which could attract birds, as these can be hazardous to aircraft. The treatment plant has been sized to treat 85% of the planned water supply. Sludge will be transported by tanker to the planned value chain Sludge processing plant at the existing solid waste landfill site. Discharge from the plant should be of sufficient quality to reuse for irrigation of surrounding areas, washing (non-food areas), flushing toilets and as fire protection.

m3 / day 1.5

Practice Manual for Water Supply in Kenya

Industrial Units (Type 2: 1,500 sqm per unit)

Practice Manual for Water Supply in Kenya

Industrial Units (Type 3: 2,500 sqm per unit)

Practice Manual for Water Supply in Kenya

Fish Processing Facility (Assuming 5 ton per day)

Guidance for Fish Processors on Water and Effluent Minimisation

Food Processing Facility (Assuming 10 ton per day)

212.7

Total Phase 1

268.2

UK to provide

Phase 1

Source

Practice Manual for Water Supply in Kenya

1.5

Practice Manual for Water Supply in Kenya

Industrial Units (Type 2: 1,500 sqm per unit)

Practice Manual for Water Supply in Kenya

Industrial Units (Type 3: 2,500 sqm per unit)

Practice Manual for Water Supply in Kenya

Industrial Units (Type 4: 10,000 sqm per unit)

Practice Manual for Water Supply in Kenya

Industrial Units (Type 4: 12,500 sqm per unit)

Practice Manual for Water Supply in Kenya

Feed Mill

ADCP/REP/84/21 - Inland Aquaculture Engineering

Fish Hatchery

ADCP/REP/84/21 - Inland Aquaculture Engineering

Cassava Processing Centre

125

An Assessment of the Impact of Cassava Production and Processing on the Environment and Biodiversity

Industrial Units (Type 1: 750 sqm per unit)

Phase 2

Total Phase 2

201.5

104 MALINDI URBAN ECONOMIC PLAN

3.5. Prioritised Value Chain Projects Fish processing, packaging and distribution centre This VC opportunity is for the establishment of a processing and packaging facility for pond fish, sea fish and crustacea. The key outcomes from this project are: › Improved and stable prices and offtake for fishermen, pond fish farmers and mariculturalists (sea fish farmers), supporting investment in boats, ponds, etc.; › Reduction in post-catch and post-harvest losses; › Direct employment of 60 FTE in the first phase, with high potential for employment of SIGs, PWDs and other target groups; › Improved and stable prices for 200 to 300 fishermen, and 250 pond fish farmers and mariculturalists; › Provides a raw material for a potential feed mill; › Supports the potential for associated activities and services (feed mill, fish hatchery, fish auction, etc.).

Base assessment Malindi Municipality is one of the key landing sites for catch from onshore fisheries in Kenya, with around 150 vessels operating out of the Town and some 300 across the County. The overall catch can be substantial (over 2,000 tonnes per year has been landed in Malindi and over 6,000 tonnes across the County) and much of it is high value (e.g. yellowfin tuna). However, the processing, storage and marketing infrastructure is limited. When selling their catch, fishermen are in a weak position, as in many instances they have no alternative but to sell to traders who take the product (and much of the value added) to Mombasa for export. When the catch is high, there is often no market (even at low prices) and post-catch wastage is high. The development of a fish processing centre would avoid many of these issues and help realise the substantial economic potential of the fisheries sector in and around Malindi. There is significant policy support for the development of fish processing in Malindi: › Kilifi CIDP: the County’s 2018-2022 CIDP identified increased support and expansion in all aspects of the fisheries sector. This includes support to improve fishing techniques, better patrolling of fisheries, expansion of pond fisheries, development of mariculture, improved landing facilities and creation of an auction;

Sector supply chain › Big Four Agenda: this prioritises enhancing manufacturing which includes including fish processing and packaging; › Vision 2030 strategic plan: the Ministry of Agriculture, Livestock and Fisheries have developed a strategic plan for aquaculture, aimed at expanding combined production of sea catch, mariculture and pond fish farming by 10% per year, and raising value added through processing; › Blue Economy: the Kenyan Government supports the United Nations Development Programme (UNDP) for the Blue Economy, combining improved productivity and sustainable management of maritime and freshwater resources; › Food and nutrition security policy: the Government of Kenya has identified fisheries as a key driver for the realisation of the country’s food and nutrition security agenda, to be realised through a combination of increased sea catch and fish farming, and improved processing and distribution. The Kilifi County CIDP identifies development of many activities and services in the fisheries sector to expand production. This VC opportunity then seeks to capitalise on existing fishing activities as well as these planned expansions in production.

The fisheries sector in Malindi is characterised by short supply chains, and almost no processing and value addition (see Figure 45). Malindi is one of the three key sea fishing centres in Kenya, the others being Lamu and greater Mombasa. Currently sea fishing around Malindi is all inshore (within 1 mile of the coast), with small boats landing their catch on the beach. Boats operating from Malindi fish up to 75km north along the coast to the Tana River, and some 50km south, halfway to Mombasa. Some fish are sold directly to customers, while the bulk is sold to retailers serving local markets or to brokers for sale across Kenya for export. Some fishermen use their own or shared cold storage, keeping fish frozen until prices are good. Landing facilities are limited and catch (including high value tuna) is manhandled up the beach. Similarly, ice and fuel are man hauled onto the boats. Some fishermen have tried sending some high-value product to Nairobi by air. This has proven to be practical, but sustained volumes are required to make it economical. No catch from deep sea fisheries is landed in Malindi as there are no docking or processing facilities. Some boats are built locally at a small yard in Malindi, that also undertakes maintenance and repairs.

ECONOMIC DEVELOPMENT PLAN 105

Processing is limited to fresh preparation by retailers, and some artisanal fish drying and smoking. With limited storage and processing, there is significant wastage during times when the catch is good. Mariculture is currently limited to some crustacea, and these together with wild lobster and crab are often sold to Chinese brokers for live export. Pond fish production (tilapia and catfish) is mainly sold directly by farmers to consumers. There is no marketing or promotion of fish and crustacea, and no branding. In addition, there is no fish auction in Malindi, and online sales are limited.

Figure 45 - Future supply chain

Pond Fish Farmers

Market

Mariculturalists

Local Market & Retailers

Local Consumers

Sea Fishing Inshore

Smoking

Other Kenyan Markets

Fishermanâ&#x20AC;&#x2122;s Freezers

Export Markets

Brokers

Deep Sea Fishing

106 MALINDI URBAN ECONOMIC PLAN

Competitiveness

Production Outlook

Location specific analysis

The inshore fisheries around Malindi Municipality provide a wide range of highquality and high value catch including tuna, lobster, crab, barracuda, sturgeon, shrimp, sailfish, etc. The cost-base is low, in line with other coastal fisheries around Africa. Local product competes well on price and quality, with Malindi supplying other markets in Kenya and export markets. The key limitation is lack of processing which limits local value-added and causes significant wastage.

There is substantial potential to increase catch in Malindi and throughout Kenyan waters. The Kenya Maritime Authority (KMA) estimates that marine fishing in Kenyan waters has a potential catch of 350,000 tonnes per year, compared with total production (sea fishing, inland catch and fish farming) averaging well under 200,000 tonnes per year for the last decade.21

The processing facility needs a site of around 1,400m2, with the processing hall covering around 800m2.

Pond fish farming in Kilifi County is smallscale. Producers can compete in the fresh fish sector, supplying the local market, but they face strong competition from imports of frozen fish from China (especially tilapia). Development of a local feed mill, utilising local processing waste streams, should help to improve competitiveness, together with development of the fish processing facility to take surplus production. For mariculture, the Kenyan coast has great potential for low-cost production, but the sector is largely unexploited. As such, costs can be relatively high. Production around Malindi has been limited to some crab farming, and sales of live product. Developing the processing facility should improve the economics of mariculture, especially for shrimp and fish farming.

21 FAO Yearbook

As a follow up to the Global Conference on Sustainable Blue Economy, held in Nairobi at the end of 2018, there is increased focus on the economic potential of Kenyan fisheries. The Kenya Maritime Authority estimate that the economic value of goods and services in the marine and coastal ecosystem of the blue economy along Kenyaâ&#x20AC;&#x2122;s share of the Indian Ocean exceeds that for tourism.

Demand outlook There is strong demand growth for fish in Kenya, with consumption being limited by supply. The KMFI estimate that to meet domestic demand, total production needs to increase to 300,000 tonnes per year. Furthermore, the Institute estimate that the total production potential (sea and freshwater catch, and fish farming) is around 900,000 tonnes per year, providing room for substantial exports.

The fish processing facility requires good road access for supplies of fish, dispatch of product, and easy access for workers. It is proposed that the facility is located at the industrial cluster by the airport. This provides good access from sea fish landing sites along the coast and pond fish farms inland. This location also supports ready access to the airport for shipments of high value product. For sea fish landings, some upgrading to the site in the bay to the south of Town should be made to make this the key landing point. In addition to improved water access (steps, winch), a chiller room is needed to store catch awaiting collection by refrigerated truck. The truck collection service would service other sites and deliver catch to the processing facility.

