Bungoma Urban Economic Plan

Bungoma Municipality Urban Economic Plan Sustainable Urban Economic Development Programme SUED April 2022

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The development of the Bungoma Municipality Urban Economic Plan (UEP) has been made possible by funding from the UK government through UK Aid’s Sustainable Urban Economic Development Programme (SUED) that is managed by Tetra Tech. This report was developed by Atkins.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 3

4 AAAP Africa Adoption Acceleration Program ACCF African Climate Change Fund AD Anaerobic Digestion AF Adaptation Fund AFAC African Financial Alliance on Climate Change AfDB African Development Bank AGPO Access to government Procurement Opportunities ARAF The ACUMEN Resilient Agriculture Fund ARCAN Africa Regional Climate and Nature Programme ASDSP III Agriculture Sector Development Support Programme Phase Three ASTGS Agricultural Sector Transformation and Growth Strategy ATC Agricultural Training Centre BDDC Bungoma Dairy Development Company BID Business Improvement District BOD Biological oxygen demand BOMWASCO Bungoma County Water and Sewerage Company CBD Central Business District C-BED Community-Based Entrepreneurship Development CBO Community-based organisation CCCF County Climate Change Fund CECM County Executive Committee Member CIDP Bungoma County Integrated Development Plan 2018 - 2022 COD Chemical oxygen demand COP26 Conference of the Parties 26 COT Certificate of Transport CSP Bungoma County Spatial Plan 2016 - 2025 CSR Corporate Social Responsibility CTF Clean Technology Fund DBOM Design Build Operate Maintain DRC Democratic Republic of the Congo EIA Environmental Impact Assessment EOI Expression of Interest ESA Environmentally Sensitive Areas ESIA Environmental and Social Impact Assessment EU European Union FA Focus Area FAO Food and Agricultural Organisation FBO Farmer-Based Organisations FCDO Foreign and Commonwealth Development Office FTE Full-Time Equivalent GBV Gender-Based Violence GBVH Gender-Based Violence and Harassment GCF Green Climate Fund GCP Gross County Product GDP Gross Domestic Product GEF Global Environment Facility GeSI Gender and Social Inclusion GGW Great Green Wall GHG Greenhouse gas GIS Geographic Information System GIZ German Development Agency GPRBA Global Partnership for Results-Based Approaches GVA Gross Value Added HQ Head Quarters ICDC Industrial and Commercial Development Corporation ICT Internet, Communications and Technology IDeP Draft Bungoma Municipality Integrated Development Plan 2018 – 2022 IFI International Financial Institution ILO International Labour Organization IPCC Intergovernmental Panel on Climate Change IUCN International Union for the Conservation of Nature KAA Kenya Airports Authority KALRO Kenya Agricultural and Livestock Research Organization KCSAP Kenya Climate Smart Agriculture Project KeNHA Kenya National Highways Authority KES Kenya Shillings KFS Kenya Forest Service KII Key Informant Interview KIM Kenya Investment Mechanism KMEG Kwa-Muhia Environmental Group KNBS Kenya National Bureau of Statistics KOM Kick-off Meeting KPLC Kenya Power and Lighting Company KURA Kenya Urban Roads Authority KUSP Kenya Urban Support Programme KWS Kenya Wildlife Service Abbreviations and Acronyms

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 5 LDCF Least Developed Countries Fund LDCs Least Developed Countries LED Light-emitting diode LREC Lake Region Economic Bloc LUDP Bungoma Local Urban Development Plan 2016-2026 LVSWWDA Lake Victoria South Water Works Development Agency MDB Multi-lateral Development Banks MHM Menstrual Hygiene Management MRF Materials Recovery Facility MSP Bungoma Municipality Strategic Plan 2020-2024 Mt. Mountain MW Mega Watts NAP National Climate Change Action Plan NAPA National Adaptation Programs of Action NARIGP National Agriculture and Rural Inclusive Growth Project NASVI National Association on Street Vendors of India NCWSC Nairobi City Water and Sanitation Company NDA Kenya National Designated Authority NEMA National Environment Management Authority NGO Non-Government Organisations NHP National Hygiene Program NIE National Implementation Entity NMT Non-Motorised Transport NSP National Spatial Plan NZOWASCO Nzoia Water and Sanitation Company OBA Output-Based Aid ODA Official Development Agency PHP Philippine Peso PPCR Pilot Program for Climate Resilience PPE Personal Protective Equipment PPP Public-Private Partnership PSG Bungoma UEP Project Steering Group PV Photovoltaic PWD People Living with Disabilities QC Quezon City RAP Resettlement Action Plan RSS Roadside Station SACCO Savings and Credit Cooperative Organizations SADI Sustainable Agriculture Development Initiative SAP Sector Action Plan SCCF Special Climate Change Fund SCF Strategic Climate Fund SEA Strategic Environmental Assessment SEFA Sustainable Energy Fund for Africa SEWA Self-employed Woman’s Association SEZ Special Economic Zone SHA Self Help Africa SIG Special Interest Group SONEDE Société Nationale d’Exploitation et de Distribution des Eaux SPIS Solar-Power Irrigation Systems STW Sewage Treatment Works SuDS Sustainable Urban Drainage Systems SUED Sustainable Urban Economic Development Programme SWOT Strengths, Weaknesses, Opportunities, And Threats SWP Sustainable Water Partnership TBP Technical Briefing Paper TN Total Nitrogen TOC Total Organic Carbon TOD Transport Orientated Development TP Total Phosphorous TSS Total suspended solids TVET Technical Vocational Education Training Centres UEP Urban Economic Plan UHI Urban Heat Island UHT Ultra-High Temperature UK United Kingdom UN United Nations UNIDO United Nations Industrial Development Organisation UPS Uninterrupted Power Supply US United States USA United States of America VC Value Chain VSLA Village Savings and Lending Associations WRUA Water Resource Users Association WWII World War II

6 Tables Table 2-1 – SIGs and exclusion manifestation table 37 Table 2-2 – Business identified challenges to growth 41 Table 4-1 - Agriculture, livestock, and agri-processing SWOT 61 Table 4-2 - Agriculture, livestock, and agri processing soft initiatives 63 Table 4-3 - Agriculture, livestock, and agri-processing soft initiatives 65 Table 4-4 - Capacity and volumes for poultry VC 78 Table 4-5 - Value added 89 Table 4-6 – Project 1 Summary Information 101 Table 4-7 – Project 1 Basic Analysis and Timeline 102 Table 4-8 – Project 2 Summary Information 104 Table 4-9 – Project 2 Basic Analysis and Timeline 105 Table 4-10 – Project 3 Summary Information 107 Table 4-11 – Project 3 Basic Analysis and Timeline 107 Table 4-12 – Project 4 Summary Information 110 Table 4-13 – Project 4 Basic Analysis and Timeline 110 Table 4-14 - Markets, trade, and services SWOT 114 Table 4-15 - Markets, trade, and services soft initiatives 116 Table 4-16 – Anchor Project A Summary Information 128 Table 4-17 – Anchor Project A Basic Analysis and Timeline 128 Table 4-18 – Anchor Project B Summary Information 145 Table 4-19 – Anchor Project B Basic Analysis and Timeline 145 Table 4-20 – Anchor Project C Summary Information 155 Table 4-21 – Anchor Project C Basic Analysis and Timeline 156 Table 4-22 – Project 5 Summary Information 165 Table 4-23 – Project 5 Basic Analysis and Timeline 165 Table 4-24 – Project 6 Summary Information 169 Table 4-25 – Project 6 Basic Analysis and Timeline 169

7 Table 4-26 – Project 7 Summary Information 172 Table 4-27 – Project 7 Basic Analysis and Timeline 172 Table 4-28 – Project 8 Summary Information 176 Table 4-29 – Project 8 Basic Analysis and Timeline 176 Table 4-30 – Project 9 Summary Information 178 Table 4-31 – Project 9 Basic Analysis and Timeline 178 Table 4-32 – Project 10 Summary Information 182 Table 4-33 – Project 10 Basic Analysis and Timeline 182 Table 4-34 – Project 11 Summary Information 185 Table 4-35 – Project 11 Basic Analysis and Timeline 185 Table 4-36 – Project 12 Summary Information 189 Table 4-37 – Project 12 Basic Analysis and Timeline 189 Table 4-38 – Project 13 Summary Information 192 Table 4-39 – Project 13 Basic Analysis and Timeline 192 Table 4-40 – Project 14 Summary Information 195 Table 4-39 – Project 14 Basic Analysis and Timeline 195 Table 4-42 – Project 15 Summary Information 198 Table 4-43 – Project 15 Basic Analysis and Timeline 198 Table 4-44 – Project 16 Summary Information 202 Table 4-45 – Project 16 Basic Analysis and Timeline 202 Table 4-46 – Project 17 Summary Information 206 Table 4-47 – Project 17 Basic Analysis and Timeline 206 Table 4-48 – Project 18 Summary Information 210 Table 4-49 – Project 18 Basic Analysis and Timeline 210 Table 4-50 – Project 19 Summary Information 213 Table 4-51 – Project 19 Basic Analysis and Timeline 213 Table 5-1 - Summary Implementation Cost Estimates by Sector 226 Table 5-2 - Summary Implementation Cost Estimates by Project 227

Figure 3-3 – Anchor Projects in context of Focus Area 1 53 Figure 3-4 – Focus Area 2 Webuye Industrial Zone 55 Figure 4-1 – Wider Value Chain Cluster and Linkages 60 Figure 4-2 – Bungoma Agriculture, Livestock, and Agri-processing SAP 62 Figure 4-3 – Map for future organisation of the key players along Bungoma’s supply chains 67 Figure 4-4 – Bungoma County existing and proposed collection centres 72 Figure 4-5 – Process flow for poultry sector integration 77 Figure 4-6 – Poultry Operating costs 2026 79 Figure 4-7 – Gross margin of Poultry VC 80 Figure 4-8 – Process flow for milk sector integration and the BDDC 86 Figure 4-9 – Prices and margins and the role of the VC - BDDC 87 Figure 4-10 – Operating costs for Dairy VC 2026 89 Figure 4-11 – Webuye Industrial Zone overview 97 Figure 4-12 – Pilot Project Site Development 101 Figure 4-13 – Trade Corridors in East Africa 113 Figure 4-14 – Linkages between the key sub sectors and proposed soft interventions 115 Figure 4-15 – Diagram showing proposed zoning and key circulation routes 121 Figure 4-16 – 3D diagram showing land use allocations to each floor of the proposed market 122 Figure 4-17 – Diagram showing proposed vehicular and pedestrian circulation. 124 8 Figures

Figure 1-1 – Purpose of the Plan 17 Figure 1-2 – UEP process 18 Figure 1-3 – SUED Principles 20 Figure 1-4 – UEP Process 22 Figure 2-1 – Study area 29 Figure 2-2 – Bungoma Municipality’s planning context 31 Figure 2-3 – Bungoma's Regional Context 32 Figure 2-4 – Bungoma Municipality’s social & demographic profile 34 Figure 2-5 – Bungoma County settlement patterns 35 Figure 2-6 – The three dimensions of inclusion 36 Figure 2-7 – Gross County Product per capita, 2017 (in KES) 39 Figure 2-8 – Bungoma County GCP breakdown, 2017 40 Figure 2-9 – Bungoma Municipality’s infrastructure overview 43 Figure 3-1 – Overview of Bungoma's Development Concept 49 Figure 3-2 – Bungoma spatial strategy for economic development 52

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Figure 4-18 – 3D view of CBD market and bus station. 125 Figure 4-19 – Site analysis Anchor Project B 134 Figure 4-20 – Character areas Anchor Project B 135 Figure 4-21 – Land uses Anchor Project B 136 Figure 4-22 – Linear Greenway concept Anchor Project B 138 Figure 4-23 – Meandering greenway concept Anchor Project B 139 Figure 4-24 – Civic Plaza concept 140 Figure 4-25 – Bungoma airstrip masterplan from Southeast 141 Figure 4-26 – Bungoma airstrip masterplan from northeast 142 Figure 4-27 – Urban design principles 143 Figure 4-28 – Different areas along the green link 152 Figure 4-29 – Different sections along the green link 153 Figure 4-30 – 3D view of green link 154 Figure 4-30 – Location of the proposed site 160 Figure 4-31 – Diagram explaining Circulation and Access to the Bus Park Site 161 Figure 4-32 – Typical features of an accessible toilet block 168 Figure 4-33 – Roads to be upgraded to provide alternative routes to C33 175 Figure 4-34 – Example of condominial sewerage systems 194 Figure 5-1 – UEP Development Framework Project Schedule 236 Figure 5-2 – Next steps 245

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Contents BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 11 1. Introduction 16 1.1 Background 16 1.2 Purpose of the Plan 17 1.3 Approach 18 1.4 SUED Principles 20 1.5 Climate Change, Social Exclusion and Poverty 22 1.6 COVID-19 Impacts in Kenya 24 1.7 Structure of this Report 27 2. Bungoma Urban Diagnostics 28 2.1 Study Area 29 2.2 Planning Context 30 2.3 State of Bungoma 32 2.4 Infrastructure Overview 42 2.5 Environment and Climate Risk Profile 45 2.6 Diagnostics Conclusion: Barriers and Drivers for Growth 46 3. Development Concept 48 3.1 UEP Vision 50 3.2 Setting the Concept 51 3.3 Spatial Framework for Development 52 4. Economic Development 58 4.1 Overview 58 4.2 Agriculture, Livestock, and Agri-Processing SAP 61 4.3 Markets, Trade, and Services SAP 112 4.4 Cross-sectoral/Bungoma-wide infrastructure projects 184 5. Implementation Plan 222 5.1 Introduction 222 5.2 Implementation Costs and Potential Funding Sources 224 5.3 Implementation Costs and Potential Funding Sources 226 5.4 Scheduling 235 5.5 Funding 237 5.6 Recommendations for Capacity Building 241 5.7 Recommendations for Social Inclusion 243 5.8 Recommendations for Climate Change and Resilience 244 5.9 Next Steps 245 6. Appendices 246 List of References 246 Appendix A. Diagnostics Report 250 Appendix B. Technical Briefing Paper 250 Appendix C. Social Inclusion Study 250 Appendix D. Climate Change Vulnerability Assessment 250

12 Executive Summary

Drawing on international best practice, it introduces an integrated multidiscipline approach to planning for economic growth and supports capacity building from an early stage.

Section 2 of this document sets out the Diagnostic Assessment of Bungoma, where the social, economic, planning, infrastructure and environmental and climate risk baseline has provided an understanding of the barriers and drivers to sustainable economic growth.

Stakeholders’ interests and insights have been considered throughout the development of the UEP.

WS Atkins International Limited was commissioned to develop the Urban Economic Plan for Bungoma Municipality as part of the UK’s Foreign and Commonwealth Development Office (FCDO) Sustainable Urban Economic Development Programme (SUED). The aim of the programme is to support market-driven growth in emerging towns and cities in Kenya.

There are three main settlement patterns occurring across the County, including dispersed settlements across the rich agricultural land, linear settlements along main transport corridors, such as the A8 and C33, and clustered settlements found around urban centres. The three main urban centres include Bungoma Municipality, which serves as the County HQ and plays a key role in health and education provision, Webuye, which acts as an industrial centre for the County with the Pan Paper Mills and other industrial activities found here, and Kimilili, which acts as an administrative and commercial hub as well as a key centre for agriculture due to its proximity to Mt Elgon and its fertile lands. Chwele is also an important centre for agricultural activity and trade and markets. Opportunities for growth and expansion in Bungoma Town are restricted by the lack of land available for development, the County government is working to encourage polycentric growth across these key urban poles. Bungoma County is the second most populous county in the LREB economic block and the fifth in Kenya, with a population of 1.66 million people. Over the last decade both Bungoma County and the Municipality’s populations have grown at similar rates to the national average.

The UEP prioritises Value Chain projects, sectoral actions and climate resilient and inclusive urban development and infrastructure projects that can support Bungoma’s economic sectors with the greatest potential for inclusive employment generation and promote sustainable urban development.

The Urban Economic Plan (UEP) is an advisory document that builds on existing work and priorities identified under the County Integrated Development Plan (CIDP) alongside the Local Urban Development Plan (LUDP) and draft Integrated Development Plan (draft IDeP), as well as aligning and complementing work by other donors. In doing so, it will provide a focused economic strategy for the Municipal Board, Municipal Departments, and the County Government to deliver economic development within Bungoma.

> Bring together stakeholders on deciding the economic future of Bungoma and implementing it; and

> Identify and prepare value chain (VC) projects that can be considered further in terms of their feasibility and bankability before SUED seed financing is committed.

> Provide an inclusive economic strategy that can guide future development towards increasing prosperity in Bungoma;

> Prioritise economic activities and infrastructure that can maximise benefits and support the development of a sustainable economic future for Bungoma;

Bungoma County is located in western Kenya, bordering Busia, Kakamega, and Trans-Nzoia counties as well as Uganda to the west, making it a strategic gateway to inner East Africa. The County is part of the Lake Region Economic Bloc (LREB). The A8 road runs through the centre of the County and connects Uganda with West Kenya and to the seaport of Mombasa, located on the Indian Ocean.

The purpose of the plan is to:

The main climate risks include increased temperatures, water scarcity, changes in rainfall patterns and an increase in extreme weather events. These are all likely to have severe impacts for Bungoma, including food and water insecurity, reduced agricultural productivity and the displacement of populations. There is an opportunity in Bungoma to work with the natural assets of the County in order to increase resilience to these climate risks, as well as to enhance biodiversity, and improve leisure and recreational activities, and the tourism offering.

This section also presents the spatial distribution of the proposed interventions in the UEP.

Section 3 presents the Development Concept for Bungoma, which overarches the Economic Development Plan. This is driven by the economic vision that has been developed with key stakeholders: “A gateway to Uganda, Bungoma will continue to be a driving force for the LREB’s economy and a leading agri-producer for Kenya. Bungoma will strive to be an exemplar of inclusive, resilient, and sustainable development that puts the needs of its residents first.”

Environmental degradation is a key concern across the County, including farming and urban sprawl that is encroaching onto environmentally-sensitive areas at the foot of Mt Elgon, and along the river banks, soil degradation due to unregulated use of fertilisers and pesticides, and overused soils resulting from intensive small scale farming. Dumping in rivers is also resulting in pollution of Bungoma’s rivers that serve as a water source for households, businesses, animals, and farms. There is deforestation of forests in the Mt Elgon region, forest depletion due to mismanagement and unsustainable practices, overgrazing, human and wildlife conflicts, and the loss of wetlands.

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The Gender and Social Inclusion Study (GeSI) was a key part of the diagnostic reporting, providing recommendations for meeting the aims of the SUED Programme to advance inclusion of PWDs, youth, and women. These groups are often worst affected by the impacts of climate change, inequality, poverty, and conflict. Bungoma is resource-rich but suffers from a lack of capacity and support. The diagnostics stage identified two broad economic sectors that Bungoma should prioritise for development, they are: > Agriculture, Livestock, and Agri-processing; and > Markets, Trade, and Services.

Migration, in its different forms, plays an important role in the population of Bungoma County and the western region. The Municipality has a significant visiting population, seasonal migration, and Bungoma Municipality in particular continues to attract migrants seeking political asylum and economic opportunity. The high and persistent migration patterns that Bungoma is experiencing, alongside population growth, is putting growing pressure on jobs and urban infrastructure.

Not without its challenges, Bungoma has a relatively good provision of infrastructure and a strong base for development. The road network is strong and provides reliable connectivity between Bungoma County’s key urban nodes, but it experiences severe congestion in certain densely-populated areas. There is good access to water, but reach to this, and capacity, needs expanding to facilitate the growing population and projected economic growth. Bungoma Town also has a sewer network, with the potential for expansion. Although there is existing energy infrastructure it is limited and unreliable, and should be a priority for development. There is no formal waste collection or organisation. Critical to the development of the economy, through these key sectors, will be the improvement of infrastructure, particularly in areas affecting production potential.

Chapter 4 sets out the Economic Development Plan in response to the economic vision and the sectoral SWOT assessment undertaken at the diagnostic stage. The Economic Development Plan for Bungoma, identifies specific development interventions for the key economic sectors of agriculture, livestock and agri-processing; and markets, trade and services. Each Sector Action Plan includes economic ambitions, soft initiatives, interventions, and climate-resilient infrastructure proposals, as well as the priority VC project to catalyse development.

The UEP is an advisory document owned and administered by the Municipality, the main responsible authority for its future implementation. Similarly, the Municipality is responsible for agreeing to appropriate funding from the County budget as well as seeking any additional funding from IFIs, donors, and/or the private sector to support the implementation of the VC and climate-resilient infrastructure projects. Following the completion of the UEP, during the next phase of the SUED programme, the identified projects will be developed further by:

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> Capacity building specialists to enhance the local capacity to implement the projects and ensure revenue generation; and

The Markets, Trade and Services Sector Action Plan includes a set of actions and interventions to support the development of each of the key sub sectors. Infrastructure is central to the development of this sector and a set of anchor projects have been developed with the aim of catalysing sustainable development in the sector. Chapter 5 provides the Implementation Plan, which presents relevant considerations across partnerships with key stakeholders such as the active NGOs operating in Bungoma, and scheduling for the proposed VC and climate-resilient and inclusive infrastructure projects, including estimated capital costs. This section also presents potential climate action funds and some recommendations for social inclusion and climate resilience, as crucial elements for implementing the UEP.

The Agriculture, Livestock and Agri-Processing Sector Action Plan includes a series of actions to support the development of the sector and to best position Bungoma’s agricultural and pastoralist communities to benefit from the inclusive and climate-resilient infrastructure proposals. A model for cooperation and aggregation in the sector is proposed as part of the soft interventions in the sector. The VC opportunities of poultry farming, and milk processing are presented as potential pilot schemes for the sector to catalyse development.

> Investment experts to develop feasibility studies, business cases and investment promotion strategies for the projects.

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1.1 Background WS Atkins International Limited was commissioned to develop the Urban Economic Plan (UEP) for Bungoma Municipality as part of the UK’s Foreign and Commonwealth Development Office’s (FCDO) Sustainable Urban Economic Development Programme (SUED). The aim of the programme is to support 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 provides an incentive for minimising uncontrolled migration.

16 1. Introduction

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Combining local knowledge and international expertise, the UEP is an advisory document that builds on existing work and priorities identified under the Bungoma County Integrated Development Plan 2018-2022 (CIDP), the draft Bungoma County Spatial Plan 2016-2025 (CSP), Bungoma Municipality Integrated Development Plan 2018-2022 (IDeP) the Bungoma Municipality Strategic Plan 2020-2024 (MSP), and the Bungoma Local Urban Development Plan 2016-2026 (LUDP) as well as aligning and complementing work done by other donors. In doing so, it will provide a focused economic strategy for the Municipal Board and Municipal Departments to enable them to deliver economic development within the Municipality.

Figure 1-1 – Purpose of the Plan Source: Atkins, 2022

Figure 1-1 sets out the purpose.

1.2 Purpose of the Plan

> 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 economic growth in Bungoma Municipality as defined by local stakeholders;

Figure 1-2 – UEP

1.3 Approach

Source: Atkins, 2022

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

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> Phase 2 – Diagnostics phase: this was undertaken to provide a comprehensive and wide-ranging assessment of Bungoma Municipality’s economy, demographics, infrastructure, environment and climate change risk profile against national and international context; > Phase 3 –Technical briefing paper: this set out a development framework for Bungoma Municipality and identified, assessed and prioritised urban and economic growth opportunities and their requirements; and

> Phase 4 – Development of the final UEP which sets out in detail economic opportunities and actions and prioritises inclusive climate-resilient infrastructure projects for implementation. The Bungoma Municipality UEP has been developed utilising primary and secondary research and analysis, ranging from the review of local and national strategies, and international studies to statistical analyses, to focus group discussions with a wide range of local stakeholders, business surveys and site assessments. process

The stakeholders that have been continuously consulted and participated in the UEP process included: > County Government including HE the Governor, HE the Deputy Governor, County Secretary, CECM Lands and Physical Planning, CECM Agriculture, Livestock, Irrigation, Fisheries & Co-operative Development, CECM Roads, Transport & Public Works, Chief Officers, Directors

At the outset of the project, a Project Steering Group (PSG) with representatives from various key groups was constituted with the help of the Municipality to enable the exchange of ideas and information between the Municipal Board, SUED technical team and wider stakeholders. The following representatives were nominated for PSG membership.

> Project Steering Group meetings.

> NGOs and CBOs including Civil Society, self-help groups

> To understand better the interests of specific groups, especially the vulnerable ones and how the Urban Economic Plan can benefit them; and

> County Economic Advisor > Director of Physical Panning > Municipal Economist > Chairman of Chamber of Commerce > Municipal Finance officer > Chairman of People Living with Disability > Representative of Civil Society > 3 Representatives of the Municipal Board > Public Health Officer > Chairman of the markets > Youth Leader > Women Leader > Municipal Works officer

The aim is to ensure the PSG is representative of the needs and challenges associated with the Municipality whilst being aligned and familiar with existing County and Municipal policies and regulations.

> To ensure that the development of the UEP is inclusive and is undertaken in a manner that fits with Bungoma Municipality’s business and community culture.

> Stakeholder workshops.

The PSG was also tasked with arranging meetings and workshops as and when required by the SUED team, as part of the overall programme roll out. The PSG was updated on a bi-weekly basis on progress in the UEP process and the following meetings between the PSG and the SUED team took place.

> County Assembly including the Speaker of County Assembly, Clerk of County Assembly, Committee Members in charge of Physical Planning

> To ensure that all stakeholders are clear on the purpose, scope, recommendations and outcomes of the Urban Economic Plan as well as meeting key stakeholders’ aspirations and gain buy-in from them.

The Urban Economic Plan (UEP) has been a stakeholder driven process. The process of receiving and disseminating information to the wider stakeholders have been primarily done through the following platforms.

The purpose of stakeholder engagement has always been to ensure that stakeholders’ interests and views are taken into consideration throughout the development and reflected in the Bungoma Municipality Urban Economic Plan. More specifically, the aims were:

> To provide a regular flow of information to and from key stakeholders.

> Municipal Board including Chairperson, Vice-Chair, Municipal Manager and Board Members

The PSG, under an elected representative, also facilitated the dissemination of information on the various components and progress of the UEP and the broader SUED programme, including liaison with the County Government, the Municipality and the Municipal Board. It includes champions on SUED’s key themes of climate change and social inclusion.

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> Formal social consultations; and > Business consultations

> Business Representatives including Chamber of Commerce (KNCCI), organised business groups, traders and Jua Kali, SACCOs, banks and finance organisations, transport owners & operators, Maendeleo Ya Wanawake, Chebukobe/Municipal Market representatives, Women enterprise > Utilities and Service Providers including the Nzoia Water Company, Boda Boda Associations; KURA, KENHA, KPLC and solar providers

> Special Interest Groups (SIGs) including representatives for women, local community youths, people living with disability (PWD) and National Youth Council representatives

Stakeholder Engagement

SUED Principles

The Gender and Social Inclusion study (GeSI) involved a related literature review and primary research, covering interviews with key project informants and four focus group discussions. This resulted in the identification of socially excluded groups, of how their exclusion manifests, and processes that perpetuate their exclusion and development of the gender and social inclusion interventions as proposed in this UEP.

1.4

20 Physical stakeholder workshops were undertaken including the Kick-off Meeting (KOM) to gather feedback from stakeholders throughout the project. The first workshop KOM, in September 2021, presented the project and process and collated information from over 60 stakeholders in terms of key characteristics, strengths and challenges (captured within the Inception Report). Stakeholders included the Municipal Board, Municipality and County officers, the private sector, civil society groups and non-government organisations and representatives from SIGs. A business consultation was also undertaken during November 2021 to understand how businesses operate in Bungoma and their views on future growth opportunities and constraints. This consultation was composed of one-to-one interviews with 70 businesses, reflecting Bungoma Municipality’s main sectoral activities. Many of these were small businesses or independent workers – given the nature of the local economy. Each interview was supported with a detailed questionnaire.

The development of the UEP and identification and prioritisation 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: Source: Atkins, 2022 Figure 1-3 – SUED Principles

A wider stakeholder workshop in January 2022 comprised a visioning exercise for the UEP, emerging development concept and development framework, and reaching consensus with the PSG, Municipality, and key stakeholders on the way forward for the final UEP.

Resilience:

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

PWD, women, the elderly, and youth in Bungoma Municipality face challenges that are either caused by, or lead to, exclusion, and recommendations for their inclusion are fully integrated in the UEP. People who are excluded are not ‘just like’ the rest of the poor, only poorer. They are also disadvantaged by who they are or where they live, and as a result are locked out of the benefits of development and economic growth.

Sustainable: The UEP will promote sustainable infrastructure that supports the development of Bungoma Municipality while minimising the environmental impacts of increased population and economic activity in the future, as well as the protection and sustainable utilisation of the abundant natural resources within the County.

The prioritised projects will have to be resilient against shifts in the economy, both for domestic and international markets, to remain competitive. They will also need to be adaptive to the climate change impacts specific to the area such as lesser rainfalls and higher temperatures, while ensuring technological advancement through smart solutions which can be introduced where possible.

Resource Efficiency: To preserve the environmental and marine assets and agricultural land, the UEP will be directing economic growth towards resource efficiency, by integrating the VCs to establish a circular economy promoting minimisation of waste and optimising water and energy use, whilst aiming to promote rural-urban linkages.

At its core, the UEP seeks to create employment opportunities that are accessible to all and set out economic measures with supporting actions and projects that can help directly or indirectly lift the local population out of poverty, whilst supporting crucial livelihoods such as the informal sector. All proposed projects (VCs and infrastructure projects) contained within the UEP have been screened and refined for their contribution to improving livelihoods by considering availability, accessibility, affordability, acceptability, and adaptability, across special interest groups as well as low-income groups, the urban poor, and the informal sector. The aim is to minimize inequalities and improve access to job opportunities for optimum benefits to the overall Municipal communities. Social exclusion makes it difficult to achieve social objectives, such as reducing poverty, due to often hidden barriers in reaching those who are socially marginalised. Exclusion also causes conflict, and it is almost impossible to achieve economic gains in such conflict environments.

21BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

Socially Inclusive: The GeSI study has identified social groups that are excluded from the socio-economic activities within Bungoma Municipality (i.e. elderly people, youth, PWD, and women). The UEP aims at including these groups in the decision and development process, VCs’ development, and infrastructure projects, to ensure that their benefits are equitable and accessible to all.

22 1.5

Climate Change, Social Exclusion and Poverty Climate change poses a serious risk to poverty reduction efforts. While this is a global phenomenon, its impacts disproportionately affect poor and vulnerable populations such as low-income households, PWD, elderly people, and people with chronic illnesses. It affects access to clean air, safe drinking water, food, and shelter, and can have severe impacts on human health. Communities that rely on weather-sensitive subsistence livelihoods such as agriculture are especially vulnerable. Harmful social norms pose additional challenges, by limiting the participation of these groups in formal risk reduction and climate adaptation programmes. At the time of preparing this UEP, the COVID-19 pandemic continues to disrupt societies and economies around the globe. The negative impacts, both on health and economies, have been felt across different geographies and locally in Bungoma. This pandemic has amplified the need to understand better the connection between vulnerable groups, livelihoods, and shocks from critical events such as climate change. In Bungoma, youths, women and PWDs are often excluded from socio-economic activities; they lack access to information, assets, and finance; and they do not participate in decision-making processes. This makes them more vulnerable to the impacts of climate change and other shocks such as the COVID-19 pandemic.

Source: Atkins, 2022 Figure 1-4 – UEP Process

> Women: In Bungoma, women normally engage in household chores such as cooking, washing, and sourcing for water. Those who develop economic activities engage in livestock and poultry rearing, farming, and small-scale business such as groceries. Droughts and heat stress severely affect all these activities; for example, this can lead to reduced livestock reproduction, lower growth rates and reduced milk production affecting livelihoods, food security and the products’ costs. Women’s lack of access to information and financial resources critically affects their ability to recover from these disasters. Harmful social norms and competing community and domestic responsibilities pose additional challenges.

> PWD: Statistically, PWD are more likely to have lower levels of education, be illiterate or unemployed. Due to discrimination, they usually have less access to support networks and social capital than their able-bodied counterparts. These social networks are recognised as a key factor that enables groups to prepare for, respond to, and recover from, climate variability and shocks, and this lack of access increases the vulnerability of PWD to climate change. In Bungoma, PWD often operate small businesses and engage in farming, yet they lack access to finance to develop their economic activities and to invest in measures that would better-prepare their businesses to cope with extreme events and climate hazards.

Focus on the basics> Health > Basic education > Infrastructure

When implementing this UEP, it is important to consult and understand the needs and expectations of local communities, and particularly SIGs, who have a wealth of knowledge about local environmental conservation and who are already powerful agents for climate action. In Bungoma, for example, there are several organisations that should be actively included in the UEP project cycle, such as National Youth Camp, Yes Youth Can! Bungoma County, and Ladybikers International, among Increasingothers.the resilience of current and future livelihoods and infrastructure is key to poverty reduction and this has been addressed systematically throughout the UEP to avoid creating polarisation and further exclusion. Similarly, ensuring that infrastructure projects, VC opportunities and development policies are climate-resilient will not only help the built environment to better respond to future climate risk but will also help communities and excluded groups to be less affected by climate change events.

Utilise existing resources and comparative advantagesSuccessful cities should make the most of the assets and resources they already have, rather than trying to attract new types of industries that are not necessarily adapted. There is not a silver-bullet policy to improve competitiveness.

Develop a coordinated and comprehensive growth strategy - Achieving competitiveness requires improvements on a range of very different aspects, and there is a risk that decisions are taken individually with little considerations for how they interact. Instead, decisions should be coordinated around overarching goals (e.g. transport strategy should reflect and respond to strategies relating to poverty, skills and employment) and they should also be comprehensive (e.g. sectoral strategies should examine and target every step of the supply chain, not just the sector itself).

Research from the World Bank shows that statistically, for cities with low levels of industrialisation and productivity, good institutions, social infrastructure (such as education and health) and basic physical infrastructures are the key determinants for success.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 23

Improve institutions and regulations - Poor institutions and high levels of corruption are likely to hinder firms’ development as these factors create uncertainty about public services delivery, efficiency and costs.

> Youth: Youth dominate the transport sector in Bungoma as boda boda, donkey carts or taxi operators. Extreme weather events render roads unpassable and reduce the service demand, thus affecting their income. Many youths also engage in casual labour on farmlands and climate hazards can severely affect their livelihoods. Youth lack involvement in decision-making processes and have reduced access to credit, which further complicates their ability to adapt to the impacts of climate change. It is consequently imperative to understand exposure, and vulnerability to climate change, to build resilience into future projects through appropriate adaptation measures. In particular, it is important to ensure that adaptation measures do not act to reinforce or deepen existing inequalities, but are accessible to groups that are already marginalised. For example, climate-resilient technologies need to be affordable, accessible to all, and culturally appropriate. Their implementation needs to be accompanied by capacity building and technical support. As well as considering inclusion and poverty elements of all adaptation and climate risk management measures, excluded groups may require targeted interventions that are designed to help build their resilience to climate change.

COVID-19 Impacts in Kenya

Emerging evidence on the impact of COVID-19 suggests that women’s economic and productive lives have been affected disproportionately by comparison with men. This is because women earn less, save less, and are more likely to be employed in the informal sector. Their capacity to absorb economic shocks is therefore less than that of men. Women are also the majority of the frontline healthcare workforce and caregivers, putting them at higher risk. Cultural factors may restrict women’s access to information and services, and some women may be particularly affected, e.g. older women living alone, and isolation may lead to an increased risk of violence in the home.

> Increased awareness of hygiene signifies increased demand for limited resources like water, as well as increased demand for disinfectant used for hand cleaning and sanitization, with additional costs to society, particularly where access is not straightforward.

Persons with disability have been left without vital support and advocacy due to social distancing. The majority of PWD in SUED municipalities operate small businesses in market centres, which have been adversely affected therefore they have experienced loss of livelihood. For PWD that rely on their hands for walking and are sole breadwinners, the question of not touching surfaces is not applicable and they therefore are at high risk of being infected with COVID-19.

Street families are also highly exposed to the danger of the virus because they lack shelter. Many of them rely on market centres where they ferry goods for a wage, and with the closure of markets they have lost livelihoods.

The COVID-19 pandemic has affected people differently based on their age, gender, ability or disability, sexual orientation, health status, migrant status, and ethnicity, among other aspects. Crises exacerbate existing gender inequalities, exclusion, and discriminative practices, and vulnerable groups are likely to be more adversely affected by the outbreak and the consequences of the response.

Young people are already among the most affected by the socio-economic impacts of COVID-19. In addition to losing employment, the closure of businesses, and the need to keep away from schools and universities, youth are also at high risk of increased anxiety and mental health problems. Additionally, youth make up more than 30% of the migrant and refugee population who are likely disproportionately affected due to limited movement and fewer employment opportunities caused by the pandemic. Young women and girls are also at high risk of many forms of domestic and gender-based violence during the pandemic.

24 1.6

In Kenya, the impact of COVID-19 has been real and devastating. The pandemic has significantly had an impact on all aspects of life such as health, institutional revenues and livelihoods. COVID-19 has hit the most vulnerable the hardest, particularly the densely-populated informal settlements, as well as other people who lack access to adequate housing and basic services. The informal economy, employing about 70% of Kenyans, has been drastically affected as lockdowns and curfews were introduced to curb the transmission of the virus. Low wage earners have been hit the hardest because they rely on the informal sector and daily wages. Mostly they lack the option to work from home as they are mainly in service industries and more exposed to the virus. Despite the low wages, some have also received pay cuts, and some have lost their jobs all together. There has also been loss of revenue due to reduced activities in other sectors like industry, commerce and hospitality with the effects felt throughout their supply chains. Travel restrictions have led to a sharp and substantial fall in demand for movement and subsequent impacts on supply chains: > Road freight and logistics have been interrupted as long-distance truck drivers are suspected to be a major source of imported infections and transmission. This has had implications for trade and cross-border activities. Goods take longer to reach destinations. For perishable agricultural commodities, post-harvest loses become rampant; > Disruptions in global supply chains have also led to shortages or delays for critical inputs for agriculture ultimately disrupting production and food supply and manufacturing, leading to price increases; and

The education sector was also significantly hit by COVID-19, with schools having to shut and students not being able to complete their study programmes. Once schools re-opened, there was lower demand due to parents being hit by hardship caused by COVID-19, and so not being able to afford to send their children away for education. Furthermore, there was a high dropout rate among students who were forced to move into employment and help earn an income for the household.

> Closure of businesses indefinitely, hotels, shops, and restrictions on transport businesses such as matatus. Service businesses were the hardest hit. This had negative consequences for business confidence.

25BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

> Increased costs to businesses as staff are unable work, costs associated with increased hygiene measures, and in general low cash flow which hinders restocking the business.

An overarching theme of the pandemic has been low income for the businesses of Bungoma, increased costs associated with hygiene measures and a lower cash flow hindering the restocking of goods; this caused many businesses to cut staff numbers and limit trading hours in order to stay in business. However, most have a positive outlook for the future, especially with borders now being reopened and the vaccination programme underway.

> Many of the businesses reported a breakdown in their supply of inputs required for their business.

> The pandemic disrupted access to the markets, led to losses and spoilage, and worsened food insecurity. There was also an increase in crime amongst youth.

> Demand for goods and services dropped off where there was reduced cash flow, lower incomes, social distancing rules, and restrictions in movement, in particular after curfew times.

> Markets and especially livestock markets are affected, less space and fewer customers due to social distancing.

1.6.1 COVID-19 Impacts in Bungoma Municipality Business surveys and engagement with local stakeholders revealed that COVID-19 has had an impact on the local economy. Most of the businesses consulted stated that they were adversely impacted by the COVID-19 pandemic in some of the ways listed below:

> Strengthening preparedness and emergency response capacity is critical. This means better preparedness in terms of financing, service delivery and business continuity, including budgeting for future crises, emergency operations centres, capacity building, drills, and human resources redeployment plans;

> Ensuring resilient supply chains for agricultural, fisheries and manufacturing sectors focusing on local inputs to ensure food security, and safeguard export-oriented products;

Drawing upon the lessons learned from the current COVID-19 crisis, these have informed the proposed development concept (section 3) and Sector Action Plans (section 4.2 and 4.3) to ensure long-term planning, green recovery and resilience is embedded in the UEP. This is an opportunity to get insights into a future fully-fledged climate change crisis and Bungoma Municipality has a critical role to play in addressing these challenges.

> Improving marketing efficiency through the adoption of innovative processes that connect buyers and sellers. This may include the adoption of technology to promote marketing and information sharing, formalizing product delivery services etc.;

> Emphasising the need for adaptive, urban integrated plans to ensure sustainable urban development and infrastructure provision, including appropriate housing for all that can help minimise impact from high risks;

Lessons from COVID-19

> Redefining green spaces and the way Town centres are designed for business;

> Continuing to mobilise and empower women, youth, and other vulnerable groups by creating new employment opportunities and engaging them in economic activities through technical support and financing;

> Prioritising policies to confront spatial, social and economic exclusion with the aim of cushioning the vulnerable in the face of another shock;

Some initial key lessons include:

26 1.6.2

> Leveraging information, communications and technology (ICT) systems to better-match the required transport demand with excess supply in real-time and provide travel pattern visibility, helping passenger and logistics operations become nimbler in considering a quickly-evolving context; and

> Making sure public awareness campaigns are consistently available to all in a format and language understandable to all.

Following this introduction, the report is structured as follows:

This has been undertaken to outline the climate vulnerability context for the selected economic sector plans and infrastructure projects to be developed in Bungoma.

1.7 Structure of this Report

The report is supported by a series of appendices, in which:

Appendix A – Bungoma Diagnostic Report

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Each of the key sectors is presented with a summary of its SWOT analysis and a Sector Action Plan alongside the proposed climate-resilient infrastructure projects. The identified Value Chain (VC) projects are then set out in detail; and > Section 5 presents a range of implementation considerations to support the next stages of the SUED programme and the Urban Economic Development Plan roadmap.

Appendix B – Technical Briefing Paper

Appendix C – Bungoma Social Inclusion Study

> Section 3 introduces Bungoma’s development concept and how it aligns to existing plans. It is supported by the economic vision developed by the local stakeholders. This section also sets of the spatial context for development in Bungoma; > Section 4 set outs the Urban Economic Development Plan.

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.

> Section 2 provides a summary of key findings from the Diagnostics Report which forms the basis for the development of the 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 Bungoma’s key sectors;

Appendix D – Climate Vulnerability Assessment

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 Bungoma 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.

This captures the process followed from identification to assessment of growth opportunities for Bungoma Municipality and provides recommendations on those with the greatest potential to maximise benefits and be developed further. The contents of this report form the backbone of the final UEP.

28 2. DiagnosticsUrbanBungoma Before any proposed interventions are developed, it is important to understand the local development context and potential opportunities and barriers to growth. The Municipality’s assessment has been undertaken in the UEP diagnostic process, as presented in Appendix A. The diagnostics phase was a critical process to establish a foundation for identifying solutions that can deliver economic, social and environmental benefits. This section provides a summary of the diagnostic report’s assessment of: > Bungoma planning and regional context, its socio-economic profile, with urban and economic conditions and trends; > The state of existing infrastructure; > Environmental and climate risks; and > Barriers and drivers for growth.

2.1 Study Area

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A number of areas across Bungoma County will take the geographic focus of the UEP, the main ones being Bungoma Municipality and Webuye town. Bungoma County is located in western Kenya and measures approximately 3,032.4 km2 in area. The County borders Busia, Kakamega, and Trans-Nzoia counties as well as Uganda to the west, making it a strategic gateway to inner East Africa. The County is part of the Lake Region Economic Bloc (LREB). The County is comprised of nine sub-Counties namely; Kanduyi, Kabuchai, Sirisia, Kimilili, Webuye East, Webuye West, Tongaren, Bumula and Mt Elgon. The A8 road runs through the centre of the County and connects Uganda with West Kenya. Furthermore, the Uganda Kenya railway runs through the County and Bungoma Municipality, connecting Uganda to the seaport of Mombasa, located on the Indian Ocean. Bungoma Municipality is the main urban growth centre located in the southwest of the County. It is the headquarters and administrative centre of Bungoma County. Bungoma Municipality’s boundaries are undergoing the process of expansion to cover a total land area of 207 km2 and include 15 sub-locations including Bungoma Township, Mateka, Namasand, Ngo’oli, West Nalondo, Namwacha, Muanda, Watoya, Kabul, Ndengelwa, Mayanja, West Sangaalo, Tuuti, South Kanduyi, and Khalaba. The plans to expand the Municipality boundary have been approved by the County Government and are awaiting to be gazetted by the National Government. Webuye Town is another major urban growth centre located in the southeast of the County next to the River Nzoia and the boundary of Bungoma and Kakamega Counties. Webuye, being strategically located along the A8 northern corridor, which runs through the centre of the town, makes it the main industrial centre of Bungoma County; it is home to many light and heavy industries including the former Pan Paper Mill. It is important to note that there is a lack of planning documents and sectoral plans covering the new Municipality area, there are only documents at the County-level or related to the 2016 Bungoma Planning area. Therefore, the spatial analysis was limited to these geographical units due to the availability of information and data. Figure 2-1 – Study area Source: Atkins, 2022

Planning Context

The LUDP is a guiding document for the coordination of development, infrastructure and public services over a ten-year period within a Bungoma Planning Area. Furthermore, it is used as a tool to control, guide and allocate land within the Municipality for public services and other land uses.

The Planning Context sets the basis for the development of the UEP. The Diagnostic Report in Appendix A covers key international and national trends likely to influence the sustainable growth trajectory of Bungoma Municipality; national strategies and policies, and Bungoma Municipality’s own priorities and ambitions. The Bungoma County Integrated Development Plan 2018-2022 (CIDP) is grounded in the Vision 2030, the MTP III, the NSP, international targets such as the Sustainable Development Goals. The CIDP is one of the most important documents at County level, which aims to coordinate development and allocate budgets. The strategic objectives of the CIDP are: i) to promote and enhance human capital development through education and training, ii) to promote economic development by sustaining a robust and vibrant economy, iii) to provide high-quality livelihoods and a sense of wellbeing for all, iv) to ensure environmental sustainability by ensuring there is minimal disruption to natural resources, habitats and loss of biodiversity, v) to optimise land use, vi) to co-operate and collaborate with other spheres of government, vii) to enhance public involvement in the processes of governance, and viii) to engage an entrepreneurial, innovative and competitive private sector that delivers economic growth and better jobs for the people of the County. The draft Bungoma County Spatial Plan 2016-2025 (CSP) is a long-term, GIS-based framework for organising and distributing local populations and activities in-line with both County and national objectives. The CSP also aims to co-ordinate the implementation of special projects and programmes with a focus of managing scarce resources and avoiding the duplication of planning efforts. The plan identifies the towns of Bungoma, Webuye and Kimilili as the main urban centres and its respective development plans should be aligned with the provisions in the CSP. Its vision for Bungoma County is: “To be a leading County that effectively manages and utilizes all its resources to generate wealth and sustainable development for prosperity”1

2 Bungoma Municipality, LUDP, (2016)

1 Bungoma County, CSP, (2018)

The Bungoma Local Urban Development Plan 2016-2026 (LUDP) was prepared by the Ministry of Lands and Physical Planning in collaboration with the County Government of Bungoma and a local planning consultancy, Two Ems.

The plan was developed for a Planning Area which extends beyond the current boundary of Bungoma Municipality, see section 2.1 for further details. The LUDP sets out a vision for Bungoma Municipality to become “A compact economic hub that is accessible, liveable, inclusive, competitive and environmentally sustainable”2 .

At the Municipality level there are three non-statutory documents driving its development. These include the draft Bungoma Municipality Integrated Development Plan 2018-2022, the Bungoma Municipality Strategic Plan 2020-2024 and the Bungoma Local Urban Development Plan 2016-2026. The draft Bungoma Municipality Integrated Development Plan 2018-2022 (draft IDeP) provides a policy framework for the sustainable growth of the Municipality and is grounded on the Kenya Vision 2030, NSP, MTP III, and UN sustainable development goals. It is formed of a total of 12 strategic priorities with the overall aim to develop and regenerate places, support neighbourhoods, communities and centres to respond to economic change, encourage growth of the Central Business District (CBD) to support the economy and further growth of the township and surrounding areas. The draft IDeP also provides an implementation and delivery strategy for key projects across the Municipality over the next four years.

30 2.2

The Bungoma Municipality Strategic Plan 2020-2024 (MSP) is a high-level strategic framework to aid in the implementation of the draft IDeP over the next four years. The MSP sets out five key strategic plans in order to further guide the development of the Municipality, these include: i) creating opportunities for growth, ii) increasing wellness, safety and tackling social ills, iii) building a quality living environment, iv) embedding good governance and vi) improving educational outcomes and opportunities for youth development. These strategies are aimed at further guiding the development of the Municipality over time and should be read in conjunction with the draft IDeP.

31BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) Figure 2-2 – Bungoma Municipality’s planning context Source: Atkins, 2022

Figure 2-3 – Bungoma's Regional Context Source: Atkins, 2022

3

32 2.3

State of Bungoma KNBS (2019) Kenya Population and Housing Census: Volume I 2.3.1 Regional Context Bungoma County is one of the smallest counties in Kenya, it covers a surface area of 3,032.4 km2. The majority of the land (around 2,880.78 km2) is used for agricultural activities such as growing crops and rearing livestock. The remainder of the land in the County is covered by human settlements, semi-natural habitats, such as managed woodland and flood plains, and the Mt Elgon conservation area. The County borders Busia, Kakamega, and Trans-Nzoia counties. Furthermore, the County’s strategic location at the border of Uganda means it plays a key role in facilitating trade, via both road and railway, to and from Uganda (see Section 2.1).

Figure 2-3 displays the distribution of densely populated centres in the LREB, where some of the larger towns and cities in Kenya are scattered around the region. Near to Bungoma there is Eldoret (not in LREB) connected via the northern corridor, Eldoret is the fifth largest urban centre in Kenya with an urban centre population of 475,700 (2019). Kisumu is the LREBs largest urban centre, with almost 400,000 people residing there. Kitale, Kakamega, and Busia are also populous centres in the LREB, and of a similar size to Bungoma. All of these centres are well-connected via the northern corridor (A104 / A8) and the A13 .

Chwele is also an important center for agricultural activity and trade and markets.

2.3.2 County Context

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 33

The Municipality’s topography is a mix of gentle slopes and flat lands as a result of its hydrology and natural drainage system.

According to the Kenya National Bureau of StatisticsPopulation and Housing Census, 2019, the County had a population of 1,670,570 with an average population density of 552 people per km2. The residents of the County participate in key economic activities which include agricultural (made up of crop growing, livestock and agri-processing), market trade and logistics, hospitality and tourism, and public services (see Sections 4.2 and 4.3). The County’s agricultural sector benefits from rich and fertile soils, favourable climate conditions and abundant sources of water which results in high agricultural productivity, contributing towards 12% of the LREB’s agricultural Furthermore,outputs.thestrategic location of both Bungoma County and the Municipality have resulted in the growth of the trade and logistics sector over the years. The County has a rich base of natural resources (see Section 2.5), however, these have not yet been fully utilised to attract tourism. Some attractions include Mt. Elgon (including the high-altitude training centre), the Chepkitale hills, the Sang’alo and Kabuchai Hills, Nabuyole falls and more.

2.3.3 Municipal Context Bungoma Municipality mostly remains rural in character with agricultural land use occupying the largest proportion of land within the Municipality. Urban areas are present in linear and clustered settlement patterns across the Municipality with the largest of these being Bungoma Town. The other major urban clusters in the Municipality are Kibabii, which acts as an education hub with the presence of Kibabii University, and Kanduyi, which acts as a commercial and transit hub due to its position along the A8 road. The major urban centres of the Municipality are connected by bitumen roads whereas other rural and market centres are connected by earth roads.

Settlement patterns across the County are influenced by its geography, including the topography of the County and distribution of natural resources and agricultural land, key transport routes and function of urban centres. These factors have resulted in three main settlement patterns occurring across the County, including dispersed settlements across the rich agricultural land, linear settlements along main transport corridors, such as the A8 and C33, and clustered settlements found around urban centres. The CSP estimates that around 21% of the total population of Bungoma live in urban centres4

The Municipality has one airstrip located near Kanduyi, however, in its current state the strip is underutilised due to the lack of standard facilities and dilapidated infrastructure.

The three main urban centres include Bungoma Municipality, which serves as the County HQ and plays a key role in health and education provision, Webuye, which acts as an industrial centre for the County with the Pan Paper Mills and other industrial activities found here, and Kimilili, which acts as an administrative and commercial hub as well as a key centre for agriculture due to its proximity to Mt Elgon and its fertile lands.

The northern part of the Municipality is found around 1,520 m above sea level and slopes to the south where the lowest point is around 1,278 m above sea level. Bungoma Town is framed by the River Khalaba to the east and the River Sio to the west, these flow from north to south and have influenced the linear development of the Town along the C33. The natural slope of the topography aids with the drainage of storm water, however, parts of the Municipality located to the south can sometimes experience flood events as water builds up in river channels.

4 Bungoma County, CSP, (2018)

Furthermore, the Kenya-Uganda railways, built in the 1920s, passes through the centre of Bungoma Municipality. The railway is used for the transport of bulk goods such as cereals and containers from the seaport of Mombasa to Uganda.

Figure 2-4 – Bungoma Municipality’s social & demographic profile

The34 main economic activities undertaken in Bungoma Municipality are in the agriculture, livestock rearing and agri-processing, markets, trade and logistics, education and public services sectors. These sectors have developed over time leveraging upon Bungoma’s strategic location and availability of natural resources. There are a number of markets in the urban centres and the Bungoma CBD which serve as hubs for economic activity and the trade of vegetables, livestock, household goods and other products. Key educational institutions, such as Kibabii University and San’galo institute of Science and Technology, in addition to the numerous early education centres, primary and secondary schools, support the education sector in Bungoma Municipality. The role of the Municipality as the County HQ, with many offices and services located there, has led to the further development of the public sector in the Municipality over time. Increased rates of rural to urban migration and urbanisation have led to urban sprawl over the past years. The growth of the Town has been limited by the presence of the two rivers on the east and west of the town. This has led to increased development pressures and the growth of a number of informal settlements in the Municipality. In addition to urban sprawl, the Municipality faces other urban challenges such as, but not limited to: high levels of congestion along the C33 and other main roads, increased rates of pollution, lack of a waste management strategy and a low number of connections to the Municipal sewer network. Despite this, there are a number of opportunities to utilise disused land, enhance environmental protection, re-organise transport and land use patterns, and enhance infrastructure provisions in order to improve the economic, environmental, and social conditions present in Bungoma Municipality.

Source: Atkins, 2022 2.3.4 Socio-Economic and Demographic Profile

Demographic profile Bungoma County is the second most populous county in the LREB economic block and the fifth in Kenya. With a population of 1.66 million people it represents 11% of the total population of the bloc. Bungoma County’s population is relatively widely spread, with a population density of 552 people per km2, this is slightly higher than the average population density of the LREB (479 people per km2)5. The area captured by Bungoma’s new Municipal Boundary has a population density of 1,016 people per Thekm2.2019 Census showed that the urban population of the County was spread across several urban centres, including Bungoma, with a population of 68,000, Kimilili, with a population of 56,000, and Webuye, with a population of 43,000.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 35

5 KNBS (2019) Kenya Population and Housing Census: Volume I Figure 2-5 - Bungoma County settlement patterns Source: Atkins, 2022

Figure

Social inclusion

6 Bungoma Municipality, draft IDeP, (2020). 7 Bungoma Municipality, LUDP, (2016). 8 Bungoma KOM meeting and follow up discussions, 29/09/2021 9 Bungoma County, CSP, (2018). 10 Bungoma Municipality, draft IDeP, (2020).

Migration, in its different forms, plays an important role in the population of Bungoma County and the western region. The Municipality has a significant visiting population, particularly during the day when people living in other areas come to work in the town6. Seasonal migration also occurs in Bungoma with the opening and closing of educational institutions. Students from tertiary institutions like Kibabii and Masinde Muliro often come from neighbouring counties and contribute to these seasonal migration flows7. Kenya in general and Bungoma Municipality in particular, continue to attract migrants seeking political asylum and economic opportunity. Many migrants may enter into Kenya through Bungoma or Busia and move on to Eldoret8. However, cross-border migration is small by comparison with domestic migration flows in Bungoma. Most of the individuals who settle in Bungoma come from Kakamega and Trans Nzoia counties, and are motivated by marriage, security concerns, land availability, or employment opportunities9. The high and persistent migration patterns that Bungoma is experiencing alongside population growth is putting growing pressure on jobs and urban infrastructure10

Both36 Bungoma County and the Municipality’s populations have grown at similar rates to the national average growth rate over the period 2009 to 2019 (2.2-2.5%). Extrapolating this growth rate, it is predicted that the population of the County will exceed 2 million by 2029. However, it is important to note that with interventions such as SUED and the revival of its key processing industries there is potential for this growth to occur at a faster rate.