ECONOMIC DEVELOPMENT PLAN 107

Value chain opportunity Key activities The processing facility would source supplies from fishermen and pond fish farmers (tilapia and catfish), taking a range of commercial species, and producing a mix of chilled and frozen products packaged for wholesale/retail. The facility would supply local, national and export markets, and could also provide a base for a fish auction: this would be an online auction for higher value products, and would require quality handling and storage, and an established distribution channels, including for export. In addition, the facility could support deep sea fish landings, when/if a landing quay is developed (see Figure 46).

Figure 46 - Future supply chain

Market

Pond Fish Farmers

Local Consumers Mariculturalists

Sea Fishing Inshore

Fish Processing Smoking Facility

Other Kenyan Markets

Auction

Export Markets

Brokers

Deep Sea Fishing

108 MALINDI URBAN ECONOMIC PLAN

Process flow The processing at the facility would include: › Cleaned (gutted, trimmed) fish; › Fillets - plain whole and portioned; › Shrimp - whole, de-headed, de-veined, etc;

It is envisaged that the facility would have a retail element (which could be co-located), and also dispatch products to other markets (Nairobi, Mombasa and export markets). This would mainly be by road. However, for high value products (e.g. fresh tuna, live crab, etc.) there is potential for exports by air cargo.

› Lobster - tails and whole; › Crab - dressed;

Figure 47 - Process Flow

Waste

› Octopus and squid: dressed, sliced;

Cleaning / Drying

› Other - crab sticks, fishfingers, etc; › Fish stock (shelf-stable gels); › Fish waste - (dried for feed mill use). The processing would be multi-stage (see Figure 47), with the key sections being: › Initial processing comprising sorting, gutting and trimming. Some products would then go straight to packing; › Secondary processing which would include filleting and other cuts; › Cooked products would be a separate process, taking materials from storage and the processing line. There would be chiller storage for products coming into the facility, and then chiller and freezer storage for packed products for dispatch or product awaiting further processing.

Reception Checking Weighing Purchase

Chiller Pre Processing

Primary Process Sorting Gutting Trimming

Secondary Process

Cooked Products

Filleting Slicing, etc.

Gels Paste

Packing Whole / Trimmed for Chill / Frozen

Storage Chiller & Freezer

Retail Direct Delivery / Outlet

Dispatch Nairobi, Mombasa, Export

ECONOMIC DEVELOPMENT PLAN 109

Capacity The commercialised pond fish catch has been around 10 tonnes per year in the Malindi sub-county. There is substantial potential for expanding production, and some plans have been included in the CIDP. Given the potential in the region, it is expected that pond fish farming around Malindi could reach several hundred tonnes per year in the medium term. Sea fish landings in Kilifi County have been around 6,000 tonnes per year. Based on the location of vessels it is estimated that around half of this catch is landed in or close to Malindi Town. A target average throughput of 5 tonnes per day has been identified. This would require the Malindi facility capturing around 20% to 25% of the current level of landings in the Town, together with some pond fish production (see Table 2). The facility would need to handle higher daily volumes (up to 10 tonnes) during peak fishing season. To cope with peaks in supply it is envisaged that the facility could work with fish famers to target harvesting during the low seasons for sea catch.

Table 2 - Target Capacity for Processing Facility

Table 3 - Process Volumes and Waste

Tonnes / Years Tonnes / Day Freshwater Fish (Tilapia, Catfish

100

0.4

Sea Fish (full range)

950

3.8

Other (Lobster, Carb, etc.

200

0.8

1,250

5.0

Total

The volume process flows are outlined in the Table 3. With an input of 1,250 ton of gross product per year, it is expected that annual dispatched product (including packaging) would be around 977 tonnes. The main process waste (trimmings, heads, tails, bones, etc.) would be suitable for use in a feed mill as a protein supplement. This biproduct would be dehydrated at the facility, prior to dispatch to a feed mill. The guts would be kept separate and composted.

Tonnes / Years

Tonnes / Day

1,250

5.0

Cleaned / Trimmed

563

2.3

Filleted / Other

313

1.3

Cardboard

0.2

Plastic

0.2

977

3.9

Fish Process Waste

375

1.5

for feel mill

313

1.3

for compost (guts)

0.3

2,500

10.0

Raw Fish / Seafood

Product

Packaging

Final Dispatch Weight

Waste

Water

110 MALINDI URBAN ECONOMIC PLAN

Indicative costs and revenues

Packaging cost:

Investment

› Cardboard at KES 100,000 per ton;

A total investment of KES 260 to KES 300 million is required for the processing facility. Of this total, around half would be for the processing equipment, refrigeration units and vehicles, while a third would be required for working capital.

› Plastics at KES 250,000 per ton.

Operating costs Total operating costs are estimated to reach KES 29.5 million per year by 2025. As with all fish processing facilities of this type, operating costs are dominated by the cost of fish and crustacea (around 80% of total OPEX), followed by utilities (10%) and packaging and manpower (each around 5%). The key operating cost assumptions are: Manpower: › Head count of 60 Full Time Equivalents (FTE) in total; › Monthly salaries of KES 12,500 to KES 20,000 depending on skills; › Additional employment costs of 25% of salary. Raw material costs: › Average fish purchase price of KES 200 per kg (compared with an average sales price of catch across all species of KES 160 to KES 170 per kg).

22 Good Manufacturing Practice and Good Hygiene Practice

Packaging volumes: › Cardboard averaging 67kg per ton of processed fish - in line with industry average; › Plastics averaging 49kg per ton of processed fish.

Wholesaling and retail activity also takes a substantial slice of the total value chain, revealing that there is substantial potential for capturing additional value locally by selling directly to consumers. The value added for this project would include the processing VA, together with some of the wholesale value. Figure 48 - Indicative Example of Fisheries Value Chain

Other OPEX: › Covers utilities, packaging materials, other meat processing inputs, transport costs, vehicle maintenance, marketing, etc. Revenues Total revenues are estimated at KES 438 million per year by 2025. The average wholesale selling price has been estimated at 2.5 x the landed catch cost (KES 500 per kg) in line with Food and Agricultural Organisation of the United Nations (FAO) estimates and net of wastage (process losses). Value added Processing and packaging of fish and related products often has a value added in excess of the initial catch. A review by the FAO showed that in general for fish, the processing value added ranges from 100% to 200% of the value of the initial catch (see Figure 48).

700 600 500

Recommendations for enabling business environment and/or other catalysts Inclusive community-wide approach To succeed the facility needs to be developed with the existing sea fishing and pond fish farming community, ensuring that they have all “bought in” to the venture. Taking this approach provides two specific advantages. Firstly, it engages the wider community: fish farming is predominantly undertaken by Christian farmers, while sea fishing is traditionally a Muslim dominated activity. Secondly, it provides the potential for spreading activities throughout the year by scheduling the main pond fish harvests to coincide with the rainy seasons and lower sea fish catch. Branding and quality assurance

400

To maximise the potential, the project should focus on creating a strong quality brand for Malindi fish and seafood, with strong QA/QC practices. The facility should follow accepted GMP and GHP22 guidelines, and other internationally recognised standards (e.g. International Code of Practice for Fish and Fishery Products).

300 200 100 0 Low

High

Landed Catch

Wholesale

Processing

Retail

ECONOMIC DEVELOPMENT PLAN 111

Financing

Figure 49 - Circular economy

To assist the development of the sector, consideration should be given to providing financing for fishermen and fish farmers to promote investment in boats, cages, ponds, etc. In line with best practice, this should be a form of production sharing finance, or diminishing musharakah (which is sharia compliant). Impact The processing facility will have an impact beyond the fisheries sector. The fish processing facility would provide a stream of fish waste that is high in protein and an excellent raw material for a feed mill to use in fish, chicken and other animal feeds (see figure on the right). The feed mill could also utilise other food processing waste products from other potential projects (e.g. mango and cassava waste), and protein from the BSFL sewage sludge plant. A plant to use Black Soldier Fly Larva to process the Townâ&#x20AC;&#x2122;s sewage sludge has been identified as the second VC opportunity, and BSFL protein has been approved for use in fish feed by the EU. As a potential catalyst for these other developments, the fish processing facility could lead to expansion of the circular economy in Malindi (see Figure 49), improving the local cost base.

Food Process Waste Mango, Cassava, etc.