The development agenda for Bungoma County, in line with the Sustainable Development Goals (SDGs), aims at “eradicating poverty, ending hunger, reducing inequality, and ensuring gender equality”11. Among the CIDP strategic goals, the County has the objective to promote and enhance human capital development through education and training, promoting economic development, and providing high-quality livelihoods and a sense of wellbeing to local communities. The CIDP has also identified groups that deserve particular attention, such as children, PWD, youth, minorities and marginalised groups, and senior citizens, and defined specific objectives to support their Despitedevelopment.theCounty’s plans and successful implementation of social inclusion initiatives and programmes, KIIs and FGDs conducted at the Municipality level established that PWD, women, and youth still feel excluded. The approach to the social inclusion study was guided by the client’s need for age, gender, Persons with Disability (PWD) and refugees’ inclusion in the programme, and the World Bank’s multi-dimensional approach to inclusion that considers social, economic, and spatial dimensions as illustrated in Figure 2-6. 11 Bungoma County, CIDP, (2018).

Source: Atkins, 2022 2-6 – The three dimensions of inclusion

› Lack of access to capital: Youths do not often have access to finance or capital to engage in businesses. According to FGDs, due to the recent change in political leadership, there have been changes in the boda boda SACCO, and youth can no longer access affordable loans or credit to buy motorbikes. FGDs highlighted that access to available government loans is highly bureaucratic, lengthy, and with the requirement of collateral. Information about existent funds and opportunities is not easily accessible.

› Lack of employment opportunities: Many young mothers and girls from Bungoma migrate to other towns such as Eldoret, Nakuru and Nairobi in search of employment opportunities, to predominantly work as housekeepers. However, FGDs indicated that these jobs are usually underpaid.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 37

› Challenges when engaging in socio-economic activities: As in other groups, FGDs stated that business permits are costly and not many women have access to them. Moreover, women often lack access to information about business and market opportunities. For those engaging in agriculture, they face high costs of quality inputs and there are no markets for farm products and surplus production. Middlemen often exploit them and do not pay them as they should.

› High levels of gender-based violence (GBV) and harmful social norms: There are high levels of GBV within Bungoma. There is one centre to tackle GBV within the Municipality, but FGDs have indicated that the centre is currently not operating. The County’s Spatial Plan 2016-2025 also highlighted that some cultural norms prevalent in Bungoma, such as polygamy, often contribute to the propagation of sexually transmitted diseases such as HIV/AIDS. In rural areas, due to the lack of infrastructure, women still travel long distances to fetch water12

Women › Lack of access to information and no participation in decision-making processes: In FGDs, women indicated that they do not feel represented in the design of programmes targeted at them or at their children. Moreover, they feel they are not represented in leadership positions and women’s opinions are not taken into consideration in decision-making processes. Due to social norms, women rarely participate when they are in consultation meetings with mixed groups. In the Bukusu community, dominant in Bungoma, only men have a say regarding children’s upbringing.

› Challenges when engaging in socio-economic activities: All SIGs’ FGDs highlighted, as a cross-cutting theme, that farm input costs and electricity represent a challenge to many businesses. Obtaining business licences is prohibitive for most SIGs, including youth. Moreover, for those who engage in transportation services, there are high rates of insecurity and many boda boda operators have their motorbikes stolen.

› Substance abuse: KIIs and FGDs recognised that substance abuse is an endemic problem among the youth in Bungoma. There are high levels of alcohol consumption (chang’aa) and addiction to drugs such as bhang and kubel.

› Competing care responsibilities: Due to cultural norms, women are expected to undertake community and domestic responsibilities, which often limits their possibilities to obtain higher education levels or engage in socio-economic activities. For those who are employed or would like to start a business, there is often a lack of support (e.g. childcare facilities). Women’s participation in agriculture is often seen as family work and unpaid, contributing to women’s time burden.

› High unemployment levels: FGDs stated that there are high unemployment levels among the youth and there is nepotism in the way employment opportunities are distributed. Moreover, there are high levels of economic migration to Uganda and other counties in Kenya. FGDs mentioned the need for skills development and training.

Youth › Lack of involvement in decision-making processes: In FGDs, young people expressed that they do not feel represented in the design of programmes targeted at them. They also feel that they are not represented in leadership positions.

Special Interest Groups (SIG) have indicated that social exclusion in Bungoma Municipality manifests in the following forms: Table 2-1 – SIGs and exclusion manifestation table SIG Key findings from the Bungoma Municipality Diagnostic Report

12 Bungoma County, CSP, (2018).

› Limited access to assets and finance: Due to cultural norms, women have limited control over economic resources. Women do not own land and access to it is through their spouses (they cannot own income from this property either, nor sell the products obtained through that land); this makes access to funds that require collateral difficult. In Bungoma, when the husband dies, property is inherited by his brothers – women cannot inherit property in most communities. Moreover, due to cultural beliefs and traditions, when the husband dies, all livestock must be killed soon after the burial.

› Low literacy levels: While there are seven special education facilities in Bungoma, they often lack adequate equipment and materials for PWD. Moreover, special education is usually costly and there are no bursaries to support PWD at the primary level. This acts as a barrier for PWD to access to education, leading to lower literacy levels than their able-bodied counterparts.

13 KNBS, Gross County Product Report (2019).

› Lack of access to employment opportunities: Due to discrimination, PWD do not get access to employment opportunities. While women, youth and PWD are supposed to benefit from 30% of government procurement opportunities, its implementation lags.

PWD

Key findings from the Bungoma Municipality Diagnostic

The bloc represents some of Kenya’s wealthier counties, benefiting from a wealth of natural resources.

› Lack of access to information and communication barriers: PWD are not always aware of their rights (e.g. tax exemptions). Moreover, there are communication barriers that affect PWDs’ access to social protections and infrastructure.

› Lack of access to capital: Due to discrimination, lower literacy levels, and lack of access to land or other forms of collateral, PWD face several barriers to obtain seed capital to start economic activities or to expand their businesses.

Report

14 KNBS, Gross County Product Report (2019).

Source: Atkins, 2022

The LREB region contributes to 23% of the national output, Bungoma contributes the second largest share of the total economic output of the counties in the block, joint with Kakamega, contributing 2.4% to national GDP, as the 11th largest economy of the 47 counties in the country13. The County has recently experienced relatively strong economic growth with an average annual growth rate of 8% from 2013-2017, which was above the 5.6% national average.

› Lack of PWD involvement in decision-making processes: PWD feel they are not usually represented or consulted in the preparation and implementation of programmes targeted at them.

As demonstrated in Figure 2-7, Bungoma County has a significantly lower GCP per capita (KES 98,000) than the national average. This is also reflected across the economic bloc which has an average GCP per capita of KES 60,000. The economic block’s high output levels are not reflected in the standard of living of its residents. Bungoma was one of the fastest growing counties in Kenya in terms of its GCP per capita, with an average annual growth rate of roughly 6% for the period 2014 to 2017, compared with the national rate of 3%14. The LREB as a whole also experienced a growth of around 5% in its GCP per capita. This is a result of the high GCP growth experienced by Bungoma County, where the population has also been growing at a fast rate.

Economic profile Bungoma is a medium-sized economy in the Kenyan and regional (LREB) context, surrounded by multiple other key larger economic centres in the LREB, outside the LREB and in Uganda. Bungoma faces competition from these economies, as well as benefitting from their amenities, services, and markets.

Opportunities for inclusion in the SUED programme include involvement of all in decision-making and in the development of safe, inclusive and climate-resilient infrastructure. This will enable better access to capacity building initiatives, seed capital and employment opportunities – especially through participation in the VC projects. As raised in section 1.5, there are interlinkages between climate change and poverty, as climate change will have an impact on income security and quality of life. It is important to understand where the burden of climate change impacts may fall and how societal groups can be included in proposed mitigation measures. Social inclusion is cognisant of this relationship. The UEP has adopted climate adaptation approaches, as well as inclusivity in all forms, to avoid exclusion of certain groups and to reduce inequality. Similarly, it has sought to address how infrastructure and VCs can be made more resilient to climate shocks, with the understanding that climate impacts hit vulnerable groups the hardest.

38 SIG

› Lack of PWD-friendly infrastructure: FGDs have indicated that most buildings (even public offices), markets (and market vending spaces), transport services, and public spaces, are not accessible to PWD, particularly for those using assistive devices. For example, the Bungoma County Department of Gender, Culture, Youth and Sports is located on the third floor of the building, there are no ramps, and the lift is not operational. Public infrastructure within the Municipality does not consider PWD accessibility (e.g. there are no PWD-friendly public toilets).

The LREB covers just 5% of Kenya’s total land, however, approximately 30% of Kenya’s total population reside there.

Source: KNBS, Gross County Product Report (2019)

Crop farming is the main economic activity in the County.

15 Bungoma Municipality, LUDP, (2016).

This directly connects Bungoma to the Malaba border point to Uganda and indirectly connects Bungoma to the Busia border point. The Kenya-Uganda Railway also passes through Bungoma, the train stops in Bungoma twice a week, however, it doesn’t pick up or drop large amounts in Bungoma. The success of Bungoma as a marketplace is strongly correlated to its access to these integral border points and trade routes which allow people and goods to move between Uganda and the County of Bungoma, the logistics and hospitality are also dependent on this dynamic.

Bungoma is strategically located along the northern corridor, the trade route links Mombasa and Kenya to a large number of economies including Burundi, eastern Democratic Republic of Congo (DRC), Rwanda, Somalia, South Sudan and Uganda.

Approximately 70% of the population depend directly or indirectly on farming for their livelihoods15. However, increased rates of urbanisation and encroachment of agricultural land threaten the natural resources present across Bungoma County. There is significant existing industrial activity and value-addition in Bungoma, as well as a strong logistics sector, however, each of these only represent 1% of the economic output of the County. Trade is another important economic activity in Bungoma County, the subsector employs approximately 346,430 people, with 287,110 being either Jua Kali traders or wholesale and retail traders16 .

There are significantly higher shares of GCP in agriculture (58%) than the LREB (51%) and Kenya (37%) shares.

16 Bungoma County, CSP, (2018).

Bungoma’s economy is diverse and benefits from a range of economic activities. The key sectors of the economic bloc include agriculture livestock and agri-processing, markets trade and services.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 39 Figure 2-7 – Gross County Product per capita, 2017 (in KES)

Figure 2-8 –

2017

Source: KNBS, Gross County Product Report (2019)

The40 County is characterised by higher Gross Value Added (GVA) shares in the public service sector than across the economic bloc and nationally. Bungoma contributes more output in the education sector than any other county in Kenya. However, Bungoma County has lower shares of GVA in the generally higher productivity sectors of mining and utilities, manufacturing, construction and logistics, and technical services. Bungoma County has a unique network of district, local and neighbourhood centres that offer a wide range of shops, services and community facilities. The smaller centres provide neighbourhood hubs, and the larger centres in particular the Bungoma Municipality, has good provision of key supporting services including a number of banks, micro-finance institutions and mobile money transfer services. Financial institutions play an important role in enabling capital mobilization, hence, promoting economic growth and availing financial services to society. However, despite this strong presence of supporting services, business consultations found that it was particularly difficult for smaller businesses to access affordable loans and funds. Bungoma County GCP breakdown,

Seventy business, reflecting Bungoma’s main sectoral activities, were consulted through in-depth interviews. Many of these were small businesses or independent workers but large employers (up to 330) were also consulted, including health and education facilities, and hotels. The analysis below has been utilised to inform the understanding of the business environment, socio-economic inclusion, key challenges, and Mostenablers.businesses are operating locally, selling their goods or services in Bungoma Town and the wider County. Amongst the businesses consulted, there was also a considerable number of businesses that exported goods to outside of Kenya, which is linked to Bungoma’s strategic location at the border with Uganda, Tanzania or out through Mombasa. Most businesses sell to individual local customers, however, there are a few businesses who sell to other businesses.

Delivery of goods is in most cases completed by others, this is because many of the businesses interviewed did not deliver their goods. This was followed by motorbike and truck. To a lesser extent, businesses use public modes of transport such as matatus. Marketing techniques are fairly basic with word of mouth being the most-used form of marketing, followed by social media and local media.

During the business interviews some reported that business can be challenged by high taxation by the County government and national government. A lack of regulation of the markets and bus station area was mentioned, which was resulting in the exploitation of matatu drivers and hawkers.

COVID-19 COVID-19 was raised as a key challenge for business activities in Bungoma. The impacts of the pandemic have been discussed in further detail in section 1.6.1.

Post-harvest losses

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 41

Some of the business in agriculture, livestock, retail or distribution reported high levels of spoilage along the supply chains after harvest. The main causes being a lack of dry or cold storage, long transport times to Mombasa or Uganda, and long processing times in the ports of Mombasa.

Flooding During the business interviews, flooding was said to impact mainly the infrastructure such as roads and inhibit business’ accessibility, the markets and key commercial areas were also said to suffer from poor drainage and flooding.

Source: Atkins

Limited access to finance Many businesses reported a lack of capital and access to finance to expand their business, undertake maintenance and repairs, invest in machinery or restock goods. This seemed to be as a result of a lack of capital in the banks that exist in Bungoma, and insufficient collateral of those looking to borrow. Many respondents reported a need for affordable loans with little or no interest repayments.

Governance, regulation and taxation

State of business in Bungoma Municipality

A significant proportion of businesses that were interviewed indicated that they expect to expand and have a positive outlook for the future whilst some indicated that they intend to continue their operations as usual.

Table 2-2 – Business identified challenges to growth Top challenge mentioned Detail Insufficient infrastructure Inadequate water supply in terms of quantity for community utilization was the most frequently reported challenge. Poor power supply and frequent blackouts pose additional costs to businesses and make adequate storage of goods challenging. Poor road quality and reliability results in increases in transportation times and costs for local businesses, issues with Bungoma’s arterial roads and also longer distance roads to Nairobi were highlighted. Some of the market facilities are reported to be inadequate lacking shades, lighting, storage, utilities and drainage.

Insecurity and crime Insecurity and crime were reported by several businesses to be a challenge in Bungoma, where many of them reported that they frequently experienced theft, in particular, youths. This included certain areas being dominated by cartels and theft from youths, both local or from across the border.

42

The Municipality’s infrastructure has been assessed and evaluated in its current provision and state to identify strengths and critical gaps. The assessments also reviewed proposed or planned projects, for how they respond to Bungoma Municipality’s infrastructure challenges. Overall, to address the existing infrastructure challenges and barriers to growth, Bungoma Municipality will need to upgrade existing infrastructure and commit to new projects to support economic growth and development. Key infrastructure gaps identified are:

2.4 Infrastructure Overview

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 43 Figure 2-9 – Bungoma Municipality’s infrastructure overview Source: Atkins, 2022

> The lack of a solid waste management strategy has increased the strain on the drainage infrastructure.

> Litter is a problem in the markets, bus parks, and residential areas;

> The network is characterized by one-lane roads;

> There is no segregation of solid waste into organic, recyclable and non-recyclable streams.

> High pollution levels in water; and

> Circumferential transport links from the key radial roads are missing or are made of earth;

Energy > Almost every business interviewed in the business consultations reported that lack of a reliable energy supply as a key issue for their business and that the cost of electricity is too high;

> Bungoma County has excellent resources for generating power from hydro and solar. There are numerous hydropower projects in development, but a significant project has yet to completed; and

> For cooking, people predominantly still use firewood, charcoal and paraffin;

> Earth roads are difficult to navigate during the rainy season which hinders the transportation of agricultural produce and reduces access to services and markets; and

> Poor road conditions reduce accessibility, increasing the cost of transport and hinder productivity;

Water, wastewater and drainage

> Wider roads often get filled up by pedestrians, vendors and parked vehicles;

> A small share of Bungoma Township households are connected to a sewer network;

> The majority of solid waste is burnt, buried or dumped, including medical waste and industrial waste and dumped in rivers;

> Connectivity to the KPLC power network is below the national average. There is a significant need for a last-mile connectivity programme to connect rural areas;

Solid waste management

> Uncontrolled management has negative impacts for human health and the environment;

> Even with optimal water supply from NZOWASCO there would be excess demand for water;

> There is not enough revenue generated by the Municipality to provide a full solid waste collection service; and

> Bungoma has not suffered from historically significant flood events, but localised flooding is still an issue;

> Drainage within Bungoma Township is aided by its topography which slopes downwards;

> Demand for electricity is outstripping supply, planned development and population growth will increase pressures on the already stretched energy infrastructure with demand predicted to significantly increase by 2030;

> There is currently a significant lack of cold storage and available machinery to boost the economy.

44 Transport > Less than 10% of the road network is paved;

> Other modes such as rail and air transportation are largely underutilized.

> Only 15% of Bungoma Municipality is connected to a sewerage line;

> A very small share of Bungoma's population has access to drinking water; > High electricity costs reduce the treatment capacity of the County; > Rural areas do not receive treated water, instead there are strategically located water kiosks;

> There are not enough collection points and the ones that exist are poorly maintained;

Bungoma County lies within the Lake Victoria basin, located within western Kenya. It covers a total area of 3,032.4 km2, which constitutes 0.52% of Kenya’s total land area. The topography of the County is influenced by its presence within the Lake Victoria basin and Mt Elgon at its northern axis. The altitude of the County ranges from 4,316 m above sea level (Mt Elgon) to 1,200 m above sea level. The topography within 3 km of Bungoma contains only modest variations in elevation, with a maximum elevation change of 111 m and an average elevation above sea level of 1,422 m17. The topography of the County largely influences the drainage patterns with rivers and water bodies largely originating from Mt Elgon and the Cherangany Hills. The County has four distinct ecological zones with favourable climate conditions making it one of the most important crop zones in Kenya. Furthermore, Bungoma has one of the most fertile and richest soils (soils laced with organic matter which retains water and provides the nutrients needed by crops) in Kenya which is very suitable for agriculture18 . There are a number of conservation areas and biodiversity hotspots in the County namely the Mt Elgon National Reserve, Chetambe Hills, San’galo and Kabuchai Hills and a number of wetlands found in Sio, Sinoko wards and Matulo. The terrestrial fauna within Bungoma County’s forest reserves include a diverse variety of species of birds, antelopes, elephants, buffalos, hippopotamus, snakes, monkeys, guinea fowl, quail birds, rabbits, insects, hares and gazelles.

19 Nailanya et al. (2020) Trends and Patterns of Climate Change and Variability Experienced in Bungoma County, Kenya. International Journal of Scientific Research and Innovative Technology, 7 (10), p19-36.

18 Bungoma County, CSP, (2018).

The main environmental challenges include deforestation of forests in the Mt Elgon region, forest depletion due to mismanagement and unsustainable practices, encroachment of natural resources due to urban expansion and increased populations, overgrazing, human and wildlife conflicts and loss of wetlands. However, the rich and fertile soils, favourable climate conditions, abundant sources of water, vast forests and scenic landscape provide opportunities for economic growth if sustainably managed. Bungoma County experiences a hot climate with monthly temperatures ranging from 15 to 29°C. The average annual precipitation is between 1,100 mm and 1,700 mm, with most of Bungoma County receiving an annual average precipitation of over 1,400 mm. There are two rainy seasons: the long season runs between February and June and is the wetter of the two; the second falls between late July and December. Flooding during the rainy seasons is not uncommon: perennial run-off can make roads impassable and excessive soil erosion can leave agricultural land unproductive19. A dry season with precipitation less than 80 mm is experienced from December to February. The eastern part of the County is the driest, receiving less than 1,000 mm of precipitation each year20

20 MoALFC. (2021). Climate Risk Profile for Bungoma County. Kenya County Climate Risk Profile Series. The Ministry of Agriculture, Livestock, Fisheries and Co-operatives (MoALFC), Nairobi, Kenya.

21 IPCC (2014) Climate change: The IPCC scientific assessment. Mass, Cambridge.

The main climate risks include increased temperatures, water scarcity, changes to rainfall patterns and an increase in extreme weather events. These are all likely to have severe impacts for Bungoma, including food and water insecurity, reduced agricultural productivity and displacement of Therepopulations.isanopportunity in Bungoma to work with the natural assets of the County in order to both increase resilience to these climate risks, as well as to enhance biodiversity, and improve leisure, recreational activities and the tourism offering.

Poor and marginalised groups tend to be disproportionately vulnerable to climate risks, as outlined in section 1.5, due to a reliance on natural resources for livelihoods, housing which is more likely to be in areas at risk of flooding, and other climate hazards, and a lack of access to social and financial resources.

Without explicitly considering the climate risk faced by these groups, economic growth and poverty reduction initiatives that target these groups may be undermined. Equally, if climate adaptation and resilience programmes do not explicitly include and consider marginalised communities, they risk reinforcing existing inequalities.

17 Weather Sparks, Average Weather in Bungoma (2021) Available at: https://weatherspark. com/y/98119/Average-Weather-in-Bungoma-Kenya-Year-Round, (Accessed: 11/11/2021).

2.5 Environment and Climate Risk Profile

Mean annual temperatures have also been increasing since 1985, with night-time temperatures increasing at a faster rate, resulting in an increasingly smaller diurnal temperature range; this trend is set to continue. The total number of hot days with a maximum temperature greater than or equal to 35°C is expected to increase drastically under the Representative Concentration Pathway 8.5 (RCP 8.5) scenario in the southern region of the County, indicating that extreme heat could last for up to three weeks. Climate trends over the last 60 years indicate an increase in the frequency of flooding caused by extreme rainfall events, and droughts21 .

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 45

46 2.6

The diagnostics analysis demonstrated that there are many common challenges to growth, which are shared by all sectors in Bungoma, as presented below. These also reflect the strong influence of national and international trends on local economies within Kenya:

> There is a real lack of upstream capacity for all the VCs where small scale, fragmented, low-skill farming dominates the activity. There is limited, if any, access to the required level of support: the majority of Bungoma’s cooperatives are not functioning as they should and there are insufficient extension services available to farmers.

> Almost all of the businesses consulted reported that they have great difficulty in accessing finance and loans to help their business grow. This prevents Bungoma’s businesses from accessing the equipment and factors of production needed to expand. There are a number of factors that prevent smaller businesses from accessing finance, the main one being insufficient collateral. There are low rates of land ownership in Bungoma, where many residents settled there without acquiring proper rights to their land, this prevents these residents from accessing the collateral they need for a loan.

> Market, trade and services: capitalises on Bungoma’s strategic location along the A8 and the role Bungoma plays in facilitating local commerce and trade. 2.6.1 Barriers for Growth

> Bungoma faces competition from its surrounding economies. Despite its strengths as a sugar producer, one of the key reasons for the sector’s decline was competing sugar factories in the Lake Region. The nearby towns in the Lake Region also offer employment opportunities for higher-skilled labour, there are high levels of out-migration of youths from Bungoma to these neighbouring towns.

> The COVID-19 pandemic has hit, and still is hitting, Bungoma’s population and business environment hard and a full recovery to the economy may take a long time.

Although the County has existing infrastructure in place to support both of the final two VCs, there is limited private sector presence with the capacity to take on these VCs. There will be a need for significant efforts to be made to support the supply chains and build capacity for these VCs.

> There is a real lack of adequate and affordable housing in Bungoma, and existing housing stock is falling into disrepair. There are also a number of informal settlements around Bungoma Township that lack any form of planning and are normally under-serviced by utilities and have low levels of sanitation.

> Current infrastructure cannot keep up with the existing and predicted population growth and in-migration into Bungoma Town. The Town is already experiencing pressure on its infrastructure, services and utilities. The lack of planned development, insufficient resources, and lack of land available for development is spiralling into uncontrolled urban sprawl. To adequately house and service Bungoma Municipality’s growing population and support development of its key sectors, the Municipality will need to upgrade existing infrastructure and commit to new infrastructure projects to support economic growth and development. Critical for the development of the economy will be the improvement of the infrastructure within and outside of the town, particularly in areas affecting production, such as energy infrastructure, water infrastructure, and irrigation for agriculture.

> There is insufficient land for development which results in encroachment onto environmentally-sensitive areas, building on flood plains or unsuitable land, activities spilling onto streets and roads, and congestion. Restricting development across environmentally-sensitive areas is needed, together with compact development to ensure urban sprawl is mitigated over agricultural land and to accommodate the growing population and demand for services. This should be accompanied by legally-adopted land use plans, urban land management, and strict enforcement.

To promote diverse economic development within an attractive investment and business environment, Bungoma Municipality will need to focus on its key economic sectors and the competitive advantages that can support growth within the Municipality, and throughout the County. The economic profile supported by business consultations includes the following:

Bungoma also faces competition from Uganda’s cheaper goods. It is often cheaper for Bungoma’s residents and businesses to travel over the border to Uganda to purchase goods than it is to buy them in Bungoma.

Diagnostics Conclusion: Barriers and Drivers for Growth

> Agriculture, livestock and agri-processing: reflects and builds upon the largest economic sector, recognising the local population largely rely on this sector as the main economic subsistence activity; and

> There are a number of opportunities for private sector players to come in and take over already developed infrastructure such as factory shells or equipment that is not in use. The main barrier here is the lack of capacity upstream, and the problematic PPP system in Bungoma.

47BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

> Bungoma has a strong strategic location, where it not only sits at the border of Uganda, but also is intersected by and has access to the A8. The Kenya-Uganda railway also passes through Bungoma Town and is largely used for transit freight movement. As a result of this strategic location, Bungoma receives high levels of passing trade from the logistics and trade sector.

> Good skill pool - Bungoma’s diverse economy is accompanied by a skilled labour force; the employment opportunities advertised by the County attract commuters and students with a range of specialisms. Bungoma is a medium-sized economy in the Kenyan and regional (LREB) context and is surrounded by multiple other key larger economic centres in the County, the LREB, outside the LREB and in Uganda, and it has access to these towns’ amenities, services, markets, and labour pools. There is also relatively good access to tertiary education in the County with a range of institutions that serve both young adults and the older population > Diverse economy - the County has climate and soil conditions that are conducive to high productivity agricultural activity. Agriculture and livestock are the mainstays of the County’s economy, however, there are a number of other activities that support the livelihoods of Bungoma’s residents. The County also has a significant hospitality and tourism sector that is driven by international and local visitors who travel there for a number of reasons, including Bungoma’s beautiful natural environment, its activities, events and diverse culture. Bungoma’s strategic location also means it provides a crucial role for the logistics sector of Uganda and Kenya, providing a place for drivers to rest and access key services such as fuel, repairs and hospitality. The high footfall and high agricultural productivity make Bungoma an attractive place to start a commercial business or trade within their markets. Trade and commerce are two of the most important activities for Bungoma’s more urban areas. This diverse economy provides some economic resilience for Bungoma’s residents if a sector is hit by a shock or a stress.

Drivers for Growth In addition to the outlined barriers for growth, the SWOT analysis process undertaken for the Diagnostics Report highlighted a number of recurring opportunities for economic growth in Bungoma. These shared drivers for growth are summarised below:

> Adopting polycentric development within the County and providing specialised functions for each urban centre would help to balance development between the various centres rather than allowing them to compete for investment and resources. It would help to build urban/rural linkages and enable a more integrated, greener and inclusive development across the County. Bungoma County already acts as a network of urban centres and has a polycentric economy - Bungoma Municipality as an administrative, knowledge and education centre; Webuye as an industrial centre, due to existing industries and specialism in sugar production; Kimilili as an administrative and commercial hub; and Lwakhakha and Malaba as important trade and logistics hubs on the border with Uganda.

> The Western Region’s agricultural sector will be one of the more resilient areas in Kenya to climate change impacts, given this, Bungoma will play an increasingly important role in meeting the growing demand for food in Kenya.

48 3.

ConceptDevelopment

The UEP Development Concept is the broad framework that integrates climate-resilient, sustainable and inclusive urban development, infrastructure proposals and Value Chain (VC) projects for Bungoma and thereby; structures, prioritises, and phases urban development coherently with respect to the three focus areas for development and investment. The Development Concept is informed by, and will be an accompaniment to, the main forward planning documents steering development across Bungoma, which are the CIDP, the LUDP, and the CSP. The model for development in Bungoma is founded on the UEP principles set out in Section 1 and has been developed in collaboration with Bungoma’s stakeholders. It aims to strengthen the town’s economic position based on its competitive and comparative advantages whilst taking a citizen-centred approach to green growth and sustainable investment.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 49

Figure 3-1 - Overview of Bungoma's Development Concept Source: Atkins, 2022

Figure 3-1 outlines the development concept that integrates Bungoma’s Vision with the key economic sector plans (section 4.2 and 4.3) which include the soft initiatives, the priority VCs and the supporting infrastructure development interventions. This will enable climate-resilient and socially-inclusive economic growth across Bungoma.

> A green, resilient and sustainable city; > A well-planned decongested Town with developed infrastructure;

A visioning exercise was undertaken at the workshop on 24 January 2022. Stakeholders were asked to consider the key elements of a UEP vision, whereby proposed vision statements were then submitted from 48 stakeholders present during the Theworkshop.teamhas analysed these responses to identify common elements. The following elements were mentioned and articulated by the stakeholders, for the Town to be:

> Opportunities for inclusive employment in particular for the Youth; > The most productive agricultural county in Kenya; > Good governance; > Good road networks; > Clean; and > Inclusive and accessible. The proposed vision that best represents the stakeholder’s aspirations is therefore stated as follows and adopted by the UEP: “A gateway to Uganda, Bungoma will continue to be a driving force for the LREB’s economy and leading agri-producer for Kenya. Bungoma will strive to be an exemplar of inclusive, resilient, and sustainable development that puts the needs of its residents first.”

> An economic hub and centre for markets in the LREB; > An industrial hub;

50

> A competitive town, attractive to investors, with a growing private sector;

3.1 UEP Vision

> Polycentric growth - The County’s forward planning framework (described in more detail in the Diagnostic Report in Appendix A) highlights that although Bungoma Municipality is the most populous centre in the County, there are a number of other large settlements scattered across the County. Bungoma County is keen to promote polycentric growth across a number of its key centres to encourage equitable growth across the County and to relieve pressures on strained infrastructure in the Bungoma Municipality. These growth poles identified as centres of polycentric development, will be the key locations to support and promote Bungoma’s urban functionality and sustainable development through urban infrastructure interventions.

> Utilise the affordable inputs from Uganda for agri-processing in the short term to ensure reliable supply chains; and

> To provide value addition services for Uganda and a secure environment for investors looking to add value to Uganda’s produce where Kenya has a relatively better business environment for investment.

> Maximising opportunities from Bungoma’s cultural diversity and its range of unique heritage and natural assets. The Chetambe Fort Ruins, the Sang’alo Cultural Center, the Elijah Masinde Mausoleum, the diverse population and communities along with their traditions and different cuisines, are other examples of the key cultural assets of the County. There are a number of natural assets including the Sikele Sia Mulia and Mwibale rock, Nabuyole Falls, Sang’alo Hill, and San’galo twin rock and caves. These assets all contribute to the attractiveness and the economic potential of Bungoma. Bungoma has an opportunity to harness these assets to make Bungoma a more attractive place to live, work, and visit.

> Serve the growing logistics presence that passes through the Town allowing the local businesses to benefit from their passing trade;

> Unlocking land and densifying in urban areas –Bungoma’s Town is growing quickly and has a range of essential and non-essential amenities and services that pull in visitors from the wider LREB and beyond. The Town plays a critical role as provider of public services such as health, welfare and education, as well as the administrative, financial and retail/trade centre. Development has occurred in a linear fashion along the two main roads in the County, the A8 and the C33, and outward growth is restricted by private lands, agricultural activities and the two rivers Sio and Khalaba. As a result, there is a need to densify the urban area to improve its functionality and connectivity. This can begin by introducing contemporary, creative redevelopment solutions within the existing activities and land use in the Town centre. The aim of these interventions is to create a space that is functional, easily accessible to all, attractive for businesses and investors, that benefits the wellbeing of residents, suits the needs of traders, and ensures the safety of everyone who uses the space. Ultimately these interventions will have the potential to unlock new activity in the CBD and create opportunities for future development to occur in a resilient, inclusive and sustainable manner.

> Export processed produce to Uganda;

> Value addition and food security for the County - The primary aim of agri-processing in Bungoma will be to provide stable offtakes for the produce of Bungoma and improve food security for its residents and collaborate with the local retail/market sector. In the longer term, there may be opportunities to expand its supply chains beyond the counties and add value to produce from Uganda. However, the aim is not for Bungoma to become an agri-processing hub for the LREB, there are already a number of larger counties fulfilling this service, or in advanced planning stages, for example the nearby County of Eldoret is promoting the development of its own SEZ.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 51

> Build capacity to compete against neighbours –Currently the greatest barrier Bungoma faces to unlocking real economic development is its lack of upstream capacity along its key supply chains. There is limited, if any, access to the required level of support: the majority of Bungoma’s cooperatives are not functioning as they should. Furthermore, Bungoma faces significant competition from already developed supply chains and value addition from its neighbouring counties such as Kisumu, Eldoret and Trans-Nzoia, as well as from the more affordable produce in Uganda. There will be a need for significant changes and efforts to be made to support the supply chains and build capacity to support the key supply chains in Bungoma and ultimately create an environment that supports development and value addition along these. This barrier will be central to the development of the SAPs.

3.2 Setting the Concept

The concept for development of the UEP is grounded on the following priorities for development:

> Gateway to Uganda - Bungoma County is well connected to three key border points to Uganda, including Malaba, Busia, and Lwakhakha. This strategic position close to the border has, until now, presented mostly challenges to Bungoma in the form of heavy vehicle congestion, and trucks parking randomly on roadsides, as well as the local economy being undercut by low-cost produce from Uganda. However, its border location still presents a number of untapped opportunities for the County, including opportunities to:

3.3

The two development focus areas for intervention to be considered by the UEP are shown Figure 3-2. These are Bungoma Town and Webuye Industrial Zone. The relationship between these areas is important and therefore factored into considerations for their respective roles within the wider Bungoma County and regional ecosystem, their infrastructure requirements, and how effective linkages, both soft and hard, can drive socio-economic benefits for all communities both urban and rural.

One of the challenges the County government is working to resolve is the significant congestion in the Town which is being done through the construction of a dual carriageway along the C33. This road infrastructure is important to relieve congestion in the CBD, and enable the easier passage of through traffic. Of concern, however, is that it currently leaves little space for NMT and traders to operate in a safe environment.

52

Spatial Framework for Development

Focus Area 1 – Bungoma Town

Figure 3-2 - Bungoma spatial strategy for economic development Source: Atkins, 2022

3.3.1.1

The Spatial Framework consists of a spatial plan with a focus on two key development areas and within which a range of climate-resilient and inclusive urban and infrastructure interventions and projects have been proposed.

The Town is an area of high activity in Bungoma Municipality and County, generally people come to Town for trading, shopping, visiting government institutions, using services such as the hospital, or simply using the transportation routes that converge in the town. After alighting in the main bus station people tend to walk or use boda-boda (motorcycles and bikes) to get around the Town itself. There are a number of challenges the Town faces that are preventing opportunities for growth and economic development, where the current infrastructure cannot keep pace with the existing and projected population growth.

Whilst these investments in the town’s infrastructure clearly prioritise motorised transport, these interventions may initially decongest the town, but ultimately will simply attract greater traffic flows which will cause greater impacts on traders, shoppers and pedestrians if not managed correctly.

Figure 3-3 – Anchor Projects in context of Focus Area 1 Source: Atkins analysis

As a result, many of the existing economic activities, from the market and existing bus park continue to spill out onto the main roads and streets resulting in further congestion and conflict. This lack of accessibility, and significant impediments for pedestrians, results in a disconnected and disorganised, unsafe pedestrian malaise throughout the town, but particularly within the CBD. These issues have manifested as a conflict between motorised transport, parked vehicles, traders, and pedestrians, all of which are competing to use the limited space in the CBD. Outward growth is restricted by private land, agricultural activities and the two rivers Sio and Khalaba. As a result, there is a need to densify the urban area to improve its functionality and connectivity. This can begin by introducing contemporary, creative redevelopment solutions within the existing activities and land use in the Town centre. In response to the above, the UEP has identified a series of Anchor Projects within Focus Area 1 aimed at relieving current issues and challenges whilst opening up the Town and its CBD to greater future investment opportunities and attraction.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 53

Figure 3-3 below indicates the location of the Anchor Projects and some of the other key infrastructure projects in Bungoma Town.

Anchor Project C –

Anchor Project B – The existing airstrip and prime land available for redevelopment - Bungoma’s potentially decommissioned airstrip, being one of the largest pieces of land within the urban centre, presents a significant redevelopment opportunity in the heart of a densely-populated and land-constrained town. The land belongs to Kenya Airports Authority, but there are ongoing discussions between the County government and KAA around decommissioning the land. The UEP looks to promote the development of this land to create an integrated government services campus with associated residential and public amenities.

The potential Moi Avenue green link and associated public realm enhancement – Currently a key transport node that connects the CBD to the existing airstrip land as well as the County and Municipal Government offices. This route performs a ‘high street’ function within the CBD, is relatively quieter than the adjacent upgraded C33, and presents significant potential for a public transport and NMT corridor to connect the key development nodes within the Town.

The existing CBD and market areas –This is the heart of the Town and the County, and a magnet for visitors from the wider LREB and beyond. The anchor project is premised on a series of urban design, transportation, utilities and services interventions to create a high-quality functional space.

54 Anchor Project A –

Focus Area 2 - Webuye Industrial Zone

Source:

Figure

3.3.2.2

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 55

Webuye has promising existing conditions that make it suitable for new industrial activity, where it has been developed with the vision of it becoming an industrial Town and is already the industrial centre of the County. The County already has plans to set up an industrial park in Webuye, so far, a feasibility study has been done and a site plan developed in collaboration with the Industrial and Commercial Development Corporation (ICDC), Kenya. The site is located on a 103-acre plot of land, however, this land is currently contested. Webuye is already well-connected on the northern corridor (A8), has a railway station in the town, existing energy supply from the major substation, and has a commercial airstrip nearby. There is a local pool of people who are trained to work in the existing factories, there are also a number of education facilities including a constituent college campus of Masinde Muliro University of Science and Technology and a Kenya Medical Training College campus. The wider area is generally well-served by infrastructure and has the space available for further development. Currently based there is a cluster of operational Rai owned factories, including the paper mills and the chemical factory. 3-4 – Focus Area 2 Webuye Industrial Zone Atkins analysis

There56 are two sites identified within the Webuye Industrial Zone for development of industrial space to support a number of potential VCs and industrial uses. These sites will be a space to facilitate the future VC opportunities for Bungoma such as potato processing, and the value addition of fruit and vegetables. Also based within the Webuye Industrial Zone is the completed milk processing factory, without equipment, which is being considered as the key element for the priority milk processing VC. Most of Bungoma’s VCs involve some form of industrial processes. Planning to locate a handful of the VCs with associated industrial development opportunities in Webuye, and thus clustering the VC groups at the same location, allows for economies of scale and potential development of synergies between industrial activities. The industrial site will be developed as a climate-resilient and green industrial hub to limit pollution and damage to the natural environment and optimise resource allocation and efficiencies.

More detailed design guidelines and pilot sites for the VCs within the Webuye Industrial Zone is provided in Section 4.2.5.1.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 57

DevelopmentEconomic

58 4.

4.1 Overview

The Economic Development Plan consists of economic sector action plans which will support the County Government and the Municipal Board to deliver a more cohesive, holistic, and sustainable economic future for Bungoma. Two key sectors have been identified for further development in the UEP, with an Action Plan formulated for each sector. The two key sectors identified are: > Agriculture, livestock and processing; and > Markets, trade, and services. There are three core elements to the sector action plans (SAPs): > Soft Initiatives, Training and Capacity Building; > Value Chain Opportunities; and > Climate-resilient and inclusive infrastructure projects/anchor projects. The interactions between these core elements of Bungoma’s economic development are detailed in Figure 3-1. Ultimately the aim of these plans is to provide clear actions for the development of sectors in their own right, as well as promoting ecosystems of VCs, and identifying appropriate climate-resilient and inclusive infrastructure proposals to support growth. Sectors are designed to be developed in synergy rather than in silos, meaning that some actions are likely to be cross-sectoral. The sectoral action plans also consider the challenges related to sustainability, climate resilience, inclusivity, and opportunities to promote a circular economy.

59BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

Several of the VC projects would benefit from clustering, in particular, animal feed mill, potato processing and fruit and vegetable canning, with the potential to share infrastructure and some processing capacity (for example wastewater treatment). Furthermore, there are benefits from integrating the logistics for collection and dispatch between processing facilities and farms. The potential linkages between the shortlisted VCs are highlighted in the figure below.

> UEP selection: seven short-listed VCs were further assessed in detail, including their costs and revenues, competitiveness and land and infrastructure requirements, utilising the wider SUED assessments.

> Evaluation: the SUED evaluation framework used to sift the opportunities, including criteria for the SUED principles (included within Appendix B, Technical Briefing Paper). The Municipal Board, PSG, and other stakeholders identified the relative importance of each criterion for Bungoma, to provide weightings for the final evaluation and identification.

> Poultry: this VC is aimed at developing a fully integrated poultry industry in Bungoma, building on existing farmers, distribution and collection networks, and processors, and filling in the gaps and improving overall efficiency.

> Diagnostics alignment: the long-list was assessed against the SWOT analysis and other factors identified in the diagnostics stage. The resulting list was presented to stakeholders.

Value Chain Addition Evaluation Process

Following further discussions with stakeholders, two VCs were selected for taking forward in the UEP:

> Dairy: this VC covers the development of a milk processing plant and wide-ranging integration and improvements in the operations of the dairy sector in Bungoma, under the umbrella of the Bungoma Dairy Development Company (BDDC). These VCs have been assessed against climate resilience and social inclusion, scoring highly. They have also been assessed to have higher readiness for investment than the other shortlisted VCs, and as such are suitable as initial projects to spur further growth given the County’s competitive advantages.

Soft Initiatives, Training and Capacity Building

The soft initiatives are developed from the findings of the economic sectoral assessments and SWOT analysis undertaken at the Diagnostics Report stage (Appendix A), and are presented in the following sections for each sector. These action plans have also been informed through the SUED business consultation exercise (section 1.3), workshops with local stakeholders and data analyses. These consist of a mix of soft interventions such as education and training, changes to systems such as skills development, technology availability, and smaller infrastructure recommendations such as local or household water capturing. These look across the sectors at a more macro level than is done for the VCs. In particular in the agriculture, livestock and agri-processing industry, the proposed soft interventions will be integral to the success of the VCs.

It is, however, important to note that Bungoma lacks upstream capacity for all the VCs where small scale, fragmented, low-skill farming dominates the activity. There is limited, access to the required level of support: the majority of Bungoma’s cooperatives are not functioning as they should and there are insufficient extension services available to farmers. Furthermore, Bungoma faces significant competition from already developed supply chains and value addition from its neighbouring counties such as Kisumu, Eldoret and Trans Nzoia, as well as from the more affordable produce in Uganda. Although the County has existing infrastructure in place to support both of the final two VCs, there is limited private sector presence with the capacity to take on these VCs. Out of the above two shortlisted VCs, poultry farming shows the most promise, where there is already a key private sector player (Shiffa Chicks) strengthening supply chains and undertaking capacity building in the sector. There will be a need for significant efforts to support the supply chains and build capacity for these VCs.

The Technical Briefing Paper (Appendix B) included assessment for a further five shortlisted VC opportunities: potato processing, animal feed mill, canning of tomatoes and other fruit and vegetables, production of ethanol from molasses, and the production of a range of low-cost construction materials.

Identifying the UEP value chain opportunities for Bungoma was a four-stage process: > Long-list process: an extensive list of economic opportunities, reflecting government policies, VC studies, exports and imports assessment, inputs requirement, outputs and processes, linkages with key policies and programmes, and market linkages.

Climate Resilient Infrastructure Projects

Several projects have been identified to promote the development of economic activities such as infrastructure needed for the selected VCs and trade activity; and address challenges across the wider area, which support the urban development with adequate infrastructure coverage.

The infrastructure proposals will be sequenced to optimise their individual and collective impacts whilst aiming to minimise costs and resource utilisation. Whilst each proposal may be implemented as a standalone project, it is only through their effective linking and sequencing that they will create the largest impacts for future private and public investment potential. The timeline categories used for the UEP are: > Short-term 0-3 years > Medium-term 4-9 years > Long-term 10+ A breakdown of the project scheduling is provided in section 5. Value Chain Cluster and Linkages

The proposed projects have been assessed against climate vulnerability and a number of adaptation measures have been identified to ensure resilience. The climate vulnerability assessment report is appended to this report (Appendix D). Recommendations have also been made around inclusivity for each of the proposals.

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Figure 4-1 - Wider

Source: SUED Atkins Team

Strengths Weaknesses

› Poor quality, insufficient agricultural inputs › Farmers struggle to access finance

22 CGoK, Agricultural sector development strategy (2018) 23 KNBS, GCP (2019)

› Industrial waste dumping in rivers is polluting water supply for irrigation and domestic use

› Low levels of technology uptake › Fragmented subsistence farming dominates activity › Challenges in managing pests and diseases

› Quickly diminishing nutrient content of soil as a result of inappropriate use of agro-chemicals: fertilizer and pesticides

Most of the agricultural activities are rain-fed, meaning that farmers only plant during the rainy seasons. This dependency on rain-fed agriculture exposes families to climate variability and restricts the growth potential of the sector24

Agriculture is a sector of fundamental importance to Kenya’s economy. It accounts for approximately 25% of annual GDP with a further 25% through the sector’s supply chain and related spending. Agriculture represents 65% of Kenya’s exports and accounts for 70% of informal employment in rural areas22. As such, developing the sector has been identified as a central component of the country’s growth strategy, as clearly reflected in Vision 2030. There is significant emphasis in developing agri-processing nationally, with the aim to create 200,000 new jobs and to triple production, with the higher values on the global market a key incentive. Kenya’s Agricultural Sector Transformation and Growth Strategy (ASTGS) aims to increase the contribution of agri-processing to GDP by 50%.

24 County Government of Bungoma, Bungoma County Integrated Development Plan 2018-2022

› Climate change, increasing temperatures and rainfall variability

› Poor last-mile connectivity

› High taxation of start ups Table 4-1 - Agriculture, livestock, and agri-processing SWOT

61BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 4.2 Agriculture, Livestock, and Agri-Processing SAP

› Highest productivity crop zone in Kenya › Established supply chains with LREB › Existing value addition in Kenya › Number of extension services offered

› Lack of storage for fresh produce

› One of Kenya’s largest agriculture and livestock producers › Favourable climatic conditions, and conducive soil conditions

Strengths Weaknesses

› Bungoma’s agriculture and livestock sector is relatively resilient and will be a main agri-producer going forward

The western region has been a key food producer for the nation, though population growth and urbanisation in recent decades has resulted in insufficient production and supply chain capacity to meet growing needs. Bungoma’s agricultural sector produces output at KES 108,000 million a year, placing it eighth out of the 47 counties23. As climate change impacts will be felt more acutely in other regions going forward, the LREB will likely become ever more important to Kenya’s consumption and food security. The conducive climate and rich soils have provided the foundations for a productive agriculture and livestock sector. Bungoma’s agricultural sector has the potential to produce enough food for local consumption as well as external trade. However, much of the production is small scale, with smallholder farms accounting for more than 90% of land holdings in the County.

› Strengthen supply chains with LREB › Further value addition › Better storage provision › Large potential labour force available, including youth, seeking employment opportunities.

62 Figure 4-2 - Bungoma Agriculture, Livestock, and Agri-processing SAP

Source: Atkins, 2022

The below diagram presents the overarching plan for development of Bungoma’s Agriculture, Livestock, and Agri-processing sector. At the center of this plan is the VC opportunities

> Training that is in a language and format that is accessible for low-income populations and SIGs. This is particularly important in Bungoma given its cultural diversity; > Promotion of permaculture techniques such as agroforestry and mulching. Training in permaculture skills has been successfully delivered to local farmers and primary school teachers by Practical Permaculture Institutes in Kenya, Tanzania and Zanzibar with the aim of empowering communities to lead sustainable livelihoods. There is opportunity to engage with this team and learn from their experiences; and

> Sustainable land management techniques to combat land degradation such as those which have been successfully implemented by the Great Green Wall initiative. See case study below for more detail; > Avoiding monocultures and practise crop rotation; > Where land allows it, fallowing can be done; > At small scales, exclusive manuring is practical;

Aim Action resilientMore sectorandagriculturesustainableandlivestock

Soft Initiatives, Training and Capacity Building

A1 - Act against soil degradation. Overuse of fertiliser needs to be monitored, stopped. Overuse of agro chemicals to achieve better yield comes at the cost of long-term soil quality. A2 – Plan for worsening water scarcity –although this is not a major issue now, in the long term the impacts will become more apparent.

A number of previous infrastructure developments in Bungoma, that have aimed to unlock activity in the sector, have failed to take off due to the lack of capacity in Bungoma. There is a lack of upstream capacity for all the VCs where small-scale, fragmented, low-skill farming dominates the activity. The soft initiatives are aimed to address existing challenges noted and support and organise the sector gradually. There is limited, if any, access to the required level of support: the majority of Bungoma’s cooperatives are not functioning as they should and there are insufficient extension services available to farmers. Although the County has existing infrastructure in place to support both of the final two VCs, there is limited private sector presence with the capacity to take on these VCs. There will be a need for significant efforts to be made to support the supply chains and build capacity for these VCs. These soft interventions have the potential to attract private sector interest in the medium term. There is already relatively well-developed infrastructure at the Webuye industrial site. This set of softer interventions will be integral to development of this sector, where these interventions will look to address key gaps in capacity and support along the supply chains.

A3 - Protect sensitive environmental assets and farmland from dumping in rivers.

63BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

> New inputs/technologies should be culturally-appropriate.

Table 4-2 - Agriculture, livestock, and agri processing soft initiatives

A1 - Act against soil degradation. Overuse of fertiliser needs to be monitored, stopped. Overuse of agro chemicals to achieve better yield comes at the cost of long-term soil quality. Potential interventions include:

4.2.1

> Sustainably planned community boreholes. These can be implemented quickly, considering groundwater availability.; and

Promoting these interventions through farmer groups encourages inclusivity. This needs to be accompanied by initiatives such as changing farmer groups and associations’ membership requirements (e.g. not tied to land-owners) and developing awareness sessions to promote SIGs’ participation in these groups. This will contribute to including them in decision-making processes and enhance their access to information.

A3 - Protect sensitive environmental assets and farmland from dumping in rivers.

Source: Great Green Wall. Available at: https://www. greatgreenwall.org [Accessed 18/02/2022]

The two tools the County can use to protect its rivers are enforcement of the policy that protects the rivers, and creating an awareness of the consequences of their actions through effective information dissemination. Potential actions include:

> Plant woodlots upstream, and cover crops to reduce erosion and sediment loads reaching river.

Although water scarcity is not a major issue now for Bungoma, in the long term the impacts will become more apparent. Bungoma needs to develop a plan for water management, which considers climate change risks, impact of upstream catchment activities on water quantity and quality and the sector’s requirements to align with the Municipality’s water supply needs. The water infrastructure proformas contained within the Development Framework provide specific targeted interventions, some further crosscutting household level interventions include:

> Adoption of on-farm techniques that promote holding and retention of water and reduce flash floods;

> Insurance for farmers who take up solar-powered irrigation systems (e.g. Turkana and Isiolo Counties are encouraging the uptake of financial and insurance facilities for purchase of SPIS)

> Maintain the riparian zones intact (ban stream bank cultivation). Zone can be up to 30m on each side;

A264 – Plan for worsening water scarcity

> Strengthen local WRUA participation to enforce river protection at community level; > WRUAs can also develop local action plans for resource mobilization for environmental programmes;

> Domestic rainwater harvesting, where most homes use iron sheets for roofing (explore integrating this into the construction materials VC highlighted in Appendix B);

Organisations such as USAID, Islamic Relief, Kenya Integrated Water Sanitation and Hygiene Project, Kenya’s Drylands Development Programme, and the AfDB’s Kenya Towns Sustainable Water Supply and Sanitation Programme are implementing these measures across Kenya.

> Expand use of soil conservation techniques. The Livelihoods Fund focuses on land restoration to increase food security and preserve water resources (Vi Agroforestry and Brookside);

> Create awareness through print and electronic media (TV and community radios). Also incorporate concept on World Environment Day; and

Case Study The Great Green Wall (GGW) is an African-led movement launched in 2007 by the African Union. Recurrent droughts and desertification threaten the livelihoods and futures of entire populations across Africa's Sahel region through land degradation, declining yields and disappearance of livestock. The initiative aims to create an 8,000 km natural wonder of the world across the width of Africa, in the Sahel and Sub-Sahara regions, and will be the largest living structure on the planet. The GGW contributes directly to the 2030 UN Sustainable Development Goals, aiming to end poverty, promote prosperity and wellbeing and protect the planet. By 2030, the initiative aims to restore 100 million hectares of degraded land, sequester 250 million tonnes of carbon and create 10 million jobs in rural areas. The movement consists of 21 African countries and a broad range of international partners including the Pan African Agency of the Great Green Wall, African Development Bank, One Planet Summit, Agence Française de Development, Green Climate Fund, Global Environment Facility, The World Bank, European Commission, European Investment Bank, and International Fund for Agriculture Development. Focal areas include sustainable water and land management, land restoration and rehabilitation, smart agriculture, promotion of agroforestry, education and awareness, capacity building and innovation, among others. So far 25 million hectares of degraded land have successfully been restored in Ethiopia, Nigeria and Niger, and 3 million hectares have been rehabilitated in Burkina Faso, contributing to increased food security in these countries.

> Lining and expansion of existing small-scale water pans;

A9 - Create a PPP friendly environment.

Table - Agriculture, livestock, and agri-processing soft initiatives

A10 - Improved access to finance for farmers.

capacity.ofAddressinvestorsprivateattractivethatenvironmentbusinessaistosectorandlackdownstream

A4 - Organisation of the key players along Bungoma’s supply chains. These interventions are integral to the success of Bungoma’s agriculture, livestock, and agri-processing sector, and therefore have been detailed in depth below.

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4-3

A5 - Training and educating farmers.

Aim Action Description Create

A6 - Distribution of equipment, and technology for farmers.

A7 - A new model for aggregation of agricultural produce.

A8 - Support the production of animal feed in Bungoma

Structured coordination such as in Trans-Nzoia

Lack of political will from GovernmentCounty

The County Government do not provide physical assets to cooperatives such as land that can support operations.

Cultural diversity

Improve technical capacity

In Bungoma, the coop memberships are almost entirely composed of indigenous people, and there is a lack of diversity in composition and thought.

In Trans-Nzoia County, there is a very well-structured Coop movement in every sub-county (or constituency) operating in the poultry, milk, and maize/cereals value chains. The success of the cooperatives in neighboring counties can provide a guide for development in Bungoma. The umbrella organisation should actively look to engage with these counties and its cooperatives

There is a clear need for organisation of the different actors and businesses involved in Bungoma’s key supply chains. This will be integral to the success of the proposed VCs. There are different models and approaches to organise and facilitate cooperation across the players involved across supply chains. One model that may work well for Bungoma is a Makueni style structure of cooperatives where there are just a few individual farmer-based organizations (FBOs) (such as farmer associations, farmer interest groups and cooperatives) which focus on just one product, that sit under one umbrella organisation which would be managed by the County government. Figure 4-3 shows how this might apply to the key players involved in Bungoma relating to some of the shortlisted VC opportunities.

FBOs need to be physical rather than virtual Although registered to an address, many of the cooperatives do not have an office space or physical structures for operation. Officials often move around with coop movement documents in folders.

Incentivises participation

This cultural diversity has brought in different strengths to coops since bringing alternative views for different cultural and religious backgrounds.

specialisation,Structuring, and focus of FBOs Bungoma county’s cooperatives in particular suffer from an unclear agenda to guide the work they do. They lack specialisation and focus which often confuses their objectives. They also tend not to be structured with clear strong leadership in place.

There are a number of factors that manifest the challenges of Bungoma’s agriculture and livestock sector, its lack of strong cooperatives in Bungoma County, and unsuccessful attempts at value addition. Organising the sector would address some of these challenges and have the following benefits:

Trans-Nzoia County has a good model for county involvement in cooperatives. The officials from the county government are keen to be involved in the affairs of the coops and support their agendas. They encourage the people, organise and facilitate meetings, including annual general meetings.