Fish Feed

Fee Mill

Pond Fish

BSFL Protein

BSFL Processing Plant

BSFL Protein

Mariculture

Sea Fishing

Sewage Sludge Malindi Fish Processing Facility Markets Products

112 MALINDI URBAN ECONOMIC PLAN

Potential partners The key partners are the fishermen and fish farmers, and a technical partner to assist with processing and marketing. Fishermen and fish farmers Currently there is an established cooperative for fishermen, though there is no specific cooperative for fish farmers. Both groups should be included as partners in the venture if possible. The fishermen and fish farmers have a good understanding of what assistance they require. In addition, the fishermen are best placed to help monitor and manage the local fish stocks. Some reform to the existing fishermen’s cooperative is required to ensure that the interests of the cooperative are fully aligned to those of the fishermen. Technical and marketing partner While processing of fish is relatively straightforward, a technical partner would assist with QA/QC issues, and also ensure that the product range, presentation and packaging is in line with current market trends. There are a number of international companies that could partner the project, including: › Clearwater: a Canadian-based quality supplier of crustacea with processing facilities in Nova Scotia and Newfoundland, as well as a Joint Venture (JV) in the UK (MacDuff);

› Austevoll Seafood ASA: a Norwaybased company, that own fishing vessels, fishmeal, canning and fish processing plants, and fish farms, and operate in Norway, UK, Peru and Chile. The company has a strong global marketing and sales network; › South Korean Dongwon Enterprise: based in South Korea, Dongwon processing and market a wide range of seafood products. They have a strong presence in the dominant Asian market; › Nippon Suisan Kaisha: widely known as the Japanese fisheries company, NSK are one of the largest seafood processors. They have a broad product range and are active in sea fisheries and aquaculture. Inclusion issues There is considerable potential for employing PWDs and other excluded groups in the processing facility. The facility should therefore be designed for full disability access with ramps, swing doors, low-level-switches, open worktops for wheelchair access, etc.

ECONOMIC DEVELOPMENT PLAN 113

Sewage Sludge Commercialisation This VC opportunity is for the commercialisation of sewage sludge, either through processing with black soldier fly larva (BSFL) to produce protein and compost, or carbonising and pressing into charcoal briquettes. These two technologies are currently under review to evaluate which provides greater benefit for Malindi. This review is expected to be completed by the end of 2019. The key outcomes from this project would include: › Direct employment at the processing facility; › A suitable method of disposal for the Town’s sewage sludge that does not impact on the tourist sector; › Providing an income stream for the Municipality. › Supply of either: › Charcoal briquettes, providing a low-cost alternative to firewood and wood charcoal for cooking and brick making, thereby reducing pressure of woodlands, or; › BSFL as a clean low-cost protein for fish feed and a compost/fertiliser for farmers.

Base assessment For liquid waste there is no sewage network in Malindi, and the Town relies on septic tanks and pits. The emptying of tanks/pits is operated by the private sector, and many are left to overflow. Currently the sludge is dumped out by the municipal landfill site. For sewage sludge there are two technologies being reviewed by MAWASCO in partnership with Sanivation, with the assessment scheduled for completion by the end of 2019. The two technologies are: › Charcoal briquettes: the sewage sludge is sun-dried and then carbonised in a kiln. The resulting charcoal is then pressed into briquettes for use in domestic cooking or into logs for commercial use. Nakuru has a smallscale plant that is being expanded. The pilot plant, operated by NAWASCO, has a capacity of 2 tonnes of briquettes per month which is being expanded to 10 tonnes per month; › Black soldier fly larva: the eggs of black soldier fly are raised on sewage sludge, resulting in mature larva that are high in protein and can be used in animal or fish feed, and a neutralised organic matter that is suitable for use as a soil enhancer/ fertiliser. The BSFL have been approved by the EU as a fish feed. A pilot facility is operating in Nairobi.

114 MALINDI URBAN ECONOMIC PLAN

Value Chain opportunity Key activities The production flow for manufacturing the charcoal briquettes is outlined in Figure 50. Figure 50 - Charcoal production flow

Sludge Supply

Drying

› Emptying septic tanks

› Solar drying of sludge

› Trucking to processing site

› Geotubes to accelerate process

Mixing

› Combining with binder: waste oil or molasses

Forming

› Pressing charcoal into finished balls

Carbonisation

› Heating sludge to 300°c with limited oxygen

Drying

› Final air drying

Pulverising

› Grinding waste

Bagging

› Packing for sale in 5kg paper sacks

ECONOMIC DEVELOPMENT PLAN 115

The production flow for the BSFL processing of the sewage sludge is provided in the Figure 51. Figure 51 - BSFL process flow

Compost

BSF Breeding Colonies

BSF Eggs BSF Pre-pupae

BSF Rearing

Drying Pre-pupae Sewage Sludge

Sludge Dewatering

Feed Mill

116 MALINDI URBAN ECONOMIC PLAN

Capacity

Potential partners

The key partners for this VC project would be MAWASCO and Sanivation (undertaking the current assessment of the two options for processing the sewage waste), and possibly icipe.

› MAWASCO is the Malindi Water and Sewage Company responsible for sanitation in the municipality; › Sanivation is a social enterprise that partners with local governments to help meet the growing waste processing need from septic tanks and pit latrines. They design, build, and operate treatment plants, focusing on producing biomass fuels/briquettes; › icipe (the International Centre for Insect Physiology and Ecology) is the leading research institute for commercial use of insects and had undertaken much of research into the use of black soldier fly larvae.

IMPLEMENTATION PLAN 118

4. IMPLEMENTATION PLAN Effective urban and economic planning by strong, empowered city governments is critical to the success of cities in responding to current and future challenges given city governments’ central role in the coordination of actors that shape urban development and economic growth. Planning plays a direct role in directing and controlling land use, urban form, infrastructure and service delivery. A number of other factors also impact on the ability of cities to respond to risks and development needs. These include the skills available in the workforce and within the municipal authorities, an effective and transparent governance structure, issues shaped by national and regional economic policies and dynamics, as well as access to global financial markets and the global governance of environmental issues. It will be critical to identify potential risks to implementation and how positive impact can be maximised. This will need to be a continuous process reviewing identified delivery risks starting from planning to implementation stages. The proposed Malindi Municipality UEP and projects within the Development Framework have considered the existing economic and urban context including institutional and financial capacity of the county and municipality. Key mitigation measures that will ensure successful implementation include:

› Sequencing: it is very important to initiate infrastructure development carefully and strategically to lead and signal the optimum development direction for Malindi Municipality as indicated within the Tourism Action Plan; › Integrated approach: there is inherent disconnect between spatial planning, economic planning, infrastructure plans and investment planning decisions which risks high impact development and is exacerbated by silo thinking and lack of capacity at the local level. Better vertical and horizontal governance will ensure that all issues are considered, and appropriate decisions are taken. Establishment of working groups or zonal authority (examples of Tourism or Property Owners Business Improvement District) could facilitate integrative thinking and improved coordination as well as providing a platform for stakeholder engagement in the process. The following sections discuss some of the relevant considerations in further detail.

4.1. Partners & Institutional Structures The strength of urban governance is one of the biggest issues affecting the ability of cities to respond to major economic and environmental challenges.

There are two different aspects of multilevel governance:

Horizontal governance recommendations

1. Vertical governance which refers to the strength of coordination across multiple levels of government at national, regional and city levels, and;

Involvement of stakeholders in steering committees & working groups: The Malindi Municipal Board should involve a broad range of stakeholders throughout the lifecycle of any SUED value chain and infrastructure projects:

2. Horizontal governance referring to the coordination of activities across different sectors of society from local governments to the private sector, civil society and grassroots organisations.

›

Thematic project teams and working groups: Malindi Municipality should establish working groups & project teams drawn from representatives from government and business and community stakeholders to develop particular actions and projects and track implementation. This would be particularly important to address challenges and develop appropriate collective actions for the tourism sector. These working groups and project teams would then report back to Malindi Municipality on a quarterly basis;

›

A mapping exercise should also be undertaken to identify the existing relationships and partnerships that exist at both a municipality and county level. Existing relationships with multilateral institutions, bilateral institutions, NGOs and think tanks can all be leveraged to support SUED projects. The mapping exercise will also be conducive to building greater coordination between the existing

Vertical governance recommendations Malindi Municipality and the various departments of the municipality maintain good relations with the county government and various, frictionless communication channels exist vertically. Nonetheless, the municipality should implement a plan of regular communication (e.g. periodic meetings and/or reporting) to keep the county government appraised of progress and developments on SUED projects and to ensure that efforts are coordinated across the county. Failure to put such structures and processes in place will cause significant delays in project formulation and implementation along with direct impacts on the future role out of supporting climate resilient infrastructure and their associated costs.

119 MALINDI URBAN ECONOMIC PLAN

partnerships as well as identification of opportunities for partnerships with new and emerging entities.

Community Led Projects Shella village Setting up a community project is on its own right a long and challenging process and there are a number of key requirements that need to be in place to enable the implementation of a successful project. These relate both to internal to the community practices ensuring everyone has an equal standing in the decision making but also how the community is connected to stakeholders outside the community and communicates its purpose across. These requirements include: › The community needs to be well organised and cohesive and all community members, women, men, PWDs and youth should be involved in decision making processes, and financial management of the projects; › There is strong partnership with relevant government bodies and other supporters while efforts locally are part of a wider national/regional community development strategy; › Driver for development is not purely income generation but also cultural and natural heritage conservation and intercultural learning and also linked to visitor education on the value of culture and resources present;

› Decision is made by the community based on informed choice, of impact, options, risks and outcomes and efforts are supported by good marketing mechanisms; › Key to any community led project is defining and making clear any land ownership and other resource issues. Furthermore, there is a need to have good infrastructure in place as well as clear zoning of visitor and non-visitor areas.