Trans-Nzoia County, like Bungoma, is a cosmopolitan county with almost all the sub-tribes of Kenya. However, unlike Bungoma, Trans-Nzoia’s existing coops have members from different varied communities.

It is important that the cooperative officers from the county government have the appropriate education, commercial knowledge, and entrepreneurial background to sufficiently support the range of cooperative members.

There is a need to incentivise participation and change the narrative around financial support in Bungoma. A historical culture of handouts in Bungoma has created an issue of expectations from businesses in Bungoma and a lack of risk and incentive when receiving funds. Where residents have received handouts in the past, they have been reluctant to put their own money on the line. Their needs to be a step change in attitudes. This is also reflected in Bungoma’s cooperatives, where they rely on funds solely from the county or other organisations, they do not have consequences for failed ventures.

A466 - Organisation of the key actors along Bungoma’s supply chains

67BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) Figure 4-3 - Map for future organisation of the key players along Bungoma’s supply chains Source: Atkins, 2022

25 Farm Africa, The Power of Farmers Organisations in Smallholder Agriculture in East Africa

> Care with expanding too rapidly; and

> Increased use of paraprofessionals to deliver services to members; > Creativity in identifying services for members and linking to other networks, including financial services. Exploit available training support and other services from the government to a maximum;

> Increase gender equity in the organisation; > Initial training and mentoring to develop clear missions, objectives and constitutions; efficient leadership;

> Explore opportunities for the private sector to invest in specialised FBOs and allow them to integrate and use facilities of specialised FBOs. The guide from Farm Africa recommends that specialised FBOs would usually require five to six years of support from NGOs before they can become financially independent. One way the specialised FBOs could get off the ground would be to cooperate with NGOs and IFIs and take advantage of the funds available, some existing funds available to tap into include:

The68 most tangible benefits for farmers who are members of cooperatives relate to collective marketing and premium or guaranteed prices for products. There is a need for a set of just a few specialised, strong cooperatives in Bungoma. There are existing groups (farmer groups, self-help groups, cooperatives), however, they are mostly virtual groups of interested parties, and therefore they do not have the capacity to be commercially viable on the ground. These groups are less active if there is not a source of money to be pursued, and tend to lack direction and focus, supporting a number of different value chains. Farm Africa has produced a guide on what contributes to a strong specialised FBO25. The specialised FBOs should be designed to have good leadership, functional organisational and democratic structures, and a steady source of income. The cooperative should have the following core functions; communication and information management for members, capacity building, developing alliances with other partners and organisations, collective marketing, business development, resource mobilisation, and policy advocacy. The report concludes with many recommendations on achieving healthy specialised FBOs that maximise services to members and contribute to better and more market-oriented farming for smallholders. Some generic recommendations from the Farm Africa document include:

> More market focus and investment in market intelligence;

> Support from public institutions and NGOs should not distort the value chain; > Specialised FBOs need to develop internal monitoring and assessment mechanisms;

> Heifer International Funding through Chicken Basket Ltd > NURU International (USAID Fund) on Upscaling

> Agri-Fi Kenya Challenge Fund - implemented by Self Help Africa (SHA)

> Kenya Investment Mechanism (KIM) Programimplemented by Palladium International > GIZ Farmer Equipment (support for formation of Coop Union and Training)

> National Agricultural and Rural Inclusive Growth Project (NARIGP)

> Agriculture Sector Development Support Programme Phase Three (ASDSP III)

> Kenya Climate Smart Agriculture Project (KCSAP)

> Higher involvement of specialised FBOs in the planning, design, and implementation of government policies;

The role of the umbrella organisation would be an overall coordinator of activities in the sector and would manage and facilitate communications with other organisations, such as national government and NGOs. It would also act as a regulator to the private sector to prevent it from exploiting suppliers. The organisation should support farmers through improved infrastructure, providing financial support, investing in the cooperative’s projects, and supporting specialised FBOs in capacity building and equipment provision. They would also oversee the synchronisation of farmers’ inputs across the county, to reflect the demand. In order to be successful, this body would have to truly add value and not just further costs for the County; it would need to go above and beyond what the specialised FBOs can achieve on their own. It would need to work closely alongside other key groups such as the Chamber of Commerce, and national government programmes, to ensure that politics are not driving decision-making for the umbrella organisation, and to allow the private sector to leverage existing funds through this model.

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The above model for specialised FBOs would be essential to the delivery of training, where they could partner with the existing training institutes in the County including Mabanga ATC, San'galo TTI, and Kabianga University. The current system for extension services in Bungoma is in need of reform, where it focuses primarily on targets for the number of farmers trained. This system is preventing the farmers from receiving training that reflects their activities, instead they often receive more general training from extension officers that are not always trained in the areas that reflect the needs of the farmers. The specialised FBOs detailed above would have greater capacity to be the vehicle to deliver this appropriate training.

To maximise social benefits for SIGs, however, it would be important to: > Develop low-cost and accessible training options for out-ofschool youth, women and PWDs with low literacy levels (see C-BED programme below). For example, business and marketing training should be available to support those who already own businesses and those who would like to start one regardless of their education levels. These alternatives will also benefit women and PWDs in Bungoma who often face barriers to accessing these opportunities due to low literacy levels, domestic and community responsibilities, and lack of access to information;

Kenya Markets Trust worked with Bungoma chemists to facilitate an agricultural expo in Bungoma, for an intense day of knowledge-sharing27. They successfully used the radio, a common source of information for farmers, to disseminate information on the event.

A lack of effective training for farmers on product-specific methods and managing finances and loans was highlighted by stakeholders as a key barrier for growth in the agriculture and livestock sector for Bungoma. The county is lacking the vehicles to deliver training for farmers, where it doesn’t have a set of functioning cooperatives, nor does it have agricultural training centres. Instead, NGOs and national government-run initiatives are the main source of knowledge for farmers in Bungoma. The Sustainable Agriculture Development Initiative (SADI) Kenya has worked with Bungoma’s primary school and has successfully educated children on efficient, sustainable agricultural methods, which has freed-up time and created a source of income generation for the children and their families26 .

There are a number of national and local guides to provide farmers with specific knowledge; NGO Creadis have worked to develop a manual on growing sweet potatoes that has been a helpful tool for farmers with access to the internet, Jua Sustainable Africa Farming Ltd have also created a local guide titled Jua Sweet Potato Production Guide which they disseminate through hard copy handouts28

28 Sweet potato knowledge, Sweet potato seed systems – training manual for farmers (2009). Available at: uploads/2016/02/sweet-potato-seed-systems-draft-manual.pdf,http://www.sweetpotatoknowledge.org/wp-content/(Accessed:18/02/2022).

The agri-processors involved should be incentivised to utilise and upskill local labour to retain the economic benefits for Bungoma’s residents.

> Liaise with, and inform local communities about, existing government opportunities and funds to support local entrepreneurs, start-ups or MSMEs. Aim particularly at targeting SIGs. This will help address the most common challenges faced by SIGs’-owned start-ups in Bungoma (limited access to capital); and

A5 - Training and educating farmers

> Young people in Bungoma indicated in focus group discussions that they would be more interested in agriculture, livestock and related activities if they could see them as economically profitable activities. Engage with existing young producers and youth-owned businesses in the region to showcase the benefits of being involved and start agri-businesses and agri-processing;

> Consider developing additional outreach training to facilitate access to remote communities and people with restricted mobility due to physical impairments or cultural norms. Always prioritise locations and timings that are compatible with SIGs’ everyday lives and economic activities. Training materials should be accessible to all;

> Actively communicate about all business development opportunities in local media, universities and local TVET centres, and to ensure communication formats and languages are accessible to all;

> Promote internships and on-the-job training to support skills development of local students. It is recommended to set participation rates for PWDs, youth, women, and vulnerable groups.

26 Sub-Sahara, 10 schools to benefit from farming training and seed bank (2021). Available at: from-farming-training-and-seed-bank/,https://subsaharafarming.com/10-schools-to-benefit-(Accessed:18/02/2022).

27 Kenya Markets Trust, Improving livelihoods through diversified agriculture (2017). Available at: livelihoods-diversified-agriculture/,https://www.kenyamarkets.org/improving-(Accessed:18/02/2022).

A7 - A new model for aggregation of agricultural produce

There is a need for improved access to technologies and infrastructure that could improve the resilience and productivity of the sector such as: > Equipment and infrastructure – including cold storage, farming tools, and delivery vehicles.

Case LearningStudyentrepreneurship without a trainer: C-BED programme

A6 - Distribution of equipment, and technology for farmers

Aggregation can provide a holistic approach to overcoming supply chain challenges and also serve as a key pillar of integrated economic development. It can improve and stabilise farmer incomes and strengthen the resilience of food production and provide farmers with essential access to information and resources, including knowledge tools to build capacity, plus, storage solutions and better market access and prices. Guaranteed markets also serve as an incentive for smallholders to invest in improving their methods of productivity and in meeting the standards and requirements of modern markets, and ultimately enhance their competitiveness.

The aggregation centres for the individual VCs would be best overseen by the specialist FBOs in the sector that have been outlined above. Where guidance and financial support would be provided to the FBOs from the umbrella organisation. There may also be opportunities for cooperation between these different aggregation systems, for example in some cases it may be viable to share aggregation centres and divide the costs.

The Community-Based Entrepreneurship development (C-BED) is an International Labour Office (ILO) initiative that provides training programmes to help entrepreneurs and micro-businesses improve their business. The key aspect of C-BED is that training can be carried out without external trainers or resources and it has been designed to be used by marginalised and vulnerable communities. Only a facilitator is required, and participants work together in small groups to solve problems and share existing knowledge and experiences. The programme is therefore action-based and combines local insights with analysis. All C-BED resources are free to access.

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> Resources and services – including the supply of agricultural inputs and delivery services, as well as the sharing of best practices and marketing strategies, such as price determination and branding. Farmers can also benefit from economies of scale, with respect to the transportation of produce to markets and agri-processing facilities. Several emerging digital technology platforms could be utilised to support this process. For instance, the Hello Tractor platform, which has a growing foothold in Kenya, connects small-scale farmers to tractor owners to temporarily hire otherwise idle vehicles. The result is convenient and affordable tractor services for farmers and an extra source of income for tractor owners. Other options include the offering of communal machinery, education about and offering of inexpensive handheld equipment, and encouraging joint investment of farmers in machinery. Often, SIGs do not access information about these opportunities or training on how to use machinery. Use of technology is very gender-based so it is recommended to incorporate a communication strategy in spaces that SIGs use (i.e. markets, digital means) and through outreach training that directly targets SIGs.

From a buyer’s perspective, aggregation enables the cost-effective provision of logistical capacity to collate the output of many farmers scattered in remote rural areas and build the capacity of those farmers to meet required volumes and quality.

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> Poultry: Shiffa Chicks has submitted an EOI for land at the Mabanga ATC where it wants to conduct aggregation, among other activities. Alternative sites: Chwele has available land for an aggregation centre and would cluster with existing poultry activity there; Sang’alo will be near the institute with agricultural students. There is also wide land around the centre; or Bumula, where there are more farmers rearing poultry in the area.

> Namwacha in Kanduyi: This was meant for sweet potato processing but it is idle; there is just a shell of the factory, no power or storage facility.

> Potato: Mabanga – this could be a major collection centre. At present, there are many potato farmers who send their produce to Mabanga. The Mabanga ATC has also influenced many farmers to become potato farmers. There is also a good road network connecting Mabanga with other major centres. Alternative site: Mwanga – the Town already has one processing plant for potato processing. The area also has many farmers. The County government also has land that can be converted to potato plantation.

> Matisi in Webuye west: A facility was built ten years ago, to store and process fresh produce but it is idle.

> Feed mill: Kaptama – this Town has a feed mill, but the machine is currently not working because of lack of power. Alternative site: Natiri, which has raw material (maize and sunflower). There is also a maize milling plant nearby.

Case as a model for successful aggregation

ShiffaStudyChicks

> Milk: Kaptama (Mt Elgon) – this area gets about 10,000 kg of milk daily which it currently sells to Brookside Dairy. Alternative site at Sang’alo: There are many farmers who were trained in Mabanga during the Heifer International programme. These farmers also have dairy cows; there is also a milk cooler in Sang’alo.

> Interlocking blocks: Ndengelwa – this is a site for the original demo site. Alternative site: Namosi –locals in Namosi have a culture of brick-making.

> Kimilili: This site was to serve as a tomato processing centre but it is currently just a structure.

Shiffa Chicks has started to plan its own aggregation model for bulking and providing support to farmers. The aim of these distribution points across the region would be to provide feed, vaccinations, chicks, and quality checks. They also help to pay farmers promptly at the point of delivery. Primarily, Shiffa Chicks is looking to invest in farmers who already have experience and the capacity, with the hopes that this will attract new farmers to get into the sector. This model relies on the farmer to cover the transportation to the collection point, then the private sector owner organises the transport from the set of collection points to the processing factory. The private sector company also pays for transport from the factory to buyers. Shiffa Chicks highlighted Mabanga and Matisi as good locations for poultry collection centres. Mabanga is well-prepared as it has water, it is on the main road, there are a number of farmers already there, and there is a training centre. Matisi has always acted as a natural collection point, where most of the farmers from Webuye and surrounding areas bring their produce to Matisi given its location on the A8. With the right financial support Shiffa Chicks plans to provide chicks, feed, training, and other supply chain supporting interventions. This model could be replicated for other supply chains with the right support from the County government.

Some form of aggregation already occurs or has been planned in locations across the County. These areas were chosen to service local markets and utilise nearby supply chains, and the spatial design of formal aggregation system would build on this existing network. These areas are as follows and can be seen in Figure 4-4:

> Several Smallholder Horticulture Marketing Programme (SHoMAP)29 project also built facilities located here, that were meant to become feed plants. None of them are working and they have been converted to residential use. The sites are in Webuye, Chepkube, Bumula, Kaptama, Kimilili, Lugulu, Matisi and Namwacha. Where appropriate, an aggregation network in Bungoma could look to co-locate different aggregation centres to reduce costs and travel times for suppliers. The following areas were suggested as ideal locations for Bungoma’s main value chains proposed under SUED, these locations can be used to inform potential future locations for aggregation centres for each of the VCs: 29 IFAD, Smallholder horticulture marketing programme supervision report, (2014). Available at: 2049-4ab8-b649-ef87fa3c5331?t=1611226437000,Smallholder+Horticulture+Marketing+Programme+Supervision+Report.pdf/5c46ba9e-https://www.ifad.org/documents/38711624/40089498/(Accessed:18/02/2022).

> Lugulu: This was originally built for fresh produce but has since been converted to an operational potato aggregation/processing centre for JUA AFRICA’s export.

> Fruits and vegetables: Chwele. There are more farmers in the area, and it has the largest open-air market. The River Chwele passes through Town as a source of water.

The72 above localised aggregation centres would feed into a larger aggregation centre in Webuye industrial site for value addition. Webuye is well connected to all of the named local collection centres along Bungoma’s key feeder roads. All of these key locations and the related transport links can be seen in Figure 4-4.

Figure 4-4 - Bungoma County existing and proposed collection centres Source: Atkins, 2022

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As well as aggregation, there is potential to utilise these collection centres as points for dispersing inputs and support for farmers. Smallholder farmers selling to the collection network could be supported, for example, through the provision of produce-handling material such as appropriate bags and crates, farming advice, market information and timely payments of supplied goods. At the collection centre, post-harvest storage solutions are needed, such as warehouses with cold storage facilities, solar-powered cold storage units, on-site water harvesting, and on-site waste management will also be required. The provision of receiving, sorting, grading, storing and dispatching facilities will support the undertaking of some form of pre-processing. Since many agricultural products are perishable, transport to the processing plant and final markets will need to be adapted to provide refrigeration for products prone to damage. These actions could be complemented with a digital communication strategy to reach smallholders, in particular SIGs, to access information about scheduled collection services, availability of storage facilities, and technology. This strategy could also be used to communicate market opportunities, short-term and seasonal weather forecasts, and training opportunities, with communication in formats and languages accessible to all.

In the longer term when there is an established supply, there would be potential to explore infrastructure for a fodder/feed mill to increase the production.

A8 - Support the production of animal feed in Bungoma One input that is in high demand in Bungoma is animal feed, where farmers are forced to buy this from Uganda. This drives up costs to the farmers where feed is expensive. There is potential for producing feed in Bungoma, however, farmers are reluctant to invest in crops where there isn’t a clear demand. To support the production of feed in Bungoma there will need to be an initial demand for the inputs. In the short-term, small-scale production could take place at the existing Bungoma cotton ginnery which would create a market for the farmers and confidence to grow sunflower, sim sim, yellow maize and other inputs required.

A9 - Create a PPP friendly environment

There is a small existing private sector in Bungoma. The private sector is motivated primarily by profit and therefore tends to operate supply chains and value addition activities more efficiently. It is incentivised to support supply chains through timely payments to farmers, supplying inputs, funding, and organising transportation and aggregation. There are a number of newly built facilities available for PPP in Bungoma, however, the current process for private investors to take over these facilities is arduous and off-putting; recognition of these limitations is an important step to creating a PPP friendly environment in the County. Bungoma County government have the opportunity to streamline these processes and create a transparent plan for offering PPP ventures. It needs to clearly identify the purpose of the facilities available for PPP, and undertake official audits of the assets the county owns, and their value. The County government also needs a clear plan for how it will assess proposals from private organisations who wish to operate on the site. The County government needs to make sure that the project is ‘shovel ready’, and all the government stakeholders are ready to mobilise. One way to ensure this would be a stakeholder group or steering group that can work with the private sector for every PPP they present. When implementing this action, it would be important to facilitate and encourage the participation of SIGs-owned businesses and ensure there is no discrimination against their participation in any way.

A1074 - Improved access to finance for farmers Private businesses in Bungoma don't have the capital to support their suppliers, instead they need funds from donors or banks so that they share the risk of investing in their supply chains.

30 Chamasoft, Table Banking: The Concept of Table Banking (2015) Available at: https://blog. chamasoft.com/table-banking-the-concept-of-table-banking/ (Accessed: 28/10/2021).

Bungoma Chamber of Commerce is currently working to take off the Bungoma microfinance management institution, with the aim of ensuring funding makes it to the right investors, through monitoring the spending as it happens and bringing the expertise of money management and financial management. The Chamber of Commerce also identified the need for a supporting body, “a micro finance institution,” as part of this so that farmers will have the right education and financial literacy to put together a business plan and a bid for the funding available to them. Kenya’s Agricultural Transformation and Growth Strategy also suggests a vehicle to support access to finance through accelerators and financiers – this guidance could be used to support the development of this supporting body.

Village Savings and Lending Associations (VSLAs) are another method to improve access to finance for farmers. This is particularly important for marginalised groups such as women, youth and PWDs, who can benefit from improved access to market information and finance. A VSLA, often referred to as ‘chamas’, is a group of individuals (between 20 and 30) who come together with the aim of making savings and taking small loans from those savings. After a certain period, the accumulated savings and the loan profits are distributed back to members. This provides opportunities for farmers who would otherwise have no access to conventional banking services that require collateral for credit accessibility. Several NGOs across Kenya have recognised the value of VSLAs in providing poor communities with a secure place to save, as well as the opportunity to borrow on flexible terms and access affordable basic insurance. As such, several organisations are now supporting VSLAs by equipping members with the skills required to operate their groups effectively (see case study), with the potential for the once-established cooperatives highlighted above to collaborate with such groups in future.

To improve social inclusion within the sector, it will be critical for cooperatives to promote collaboration among SIGs and provide information on available funds, such as the Uwezo Fund, the Women Enterprise Fund and the Youth Enterprise Development Fund30. Based on the GeSI findings, it is also recommended to incorporate funding options that require alternative forms of collateral.

Specialised FBOs are well-placed to strengthen their role in climate action and as a result gain better access to climate finance which will increase the options available to communities to adapt to climate change. Farmers in Bungoma are already experiencing the impacts of climate change as increasing temperatures and unreliable rainfall affect food production and supply. Climate finance provides opportunities to enhance farmers' resilience to climate change through increased capacity for adaptation activities, for example, by providing funds for investment in ‘climate smart’ agricultural projects. There is a growing landscape of climate finance investment and tools which can be utilised as a source of funding for the projects in this report. Consideration will need to be given to the eligibility criteria of each source and it may be necessary to blend sources to meet the projects' expenditure requirements. Potential funding sources include The ACUMEN Resilient Agriculture Fund (ARAF), the Special Climate Change Fund (SCCF) and the Kenya County Climate Change Fund (CCCF) Mechanism.

Case ShiffaStudyChicks

Shiffa Chicks is the main business involved in value addition of poultry in Bungoma, currently operating from a site in central Bungoma. At this site are basic provisions of offices, a hatchery, incubators, and a feed store. Shiffa Chicks is also operating the abattoir at Chwele under a leasing agreement. From its site in Bungoma CBD Shiffa is working with larger, established poultry farmers to provide them with guidance, appropriate feeds, and chicks to rear. Farmers then transport their chicken to the slaughterhouse where there are resting pens to de-stress the chickens before they are processed. Shiffa has a number of butcheries across the County where it sells to local customers, as well as refrigerated vans to transport their dressed poultry produce to Nairobi, Kisumu, Eldoret, Naivasha and other key economic centres. Shiffa has plans for rolling out its business model to small farmers as well as establishing a feed mill, but these initiatives are at an early stage and would benefit from the support provided by this VC.

4.2.2 Priority VC 1 – Poultry Farming

> Providing a base for promoting local production and distribution of feeds;

> Building on the strong poultry sector and value chain being promoted by the County government; and

> Creating direct employment for around 60 full-time employees, with high potential for employing special interest groups (SIGs) and people with disabilities (PWDs).

> Significant egg production: the County produces around 2 million trays of eggs per year (4% of the Kenyan total)32;

> Reducing the overall cost base for the sector - improving competitivity;

> Improving the incomes for poultry keepers;

> Modest but growing meat production: the County produces around 0.4 million tonnes of poultry meat per year (less than 1% of Kenyan production) with this volume set to expand as a result of the abattoir;

> Increasing numbers of small-scale poultry farmers in the County supplying traders and the abattoir; and

> Established commercial farms: several medium-scale operators including Shiffa, Ratigan and Melpa Poultry Farm with a flock of 45,000 birds, all providing a solid core for the sector, as both a source of information and strong demand base for feed production and/or bulk purchases.

Key to supporting these outcomes, will be the soft interventions around capacity building, supporting key organisations and aggregation.

4.2.2.1 Base Assessment Demand for poultry meat and eggs is growing in Kenya, and Bungoma is well-placed to capitalise on this growth. Poultry farming is undertaken across the County, and the poultry industry in Bungoma has all the elements of a successful industry:

> Improving the quality and size of the County flock;

> Supporting the switch to better breeds (e.g. the KALRO improved Kienyeji);

This VC is aimed at developing a fully integrated poultry industry in Bungoma, building on the existing farmers, distribution and collection networks, and processors, and filling in the gaps and improving overall efficiency.

The key outcomes of this VC include:

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> Improving supplies to Chwele and other slaughterhouses;

> Large flock size: there are reportedly around 2.5 million chickens in the County, mostly indigenous varieties31 (though discussions with key stakeholders indicate that the actual number may be significantly lower than this);

> Following some delays the Chwele abattoir is now operational, managed by Shiffa Chicks, with a capacity of up to 10,000 chickens per day (20,000 per day with a double shift);

> Established hatcheries: several are located in the County including KenChick, Bungoma Hatcheries, Shiffa Chick and Mama Mikes;

31 FAO, Africa Sustainable Livestock 2050 (2019). Available at: http://www. fao.org/3/ca5369en/CA5369EN.pdf, (Accessed: 18/02/2022).

32 Ministry of Agriculture, Livestock and Fisheries, agricultural datasets (2022), Available at: http://kilimodata.developlocal.org, (Accessed: 18/02/2022).

Advice: poultry-focused extension service for existing and new farmers aimed at improving husbandry and business management skills.

Logistics: scheduled delivery and collection services for: > Supplies of day-old chicks to out growers; > Collection of poultry for slaughter or market; > Collection of eggs for aggregation and dispatch market; and > Supply of feeds and other inputs to farmers. Hatchery: an additional hatchery would be established to accelerate the move to improved breeds. Feed: promote the development of a local feed mill focussed on the demands of the poultry sector together with local production of key feed crops (soya, sunflower, etc.)

> High (delivered) feed costs due to a combination of limited local processing and growing of feed crops, and poor road networks and lack of regular collection/delivery services; > High cost of sending old layers and mature cocks to market due to poor roads and services;

Development of the poultry value chain is supported by:

> Bungoma CIDP: promotes the development of the poultry sector to increase employment, raise farm incomes and improve food security;

> Big Four Agenda: prioritises food security and nutrition as well as the manufacturing sector which includes poultry meat processing;

> Strategic Plan for Livestock: the Ministry of Agriculture, Livestock and Fisheries five-year plan supports development of the poultry value chain for both eggs and meat, and improvements in production volumes and quality.

> KALRO: promotes improvements in knowledge, information and technology in the poultry sector aimed at raising productivity and value added; and

> Substantial dependence on unimproved varieties, limiting eggs and meat productivity; and. > High (delivered) cost of day-old chicks of improved strains (e.g. KALRO improved Kienyeji). The combined impact of these issues is that the sector in Bungoma has difficulties competing on price (especially in the face of cheap imports from Uganda) and the Chwele slaughterhouse is having problems sustaining the supply of chickens.

Despite76 this strong base, the poultry sector in Bungoma faces a number of issues:

To combat these challenges and to support the Bungoma poultry sector in achieving its potential, this VC would focus on improving linkages across the sector by providing logistics services, supplies and financial support and advice (proposed soft interventions are presented in 0). This approach is in line with the model being developed by Shiffa Chicks to support out growers and increase supplies of birds to the Chwele slaughterhouse, and there may be potential for this VC integrating with the Shiffa system.

Finance: support to out growers and egg producers, (supporting investment in improved stock, better husbandry techniques and additional capacity), either through micro-credit or production share arrangements, and/or insurance.

The key components of this VC would then include:

Source: SUED, 2022

This VC would build on the existing farms and processors, filling in the gaps and improving overall efficiency. A key role of the VC is then to improve logistics, as well as identifying and supporting additional supplies where required. The overall service flows are shown in Figure 4-5. In addition, the VC would include a new hatchery to accelerate the move to improved breeds in the County, and a model farm operation to support training. service would target the delivery of 2,000 broilers per day to the Chwele slaughterhouse. This level of operation provides good economies of scale and supports Chwele in meeting its capacity target (of up to 10,000 head per shift). The logistics could be scaled up in line with the supply of poultry in the County. The hatchery would have a target capacity of 2,000 chicks per day, which would provide good economies of scale without overwhelming existing supplies. This level of production would be supported by a flock of 4,000 birds. The model farm would be based on capacity of 500 broilers. This scale represents a good entry-level capacity for farmers, providing a significant income level with a gross margin of around KES 0.5 million per year (after feed and bird costs).

Figure - Process flow for poultry sector integration

TheCapacitylogistics

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4.2.2.2 Production Potential and Supply Chain Production process

4-5

There is a strong and growing market for DoCs, and part of the operations of this VC would be to support expansion in the number and size of poultry farms through advice and technical support and assistance in access to finance.

Furthermore, the time to maturity is quicker with broilers than with cattle and goats: broilers can reach their target weights (2 kg or more) within 39 days.

Prices and margins A key revenue stream for the VC will be the supply of day-old-chicks (DoCs). Supplying 2,000 DoCs per day will require a flock of around 4,000 of mainly layers. This allows for egg laying rates of 85% to 90% and incubator losses of up to 40%. On average, each layer then provides around 150 DoCs per year. The cost of supporting a flock this size is estimated at KES 7 million to KES 10 million in feed, heating and veterinary services. The market price for quality DoCs is KES 80 each, giving potential revenues of KES 47 million from sales of chicks. For broiler rearing (and egg production), feed costs are the main variable cost. Raising a broiler for slaughter requires just under 6 kg of feed. The average feed cost (covering starter, grower to finisher feed), is KES 2,500 per 70 kg bag (KES 36 per kg). The total input cost of raising a broiler is then around KES 300 per bird (based on overall feed cost of KES 210 per bird plus KES 10 for vaccinations and KES 80 for the DoC). With a broiler sales price of around KES 450 and expected losses of around 10%, this leaves farmers with a gross margin of around KES 100 per bird to cover all their other costs. Margins are similar for egg production. While the operating margins in poultry farming are thus significant, higher feed or transport costs can have a substantial impact. As well as establishing low-cost scheduled services for collection and dispatch of poultry and feeds, this VC will develop a coordinated strategy to reduce feed costs through a combination of local milling and supporting the growing feed crops (millet, soya, etc.) in the County.

Demand outlook Demand for poultry meat (and eggs) in Kenya has been growing strongly and this is expected to continue. Poultry meat consumption is estimated at around 35,000 tonnes per year in 2017 and is forecast to rise by around 3.5% per year33 .

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While beef and goat meat dominate overall meat consumption, there are limitations on the potential to increase production in line with growing demand and food security considerations. Poultry meat has a good feed to conversion ratio of roughly 1.6:1 (or 1.6 kg of dry feed for every 1 kg of live bodyweight gain). By comparison the conversion ratio for goats is around 5:1 and cattle 6:134

34 Feed Strategy, Poultry Performance Improves Over Past Decades (2011). Available at: improves-over-past-decades/,www.feedstrategy.com/poultry/poultry-performance-(Accessed:18/02/2022).

Hatchery Flock 4,000 birds Operation 300 days per year

Table 4-4 - Capacity and volumes for poultry VC Source: SUED, 2022

The market for day-old-chicks from the VCs hatchery operation would be small-scale farmers in the County.

The VC would support expansion in the production of poultry meat in the County, and the Chwele abattoir provides a secure market offtake, with capacity of up to 20,000 birds per day on a double shift.

33 FAO, Africa Sustainable Livestock 2050 (2019). Available at: http://www. fao.org/3/ca5369en/CA5369EN.pdf, (Accessed: 18/02/2022).

Output of day-old-chicks 2,000 per day Total output(DoCs) 600,000 per year Model farm Flock 500 broilers Turnaround 50 days Broods 7 per year Total output 3,500 broilers per year Logistics Broilers to slaughter 2,000 per day Slaughterhouse ops. 250 days per year Total movement 500,000 per year

Firstly, the hatchery, which could bring in revenues of up to KES 50 million per year. This is followed by the logistics operations, with estimated revenues of KES 5 million for broiler collections, and potential for additional revenues from feed and veterinary supplies. The model farm operation would have revenues estimated at around KES 2 million per year at full production. Potential revenues from advisory and financial services (technical support, loan financing, insurance, etc.) have not been included at this stage.

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TheInvestmenttotalinvestment required (Capex) is estimated at around KES 120 million, of which 20% covers incubators and pens, 30% is for vehicles, 30% for buildings (including offices and stores) and site preparation, and the rest is for working capital.

Human resources

Total operating costs are expected to be around KES 40 million per year, with around half of this being manpower costs. The costs of direct inputs into the hatchery and model farms (mainly feed) are estimated at KES 7 million, with transport costs for the logistics operations estimated at KES 6 million per year.

The total headcount for the VC is estimated at 60 FTE, including 12 FTE operating the hatchery, 6 FTE for the model farm, 16 FTE for logistics operations and 12 FTE providing technical support to farmers. Manpower costs are based on: > Headcount of 60 FTE in total; > Monthly salaries of KES 12,500 to KES 30,000 depending on skills; and > Additional employment costs estimated at 25% of salary.

Operating costs

ThereRevenueswillbe three main revenue streams for this VC.

4.2.2.3 Indicative Costs and Revenues

Figure 4-6 - Poultry Operating costs 2026 Source: SUED, 2022

The total space required for the VC, with a new hatchery, model farm and supporting logistics services, is estimated at some 2,900 m2. Where there is already an operational slaughterhouse in Chwele to undertake the processing element of the VC, the main physical component driving this VC is the provision of a new hatchery to support the supply chain with a reliable supply of chicks. Discussion with key parties involved in this supply chain identified two potential locations for the hatchery. The first potential location is Mabanga, not far out from Bungoma Town just off the A8, Mabanga is well-connected to the relevant supply chains and urban centres. Also located in Mabanga is the agricultural technical training college. Shiffa Chicks is exploring the available land in the technical training college as a location for the hatchery and has already expressed its interest. If successful, its aspirations for the land includes the co-location of a hatchery, a feed mill, aggregation services, and other supplier support (such as a lab, and input provision). The other potential location explored for a hatchery was Chwele, again the primary motivation was co-location of the different activities along the poultry supply chain. Chwele is the home of the Bungoma slaughterhouse which is currently being operated by Shiffa Chicks. There is also good land availability in Chwele, and it is well-located again to Bungoma Town and the County’s key roads. There is no significant infrastructure required for the early development of this VC, instead, the key to unlocking this VC’s potential lies in the ability to build capacity and empower its supply chains. Sections 4.2.1 and 4.3.1 capture the required softer interventions needed to support the development of this VC.

Location-specific Analysis

Infrastructure Assessment Water and wastewater infrastructure

4.2.2.4

Gross margin The gross margin for the VC is estimated at around 26% of turnover (see Figure 4-7) Figure 4-7 - Gross margin of Poultry VC Source: Atkins, 2022

Water requirements for employees is estimated at 3 m3/day.

35 The Poultry site, Designing a hatchery’s water system (2017), Available at: a-hatcherys-water-system,https://www.thepoultrysite.com/articles/designing-(Accessed:20/01/2022).

The VC then needs to cooperate closely with all significant players in the sector, including farming cooperatives, feed suppliers, hatcheries, aggregators, and slaughterhouses. The recommended approach to facilitating this cooperation is detailed in section 4.2.1.

Water is needed for watering and washing of livestock, washing of trucks, cleaning of processing equipment, and staff hygiene. Water consumption varies depending on the level of automation and the cleaning practices. Around 0.35 litres of water will be required per day-old chick35 . For a hatchery producing 1,000 day-old chicks per day this would equate to a water consumption of 0.35 m3/ day. Additional water is required during the slaughtering process, this is around 20 litres per chicken36. Therefore, the abattoir at Chwele currently uses around 100 m3/ day of water to process 5,000 chickens per day.

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In particular, the VC could partner with Shiffa Chicks, working with them to expand poultry farming and increase broiler supplies to the Chwele slaughterhouse.

RecommendationsandNeedAssessment

Enabling Business Environment and/or Other Catalysts

37 Ministry of Water and Irrigation, Practice Manual for Small Dams, Pans and Other Water Conservation Structures in Kenya (2005) Available at: http:// smalldamsguidelines.water.go.ke/technical_reports/ (Accessed: 22/10/2021).

36 The Poultry site, Poultry processing: measuring true water use (2014), Available at: processing-measuring-true-water-use,https://www.thepoultrysite.com/articles/poultry-(Accessed:11/01/2022).

The hatchery will employ 60 people who are estimated to use 50 litres per person per day (double the volume for administrative workers37 as additional water is needed for hygiene practices associated with working with food products).

The key to this VC is to support poultry farmers in raising production and productivity, and improving logistics across the sector between hatcheries, farms, feed mills and slaughterhouses.

This gives a total water requirement of around 3.35 m3/day. Demand for water across the County currently exceeds supply and is unreliable due to high electricity costs, therefore it is unlikely that this water will be available from the public water supply, so there is a need to develop a water source for the hatchery. This is likely to be a borehole and a treatment plant. The use of renewable energy should be investigated to power the borehole pump. There will be a need for water storage in the system to cover interruptions in supply to ensure the value chain can continue to operate. The size of this will depend on space and costs. However, we recommend a reserve capacity of five days’ water supply. This equates to a reserve capacity of approximately 16.75 m3 and would build resilience into the system.

The energy demand would mainly be for cold storage, operating the automatic slaughter line, water pumps, and cooling fans. Energy may also be needed in the poultry houses for warming up the flock, depending on weather.

Grid unreliability and power costs are major issues with respect to the successful operation of the plant. A well-implemented power resilience solution will allow the continued operation of the plant regardless of events on the local power grid.

39 German Agricultural Occupational Health and Safety Agency, Safety rules for biogas systems (2008) Available at: PDF/safety-rules-for-biogas-systems-2008.pdfhttp://www.build-a-biogas-plant.com/(Accessed:19/05/2021).

38 FAO, Management of waste from animal product processing (1996).

It is assumed that a maximum of 85% of the water used (2.85 m3/day) will be discharged as wastewater from the hatchery. At the Chwele abattoir, approximately eight litres of wastewater are produced per bird during slaughtering and packing38. It is therefore estimated that a total of 40 m3/ day of wastewater would be produced when slaughtering 5,000 chickens. Wastewater from the abattoir would be high in biochemical oxygen demand (BOD), chemical oxygen demand (COD), total organic carbon (TOC), total nitrogen (TN), total phosphorus (TP) and total suspended solids (TSS). There is a potential to use the wastewater from the hatchery in a micro AD facility, organic matter and the wastewater would be mixed to create a slurry. The final wastewater will need to be treated using tertiary methods before it is discharged into the environment. Effluent from staff toilets should be discharged into a septic tank and later transported to the Bungoma STW for further treatment. Sludge from the septic tank could be incorporated with the organic material used in the micro AD facility on site.

Solid waste management Assume all organic waste can go to animal feed or micro AD onsite. Guano, eggshells, feathers etc. could be processed by AD to generate gas/power which could be used by the facility.

The production chain features processes that require a significant amount of process heat and steam. Electric equipment should initially be considered for this (i.e. high voltage electrode steam boilers), as other fuels, such as natural gas, LPG, oil or wood, have significant issues around supply chain logistics, including sourcing, cost and stability, as well as environmental issues around deforestation and greenhouse gas emissions.

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Waste from staff and any other waste should be segregated into recyclable, organic and non-recyclable. Recyclable waste to go to local/national/international processors, organic waste to AD and non-recyclable to a local landfill. Energy infrastructure Based on the anticipated size of the facility, the general power and lighting demand for the buildings and process load could be in the region of 400-450 kW (including a heat demand of around 120 kW) depending on the type and efficiency of equipment installed.

There is an opportunity to utilise waste streams from this project in an anaerobic digestion (AD) plant that could provide both heat and power to meet some of the site’s energy demands, but this proposition would need to be developed further in a subsequent stage to check whether there is enough waste volume to make these options a feasible proposition. If a biogas plant is considered to be feasible and will be implemented, then the design and installation should comply with all relevant safety guidelines to minimise risks associated with gas storage39

In the urban centre of Bungoma the grid is fairly limited and not very reliable, however, in Webuye there is a major 132 kV substation that feeds the local region. The final location of the facility is yet to be determined, but if located close to the Webuye 33/11 kV substation there should be enough spare capacity and a suitable 11 kV grid supply should be available which can be extended to the site to provide the facility with a dedicated connection, however, this needs to be confirmed by KPLC. The processing facility will have an 11/0.4 kV distribution transformer on site (1 x 500 or 630 kVA capacity depending on the energy solution for the thermal demand).

Agrovets can also potentially act as aggregation centres where farmers can place their orders for day old chicks and the agrovet places bulk orders with the hatchery and collects the chicks on behalf of the farmers. Vaccination of the chicks can also be bundled in the service. Once mature, the birds or the laid eggs can be collected by rural aggregators directly from farmers who assemble them in bulk before transporting in large consignments. All-weather access roads will be required to these farms to facilitate access. For offtake of old layers and broilers from non-contract farmers, the livestock markets can serve as natural aggregation points by tapping into their pre-existing network of suppliers.

1. On-site energy generation. Solar PV should be installed on the site to reduce reliance on the grid and reduce electricity bills. An appropriate installed capacity would be around 110 kW. This would require an area of about 725 m2. This could be located on building roofs and possibly some standalone solar arrays if needed. This output will be reduced during cloud cover and at night, so the grid supply will still be sized to cover the peak demand, however, PV could reduce the cost of grid electricity by up to KES 58,000 per week.

An alternative system is being developed by Shiffa Chicks, under which chicks, feed, and other inputs would be provided through dedicated aggregation centres to out growers, collecting mature birds on the back haul. This system would reduce overall transport costs, while allowing Shiffa’s extension officers to monitor the operations of the farmers, providing additional inputs and advice where required.

> There is a potential to use the wastewater from the hatchery in the micro AD facility. The final wastewater will need to be treated using tertiary methods before it is discharged into the environment.

> Disregarding the slaughter process, the VC would require a low volume of water, around 0.35 litres of water will be required per day old chick. Low water demand for production is beneficial to the environment as it reduces pressure and potential overexploitation of water resources.

> The spatial requirements for poultry rearing are minimal, hence offering no significant land use competition to other VC projects. Minimal land requirement reduces pressure of limited land and therefore pressure on environmentally-sensitive assets.

The VC involves the development of a fully-integrated chicken, egg and meat processing industry in the County.

4. Uninterruptible power supply (UPS) would be needed to instantaneously bridge between any power cuts and the battery storage. The battery storage, voltage regulation and UPS equipment would require a dedicated building on site of roughly 13 x 5 m (65m2). As the process has very limited general waste output (aside from that for the AD plant) waste to energy is not a viable proposition. High efficiency motors and drives and other low-energy equipment such as LED lamps should be installed throughout to ensure the demand is at the lower end of projections. The plant operation should also ensure it has budgeted maintenance programmes to cover items like regular cleaning of PV panels, servicing of motors, fans and coils and replacing equipment when its performance begins to degrade. Transport infrastructure Transport services would need to be offered between the hatcheries, farmers, and end markets and slaughterhouses.

2. Voltage regulation. Spikes, sags or fluctuations in voltage supply can cause damage to equipment and disrupt operations. Regulation equipment integrated into the distribution transformer at the incoming voltage will protect the manufacturing equipment.

3. Battery storage. This should be included to help with any extended power cuts. Lead-acid batteries are appropriate technology for this environment. An appropriate storage capacity of around 760 kWh would provide a suitable level of business continuity.

40 Natural Environment Management Authority, Environment Impact Assessment (EIA) (2022). Available at: content&view=article&id=119&Itemid=144,https://www.nema.go.ke/index.php?option=com_(Accessed:17/02/2022).

Environmental Assessment

The82 solution here would consist of the following:

> Given the level of energy demand (450-500 kW), on-site renewable energy systems shall be installed to provide a proportion of the energy need and supplement the grid supply.

> The VC will lead to centralized production of organics (especially from the slaughterhouse) like guano, eggshells, feathers etc. which could be processed by AD to generate gas/power which could be used by the facility.

Total space required, based on a new hatchery and supporting services, is estimated at some 2,900 m2. An EIA is hence required to ensure the development does not cause detrimental effects40. The following issues should be considered during the decision-making process:

The government regulates the means of transportation used for DOC and also the movement of spent parent and grandparent stock. Current practice amongst farmers usually involves the use of public transport and taxis to deliver their poultry to market, however, this goes against regulations. Specialized pick-up trucks designed for poultry transportation with an upper and lower carrier should be considered. Transporters of poultry are also required to obtain a certificate of transport (COT) issued by the veterinary officer to the owner of the carcass as well as movement permits. The output from the farm is expected to generate one refrigerated truckload per day. A paved road access to the plant well linked to the national transport corridor, A8 will be essential.

> The site selected should not be in proximity to noise and air-sensitive receptors. This is due to noise produced as a result of operating the machines and potential odour from the flock and chicken waste (guano) if not managed properly.

43 MoALFC. (2021). Climate Risk Profile for Bungoma County. Kenya County Climate Risk Profile Series. The Ministry of Agriculture, Livestock, Fisheries and Co-operatives (MoALFC), Nairobi, Kenya.

Adaptation strategies44: > Commercial hatcheries and use of incubators for hatching chicks; > Use of commercial feeds; > Use of solar heaters for incubation; > Increased availability of deep freezers to store vaccines; > Construct modern poultry structures or upgrade existing structures; > Education and training on available technology, administering vaccines, application of social media as a means of selling; > Increased cold storage; > Installing temperature regulators on trucks and vans; > Improvements to road networks; and > Use of drone transport. Overall, this VC has a low vulnerability to climate change. Providing suitable adaptation measures are included during inception, it is not expected that climate change will negatively impact this VC.

44 MoALFC. (2021). Climate Risk Profile for Bungoma County. Kenya County Climate Risk Profile Series. The Ministry of Agriculture, Livestock, Fisheries and Co-operatives (MoALFC), Nairobi, Kenya.

More space is needed when transporting chicks during high temperatures to avoid mortalities during transportation and the quality of meat is reduced. High rainfall impacts transportation by inundating roads, and can lead to an increase in the prevalence of diseases such as coccidiosis and mild hypothermia, requiring treatment and thereby increasing the cost of production. Waterproof packaging is also required during periods of heavy rainfall to reduce transport losses43. Rainfall is projected to increase during the short rains (late July – December) and mean annual temperatures are projected to continue to increase, as well as the total number of hot days with maximum temperatures equal to or above 35°C and night-time temperatures which could impact poultry production in the County. This VC is rated as having medium exposure to climate change.

Key climate risks for poultry production are high temperatures and increased rainfall. High temperatures and heat stress reduces the potency and shelf life of vaccines and antibiotics and can reduce growth rates and increase mortality rates.

> There is a potential for the landscape surrounding the integrated chicken farm to degenerate as a result of odours, flies, and rodents.

> The significant increase in traffic flows that would result from the integrated chicken farm would increase the carbon footprint of the local farmers’ community.

41 Ministry of Agriculture, Livestock and Fisheries, agricultural datasets. Available at http://kilimodata.developlocal.org 42 MoALFC. (2021). Climate Risk Profile for Bungoma County. Kenya County Climate Risk Profile Series. The Ministry of Agriculture, Livestock, Fisheries and Co-operatives (MoALFC), Nairobi, Kenya.

Climate Resilience This VC has an initial target input of 0.5 million total flock, 22.5 tonnes per day chicken feed (8,250 tonnes/year) and 5,000 chickens to be slaughtered per day (scope to increase to 8,000 per day). This is 20% of the total number of chickens in the County (around 2.5 million41, although discussions with Shiffa Chicks indicate that the actual number may be significantly lower than this). Around 80-100% of the County’s population is involved in poultry production, mostly at a small-scale42 which provides a strong base, however, issues surrounding high supply costs, high transport costs and dependence on unimproved varieties cause difficulties in maintaining the supply of chickens. This VC is rated as medium sensitivity to climate change, however, there is potential to strengthen the poultry sector and supply of chickens in the County, for example through improved delivery and collection services, which would reduce the sensitivity of this VC.

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Gender84 and Social Inclusion Assessment Case study

This VC covers the development of a milk processing plant and wide-ranging integration and improvements in the operations of the dairy sector in Bungoma, under the umbrella of the Bungoma Dairy Development Company (BDDC).

The key outcomes of this VC include:

> Skills shortfall: gaps in animal husbandry techniques and business skills prohibits investment in improved stock and feed;

> No local processing: apart from some small-scale production of mala and yoghurt, all milk produced in the County is either consumed fresh or trucked outside of the region for processing. With no flexible local offtake for shelf-stable products (UHT), market surpluses result in wastage and price volatility;

Source: KEDOVO for Sustainable Livelihoods45 45 Knedovo e.V., Kamamunda poultry farming project (2016). Available at: https://www. kedovo.org/english/our-projects/kamamunda-poultry-farming/, (Accessed: 18/02/2022).

KEDOVO partnered with the group and facilitated their registration with the Kenyan Ministry of Gender and Social Development as a self-help group. Currently, the KEDOVO project works with 13 women and three young persons in poultry farming and egg production. The group receives training on poultry rearing and management as well as training on bookkeeping, marketing and entrepreneurship. With this new knowledge and skills, the project not only created employment but also sustainable economic activity. KEDOVO does not depend on any donors, and operates with a revolving fund system where the group returns the initial capital over an agreed period of time. These funds can be used again to expand the project.

> Providing a secure offtake and secure prices for milk; > Reducing losses and raising quality of milk for consumers; > Reducing production costs through improvements in logistics; > Providing an outlet for surplus product, helping to reduce wastage; > Supporting investment in improved dairy breeds, and fodder crops/irrigation; > Supporting improvements in the skills sets of farmers focusing on livestock management techniques and business skills, through technical support services; and

> High input cost: resulting from no substantial local production of feed or supplements, and high transport costs.

> Creating direct employment for around 76 full-time employees, with high potential for employing special interest groups (SIGs) and people with disabilities (PWDs).

The dairy sector is a key activity across Bungoma, with most of the County’s 172,000 smallholders having at least one dairy cow.

The result is that dairy farmers can face low margins and difficulties in securing investment to improve productivity.

Case Study

To address these issues, the Ministry of Agriculture, Livestock, Fisheries and Irrigation commissioned the Bungoma County Dairy Development Feasibility Study (2018) and supporting investment proposal. The study identified a range of initiatives, with the first step being the formation of the Bungoma Dairy Development Company (BDDC). The BDDC has been established and this VC supports the development of the dairy sector across the County, under the umbrella of the BDDC.

> Low productivity: traditional zebu cows dominate the County herd resulting in an average yield of less than 2,000 litres per cow per year, compared with a potential of over 10,0000 litres;

> High logistics costs: no overall coordination of collection services results in missed pick-ups and high delivery costs; and

There has been significant investment in the sector in recent years, focusing on supplying some improved stock, developing cooling centres and supporting the establishment of cooperative societies, and as a result overall production has been increasing, and now averages 265,000 litres per day.

Farming

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KEDOVO Kamamundaproject:Poultry

Kamamunda started as an informal self-help group in which women met every two weeks to contribute 500 KES in a money pool. These savings, however, only allowed them to cover household costs and needs, e.g. food, cooking utensils, school fees, etc., and were not enough to support any income-generating activity.

4.2.3 Priority VC 2 – Dairy Processing

However, the sector is beset by a number of interrelated problems, in particular:

Central to the development of the dairy sector is the establishment of a milk processing facility to provide an outlet for surplus production, and to support the stabilisation of milk prices paid to farmers. The facility would focus on producing long-life, UHT milk products which require good quality fresh milk, and therefore benefit from local in-County processing.

> Support cooling centres in improving quality control along the supply chain (through increased training, product tracing, testing and use of secure containers/churns);

> Support access to finance for farmers investing in improved stock, feed production, etc., with potential for contract farming. These support services would be based at the processing plant and would be provided to farmers through the 11 dairy cooperatives in Bungoma County.

> Bungoma CIDP: targets the promotion of value addition in agri-processing and continued support to dairy farmers;

Figure 4-8 - Process flow for milk sector integration and the BDDC

Source: SUED, 2022

> Ensure rapid payments to farmers;

> Big Four Agenda: prioritises the manufacturing sector which covers all areas of agri-processing, including dairy products; and

> Kenya Dairy Board strategic plan: focussed on developing a value-driven and sustainable dairy industry.

Development of the Bungoma dairy sector is supported by:

In86support of the sector, the VC would also: > Improve failing parts of the collection networks, establishing coordinated and scheduled collections, thereby reducing cost and uncertainty;

> Promote the use of improved breeds and livestock management techniques, through training and support; and

This VC covers integration of the dairy sector in Bungoma County together with a milk processing plant under the umbrella of the BDDC. The overall activities are summarised in Figure 4-8.

4.2.4.1 Production Potential and Supply Chain Production process

Capacity and processing The processing facility would have a capacity of 20,000 litres per day, producing UHT milk in consumer packs. This level of production has been identified as it: > Provides good economies of scale; > Can be supported by existing supplies, representing less than 10% of current production; > Provides a substantial secure local offtake for farmers (equal to around half of the marketed milk volumes); > Will find a ready market: this volume is equal to only 10% of current UHT imports from Uganda. The milk processing plant would focus on the production of UHT milk in consumer packs with the basic processing steps being: > Milk reception; > Filtering and chilling; > Testing; > Processing: > Heat treatment: 135oC for up to 2 seconds > Cooling > Packing > Storage; and > TheDistribution.keyequipment in the milk processing facility will include: > Filtering and heat treatment with a capacity of 5,000 litres per hour; > Cold storage for 50 tonnes of milk; and > Packaging line for milk (into 0.5 and 1 litre Tetra Pak cartons or similar).

Figure 4-9 - Prices and margins and the role of the VC - BDDC Source: SUED Atkins Team

47 Stakeholder Workshop 24/01/2022.

Prices and margins Margins in the dairy sector are generally tight. This reflects the competing pressures between processors and retailers selling a competitive staple product, and small-scale farmers with relatively high cost-base once transport costs are included.

The cost of milk production has been estimated at between KES 23 and KES 28 per litre for an average smallholder either using zero grazing or semi-zero grazing set up46 .

Gross margins to farmers are then around KES 13 to KES 18 per litre. A key role of the BDDC and this VC is to support improvements in livestock and management (feed and supplements), as well as improve collection services, to improve these margins (see Figure 4-9). Processing costs for UHT are around KES 18 per litre, with a further KES 10 per litre for packaging. With a target sales prices of KES 80 per litre, the processing margin is around KES 7 per litre.

Milk delivery costs (farm to cooling station) vary by location, averaging KES 4 per litre in Bungoma47 .

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46 Tegemeo Institute of Agricultural Policy and Development, Egerton University, Report on a study on cost of milk production in Kenya (2021). Available at: content/uploads/2021/06/Cost-of-milk-production-report..pdf,https://www.kdb.go.ke/wp-(Accessed:18/02/2022).

The large milk processing and packaging companies generally set the price paid for raw milk. The current purchase price (delivered to the processors) is around KES 45 per litre, up from KES 33 per litre in 2020.

BUNGOMA

51 UN Comtrade Database (2022), Available at: https:// comtrade.un.org/data/, (Accessed: 18/02/2022).

A conservative approach to estimating Opex has been taken, leaving scope for reductions: > Transport costs (estimated at KES 20 million per year) are based on dispatch of finished product to Nairobi by road. There is potential to reduce these costs through targeting nearer markets (Kisumu) or using rail freight services.

The shortfall in milk supplies in Kenya is met mainly through imports of UHT milk from Uganda. Imports from Uganda have risen sharply in recent years from 15.7 million litres in 2016 to nearly 150 million litres in 201951. Imports dropped in 2020 (to 72 million litres) due to COVID-19, but they are expected to bounce back to their pre-pandemic level. The processing facility in this VC would then be seeking to replace some of those imports from Uganda.

Total operating costs are expected to approach KES 500 million per year at full capacity, with a large share of this (around KES 350 million) being spent on milk purchases.

Demand88 Outlook

TheInvestmenttotalinvestment required (Capex) is estimated at around KES 200 million. This estimate is based on using the Webuye factory shell, with some allowance for modifications if required. Around half of this total is for machinery and vehicles, and around a third is for working capital. The remainder covers marketing and initial training for the processing facility, plus the activities of the BDDC.

48 FAO, Primary Livestock Dataset (2020). Available at: http://www.fao. org/faostat/en/#data/QL/metadata, (Accessed: 18/02/2022).

Location-specific Analysis Bungoma County Government have completed the construction of a factory shell for milk processing in Webuye. The site has good road access for bringing in milk from the cooling centres in the County. The facility now needs to be kitted out, and some adjustments may be required to process the target volumes and support the activities of the BDDC.

The main market for this VC would be Bungoma County and wider Kenyan market, which is reportedly the largest market for milk on the continent. Kenya’s annual milk production is around 5.2 billion litres and growing, though it does not meet national demand, and there is an annual deficit around several hundred million litres which is met by imports48. The outlook is for domestic demand to continue to grow by 5% or more per year in the medium term49 . The key output from this VC would be UHT milk in consumer packs, and demand growth for UHT milk products is similar to the overall market, with 4.8% annual growth forecast to 202650 .

The processing facility would source milk from the existing collection centres and coolers operated by the milk cooperatives. The VC would also seek to upgrade the collection networks between farmers and milk collection centres and increase overall efficiency, through improved scheduling and monitoring of collections, correct handling operations along the supply chain (e.g. use of coolers, training, use of milk churns), fair pricing and timely payments to all stakeholders (farmers, boda boda riders and other collectors, etc.), and investment in additional transport, coolers, filters, etc., where required.

Operating costs

Supply chain and markets

4.2.4.2 Indicative Costs and Revenues

> Packaging costs are based on Tetra Pak or similar cartons, costed at KES 10 per litre. This could be reduced to KES 1 to 2 per litre with polyethylene bags.

50 Mordor Intelligence, Middle East and Africa UHT milk market-growth, trends, COVID-19 impact, and forecasts (2022 – 2027) (2022). Available at: com/industry-reports/middle-east-and-africa-uht-milk-market,https://www.mordorintelligence.(Accessed:18/02/2022).

49 Food Business Africa, The dairy industry in Kenya: production capabilities, investment, innovations and trends (2020). Available at: investments-innovations-and-trends/,foodbusinessafrica.com/the-dairy-industry-in-kenya-production-capabilities-https://www.(Accessed:18/02/2022).