Roadmap for development Key steps towards implementation The success of tourism and community based initiatives and projects depends on the effectiveness of their organisation and management. Irrespective of the type of product and its development, which in its own right would require a long and inclusive process, effective community projects need to be established as viable, long-term economic/business operations with benefits that are fairly distributed amongst members. Key steps towards business development relate to product creation, market assessment and business planning: Visioning A first step is the consideration of different possible scenarios and identification of a shared vision for the future is a valuable exercise for communities to undertake. This exercise also ensures everyone’s views are actively listened to and considered and set a solid basis for establishing organisational structure.

Definition of Product It is important to be clear about community resources the product will be based around and what activities and experiences the community is promoting. Understanding what kind of visitors the community wants to attract and characterising the target market will inform product development and marketing. At this stage, consideration of other successful examples would be helpful to highlight potential activities and projects. Stakeholders Identifying stakeholders, supporting networks and potential partners outside the community is essential. These could be either directly or indirectly involved in the project and can be instrumental in terms of financial or marketing activities. These could include tourism board, potential funders/sponsors, other similar organisations around the country to share knowledge and experience and also producers that could market their products through the community’s projects. At the same time, it would be important to identify those stakeholders that could be affected by the activities such as businesses in the surrounding area and nearby communities. Finding ways to collaborate with these would help ensure support and avoid any obstacles. Assessment As with any project and business plan a thorough assessment of existing conditions is required to identify and

assess opportunities and risks as well as requirements. These assessments commonly come in the form of a SWOT (strengths, weaknesses, opportunities and threats) analysis which help guide discussion around positive conditions and can help promote development and those conditions that need to be improved. One such condition is rationally assessing existing resources within the community and actions required to develop these in a useful manner to the proposed projects such as skills and training. Typical skills required for any organisation that also has a tourism and visitor relations character include: › Service skills; › Interpretation and communication; › Marketing strategies; › Basic computer skills; › Proficiency in foreign languages; › Visitor management. Depending on the product promoted, other training should be considered such as in catering and arts and crafts production. Developing organisation and management structure Different organisation and management structures suit different community based operations and contexts. There is no one solution fits all, however, there is a common requirement for all successful community projects. A leading figure from within the community and skilled

IMPLEMENTATION PLAN 120

individuals that help drive the projects to implementation and an agreed set of management principles and practices agreed by all from the outset. It is important to clarify the legal status of the business. Community/Social enterprises are usually set up as co-operatives, which held guide their social and environmental commitments as well as the way revenues and benefits are redirected back to the community. Identification of funding - potential sources and financial planning Identifying the kind of financing best suited to the needs of the project would be vital and a key component of the business plan. A suitable financing strategy can create an incentive for good management performance whilst reducing likelihood of friction over benefits dispersal within the community and avoid dependency on external grant mechanisms.

Business Improvement Districts A popular concept for the establishment of zonal authority / organisation is the formation of a BID. A BID is a business-led partnership (non-profit organisation) run by and for its members in a defined geographical area with a remit to invest collectively to improve their environment. These organisations are funded by a mandatory levy agreed between members and set priorities for local investment such as cleaning, safety, improvement of the local area and promotion and building local networks supporting local supply chains. In the context of Malindi the nature of partnership can be enhanced with the inclusion of public sector involvement which could help attract additional funding for public realm and infrastructure improvements. Key benefits of this approach are an accountable, proactive and flexible approach while bringing wider regeneration benefits. Typical examples of BIDs have a commercial focus including retail which could be applicable in a Central Business District however there a number of BIDs that have focused on industrial estates, tourism and property owners.

4.2. Implementation costs and potential funding sources The investment experts as part of the SUED programme will develop feasibility studies for the projects which will include estimated capital expenditure and operating expenditure requirements. It will likely be necessary to blend and combine a range of different sources of financial and non-financial support to meet the projects’ expenditure requirements. Careful consideration will have to be given to the differing eligibility criteria of the various sources in order to successfully structure blended finance arrangements. The following tables provide a summary of high-level cost estimates for the identified projects including indication of type of funding that would be required for implementation. This excludes any soft initiatives or those projects that would require further assessment and design work to understand the scale of investment required. Key points: › Over 65% of the proposed projects could attract private investment; › Proposed infrastructure projects include 30% uplift to account for planning, design, engineering costs and inflation; › Potential costs for adaptation measures are excluded. This can range from 0%-20% (0% where a defined project is targeting climate change impacts such as SuDS).

121 MALINDI URBAN ECONOMIC PLAN

Focus Area Sequence

Asset Type

Asset Name

Asset Location

Measurement Figure Type

Power Unit Cost (KES) Total Cost (KES)

Water and Sanitation Unit Cost (KES) Total Cost (KES)

Roads and Stormwater Unit Cost (KES) Total Cost (KES)

Buildings and Landscape Unit Cost (KES) Total Cost (KES)

Overall Cost (KES)

Delivery Sector

Notes

TOURISM ACTION PLAN Town Centre and Waterfront Upgraded High Street Drainage (SuDS) Swale

5,460.0

1,000.00

5,460,000.00

7,098,000.00

Central Swale along the B8.

17,160.0

140.00

2,402,400.00

3,123,120.00

1,200.0

2,746.00

3,295,200.00

4,283,760.00

Pipe cost assuming 450mm pipe, 1.2km length Excluding Manholes and Gullies cost and excluding outfall structure.

900.0

1,000.00

900,000.00

1,170,000.00

Pipe route, size and depth will need to be confirmed at the detailed design stage. per unit cost to be provided by the team members in Kenya.

490.0

190.00

93,100.00

121,030.00

Upgraded Footpaths (Permeable Paving)

6,500

sqm

8,500.00

55,250,000.00

71,825,000.00

(W) 2m. To be installed on both sides of the road.

Street Trees

260

3,000.00

780,000.00

1,014,000.00

Native tree spaced every 10m. To be installed on both sides of the road.

1,041,157,000.00

Profile: Regenerated terrain along the waterfront to provide resilience to potential sea-level and protect the urban centre. Sand Dunes: 3ha allocated to sand dune improvement. Suggested surface ratio: 50/50 (additional native planting / existing sand). Landscape Terraces: 5ha allocated to earthworks. Proposal includes 2No. (H) 1m grass terraces. Sports Centre and Parks: 10ha allocated to the development of green space and sports centre. Space to include: 1No. football pitch (full size); 1No. Swimming complex (nominal 2,000sqm 1.5 storey building) 1No. beach park (4No. volleyball pitches and 1No. 150sqm building for amenities such as storage, bathroom, snack bar). Remaining space to be parks with a suggested surface ratio of 30/70 (paving / planting). Planting split 50/50 between grass and native plants. Paving surface to be permeable. Street Trees (per 100sqm): 1No. Native Tree. Other Public Realm Components (per 200sqm): 2No. Off-shelf seating; 1No. Litter / recycling bin; 2No. PV Solar Street Lights.

Piped outfall to the sea 1

Water Management (Drainage) Water attenuation basin at the roundabout

Public Realm Design

Waterfront Improvement

Town centre gateway / roundabout (and roads leading up to and from) on the B8.

Waterfront along Silversands Road (adjacent to Curio Market and Malindi Museum)

18.0

800,890,000.00

Publicly Funded

This cost only includes excavation. Landscaping costs will need to be added at the concept and detailed design stage.

Public Private Initiative

IMPLEMENTATION PLAN 122

Focus Area Sequence

Asset Type

Urban Regeneration

Transportation

Asset Name

Refurbished Leisure Pier

Road Upgrade

Upgrade to Existing Routes (extracted from open source GIS data)

Urban Regeneration

New Pedestrian Footpaths

New Pocket Parks

Asset Location

Along Silversands Road (adjacent to Curio Market and Malindi Museum)

Along Silversands Road

Old town including old and new markets, Curio market. Extent of area includes landmarks such Malindi Museum and the Portuguese Chapel

Measurement Figure Type

0.5

3.3

Power Unit Cost (KES) Total Cost (KES)

Water and Sanitation Unit Cost (KES) Total Cost (KES)

Roads and Stormwater Unit Cost (KES) Total Cost (KES)

565,490,000.00

Buildings and Landscape Unit Cost (KES) Total Cost (KES)

40,500,000.00

Overall Cost (KES)

52,650,000.00

735,137,000.00

5.3

718,250,000.00

933,725,000.00

3.6

127,900,000.00

166,270,000.00

2.3

14,145,000.00

18,388,500.00

Delivery Sector

Notes

Publicly Funded

Refurbished Pier Profile: Market: 800sqm single storey canopy; open-plan. Lookout structure at the end of the pier: 150sqm single storey canopy (closed structure for safety) including amenities such as: Integrated seating; Litter / recycling bin; Information Board (landmarks history); Lighting. Feature lighting spaced every 5m (nominal spacing). (L) 400m balustrade installed on both sides of the pier

Publicly Funded

Proposed Road Profile: (W) 7m two-way road upgraded to include stormwater drainage. (W) 3m footpaths installed on both sides of the road. Permeable Surface. PV Solar street lamps spaced every 10m (nominal spacing). To be installed on both sides of the road. Native tree spaced every 10m. To be installed on both sides of the road. Proposed Road Profile: (W) 6m two-way road re-surfaced and include stormwater drainage. (W) 1.5m footpaths installed on both sides of the road. Permeable Surface. PV Solar street lamps spaced every 10m (nominal figure). To be installed on one side of the road.