Figure 4-10 - Operating costs for Dairy VC 2026

Value added

AnnualRevenuesrevenues are estimated at KES 570 million by 2026. This is based on an average sales price of KES 80 per litre.

The project economics are based on producing long life (UHT) milk in one litre consumer packs:

Other Opex

This covers electricity, water and other utilities, maintenance of machinery and vehicles, fuel, marketing and training for the processing facility (estimated at KES 25 million), plus a further allowance (KES 10 million) for BDDC’s supports to farmers and the cooperatives.

Source: SUED, 2022

The value added, calculated as sales revenues less the cost of milk and other inputs (packaging, electricity, water, etc.) is estimated at the equivalent of KES 23 per litre, representing around 30% of the sales price.

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> Average purchase price of for milk is currently KES 45 per litre delivered to the cooling stations; and

Table 4-5 - Value added Source: SUED, 2022 KES per litre of milk Purchase price 45 Other inputs 12 Value added 23 Sales price 80

Human resources Milk processing and associated collection and dispatch is a relatively labour-intensive activity. It is estimated that the processing facility and associated logistics would require some 66 FTE, with a further 10 FTE identified for the BDDC management and development activities.

> Packaging costs estimated at KES 12 per litre covering cartons, boxes and palletisation.

Manpower costs are based on monthly salaries of KES 13,600 to KES 40,000 depending on skills, and additional employment costs estimated at 25% of salary. Raw materials

54 National Environment Management Authority, Environmental Impact Assessment (EIA) (2021) Available at: content&view=article&id=119&Itemid=144https://www.nema.go.ke/index.php?option=com_(Accessed:22/10/2021)

Energy infrastructure Based on the anticipated size of the facility, the general power and lighting demand for the buildings and process load could be in the region of 280-300 kW depending on the type and efficiency of equipment installed. The production chain features UHT heat treatment, which requires process heat in the region of 100-120 kW. Electric equipment should initially be considered for this (i.e. high voltage electrode steam boilers), as other fuels, such as natural gas, LPG, oil or virgin wood, have significant issues around supply chain logistics, including sourcing, cost and stability, as well as environmental issues around deforestation and greenhouse gas emissions.

52 Ajiero, I. and Campbell, D., (2017), Benchmarking water use in the UK food and drink sector: case study of three water-intensive dairy products. Water Conservation Science and Engineering, 3(1), pp.1-17.

There is an opportunity to utilise waste streams from this project in an anaerobic digestion (AD) plant that could produce both heat and power (via an adapted internal combustion engine with heat recovery) to meet some of the site energy demands but this proposition would need to be developed further in a subsequent stage to check whether there is enough waste volume to make this a feasible proposition. If a biogas plant is considered to be feasible and will be implemented, then the design and installation should comply with all relevant safety guidelines to minimise risks associated with gas storage55 55 German Agricultural Occupational Health and Safety Agency, Safety rules for biogas systems (2008) Available at: PDF/safety-rules-for-biogas-systems-2008.pdfhttp://www.build-a-biogas-plant.com/(Accessed:19/05/2021)

Solid waste management Assume very little organic waste will result from this VC, where a priority of the VC is to minimise milk losses in WasteBungoma.fromstaff and any other waste should be segregated into recyclable, organic and non-recyclable. Recyclable waste to go to local/national/international processors, organic waste to animal feed/AD and non-recyclable to go to a local landfill.

andRecommendationsNeedAssessment

As well as a processing facility, this VC is for the development of a specialised FBO for the County dairy sector. As a result, it needs to work with the existing cooperatives and link into the milk cooling and aggregation centres. Details on aggregation and cooperatives is provided in section 4.2.1. Infrastructure Assessment Water and wastewater infrastructure Water is needed for the cleaning of processing equipment, cooling water for a cooling tower, water softener, and boiler, backwashing of filters and air compressor, and staff hygiene. The water requirement for milk processing is estimated to be around 3.7 m3/m3 of sterilised/UHT milk produced52. At its target processing capacity, the plant will produce around 20m3/ of UHT milk per day, which equates to a water consumption of 74 m3/day for processing. The plant will employ 62 people who are estimated to use 50 litres per person per day (double the volume for administrative workers as additional water is needed for hygiene practices associated with working with food products)53. Water requirements for employees is estimated at 3.10 m3/day.

90 4.2.4.3

53 Ministry of Water and Irrigation, Practice Manual for Small Dams, Pans and Other Water Conservation Structures in Kenya (2005) Available at: http:// smalldamsguidelines.water.go.ke/technical_reports/ (Accessed: 22/10/2021)

It is assumed that a maximum of 85% of the water used (65.55 m3/day) will be discharged as wastewater. This will need to be treated on-site before discharge into the natural environment or reused for flushing toilets or irrigation purposes as per National Environment Management Authority (NEMA) guidelines54. Effluent from staff toilets should be discharged into a septic tank and later transported to the Bungoma STW for further treatment.

This gives a total water requirement of around 77.1 m3/day. Demand for water across the County currently exceeds supply and is unreliable due to high electricity costs therefore it is unlikely that this water will be available from the public water supply, so there is a need to develop a water source for the plant. This is likely to be a borehole and a treatment plant. The use of renewable energy should be investigated to power the borehole pump. There will be a need for water storage in the system to cover interruptions in supply to ensure the milk processing plant can continue to operate. The size of this will depend on space and costs. However, we recommend a reserve capacity of five days’ water supply. This equates to a reserve capacity of approximately 385.5 m3 and would build resilience into the system.

3. Battery storage. This should be included to help with any extended power cuts. Lead-acid batteries are appropriate technology for this environment. An appropriate storage capacity of around 680 kWh would provide a suitable level of business continuity; and 4. Uninterruptible power supply (UPS) would be needed to instantaneously bridge between any power cuts and the battery storage. The battery storage, voltage regulation and UPS equipment would require a dedicated building on site of roughly 14 x 5 m (70 m2).

It is anticipated that at full capacity, 80% of deliveries would be made by truck, generating 15 to 20 deliveries per day (allowing for reserve capacity in the trucks) supplemented by some 80 -100 boda-boda deliveries per day between collection centres and more remote areas. For cost efficiency it would be suitable to utilise the trucks for longer distance trips while boda bodas are employed for shorter and quicker runs. Based on the location, the A8 road and by passes will be the critical corridors for this industry for transporting materials and packaged products in and out of the processing plant. While all-weather access roads to farm areas will be necessary to enable access to the collection points, regular maintenance and good storm water drainage will be necessary on these rural-urban links.

Good public transport access will be required to the site.

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As the process has very limited waste output (aside from that for a potential AD plant), waste to energy is not a viable proposition. High-efficiency motors and drives and other low energy equipment such as LED lamps should be installed throughout to ensure the demand is at the lower end of projections. The plant operation should also ensure it has budgeted maintenance programmes to cover items like regular cleaning of PV panels, servicing of motors, fans and coils and replacing equipment when its performance begins to degrade.

Transport infrastructure At full capacity it is expected that the facility would process 20,000 litres of UHT per day. The milk would be delivered to the plant by a combination of micro-collection points on farms, from where milk will be collected by boda-boda (which carry up to 50 litres) which will in turn deliver to larger collection points for refrigerated truck collection (with a one-ton capacity).

In the urban centre of Bungoma the grid is fairly limited and not very reliable, however, in Webuye there is a major 132 kV substation that feeds the local region. The final location of the facility is yet to be determined, but if located close to the Webuye 33/11 kV substation there should be enough spare capacity and a suitable 11 kV grid supply should be available which can be extended to the site to provide the facility with a dedicated connection, however, this needs to be confirmed by KPLC. The processing facility will have an 11/0.4 kV distribution transformer on site (1 x 400 or 630 kVA capacity depending on the energy solution for the thermal demand). Grid unreliability and power costs are major issues with respect to the successful operation of the plant. A well-implemented power resilience solution will allow the continued operation of the plant regardless of events on the local power grid. The solution here would consist of the following:

1. On-site energy generation. Solar PV should be installed on the site to reduce reliance on the grid and reduce electricity bills. An appropriate installed capacity would be around 100 kW. This would require an area of about 650 m2. This could be located on building roofs and possibly some standalone solar arrays if needed. This output will be reduced during cloud cover and at night, so the grid supply will still be sized to cover the peak demand, however, PV could reduce the cost of grid electricity by up to KES 54,000 per week; 2. Voltage regulation. Spikes, sags or fluctuations in voltage supply can cause damage to equipment and disrupt operations. Regulation equipment integrated into the distribution transformer at the incoming voltage will protect the manufacturing equipment;

Designated bus stops and boda-boda shelters will need to be provided near the project site. The industrial site will need to provide good access for both motorised and non-motorised transport from the main A8 road as well as better public transport loading and unloading facilities near the site.

Climate Resilience

56 National Environment Management Authority, Environmental Impact Assessment (EIA) (2021) Available at: content&view=article&id=119&Itemid=144https://www.nema.go.ke/index.php?option=com_(Accessed:22/10/2021)

The overall impact of climate change on the VC can be classified as medium.

> Feed diversification, utilising farm wastes to be part of animal feeds;

> Provision of simple technologies that can be used at farm-level during temporary storage and transport of milk will be necessary, to ensure it doesn’t spoil before delivery to the processing plant.

Environmental92 Assessment Because the project will have environmental footprint (total space required is estimated at some 1,500 m2), an EIA is required to ensure the development does not cause detrimental effects to the environment56. The following issues should be considered during the decision-making process:

> Increased adoption of zero grazing;

> The milk processing plant will require water. Some of this water demand can be reduced by treating wastewater on site and reusing as much of it as possible within the facility or discharging it into the public sewer.

> The VC will lead to a reduction in spoilage losses, expected through improved handling. Similarly, a stable price for milk will provide an incentive to invest in milk production. This could be achieved through better livestock management (e.g. through fodder production and preservation or by-products recycling through feed mills) which would improve the ecosystem.

> Carbon footprint: collection and distribution network will be supported by boda bodas and trucks. Full commercialisation of the VC would lead to increased frequency of transportation, signifying increased fuel consumption and gaseous emissions.

Increased local temperatures may mean shorter shelf-life for milk, hence increased post-harvest losses at farm level. Increased temperature extremes are likely and result in decreased milk production and increased risk of losing calves. Drought, which is projected to increase during the long rains (February to June), also reduces feed and fodder availability for livestock, and hence production. Disease prevalence (those that have significant economic impact on livestock production) may also become more frequent with changes in climate (increased temperatures).

> Commercial-scale processing of milk will lead to very little in the way of solid waste generation and a high proportion of the waste material could be readily recycled.

> Dairy farming in Bungoma is almost entirely based on zero grazing. This means the production leads to limited land uptake. The dominant zero grazing system will also provide avenues for utilizing fodder crops/by-products from other VC.

This is a solely agricultural VC, dependent entirely on milk production (primarily from cows with the potential for processing goat milk in the future). High volumes are already produced in the county, between 41-60% of the population is involved in small or medium-scale dairy cattle production. Although disease outbreak, heat stress, or poor feeding can affect production and decrease yields, the good supply means that sensitivity to climate change is low.

> Provision of shade to reduce heat stress; and

> Adoption of alternative (renewable) energy like PV systems is encouraged to supplement the additional grid energy supply required for this VC.

Providing suitable adaptation measures are included during inception, it is not expected that climate change will impact this VC.

The overall vulnerability of this VC is medium, however, there are a number of adaptation measures which would increase the resilience of this VC:

> Source diversification (goat milk to supplement cow);

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94 Case Study Inclusive dairy Value Chain in Siuna, Nicaragua In Nicaragua, the dairy VC has a strong masculine representation since men have the ownership of land and livestock. It is consequently assumed that women are not actively engaged in this VC and thus only men are involved in training and in agricultural associations and cooperatives. In a meeting for the MASRENACE (GTZ) and the PRODER (Oxfam GB) programmes with members of a dairy cooperative and their wives, it was discovered that women in fact carried out several activities of this VC, for example relating to the hygiene of the milking process. This meeting helped raised awareness about the importance of women’s roles in the VC and in the final quality of the product. Women’s increased self-awareness also gave them leverage to negotiate aspects related to the VC such as participation in cooperatives. The result of this initiative was an increase in the percentage of women participating in the dairy cooperative (from 8% to 43%) and several households are now represented by both husband and wife.

Source: Siuna, Nicaragua57 57 AgriProFocus Learning Network (2014), Available at: ChainsJan2014compressed1415203230.pdf,agriprofocus.com/upload/ToolkitENGender_in_Value_https://(Accessed13/07/2021)

Case Study

A report from 2015 stated that there are several challenges with youth development in Kibera and other low-income areas in Nairobi, mainly due to high unemployment levels, a lack of access to education, and high levels of substance abuse. According to the report this leads to many young people engaging in, or experiencing, crime.

Source: Fambiz Africa58 58 Farmbiz Africa, Milk processor empowering youth in Kibera with business skills, reducing poverty and crime (2018). Available at: skills-reducing-poverty-and-crime#!/ccomment,com/market/2082-milk-processor-empowering-youth-in-kibera-with-business-https://www.farmbizafrica.(Accessed:18/02/2022).

Youth empowerment and mentorship programme with Milele Fresh Milk

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In this context, Milele Fresh Milk started in 2006 as a youth mentorship and empowerment programme to engage youth in Kibera. The initiative, created by an entrepreneur and ICT expert, is a dairy processing company with offices in Kilimani, Limuru and Yatta. The original idea behind the project was to provide young people with skills, business training and opportunities to empower them economically. With Milele, the company appoints youth community leaders and trains them for free. These youths later identify peers from their respective locations who could be interested in being part of the system. Community youth leaders are also in charge of picking up milk from community-based depots and distributing it to various local shops (finishing at around 7am). These tasks allow them to make a stable complementary income and have the rest of the day for other activities. This stability is quite different from those who engage in single casual jobs. Currently, the company enjoys milk collection from five SACCOs or farmer cooperatives through which they source milk from farmers across Nyandarua, Kiambu and Machakos counties with cooling plants in Limuru and Yatta.

4.2.4

4.2.5 Climate InfrastructureResilientProjects

4.2.5.1 Production Potential and Supply Chain Project Overview Webuye Industrial Zone is located on the Trans African highway and the northern corridor highway from Isebania to Lodwar and Sudan. It sits within a rich agricultural hinterland and close to an airstrip that is being refurbished and modernized to serve Bungoma County and the neighbouring regions. It is also located adjacent to the River Nzoia, the Kenya Uganda Railway and in relative proximity to Eastern Uganda. This Industrial Zone, identified in the ISUDP, aims to be structured as a public-private entity whereby a Park Authority Enterprise will coordinate the operations of tenants and other stakeholders. The purpose of the establishment of the Industrial Zone aligns with the SUED economic development principles. It aims at promoting local and regional industrialization and development, attracting FDI to the economy, creating opportunities for new industries and service enterprises leading to the generation of sustainable and decent employment opportunities, transferring of technology, and providing training opportunities in new skills and trades. The County aims to invest in the initial processes of setting up the Industrial Zone and depends on private, PPP or other sources of investment for financing and operating the enterprise. Therefore, Webuye Industrial Zone is an obvious and most suitable choice for locating the VC industrial cluster as this can be a catalyst for future development to take place.

96

Other VC opportunities

>

Although not the focus of the UEP there were five more VCs identified as high potential for Bungoma in the TBP, other than the two priority VCs highlighted above the shortlisted VC opportunities discussed and agreed with stakeholders are as follows: Potato processing > Fruit and vegetable processing Animal feed mill Sugar: molasses to ethanol > Construction blocks The above two priority VCs will be located in Webuye Industrial Zone (Milk processing factory) and in Mabanga or Chwele (Chicken hatchery), however, for the development of the other shortlisted VCs a need has been identified for further industrial plots that can accommodate the light industrial processing. Two plots have been identified in Webuye Industrial Zone as the optimal location for this additional VC industrial activity in the county. It is likely that the potato processing, fruit and vegetable processing, the animal feeds mill and construction blocks will be located in Webuye. The sugar molasses to ethanol VC will be likely located in Nzoia near the existing sugar factory.

>

>

Source:

Figure 4.11. below provides an overview of the Webuye Industrial Zone along with the proposed location of the Pilot Project to be developed on vacant land within the zone.

Figure 4-11 – Webuye Industrial Zone overview Atkins analysis

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Pilot98 Project formulation As part of the pilot project formulation and development, a range of feasibility studies need to be undertaken, such as geotechnical, hydrological, traffic, and environmental and social impact assessments (further described below).

The displacement of communities and economic activities should be avoided whenever possible. When resettlement is unavoidable, a Resettlement Action Plan (RAP) should be prepared to mitigate adverse socio-economic impacts and the disruption of social safety nets. This plan should, at a minimum:

> Implement a grievance redress mechanism for disputes that might emerge during the resettlement process; and

> Monitor and evaluate the resettlement process and the adequate implementation of compensation/assistance measures.

Site investigation survey and technical studies: A walkover survey should be carried out to identify if there is any particular area of environmental sensitivity and ecological value within the site, if any hazardous waste has been dumped there in the past, and to remove it before main site preparation.

Detailed master plan: This should include key ancillary facilities and land uses, buildings layout, plot sizes, utilities provision, parking and loading bays, infrastructure including buffer zones to protect environmental assets bordering the site, with a phased action plan to guide the development of the site. This may be accompanied by a Strategic Environmental Assessment (SEA) in line with the local regulations.

> Consult affected populations about the relocation site/alternatives, the implementation schedule and compensation and assistance measures. Relocation alternatives should at least be comparable, and preferably improve, the livelihoods and standards of living affected populations had before the displacement;

Moreover, guidelines on infrastructure requirements, cleaner production methods and eco-design principles have been outlined to ensure the pilot project and its site is developed as a green industrial park. These guidelines have been applied to ensure the pilot project will demonstrate how to approach development in a climate-resilient, inclusive and sustainable way in order to safeguard Bungoma’s characteristic natural environment and water resources.

Although the site is relatively flat, a topography analysis, geotechnical and hydrogeological studies as well as flood risk assessment from the Nzoia River should be carried out to identify the characteristics and properties of the soils and ground conditions, and drainage patterns, to support the future infrastructure.

Environmental and Social Impact Assessment (ESIA): To be developed in accordance with NEMA regulations. This should include an assessment of the activities as well as provision of management, mitigation and minimisation of potential adverse environmental and social impacts, such as pollution control systems to mitigate industrial production and operation, or communication strategies to avoid negative impacts on the lives and economic activities of the local community. Consultation with stakeholders needs to be described and properly communicated. The ESIA process will also identify the requirement to obtain the respective environmental licensing and permits for the industrial park to operate.

> Identify affected populations and potential negative impacts associated to the displacement through a census survey. Identify groups who may be particularly vulnerable to displacement and consider specific measures to support them (e.g. PWD, the elderly);

Feasibility study: This should be carried out to include a market demand analysis, a conceptual master plan, an economic impact assessment, a financial model, a Strategic Environmental Assessment (see below) and any other applicable regulation or guidelines including SEZA regulations if required.

> Determine and communicate the cut-off date to receive compensation/assistance and the implementation schedule in an accessible and timely manner. Clearly indicate the valuation methods utilised to determine compensation/assistance;

Site clearance: Vegetation of no biodiversity and ecological value should be cleared from the site and could be composted or used for charcoal or briquettes rather than sent to the dumpsites. No waste is to be burned or buried on site or dumped in the rivers. Any other waste or materials identified could be used in construction of the industrial park, such as bricks and rubble that can be crushed and used as aggregate.

Local and inclusive community employment to enhance the social performance by:

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> To promote the efficient use of water resources and ensure good water quality while protecting environmental assets.

Sustainable transport > To design an urban layout which optimises the network infrastructure, reducing vehicle movements while promoting walking and cycling and the use of electric vehicles within the industrial park; > To encourage sharing facilities resulting in a reduction of private car usage;

> Creating local jobs; > Providing better working and labour conditions; > Fostering gender, age and (dis)ability sensitivity in the green industrial park's operations;

Sustainable Design and Cleaner Production Principles

A well-planned and organised green industrial park is defined by a set of principles that should guide the planning and design, construction, operation and maintenance of the park. These principles are grouped under a) sustainable design principles and b) resource efficiency and cleaner production.

Sustainable Design Principles to guide future on-site infrastructure, utilities and building facilities

> Promote tailored strategies for the industrial park in order to take advantage of its unique characteristics and to address local climatic conditions, such as mitigating climate change effects like flooding;

> To use locally-sourced and sustainable construction materials; > To reduce carbon footprint. Shared utilities and logistics > The clustering of business and industries within the park promotes the shared use of facilities such as warehouses and logistics, training and meeting facilities, and parking areas. This allows the park to benefit from economies of scale and achieve efficient infrastructure services and economic gains by reducing overhead costs; and > To foster the implementation of smart technologies to achieve a good and efficient management of the shared facilities, such as providing sustainable public transport for employees. Circular economy and zero-waste

Low carbon or carbon neutral principles

> Integrate greening and landscape as a key element to help improving the air condition and pollution.

> Rethink the waste management system to turn waste into resources. To minimize the generation of waste by reorganizing industries in a way that one could use the waste from another as an input into a process or as a source of energy; and

> Accommodate remanufacture, restore, or repair shops to rescue waste and support a circular economy.

> The urban design needs to focus on improving the public space network with a streetscape which promotes healthy and active lifestyles where residents and workers are encouraged to walk rather than travel by car; and

Climate resilience and passive design principles

> Providing better security by embedding security features in the park's design; > Providing social infrastructure to the workers and community; and > Improving occupational health and safety.

> Promote the design of passive buildings to reduce electrical cooling, heating, ventilation and lighting while guaranteeing comfortable conditions for all users; and

Water management > To promote sustainable urban water cycles by implementing rainwater collection, storm water retention and harvesting techniques and wastewater recycling; and

> To promote the use of smart technologies to digitalise transport infrastructure allowing the exchange of information in between vehicles, drivers, passengers and transfer hubs. An example of these are streetlights capable of monitoring parking spaces as well as traffic patterns.

> To encourage the use of smart technologies and automation to achieve an efficient use of natural resources and industry outcomes;

> To foster industries which reduce industrial environmental footprint by minimising waste and emissions;

Renewable energy and energy efficiency

The pilot project site will have the option to accommodate non-critical VCs and will allow for future expansion of these VCs and any other supporting service industries and suppliers.

It also includes the following utilities:

> Waste collection along with possible segregation and recycling facilities can be integrated into the park land use and operations;

> Water Treatment Plant - one plot of 2,000 sqm has been provided to service Phase 1, however, it can also accommodate the future expansion of the industrial park. This will aim to provide recycled water for the industrial processes within the overall park;

> A potential railway extension or siding from the MGR (to the north) has been identified to service the Webuye Industrial Zone. This can be incorporated into the pilot project scheme;

> Green links have been located within the plots to encourage walking and provision of NMT facilities.

> To use renewable energy sources such as solar energy, wind power, biomass or hydroelectric power; and > To identify opportunities for common energy and heat exchange networks. For example, at some point in the future this area could be a potential location for an incinerator that would reduce the distances that waste is transferred from the industrial park as well as providing heat and electricity, if it is a combined heat and power incinerator. Resource efficiency and circular economy

> Access roads are to be bitumen with sustainable urban drainage systems (SuDS) to minimise storm and flood conditions and capture/ retain water for reuse within the park;

100 Cleaner production guidelines and principles to be followed by industries and businesses on the site during the industrial process, products and services:

> To encourage industries to reuse and recycle water to reduce water consumption; > Waste generated in the production to be recovered when possible through sorting, cleaning, conditioning, that can be used as raw material for other industries and businesses; and > To re-use the by-product from one industry as an input for another.

Clean air and low pollution > To support industries which minimise emissions; > To encourage industries to generate as little as possible of hazardous materials; and > Waste to be appropriately disposed of and treated.

Development of Pilot Project site The pilot project development is located on two adjoining sites within the Webuye Industrial Zone. The smaller of the two sites is 7.5 Ha. in size and has been chosen as the preferred ‘Phase 1’ site due to its location adjacent to the A104. The second site of 9.4 Ha. is allocated for future expansion to the north.

Phase 1 of the pilot project site includes a total of 11 serviced industrial units. They are split between eight sites of 2,000 sqm each and three sites of 4,500 sqm each. A further 17,260 sqm of land is available for future expansion. The site also includes two wooded areas of approximately 25,000 sqm which it is proposed to retain as open space with potential passive recreational facilities for industrial park workers.

> Solar energy and energy management systems should be integrated into all buildings and operations within the park to reduce demand loads on local power supplies; and

Source: Atkins analysis, 2022

> Other SUED infrastructure/ urban projects: The project links to the water, wastewater, and drainage services for the Industrial Zone (project 2), construction of recycling facility (project 15), solid waste segregation, storage and collection (project 17), organic waste (project 16) and landfill rehabilitation (project 18).

Figure 4-12 – Pilot Project Site Development

Location > Focus Area 2 Webuye Industrial Zone, Webuye Town. Linkages > Which existing projects/proposals (if any): Webuye Town has been identified as a location for the creation of an SEZ for the County in their forward planning documents.

On-site road network (including infrastructurenetworksuch as: water, power, sanitation, ICT, WaterIndustrialdrainage)unitstreatment plant Railway siding upgrade KES 172.4 million KES 191.8 million KES 13 million KES 1.820 billion Total cost = KES 2.2 billion Enhances the local economy with modern processing, manufacturing, and mixed-use amenities Opportunity for short term investment and development Introduces a strong value addition to the Industrial Zone in Bungoma Opportunity to provide local employment and training

Private investor: Design Build Operate Maintain (DBOM) Enabling infrastructure: Public Authorities agency/Implementationleading partner: private ofMaintenanceSupportinginvestorstakeholders:responsibilityMunicipalGovernment

> Links to SUED principles: resilience, social inclusion and sustainability.

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Category > Capital investment: New Table 4-6 – Project 1 Summary Information Source: Atkins Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders

It is proposed that the second pilot project site of 9.4Ha can be brought on-stream based on demand and growth of the overall industrial cluster. It also has the potential to accommodate larger industrial uses/ operators, however such uses will be in harmony with the guiding principles as outlined above for Phase 1.

> Develop users’ satisfaction and complaints forms as feedback mechanisms for staff and stakeholders within the park and for the local community, such as complaint boxes or hotlines.

The wooded areas will provide shade and some cooling which will reduce the urban heat island effect on the site, however, increased temperatures pose a risk to the health and productivity of workers. This should be accounted for in designs of future development plans of each industrial unit, for example through heat stress awareness and education programmes, although this is outside of this project's scope.

The new green industrial park will provide an opportunity to support the local economy by creating new jobs and businesses opportunities. To be an inclusive green industrial park, it should:

> Provide social infrastructure e.g. accessible toilets and infrastructure, childcare services and mothers’ rooms, and follow social performance standards in relation to social inclusion, gender equality, labour conditions, and community dialogue;59

> Ensure a good relationship with the community. Develop programmes to improve social aspects within the local community and provide accessible communication platforms;

Social inclusion interactions and approaches

Short, medium and long-term In the short-term land for the site should be acquired and a detailed plan for the site should be created. Thereafter, the necessary infrastructure to facilitate the industrial and VC activities should be implemented. Further expansion of the industrial site should occur in the medium to long-term

> Ensure adequate working conditions in line with national and local laws and standards. Guarantee equal working opportunities for all people, e.g. respect the 5% quota for PWDs’ inclusion;

> Maintain health and safety in work spaces and implement regular training and audits, including on gender-based violence and harassment (GBVH);

Source: Atkins Challenges Data gaps Time frame, key dependencies Masterplan to be developed for the wider site acquisitionLandFundingprogressingbefore MarketstudiesandSitestudyPre-feasibilitysurveystechnicalstudy

102 Table 4-7 – Project 1 Basic Analysis and Timeline

SUED Principles Climate change interactions and approaches

The key risks to this project from climate change are changes in temperature and precipitation (drought and flood events) which can impact on-site water demand, and flooding can inundate critical infrastructure such as roads and power supplies. Including green-blue infrastructure features, such as swales (SuDS), increases the industrial park's resilience to flooding. Future drainage networks associated with the development should make an allowance for increases in acute rainfall events and the potential for flooding. Flood risk assessments should be carried out to ensure the proposed development plots are resilient to flooding.