Publicly Funded

(W) 3m footpaths (Permeable surface). PV solar street lamps installed every 10m (nominal spacing). Public Realm Surface Ratio: 30/70 (paving / planting). Planting split 50/50 between grass and native plants. Paving surface to be permeable. Street Trees (per 100sqm): 1No. Native Tree Public Realm Components (per 200 sqm): 2No. Off-shelf seating; 1No. Litter / recycling bin; 2No. PV Solar Street Lights.

123 MALINDI URBAN ECONOMIC PLAN

Focus Area Sequence

Asset Type

Public Realm Design

Asset Name

New Pedestrian Nature Trail (including viewing spot, cafĂŠ and canopy walk)

Asset Location

Along the waterfront from the leisure pier to the Galana River

Measurement Figure Type

Power Unit Cost (KES) Total Cost (KES)

Water and Sanitation Unit Cost (KES) Total Cost (KES)

Roads and Stormwater Unit Cost (KES) Total Cost (KES)

Buildings and Landscape Unit Cost (KES) Total Cost (KES)

Overall Cost (KES)

8.6

2,039,500,000.00

2,651,350,000.00

0.0

1.00

150,000,000.00

195,000,000.00

0.0

1.00

405,000,000.00

526,500,000.00

Delivery Sector

Notes

Publicly Funded

Footpath: (W) 2m raised timber deck (ideally locally sourced timber) Lighting (every 10m); 1No. PV Solar bollard. Public Realm Components (every 800m): 2No. Off-shelf seating; 1No. Litter / recycling bin; 2No. PV Solar bollards; 1No. Wayfinding signage. To sit on 30sqm timber deck (extended area from the main footpath). Viewpoint Spot: 4No. Off-shelf seating; 2No. Litter / recycling bin; 4No. PV Solar bollards; 1No. Wayfinding signage; 1No. raised timber structure (to an approximate (H) 5m) To sit on 50sqm timber deck (extended area from the main footpath). CafĂŠ: Nominal 300sqm single storey building including amenities such as: Bathroom; Litter / recycling bin; PV solar panels for power. Canopy Walk: Nature inspired adventure park located in a forested area. Nominal area approximately 6ha with a raised timber footpath approximately (H) 6m x (W) 2m x (L) 1000m.

Public Private Initiative

Items extracted from Proforma (File: Malindi UEP Project Proforma - solid waste v2).

Infrastructure Formalised Waste Collection Services

Waste Management

Dumped Material Excavation and Haulage (to new Adjacent to Casaurina landfill site) Road, west Concrete Slab of the town (on remediated centre area)

0.0

sqm

1.00

100,000,000.00

18,000.00

130,000,000.00

Material Recovery Facility

0.0

sqm

1.00

75,000,000.00

97,500,000.00

In-Vessel Composting Facility

0.0

sqm

1.00

50,000,000.00

65,000,000.00

system

1.00

88,100,000.00

114,530,000.00

Publicly Funded

3.3

44,000,000.00

57,200,000.00

Publicly Funded

Sludge treatment

Bricket VC

Power

PV Solar Street Lighting

Along Silversands Road

PV Solar street lamps spaced every 10m (nominal spacing). To be installed on both sides of the road.

IMPLEMENTATION PLAN 124

Focus Area Sequence

Asset Type

Asset Name

Asset Location

Measurement Figure Type

Power Unit Cost (KES) Total Cost (KES)

Water and Sanitation Unit Cost (KES) Total Cost (KES)

Roads and Stormwater Unit Cost (KES) Total Cost (KES)

Buildings and Landscape Unit Cost (KES) Total Cost (KES)

Overall Cost (KES)

Delivery Sector

Notes

Fishing Village

Urban Regeneration Mixed-Use Development (Phase 1)

Village Green area

4.3

30,000,000

128,400,000

RoW (Rights of Way) (Roads + Footpaths)

3.7

100,000,000.00

712,500,000,000.00

Total GFA in Fishing Village

14,960.0

sqm

64,000

957,440,000

Total GFA in Village Green

590.0

sqm

64,000

37,760,000

Open Spaces (main plazas)

5,996.0

sqm

3,000

17,988,000

Deck

RoW (Rights of Way) (Roads + Footpaths) Total GFA in Fishing Village

Urban Regeneration Mixed-Use Development (Phase 2)

Urban Regeneration Mixed-Use Development (Phase 3)

Open Spaces (main plazas)

Adjacent to Mayungu Beach, approximately 15km South from Malindi town centre

1,090.0

sqm

150,000

163,500,000

1.4

100,000,000.00

139,000,000.00

6,195.0

sqm

64,000

396,480,000

3,684.0

sqm

3,000

11,052,000

RoW (Rights of Way) (Roads + Footpaths)

2.1

100,000,000.00

213,000,000.00

Total GFA in Fishing Village

3,125.0

sqm

64,000

200,000,000

1,696,614,400

Profile: Regenerated area to increase residents and tourists to the local area whilst maintaining commercial activities. Preliminary proposal allocates the following land-use: Residential: 5,000sqm allocated to new housing (profile to match local house typologies e.g. number of rooms, footprint). Retail / F&B: 3,235sqm allocated to the expansion of retail, cafĂŠs and restaurants. Suggested 1-2 storey buildings. Hospitality: 5,790sqm allocated to hotels and resorts (profile to match similar 4-star hotels and resorts in the region). Commercial: 935sqm allocated to the development of fishing activities (including amenities such as storage facilities) with room for future expansion. Green Space: 5,996sqm allocated to preserve existing green spaces (south of Mayungy beach, for example) and Mayungu beach (which is included in the overall area).

529,791,600

Profile: Regenerated area to increase residents and tourists to the local area whilst maintaining commercial activities. Preliminary proposal allocates the following land-use: Residential: 2,325sqm allocated to new housing (profile to match local house typologies e.g. number of rooms, footprint). Retail / F&B: 2,790sqm allocated to the expansion of retail, cafĂŠs and restaurants. Suggested 1-2 storey buildings. Commercial: 1,080sqm allocated to the development of fishing activities (including amenities such as storage facilities) with room for future expansion. Green Space: 3,684sqm allocated to preserve existing green spaces (south of Mayungy beach, for example) and Mayungu beach (which is included in the overall area).

Public Private Initiative

125 MALINDI URBAN ECONOMIC PLAN

Focus Area Sequence

Asset Type

Asset Name

Asset Location Road leading to Mayungu Beach, approximately 15km South from Malindi town centre

Transportation

Road Upgrade

Transportation

Road leading to Mayungu Public Transport Beach, Upgrade (New approximately Bus Stops) 15km South from Malindi town centre

Measurement Figure Type

Power Unit Cost (KES) Total Cost (KES)

Water and Sanitation Unit Cost (KES) Total Cost (KES)

Roads and Stormwater Unit Cost (KES) Total Cost (KES)

Buildings and Landscape Unit Cost (KES) Total Cost (KES)

Overall Cost (KES)

Delivery Sector

Proposed Road Profile: (W) 7m two-way road upgraded to include stormwater drainage. PV Solar street lamps spaced every 10m (nominal spacing). To be installed on both sides of the road.

Notes

5.1

102,200,000.00

100,000,000.00

510,000,000.00

795,860,000.00

Publicly Funded

1,800,000.00

2,340,000.00

Publicly Funded

Off-shelf design which includes seating, PV solar lighting and shade canopy.

78,000,000.00

Public Private Initiative

As per proposal (Option 2).

329,030,000.00

Publicly Funded

Proposed Road Profile: (W) 7m two-way road upgraded to include stormwater drainage. PV Solar street lamps spaced every 10m (nominal spacing). To be installed on both sides of the road.

38,740,000.00

Public Private Initiative

Nominal size. To include amenities such as: Bathroom, indoor and outdoor rest areas, kiosk / café. Secure compound with perimeter fencing and secure entry and exit points.

DIVERSIFICATION ACTION PLAN Industrial Cluster (Airport) Roads, Paving and Stormwater

0.6

100,000,000.00

60,000,000.00

Water Supply

1.0

stm

40,800,000

Waste Water

1.0

stm

42,700,000

55,510,000.00

Power

0.6

4,500,000.00

2,700,000.00

3,510,000.00

3,000

sqm

64,000.00

192,000,000.00

249,600,000.00

3,000

sqm

64,000.00

192,000,000.00

249,600,000.00

5,000

sqm

64,000.00

320,000,000.00

416,000,000.00

Industrial Units (Type 1: 750 sqm per unit) 1, 2

Industrial Cluster (Phase 1)

Industrial Units (Type 2: 1,500 sqm per unit) Industrial Units (Type 3: 2,500 sqm per unit)

West corner of Malindi Airport between the B8 and C103

Fish Processing Facility

Transportation

unit

300,000,000.00

390,000,000.00

Food Processing Facility

1,500

sqm

Green Space

3,000

sqm

3,000.00

9,000,000.00

11,700,000.00

Road Upgrade

Access road from the B8 to the proposed industrial cluster

Truck Parking Facility

Along the B8, adjacent to the access road to the proposed industrial cluster

2.3

1.5

23,100,000.00

100,000,000.00

230,000,000.00

17,000,000.00

12,800,000.00

IMPLEMENTATION PLAN 126

Focus Area Sequence

Asset Type

Asset Name

Asset Location

Measurement Figure Type

Power Unit Cost (KES) Total Cost (KES)

Water and Sanitation Unit Cost (KES) Total Cost (KES)

Roads and Stormwater Unit Cost (KES) Total Cost (KES)

Buildings and Landscape Unit Cost (KES) Total Cost (KES)

Overall Cost (KES)

Delivery Sector

Notes

Industrial & Commercial Sector Opportunities

1, 2, 3

Industrial Cluster (Future Developments)

Roads, Paving and Stormwater

2.4

100,000,000.00

240,000,000.00

Water Supply

1.0

system

36,300,000

Water

1.0

system

34,220,000

44,486,000.00

Power

2.4

4,500,000.00

10,800,000.00

14,040,000.00

Industrial Units (Type 1: 750 sqm per unit)

9,000

sqm

64,000.00

576,000,000.00

748,800,000.00

Industrial Units (Type 2: 1,500 sqm per unit)

6,000

sqm

64,000.00

384,000,000.00

499,200,000.00

20,000

sqm

64,000.00

1,280,000,000.00

1,664,000,000.00

10,000

sqm

64,000.00

640,000,000.00

832,000,000.00

Industrial Units (Type 4: 12,500 sqm per unit)

12,500

sqm

64,000.00

800,000,000.00

1,040,000,000.00

Feed Mill

1,300

sqm

550

sqm

2,500

sqm

2.7

30,000,000.00

81,000,000.00

105,300,000.00

0.0

sqm

50,000,000.00

65,000,000.00

Industrial Units (Type 3: 2,500 sqm per unit) Industrial Units (Type 4: 10,000 sqm per unit)

West corner of Malindi Airport between the B8 and C103

Fish Hatchery Cassava Processing Centre Green Space

Transportation

312,000,000.00

Ring Road

Along the B8 1km west of the proposed industrial cluster access road

Along coastline Water Transport connecting (pick-up and existing and drop dock for proposed passengers) attractions (see map)

Public Private Initiative

As per proposal (Option 2).

Publicly Funded

2-lane roundabout to accommodate road upgrades linking the north and south regions around Malindi town centre.

Public Private Initiative

Timber dock extending from coastline for small to medium sized passenger boats. Secure building to provide amenities such as: Bathroom, ticket and office space, wayfinding / information boards, waiting area, kiosks for F&B, PV solar power. Additional amenities may include: Taxi / bus / car drop-off and pick up points, seating area, PV solar street lighting, wayfinding, green space.

127 MALINDI URBAN ECONOMIC PLAN

Potential sources of funding Grant funding can help improve the financial viability of projects which have significant, upfront capital expenditures, improving the overall investment appeal of a project and attracting additional private investment as a result. The proportion of grant finance of the total project finance amount should be carefully justified, as simply seeking a maximised grant finance proportion can seed doubts in the private sector about the long-term financial sustainability of the project. Grant funding is also available to less, commercially viable projects with significant socio-economic or environmental benefits, particularly relating to climate change and resilience. They may also be focused on certain activities such as technical assistance in project preparation or capacity development. Philanthropic and NGO grant funding could also be leveraged through initiatives such as businesses dedicating 1% of profits to corporate social responsibility initiatives. Examples of projects could include tree planting, provision of or access to recreational facilities. Private sector finance for a range of sectors is available in East Africa from both local and international sources. Existing investors in the region include impact investors, venture capitalists and private equity funds who are able to provide relevant instruments for the value chain projects such as equity, quasi-equity (mezzanine

finance) or concessionary debt. Access to private finance will be contingent on the concrete demonstration of viable business models and strong governance structures. Projects will also benefit by blending in non-financial support in the form of social capital, such as volunteer efforts from the community. Actions to build social capital include mobilising community organisations and volunteers to be involved with the development and implementation of projects. The most successful mobilisation of human and social capital resources occurs for projects where there is a demonstrated, direct and visible relationship between the project and the future benefits for community and volunteer stakeholders. Examples of projects could include raising awareness campaigns for more efficient use of water and solid waste collection and management. Mobilising the scale of resources to address the identified climate change adaptation measures to be implemented and ensure that the selected value chain and infrastructure projects are climate resilient, the counties need to consider the full spectrum of potential funding sources available. Presented below is a snapshot of the available climate change funds that cover climate adaptation and mitigation including the country Focal Points for these. The identified value chain and infrastructure projects could potentially apply to these funds for access to resources for implementing climate adaptation and

23 http://pubdocs.worldbank.org/en/222771436376720470/010-gcc-mdb-idfc-adaptation-common-principles.pdf

mitigation activities. It is important to note the following: › Some of the value chain and infrastructure projects are climate action projects in themselves i.e. they directly address and contribute to climate mitigation and / or adaptation (e.g. solar powered street lighting and sustainable urban drainage systems respectively), while all of these projects could have specific activities introduced in their design and implementation to help address identified climate risks, and these would be the basis on which an application would be made to the relevant fund; › To gain access to these funds, investments will need to demonstrate a significant contribution to climate action. Successfully accessing resources from these funds depends on a good understanding of the funder’s perspective and procedures. A comprehensive grasp of funding criteria as well as the different financial mechanisms and the extent to which they can be combined is important; › Furthermore, it is vital to realise that especially for adaptation, each project activity is location and context specific. Existing guidance23 presents the following principles that need to be generally adhered to. The project activity must:

› Include a statement of purpose or intent to address or improve climate resilience in order to differentiate between adaptation to current and future climate change and good development; › Set out a context of climate vulnerability (climate data, exposure and sensitivity), considering both the impacts from climate change as well as climate variability related risks; › Link project activities to the context of climate vulnerability (e.g., socio-economic conditions and geographical location), reflecting only direct contributions to climate resilience.

Global Funds Green Climate Fund (GCF): The GCF seeks to promote a paradigm shift to lowemission and climate-resilient development, taking into account the needs of nations that are particularly vulnerable to climate change impacts including Africa and Small Island Developing States (SIDs). The GCF aims to deliver equal amounts of funding to mitigation and adaptation and its activities are aligned with the priorities of developing countries through the principle of country ownership. The financial instrument / delivery mechanism for the GCF is grants, loans, equity or guarantees. The National Treasury is the Kenyan National Designated Authority (NDA) for

IMPLEMENTATION PLAN 128

the GCF and the National Environment Management Authority of Kenya (NEMA) is a direct access Accredited Entity (AE).24 In 2017, the National Treasury developed the Kenya National GCF Strategy25 which has a vision to increase financial flow from the GCF for a climate-resilient society and low-carbon economy. The Strategy identifies County governments as critical co-financiers who can take the role of Executing Entities and/or Implementing Entities of climate-resilient and lowcarbon initiatives. The Strategy provides a roadmap for stakeholders in harnessing resources from the GCF. The Adaptation Fund (AF): The AF finances projects and programmes that help vulnerable communities in developing countries adapt to climate change. Initiatives are based on country needs, views and priorities. The financial instrument / delivery mechanism used by the Adaptation Fund is grants. NEMA is the is the National Implementing Entity (NIE) for Adaptation Fund in Kenya.26 The Least Developed Countries Fund (LDCF): The LDCF was established to meet the adaptation needs of least developed countries (LDCs). Specifically, the LDCF has financed the preparation and implementation of National Adaptation Programs of Action (NAPAs) to identify priority adaptation actions for a country,

based on existing information. The financial instrument / delivery mechanism used by the LDCF is grants. The Global Environment Facility (GEF) administers the LDCF and Operational Focal Points (OFPs) are responsible for coordination in country. The Ministry of Environment and Forestry is Kenya’s GEF Operational Focal Point.27 The Special Climate Change Fund (SCCF): The SCCF was established to address the specific needs of developing countries under the United Nations Framework Convention on Climate Change (UNFCCC) with respect to covering incremental costs of interventions to address climate change relative to a development baseline. Adaptation to climate change is the top priority of the SCCF and in addition to this, it finances projects relating to technology transfer and capacity building in the energy, transport, industry, agriculture, forestry and waste management sectors. The SCCF is administered by the GEF and its financial instrument / delivery mechanism is grants. The Ministry of Environment and Forestry is Kenya’s GEF Operational Focal Point. The Pilot Program for Climate Resilience (PPCR): The PPCR provides funding for climate change adaptation and resilience building. It aims to pilot and demonstrate ways in which climate risk and resilience may be integrated into core development

planning and implementation by providing incentives for scaled-up action and initiating transformational change. It is a targeted program of the Strategic Climate Fund (SCF), which is one of two funds within the Climate Investment Funds (CIF) framework. The financial instrument / delivery mechanism for the PPCR is grants and loans. The CIF Secretariat is housed at the World Bank. The PPCR Sub-committee selects countries. The Adaptation for Smallholder Agriculture Programme (ASAP): ASAP channels climate finance to smallholder farmers so they can access the information, tools and technologies that help build their resilience to climate change. ASAP is contributing to the drive of scaling-up successful ‘multiple-benefit’ approaches to increase agricultural output while simultaneously reducing vulnerability to climate-related risks and diversifying livelihoods. ASAP is the world’s largest climate change adaptation programme for smallholder farmers and it is run by the IFAD.

Regional Fund The Africa Climate Change Fund (ACCF): the ACCF aims to support African countries transition to climate resilient and lowcarbon mode of development, as well as

24 Kenya GCF Country Profile https://www.greenclimate.fund/countries/kenya 25 The Kenya National Green Climate Fund (GCF) Strategy https://www.gcfreadinessprogramme.org/sites/default/files/GCF%20Coordination%20Strategy%20Report.pdf 26 http://www.nema.go.ke/index.php?option=com_content&view=article&id=118&Itemid=357 27 https://www.thegef.org/country/kenya 28 http://www.kcckp.go.ke/climate-finance/

scale-up their access to climate finance. The ACCF serves as a catalyst with a scope broad enough to cover a wide range of climate-resilient and low-carbon activities across all sectors. Priority for funding is given to the following themes; supporting small-scale or pilot adaptation initiatives to build resilience of vulnerable communities; and supporting direct access to climate finance. The ACCF gives grants and launches calls for proposals periodically. The Secretariat is housed at the African Development Bank.

National Mechanism The financing of climate action is anchored on the Kenyan constitution. The Climate Change Act, 2016 requires that deliberate Climate Change considerations are made to ensure mainstreaming in all government plans, policies and programmes, resulting into inbuilt public climate financing of all sectors of the economy. The Climate Change Act, 2016 further created a Climate Change Fund to facilitate climate action. The National Treasury is the NDA for climate finance in Kenya and oversees the implementing entities for various climate finance streams, as well as tracking of the financed on-budget and off-budget activities.28

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County Mechanism The Kenya County Climate Change Fund (CCCF) Mechanism: Five county governments - Garissa, Isiolo, Kitui, Makueni and Wajir - have established County Climate Change Funds (CCCFs) that identify, prioritize and finance investments to reduce climate risk and achieve adaptation priorities. They improve a counties readiness to access and disburse national and global climate finance to support community-prioritised investments to build climate resilience. The CCCFs are aligned with national priorities set out in Kenya’s NAP, and enable these county governments to strengthen and reinforce national climate change policies while delivering on local adaptation priorities. Under the policy and regulatory framework of the National Climate Change Adaptations Plan (NCCAP), the priority enabling action of ‘support alignment of county legislation to the Climate Change Act’ is being delivered by; assisting county governments to develop CCCF regulations which are linked to the national Climate Change Fund. All five pilot counties have fully institutionalised CCCF within their planning and budgeting processes, committing 1-2% of their development budgets to supporting the implementation of CCCF investments and operationalising structures to govern the fund. This ensures the mechanism is sustainable, with CCCF funding coming from the government

exchequer. Post-CCCF, communities demand accountability and strongly influence the choice of investments financed by county development budgets.29 The expansion of the CCCF across the country is one of the priorities in the Kenya National Climate Change Action Plan, 2018-2022.

4.3. Recommendations for Capacity Building The Municipal managers and other municipality staff will be responsible for the overall management and delivery of the SUED value chain and infrastructure projects. Ensuring that these staff have sufficient capacity and skills will thus be of critical importance to the success of the SUED project. The following recommendations have been made based on interactions with municipality staff to date. Municipal managers could benefit from capacity building on project management and delivery of large projects (as relevant to the UEP) and the community engagement required; Aside from capacity building of the municipal managers, developing a consolidated project preparation, delivery and monitoring office within the municipality would be beneficial. Municipality staff could be trained to work in this office and the office would function

as a “horizontal” capability, providing specialised project management assistance to projects across all sectors. There are potential capacity building synergies to be realised in conjunction with the World Banks Kenyan Urban Support Programme (KUSP) which is also considering related capacity building activities; As the SUED value chain and climate resilient infrastructure projects involve diverse stakeholder backgrounds and representations, strong governance and strong institutions will be required to effectively manage all stakeholders. Technical assistance and capacity building to support governance and institutional strengthening is thus also recommended. In order to progress the SUED value chain and climate resilient infrastructure projects, additional investment will need to be secured from a range of public and private sources. Currently, the investment sourcing and investment coordination capacities of the municipality is limited. Some amount of capacity building efforts should focus on this issue as well as revenue generation and collection activities. The municipality could also benefit from general commercial development capacity building. While the training does not need to be sector specific and it would useful to give particular attention to tourism development requirements, and should cover: › Engaging with business;

29 https://adaconsortium.org/index.php/component/content/article/95-blogs/320-supporting-adaptation-through-local-level-climate-finance-lessons-from-kenya?Itemid=437

› Developing business linkages; › Developing commercial prospectus; › Building and testing business cases. Strategic recommendations on how inclusion will be achieved in the implementation of the Malindi UEP Developing Malindi into a sustainable Municipality will require Urban Economic Planners and Social Inclusion Experts to make decisions that promote nondiscrimination. Part of that in Malindi will involve inclusion of Special Interest Groups strategically categorised under the umbrella of all gender, all adult-age persons and PWDs; but specifically identified at Municipal level as PWDs, the LGBT community, women, youth, and persons recovering from substance abuse. To fully harness the potential of sustainable urban development in Malindi, social inclusion is a basic prerequisite that will be achieved by: 1. Stakeholder engagement Commitment to always engage SIGs throughout the Programme’s life in Malindi to give them a chance to be informed, to contribute to decision making, and actively give views on and participate in matters that affect them; 2. Age, gender and PWDs-responsive planning - Commitment to promote age, gender and PWDs-responsive

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planning and implementation by enabling full and meaningful participation of all the identified special interest groups in planning for and implementation of the VC and supportive infrastructure projects; 3. Capacity building and job creation - Commitment to ensure that for all emerging capacity building and / or employment opportunities available, special interest groups are given equal and fair opportunities to be engaged in training and employment; › The capacity building trainings offered should be related to the town’s value chain and / or infrastructure projects, and mostly dwell on entrepreneurship and skills development. Entrepreneurship and skills development are in line with Malindi ISUDP’s Vision of tackling illiteracy and increasing youth’s employability; › This will have a ripple effect of earning the youth an income, and therefore reducing prostitution, drug abuse and crime which is good for Malindi’s business health. e.g. If a fishing-related project is chosen for Malindi, capacity build youth’s skills around the fishing value chain so that they can tap in to the opportunities that will emerge. The MEDA - Foundation and Omari Project are some of the private sector players tackling substance abuse and PWDs in Malindi. They already have youth empowerment

programmes that the SUED Programme can partner with;

Programme’s capacity building initiative;

4. Equal access to urban infrastructure by all - Commitment to facilitate access especially for PWDs and women on an equal basis with others to basic physical and social infrastructure without any form of discrimination;

› Number of SIGs employed by the Programme;

5. Safe, green urban infrastructure - Commitment to develop safe, accessible, green infrastructure projects that promote all people living safely together; 6. Social Inclusion Awareness Creation - Commitment to build the Social Inclusion capacity of all the UEP players/stakeholders right from DFID, Coffey, Atkins, Municipal and County Staff in Malindi so that nondiscrimination becomes part of their DNA; This will be achieved by Coffey creating awareness about Social Inclusion amongst the larger pool of the Programme’s stakeholders, as they cannot implement a concept, they are not familiar with; 7. Monitoring and evaluation of Inclusion Progress - The Programme should develop a Monitoring and Evaluation framework to measure social inclusion progress throughout the project cycle. Some of the aspects to be checked include and are not limited to: › Number of SIGs invited to the Programme’s workshops; › Number of SIGs recruited into the

› Attitudinal changes (if any) in the Programme Stakeholders’ perspectives after Social Inclusion workshops etc; 8. Programme’s focus should be on Gender (both male and female), Age (all adult age groups including the elderly and youth) and PWDs. These 3categories provide an intersectionality that will ensure involvement of the special interest groups identified for Malindi Municipality and; 9. All social inclusion interventions should strictly be applicable to adults of between 18 and 35 years. Therefore, for the teen mothers, the Programme should only engage with those between 18 and 19 years old, as below that would be dealing with minors; 10. On the LGBT community, the Consultant recommends involvement of this group in non-explicit ways for safety reasons and to avoid conflict with the host community. For instance, through them being covered under other SIGs such as the PWDs. This recommendation is based on the findings that: › Some of the Malindi Municipal Board Members do not want the Group mentioned in the report terming theirs as an ‘unacceptable

and foreign culture’; › There have been reports of violent attacks on health sector development workshops in Malindi, that tried to incorporate the LGBT community in their stakeholder engagement meetings in the past; › The LGBT community at the Kenyan Coast including in Kilifi County faces constant violence and inadequate protection according to a 2015 Human Rights Watch Report and; › Kenya’s penal code in sections 162, 163 and 165 criminalizes same sex relations; 11. Overall, the Programme should be guided by the principles of Inclusive growth and inclusive infrastructure development.

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Institutional capacity for enhancing resilience to climate change

Figure 52 - Climate change institutional coordination structures (Kenya National Adaptation Plan, 2016)

Overview Climate change is a policy priority for Kenya. Key climate change policies and strategies include Kenya’s Climate Change Act and National Climate Change Framework Policy, NAP 2015-2030, National Climate Change Action Plan 2018-2022 and Vision 2030. Climate change has also been embedded in both national and county level policies and strategies. Kenya’s NAP presents the country’s vision on adaptation, key climate vulnerabilities, priority adaptation actions and outlines national and county level responsibilities. Implementation efforts encompass all sectors of the economy and provide mechanisms for mainstreaming Climate Action. The implementation of the NAP is focused on both national and county level action (Figure 52). While national level actors provide the overarching co-ordination of implementation mechanism, County Governments are responsible for the mainstreaming and implementation of Climate Action at a county level.

NCCC (Chair=President) To provide overarching national climate change coordination mechanism

Parliament Enabling legislation

Ministry (Climate Change Affairs) CS=Secretary to NCCC

Climate Change Directorate 1. Principle Government agency on national climate change actions 2. To serve as the Secretariat to the NCCC

NEMA Monitor and enforce compliance

Mainstreaming of Climate Change Council of Governors National Government Sectoral Agencies (MDAs) Mainstreaming at national level

County Governments

County Government Sectorial Agencies Mainstreaming at national level

County Assemblies

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The National Livestock policy 2008 is meant to create a favourable environment for the private sector by capacity building, supervision, regulation and improved access to market information. The Arid and Semi-arid Land Policy (ASALs 2007) is meant to revitalise ASALs by supporting livelihood opportunities in the drylands. Other policies are National Irrigation Policy -draft 2014, Kenya Adaptation to Climate Change in Arid and Semi-Arid Lands (KACCAL) which has introduced interventions within beekeeping. The Kenya Cereals Enhancement Programme-Climate Resilient Agricultural livelihoods window (KCEP-CRAL) is a new government initiative aimed at increasing rural household’s resilience to climate change.30 Functions Malindi Town is part of Kilifi County where climate variability has been accompanied with a significant increase in attendant risks. Various state and non-state institutions collaborate to implement climate risk management and adaptation strategies for the county. The most influential state actors are: the Agriculture department, Livestock and Fisheries department, the Kenya meteorological Department (KMD), KALRO, the Kenya Forestry Service (KFS), together with its research arm the Kenya Forestry Research Institute (KEFRI), the Water Department, the National Drought

Management Authority (NDMA) and the NEMA.31 The NDMA is a crucial institute in Kilifi county that leads climate risk management by serving as convener of the stakeholder’s meetings and collaborating key state and non-state players.32 The NDMA through the revised early warning and analysis system (REWAS) initiative generates, consolidates and disseminates information on drought management and climate change adaptation. The system provides credible early warning information on drought risks and coordinates action across sectors and agencies at all stages of the drought cycle, at both national and county level. The farmers have also formed groups / cooperatives to facilitate the achievement of inputs, improve on-farm activities and support marketing as a response to climate change threats. Adaptive Capacity Enhancing the adaptive capacity of Malindi County will be crucial for its successful climate resilience building overall. This will complement the identification of climate change adaptation measures and the assessment of their costs and benefits. Currently, farmers are implementing on-farm adaptation options like drought resistant crops, introduction of shortmaturity crops, as well as harvesting or

conserving water e.g. through water pans, drip irrigation, Zai-pits, negarims and sunken beds.33 Soil conservation practices are also introduced as a strategy to mitigate drought effects. It is recognised that a gradual and phased approach over time will be required to bridge the gap (through investments and action) from the existing capacity to the required level. To support this process, Malindi could apply the National Adaptive Capacity (NAC) Framework34 at their county level.35 The NAC framework provides a practical approach for understanding the institutional aspects of adaptive capacity. It enables its users to systematically assess institutional strengths and weaknesses that may help or hinder adaptation. Adaptation plans can then be better designed to make the greatest use of strengths and remedy weaknesses. The NAC framework evaluates the performance of institutions against five key functions critical to adaptation: assessment, prioritisation, coordination, information management, and climate risk management. Table 4 provides an overview of an Adaptive Capacity Building SWOT36 analysis for Malindi based on literature review.

30, 31, 32 & 33 https://cgspace.cgiar.org/bitstream/handle/10568/80453/Kilifi_Climate%20Risk%20Profile.pdf 34 https://wriorg.s3.amazonaws.com/s3fs-public/pdf/ready_or_not.pdf 35 The pilot applications of the framework in Bolivia, Ireland, and Nepal suggest that the NAC framework is useful across a range of countries and that it can be tailored to specific country contexts. 36 Strengths, Weaknesses, Opportunities and Threats with the following factors in consideration – human, socio-economic, natural, physical and financial.

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4.4. Next Steps

Table 4 - Adaptive Capacity Building SWOT analysis for Malindi

External Focus

Internal Focus

Helpful

Hinder

Strengths, that build adaptive capacity:

Weaknesses, that limit adaptive capacity:

› Strong political will for addressing climate change at the national level;

› No focus on developing climate change adaptation policies and strategies;

› Increasing awareness raising of climate change impacts and opportunities;

› Full scale of adaptation measures required may need significant additional investments from donors;

› Climate change adaptation sub- programme objectives and budget information included in Kilifi county integrated Development Plans (2018-2022);37 › Launch of Environment and natural resources flagship plans developing an urban greening programme, supporting conservation of ecotourism sites;

› Availability of high-quality resources / Retention of highly trained staff (i.e. limited number of technical staff capable of delivering climate programmes and projects);

› Developing an annual environmental action plan;38

› Limited supporting networks, including information and communications technology (ICT) systems and infrastructure;

› Development of simple and low-cost climate technologies suitable for local context.

› Inadequate monitoring, evaluation, learning and reporting systems and structures; › Limited county coverage and lack of financial resources to implement climate change adaptation interventions;39

Capacity building specialists to help:

› Climate risk management is reactive rather than proactive.

› enhance municipal and local capacity to implement the identified projects, and

Opportunities, to develop adaptive capacity:

Threats, that prevent development of adaptive capacity:

› Planned installations of weather forecasting equipments for extreme events and windstorms;

› Regulatory - no institutional framework for structuring and organising the collaborations between various stakeholders thus lack of accountability;

› Strengthening the awareness of County policy and decision-makers on adaptation measures for better mainstreaming of adaptation measures in County plans;

› Governance - no climate risk management sub-departments or specific budgets assigned;

› Collaboration on climate change research and development;

› County plans not containing a strong reference to climate change;

› In-depth training for all relevant stakeholders on climate change risk management;

› Population growth putting pressure on existing resources;

› Investment opportunities in carbon trading, developing nature-based enterprises and sustainable charcoal production and energy saving technology;40

› Inter-county resource-based conflicts;

› Scaling down national policies to the county level, tailoring them to local needs and available resources in order to address institutional and financial inadequacies.

The Malindi UEP provides a portfolio of potential projects within the Municipality that can promote economic growth and sustainable urbanisation. During the next phases of the SUED project, the identified projects will need to be further assessed and developed to validate their viability and help with the implementation of those most suitable for investment through the Programme. This will include work by:

› Inadequate funding and limited human capacity;

› Cultural beliefs;

› enable revenue generation to ensure financial sustainability beyond the programme

Investment climate advisers: › will help remove or amend policy and regulatory constraints to private sector led urban development and growth

› Lack of synergy among development partners; › Financial - inaccessibility of adaptation measures due to high costs and lack of access to financial mechanisms.

Adapted from European Commission Non-paper Guidelines for Project Managers41

37 https://www.kilifi.go.ke/library.php?com=5&com2=129&com3=#.XdPO9UxuJaQ 38 https://www.kilifi.go.ke/department.php?com=14&com2=24&com3=#96 39 https://cgspace.cgiar.org/bitstream/handle/10568/80453/Kilifi_Climate%20Risk%20Profile.pdf 40 https://www.kilifi.go.ke/department.php?com=14&com2=24&com3=#97 41 https://ec.europa.eu/clima/sites/clima/files/adaptation/what/docs/non_paper_guidelines_project_managers_en.pdf

Investment experts to help: › develop feasibility studies and business cases for specific projects to establish their bankability, and › develop investment promotion strategies to draw in investment (including seed financing through the programme)

Malindi Urban Economic Plan

Articles inside

4.3 Recommendations for Capacity Building

3.4 Diversification Action Plan

3.3 Tourism Action Plan

1.5 Structure of this Report

1.3 Approach

3.2 Development Framework Plan

1.4 Key Principles

Executive Summary

2.2 National Policies and Strategies