> Communicate in a timely manner with local residents and adjacent businesses about the implementation schedule of the project to mitigate the disruption of traffic and transport services, everyday life, and economic activities. This communication should be in a format and language accessible for all;

59 The World Bank, An International Framework for Eco-Industrial Parks (2017). Available at: sustainable%20eco-industrial%20parks.guide,establishing%20economically%2C%20socially%20and%20environmentally%20International%20Framework%20for%20Eco-Industrial%20Parks%20will%20WP-PUBLIC-AnInternationalFrameworkforEcoIndustrialParks.pdf#:~:text=The%20https://openknowledge.worldbank.org/bitstream/handle/10986/29110/122179-(Accessed:17/02/2022).

> Provide opportunities for skills development, particularly for women, youth and PWD i.e. technical and vocational training (TVET) and apprenticeships; and

> Ensure that workplaces are accessible for PWD and provide accessible working infrastructure and equipment;

Case Study Hawassa Industrial Park Hawassa Industrial Park in Ethiopia was designed, constructed and operated as a Green Industrial Zone60. Hawassa is a large industrial park (1.3 million sq ft) developed 200 miles south of the Addis Ababa with a specialism in textile and apparel. The park has been designed to be environmentally-friendly and limit its impact on the local ecosystem.

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As part of investigations, the quality of the groundwater should be tested to identify the required treatment system to ensure it meets drinking water standards (simple chlorination is likely to be sufficient). A drilling permit must be obtained from the Water Resources Management Authority offices under the Ministry of Water and Irrigation. The borehole will also be subjected to an EIA study and NEMA approval. If quality and quantities from boreholes are not sufficient to meet the demands from the subsequent phase of the green industrial park, then water could be abstracted from the Nzoia River and stored in a small earth dam with appropriate shading (or floating solar panels) to prevent evaporation provided on site. It is assumed that a maximum of 85% of water used (approximately 38.25 m3/day) will be discharged as wastewater. Where possible grey water should be reused before treatment (for example for flushing toilets). It is proposed that the current treatment works, found to the southeast of the Industrial Zone and currently owned by the Webuye Paper Mills, is acquired and rehabilitated to provide the necessary treatment for wastewater from the industrial site. Alternatively, a package plant and a reedbed system for wastewater treatment could be located in the Industrial Zone. The system is a combination of primary treatment and reedbeds/natural wetland62. Reedbed technology features low construction costs and minimal day-to-day operation and maintenance costs63. The system reduces wastewater contaminants, minimises solids, and provides sufficient storage time for stabilisation of bio-solids prior to disposal64 .

Despite the proximity of the River Nzoia to the Industrial Zone, its flows are variable, and the water can often be polluted. Therefore, it is proposed that water is abstracted from an on-site borehole. A storage facility of a day’s water demand is also recommended in order to build resilience into the system. Furthermore, energy from renewable sources, such as solar PV, should be used to power the borehole pumps. It is suggested that groundwater investigations are undertaken to determine a suitable location for, and depth of, the borehole.

For Phase 1, the footprint of the site occupied by industrial units is estimated at 29,500 m2, which is equivalent to 2.25 hectares (nett). It is estimated that an industrial unit of 1 ha uses approximately 20,000 litres per hectare per day61. Therefore, the industrial units located on site will require approximately 45,000 litres of water per day. This is equivalent to 45m3 of water per day.

62 Afifi, S., Bazazew, N., Arakelyan, K., Nassar, A., & Wise, T. (2013). Using Reed-Bed System for Wastewater Treatment and Reuse in Urban Semi/Urban Community in Gaza-Palestine. 36th WEDC International Conference, Nakuru, Kenya. Delivering Water, Sanitation and Hygiene Services in an Uncertain Environment.

4.2.5.2 Project 2: Water, wastewater and drainage for Industrial Zone Project Overview

61 Kenyan Ministry of Water and Agriculture. (2005). Practice Manual for Water Supply Services.

64 Afifi, S., Bazazew, N., Arakelyan, K., Nassar, A., & Wise, T. (2013). Using Reed-Bed System for Wastewater Treatment and Reuse in Urban Semi/Urban Community in Gaza-Palestine. 36th WEDC International Conference, Nakuru, Kenya. Delivering Water, Sanitation and Hygiene Services in an Uncertain Environment.

63 Keefer K. S. (2000). Treating Biosolids in Reed Beds Could Short-Sheet Your Budget. Water Environment and Technology, Vol. 12, No. 2, pp 61-65.

Textile activities tend to be water-intensive and generate large amounts of wastewater that is polluted with chemicals and is too often unsafely released into the environment. At Hawassa, 85% of sewerage disposal water will be recycled through its zero liquid discharge programme.

Environmental safeguards are planned and incorporated directly into the design of the park and its infrastructure.

There is currently no public water and wastewater service provision at the proposed Webuye Industrial Zone. This project covers the provision of water and wastewater services on site to enable the operation of future industrial activity on the site. An initial estimate of water and wastewater for the industrial units is provided based on the current estimate of the footprint of the industrial units.

60 Embassy of the Federal Democratic Republic of Ethiopia, London, UK, Hawassa Industrial Park goes fully operational as Ethiopia pushed to become manufacturing hub, (2017). Available at: pushes-to-become-manufacturing-hub/,org.uk/hawassa-industrial-park-goes-fully-operational-as-ethiopia-https://www.ethioembassy.(Accessed:18/02/2022).

Funding through development partners like World Bank or Water Sector Trust Fund Or local government for capital investment

Location > The project will be located in Focus Area 2 and provide water, wastewater and drainage services for the proposed Industrial Zone.

Wastewater: Pre-treatment and reed bed system ESIA including hydro-geotechnical investigation

The implementation agent would be Municipality with the aid of the SUED programme

Linkages > Which existing projects/ proposals (if any): no links to existing projects.

It is important to consider future space requirements for water and wastewater infrastructure to enable potential future growth in industry. For example, space for an additional borehole or additional wastewater treatment infrastructure.

> Links to SUED principles: resilience, resource efficiency and sustainability. Category > Capital investment: new Table 4-8

> Other SUED infrastructure/ urban projects: the project links to the Webuye Industrial Zone (project 1) and the organic waste project (project 16).

The stakeholders would include local businesses and SMEs for the operation and maintenance of services and employees of the Industrial Zone

To manage surface water, sustainable drainage system features such as rainwater harvesting systems could be utilised to collect surface water from the new industrial buildings’ rooftops. The water collected could be reused for industrial activities. To manage the surface water runoff from the proposed footpaths, a combination of filter strips and rain gardens can be utilised throughout the site and directed to the reedbed system. Exact locations of SuDS features can be finalised as part of the detailed design stages of the industrial site.

Source: Atkins Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders Feasibility study Water supply: Borehole, pump and chlorination system

– Project 2 Summary Information

The project will provide water supply, wastewater treatment services as well as sustainable drainage for the Industrial Zone in order to support future industrial activities

It104also provides habitat for local wildlife. Once water has passed through the reedbed system it can be reused for watering green areas in the industrial park, for washing machinery or cars or as discharge into the river (assuming it meets the required NEMA standards). A feasibility study should be conducted to provide further insight into the specific requirements associated with wastewater treatment and to ascertain the feasibility of land acquisition and rehabilitation of the treatment works present near to the Industrial Zone. Wastewater generated from toilets will be treated using septic tanks. Liquid waste will be treated in the rehabilitated treatment works or onsite reedbed system and an anaerobic digestor used to treat solid human waste. More details on an anaerobic digestor and supporting infrastructure are provided under Project 16.

KES 10 million KES 10 million KES 13 million KES 400,000 Total cost = KES 33,4 million

There is an opportunity for the water and wastewater management of the site to be operated by an SME but there will need to be outside investment in order to develop the assets.

The improvement of water provision and wastewater treatment will contribute to the economic activities in the industrial site, supporting future industrial activities. This will also contribute to improving the health of staff and local communities.

105BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

Groundwater assessments should be carried out to ensure that the amount of water being extracted by the solar-powered boreholes is sustainable and does not deplete the water table. If abstraction from the Nzoia River is necessary to increase quality and quantities, a water abstraction plan will be necessary to ensure sustainable abstraction from the river. There is a risk of damage to water supply and wastewater treatment infrastructure from flooding and so flood risk assessments should be carried out.

• The Adaptation Fund (AF)

Climate Finance Options Access to climate finance increases the capacity of projects to deliver climate mitigation and adaptation actions. There are a range of specialised funds and instruments available which could provide a source of finance for this project, including:

SUED Principles Climate change interactions and approaches This proposal will provide a sustainable and resilient water supply for the Industrial Zone. Reduced reliance on polluted water supplies, such as the River Nzoia, and improvements to wastewater services will contribute to improved public health and reduced prevalence of diarrheal disease, with associated healthcare cost reduction which is often a significant burden on low-income groups.

• African Financial Alliance on Climate Change (AFAC) Section 5.5 provides more information about available climate funds in Bungoma. Social inclusion interactions and approaches

Table 4-9 – Project 2 Basic Analysis and Timeline Source: Atkins Challenges Data gaps Time frame, key dependencies If sufficient groundwater is not available, then surface water or water from the river Nzoia will have to be used. This will add to the cost and energy requirements as water will need to be pumped and treatment increased Groundwater depths, yields and water quality to confirm feasibility and design parameters of the systems Short term The services would have to be developed at the same time as the Industrial Zone in order to supply the future industrial and VC activity with water, wastewater and drainage services

• The National Treasury • The Special Climate Change Fund (SCCF)

> Capacity building with selected local people to ensure maintenance and operation of systems.

> Links to SUED principles: resilience, resource efficiency and sustainability.

This project has several proposed components:

Category > Feasibility study > Capital investment: new

4.2.5.3 Project 3: Solar refrigeration (cold stores) Project Post-harvestOverviewandpost-catch losses are a significant problem across the agricultural sector. For agricultural produce, cold stores can extend the shelf life of perishable food by between two and 21 days, reducing post-harvest losses by up to 80% and increasing small farmers’ income by 25%66 . This infrastructure project aims to provide solar-powered cold stores in agricultural hub locations to support local farmers who currently have no access to a cold storage and therefore lose part or all of their product due to spoilage. Modular solar-powered cold stores are becoming popular in small farming communities where grid electricity is not available or expensive. They work on a subscription model whereby farmers pay a flat daily rate for each crate of food they store (about KES 5 per kg). Some providers use mobile phone apps to communicate to farmers about the availability of space in the store and to process payments. The revenue created goes towards maintenance of the facility and employment of a facility manager. Many providers target job creation for women. This project will provide a number of small, solar-powered cold stores (a half to full-size shipping container) that will act as hubs to local farmers who currently have no access to refrigeration services. All farmers can use the facilities whether they are linked to the VCs or not.

> Preparation of designs for solar refrigeration systems as well as a procurement and deployment plan;

> The size and location of the facilities will be based on determining the following:

> Linkages > Which existing projects/proposals (if any): no links to other existing projects.

> The number, size and location of arable farms and livestock holdings and their seasonal outputs, the current status of their storage facilities and refrigeration needs, and current produce sales practices;

Location > The locations of these projects will be determined by a feasibility study.

106 Case Study Stabilisation pond and reed bed, Oxford, UK65 Welcome Break Oxford Motorway Services in the UK use a modified stabilisation pond and reedbed system in conjunction with a basic Submerged-aerial filter sewage treatment plant to treat the wastewater from the whole site. The plant produces high-quality effluent that meets the required discharge standards. The site has also become a wildlife haven and sanctuary, attracting birds, ducks, deer, butterflies, and dragonflies.

> Selection of land and deployment of systems to selected locations; to include construction of facility, roll-out of payment mechanism, selection, and training of managers; and

65 Cress water solutions, Case studies – Oxford motorway services (2022), Available at: oxford-motorway-services/,https://cresswater.co.uk/case-studies/(Accessed:10/02/2022).

> Other SUED infrastructure/urban projects: the project links to the dairy VC.

66 Cold Hubs, The Solution: Walk-in, solar-powered cold stations for 24/7 storage and preservation (2022), Available at: https://www.coldhubs.com/, (Accessed: 15/02/2022).

Development of procurement and deployment plan Develop training plan, for management, operation and maintenance

Developing business model to ensure long-term sustainability Limited knowledge of current situation

Establishment of needs for solar refrigeration systems

Donor funding is available from numerous sources, including Self Help Africa and AGRA Public sector funding may be available from the central government via the Ministry of Agriculture, Livestock and Fisheries

Source: Atkins, 2022

Obtaining comprehensive data on current situation

107BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

ShouldShort-termbeimplemented in the short term to support the dairy VC as well as other agricultural activities across the Municipality

Site selection – Municipality with assistance from national agricultural specialists

Sub-components

Implementation agency and stakeholders

Ability of farmers to sell direct to local Employmentcommunitiesopportunities for women

Table 4-11 – Project 3 Basic Analysis and Timeline

Obtaining funding for initial construction

Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms

Equipment selection – Municipality with assistance from cold chain specialists

Total cost = KES 7.5 million

Table 4-10 – Project 3 Summary Information

Cold Benchmark:stores

Source: Atkins, 2022 Challenges Data gaps Time frame, key dependencies

Reduced produce spoilage leading to higher revenues for small farmers

KES 750,000 per system 10 systems planned

Preparation of design brief for refrigeration systems

Construction and implementationOperationMunicipalityand maintenance –responsibility of Municipality

• Africa Regional Climate and Nature Programme (ARCAN)

Section 5.5 provides more information about available climate funds in Bungoma.

> Ensure the employment opportunities associated with the project, such as maintenance staff, and a facility manager, are available for SIGs and other disadvantaged groups; and

SUED108 Principles Climate change and social inclusion interactions and approaches

• Green Climate Fund (GCF)

• The Special Climate Change Fund (SCCF)

This project contributes to both climate change and social inclusion objectives. There are clear resilience benefits to this project which targets small farmers who currently suffer losses in potential earnings, and experience adverse effects on their livelihoods. Women and other SIGs are particularly affected by the lack of access to storage opportunities, often having significant post-harvest losses or being forced to sell their produce when market prices are lower. As both extreme, and average, temperatures in Bungoma have increased, and will continue to do so under all CO2 emissions scenarios, the incidence of high temperatures causing products to spoil is likely to increase. Providing cold chain solutions that are powered by renewable energy and which target small-scale farmers will help increase their resilience to climate change, and as such strengthen their livelihoods.

Climate Finance Options Access to climate finance increases the capacity of projects to deliver climate mitigation and adaptation actions. There are a range of specialised funds and instruments available which could provide a source of finance for this project, including:

> Lack of affordability is also one of the main constraints for inclusion of SIGs in these initiatives. Consequently, it would be important to promote and include SIGs groups and associations, and to provide affordable storage facilities

• Africa Adaptation Acceleration Program (AAAP)

Recommendations: > The site location of the storage hubs will need to be resilient to increased rainfall and risk of flooding. Accessible infrastructure e.g. step-free storage facilities, should be considered; > Ensure communication strategies about the availability of space in the store are available and accessible to all people, particularly to SIGs and SIGs’ organisations engaging in agriculture;

• Sustainable Energy Fund for Africa (SEFA)

• Clean Technology Fund (CTF)

The cold storage helps local fishermen to keep their catch fresh for longer once they have returned from fishing.

The use of ethanol in Kenya has surged recently, due in part to the success of companies like Koko, who distribute ethanol via innovative ATMs mainly in Nairobi, for use in domestic cooking. This offsets the use of more expensive fuels such as kerosene. Ethanol costs around KES 77 per litre compared with Kerosene which costs KES 110 per litre. Ethanol can also reduce CO2 emissions by between 40-62% according to UNEP68 .

> Links to SUED principles: resilience, resource efficiency and sustainability. Category > Feasibility study/design

> Other SUED infrastructure/urban projects: no links to other projects

Contained Energy successfully developed and deployed standalone, off-grid, and 100% solar-powered cold storage facilities with thermal energy storage technology in combination with ultra-efficient compressor packages.

The unique feature of the system is that it deploys a large volume of Phase Change Material in the ceiling, capable of storing and releasing 15 kWh of cooling capacity at -4ºC. This thermal energy storage technology allows the compressor package to do most of its ‘cooling work’ during the day, when the solar power is available, saving a substantially larger quantity of battery storage that would otherwise be required.

> A baselining exercise to determine the current availability of suitable feedstock (molasses), demand for ethanol and routes to market; > A study to review equipment availability, equipment selection and cost feasibility; > Design and construction of ethanol plant; > Fuel delivery contracts and supply chain contracts; and > Capacity building with utility operatives to ensure maintenance of systems. Location > The project will be located in the Nzoia Sugar Company factory site. Linkages > Which existing projects/proposals (if any): linked with the past molasses to ethanol projects run by the Nzoia Sugar Company.

4.2.5.4 Project 4: Molasses to ethanol plant Project Overview

> Capital investment: new

68 Reuters, Nairobi’s fuel dispenser replace charcoal, kerosene with biofuel (2021), Available at: replace-charcoal-kerosene-with-biofuel-2021-10-04/,https://www.reuters.com/world/africa/nairobis-fuel-dispensers-(Accessed:15/02/2022).

Solar cold stores in Wakatobi and Pacitan, Indonesia67

109BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

This project will enable Nzoia Sugar Company to produce ethanol from molasses. Ethanol is an industrial chemical that can be used as a fuel, offsetting the use of other more polluting fuels such as petrol or kerosene. In Kenya it can be used to either mix with petrol or as a domestic cooking fuel.

One way sugar companies can improve their outlook is to diversify their product range to provide an additional revenue stream. This could be through the introduction of a new product, or by upgrading a current product to one of higher value.

The 20 m3 unit was designed to keep 500 kg of fish at -2ºC, with the capacity of adding and cooling 200 kg of ‘un-iced’ fish per day (for a total cooling load of 30 kWh per day). It is powered by a 6.4 kW solar array backed up by a relatively small 10 kWh valve regulated lead-acid battery bank.

67 FAO, Renewable energy and reducing food loss and waste in fish value chains (2020), Available at: food-loss-and-waste-in-fish-value-chains/es/,flw-in-fish-value-chainsresources/articles/renewable-energy-and-reducing-https://www.fao.org/flw-in-fish-value-chains/(Accessed:15/02/2022).

This project will provide a flexible renewable fuel that will introduce another revenue stream to Nzoia Sugar Company by utilising molasses to produce ethanol. It has several proposed components:

Currently the Nzoia Sugar Company, and in a larger sense, the Kenya sugar industry, faces an uncertain future, due to competition over raw materials, the high cost of production, declining sugar cane yields, and cheap imports from Uganda.

Case Study

Sub-components

Source: Atkins, 2022 Challenges Data gaps Time frame, key dependencies

TheMedium-termbaselinestudies, designs of the plant and implementation of project should occur in the medium-term to allow for other infrastructure and the priority VCs to be well-established

110 Table 4-12 – Project 4 Summary Information

Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms

IFI/donor finance for energy efficiency/ renewable energy programmes. Nzoia Sugar Company Energy Services Companies (ESCOs) for delivery of commercial solutions

Table 4-13 – Project 4 Basic Analysis and Timeline

Construction of plant Fuel delivery/ supply chain development Maintenance plan

Source: Atkins, 2022

Implementation agency and stakeholders

Effort needed to obtain comprehensive data on current situation Obtaining funding No knowledge of current situation

KES 20 million to complete studies/ design KES 300 million to complete plant Total cost = KES 320 million Additional revenue stream for sugar company Potential low-cost alternatives to kerosene etc. for domestic cooking Reduced carbon emissions and deforestation

Baseline Equipmentstudystudy and cost plan

Design of Developmentplantof procurement and deployment plan

The key climate risks to this project are increasing temperatures and rainfall variability (drought events) which could negatively impact the production of sugarcane and supply of molasses. Possible measures to ensure a resilient supply of sugar cane include: > More drought-resilient varieties to be grown;

> Diversification of cropping systems, crops and cultivars;

111BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

• Africa Regional Climate and Nature Programme (ARCAN) Section 5.5 provides more information about available climate funds in Bungoma.

• Green Climate Fund (GCF) • The Special Climate Change Fund (SCCF) • Clean Technology Fund (CTF) • Africa Adaptation Acceleration Program (AAAP)

69 Nelson, V., and Lambrou, Y., (2011) Scoping the Gender Issues in Liquid Biofuel Value Chains, University of Greenwich, Available at: liquid-biofuel-value-chains/file,working-paper-series/3-nri-working-paper-series-no-3-scoping-the-gender-issues-in-https://www.nri.org/publications/(Accessed:15/02/2022).

Climate Finance Options Access to climate finance increases the capacity of projects to deliver climate mitigation and adaptation actions. There are a range of specialised funds and instruments available which could provide a source of finance for this project, including:

• Sustainable Energy Fund for Africa (SEFA)

Social inclusion interactions and approaches FGDs indicated that men, women, and youths engage in crop farming. Men and youth are mostly involved in harvesting sugar cane. As it happens in other regions, few women are involved beyond the production stage of biofuel value chains, for example in value added links such as processing, distribution, and marketing69. It is expected that other SIGs face similar challenges. Apart from the opportunities for SIGs’ economic and social inclusion, this project has a strong gender impact. Women are often in charge of looking for energy sources for their households and, currently, firewood, charcoal, and kerosene are the dominant cooking fuels in Kenya. While urban households are rapidly shifting to cleaner fuels, rural households lag. Fetching wood or other energy sources sometimes represents gender-based violence risks. This activity also takes time that could be used for other purposes, such as education, engaging in an economic activity, or even taking a rest. Production of ethanol energy will reduce the reliance of firewood and charcoal as the main source of energy. Using bioethanol will contribute to reducing women’s’ time burden and can be used as a cleaner fuel source for cook-stoves, hence improving women’s’ quality of life and reducing the negative impacts associated with the use of charcoal, firewood and kerosene.

SUED Principles Climate change interactions and approaches

> Irrigation (e.g. drip, solar powered) to be implemented. The associated water source should have viability as a long term sustainable source; and > The use of seasonal forecasts to allow forward planning of farming operations. Future drainage networks associated with the development should make an allowance for increases in acute rainfall events and flood risk assessments should be undertaken during the design phase to ensure the ethanol plant and equipment is resilient to flooding. The delivery systems involved may benefit from road upgrades to ensure they are resilient to high temperatures and heavy rainfall events.

112 Case Study Pingale Sugar and Agro Products – molasses to ethanol programme, India70

The plant operators carefully studied the local markets for sugar and liquid fuels, and concluded that there was an opportunity to utilise surplus sugar cane and sugar products (in this instance, molasses) to manufacture ethanol that would meet the increasing demand for the fuel.

70 Mitcon Consultancy and Engineering services Ltd., Detailed Project Report on 80KPLD ethanol plant from cane molasses (2015), Available at: Distillery-_Pingale_Sugar.pdf,Online/TOR/0_0_07_Dec_2015_1834272031DraftDPR_http://environmentclearance.nic.in/writereaddata/(Accessed:15/02/2022).

4.3 Markets, Trade, and Services SAP

Logistics and associated services – logistics captures the activity that results from Bungoma’s location close to the border and its transport sector. The northern corridor trade route links Mombasa and Kenya to a large number of economies including Burundi, eastern Democratic Republic of Congo (DRC), Rwanda, Somalia, South Sudan and Uganda.The majority of this activity does not directly benefit Bungoma, where the HGVs just pass through in transit to and from Mombasa to Uganda. Some of these drivers do occasionally stop off in Bungoma to use its hotels. There are also a number of vehicle servicing businesses, however, these are currently for smaller motorised vehicles, auto-garages, and welding and carpentry workshops. Trade - trade represents the cross-border trade to and from Bungoma and Uganda. This activity is currently very small scale, where the vast majority of goods that cross the three nearby borders are just passing through Bungoma. Figure 4-13 below shows the other counties that are intersected by these key roads. Kisumu, Eldoret, and Kakamega are all situated on key corridors between Nairobi and Kampala, as are other key producing counties of the LREB. The two main border points from Uganda to Kenya are Malaba and the Busia border point. There is, however, potential for Bungoma to take advantage of this.

This sector looks at some of the highly interconnected sectors in Bungoma that require a joined-up approach for both soft interventions and infrastructure. In contrast to the agriculture, livestock and agri-processing sector, development in this sector will be driven by a set of Anchor Infrastructure interventions, where the following softer interventions will support and enhance their impacts. This sector encompasses Bungoma’s commerce activity including its markets, its cross-border trade, and its businesses; as well as Bungoma’s key services including logistics, hospitality, and tourism.

Markets and commerce – Bungoma’s market spaces are integral to Bungoma’s informal economy, which engages the majority of the County’s population. Each of Bungoma’s key markets are unique, the key markets in Bungoma County are Chwele, Kimilili, Webuye, Bungoma, Chepkube, Mianga, Kamukuywa, Mayanja and Mateka, Kabla, and Kanduyi. Chwele claims to be the second largest urban open market in Kenya. The market subsector captures both the economic activity of the physical market areas in Bungoma as well as the informal trade that occurs outside of the market spaces such as the hawkers that situate themselves in areas of high footfall. There are also a number of formal businesses the Town hosts, Khetias, Naivas and Tesia supermarket chain stores among others. These retail shops are supplied by Bungoma’s wholesale traders, mainly located within the CBD.

The operators proposed the construction of an 80,000 litres per day output ethanol plant. This would also utilise the surplus output grown by local farmers and create additional revenue for them. The steam and power requirements of the proposed plant would be met by using waste from the distilling process (slops) and sugarcane bagasse waste product, and where necessary, coal.

Source: Trade Mark East Africa, trade corridors in East Africa

113BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) Figure 4-13 - Trade Corridors in East Africa

Note: Because the survey was conducted on a short timeframe, it might not accurately represent annual trends, but it still gives a good indication of informal trade with a high level of granularity.

› Climate change and severe weather threatens non-resilient market infrastructure;

› A range of existing heritage, natural, and cultural assets; and

› A number of unique markets which attract visitors from the wider region; › Strategic location at border, along A8, rail line, and airstrips;

› To serve passing trade and create new economic activity;

› Growing congestion resulting from logistics.

› Improve safety of traders and residents; › Create new footfall across the CBD; › Improve access to Lwakhakha border point and for a proactive border point in the county; and

› Utilise the affordable imports from Uganda for agri-processing; › Improve markets to attract more visitors, and so that they work for the traders;

› Tourism highly vulnerable to external shocks (i.e. economic downturns/COVID-19); and

› Costly double taxation on exports and imports; › HGVs passing through create congestion; and › No driver resting areas, toilets or bathrooms.

Tourism and hospitality – Bungoma’s tourism and hospitality sub-sector captures the economic activity that directly results from visitors, both international and national, coming to Bungoma County. Bungoma is on the western circuit of Kenya, the western circuit and the wider Lake Region has a range of tourist attractions and unique landscapes that draw in visitors from around the world. Bungoma also has a range of heritage and cultural assets, a number of notable hotels, and regionally renowned events.

› Street lighting primarily along main roads has opened up economic activity in the evening.

Source: Atkins, 2022 Strengths Weaknesses

› Receives high levels of passing trade; › Falls into the western tourism circuit;

› Most of the markets in the County have poor infrastructure, (lack proper sewerage systems, have poor lighting, lack adequate water supply, have poor solid waste management systems, and lack sufficient shade for traders).

› Traders are spilling onto streets and roads because they have been excluded from plans; › Traders are at risk operating from the roads; › Markets sell mostly non-local produce; › Very limited existing marketing and promotion of tourism sector; › Litter is a problem in the markets, bus parks, and residential areas;

Opportunities Threats

Busia114 was identified as a major trade hub, alone accounting for 44% of all Kenya’s informal cross-border imports71. Malaba crossing point, also located in Busia County was one of the next largest trade hubs, with 69% of commodities going out of Kenya to Uganda. Malaba crossing point is the most accessible border point for those who reside in Bungoma Town where it sits on the A104. The Lwakhakha border point falls within Bungoma County but is smaller and less accessible. However, both Kenya and Uganda are currently investing in a major connection to the Lwakhakha border point.

› To export value added produce;

Table 4-14 - Markets, trade, and services SWOT

› Advertising of its attractions, and a joined-up approach with the western tourism circuit.

71 KNBS, Cross-Border Trade Survey (2011). Available at: https://www.knbs.or.ke/?p=155, (Accessed: 17/02/2022).

› Existing markets are not accessible;

Figure 4-14 shows the interlinkages between the key soft interventions and the individual sub sectors. Figure 4-14 - Linkages between the key sub sectors and proposed soft interventions Atkins, 2022

There is a need for better coordination and planning across these subsectors where interventions in one sub sector have the potential to benefit the other.

115BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

Source:

Strengthening Bungoma’s Logistics offering and taking advantage of passing trade. B4 - Plan to engage and serve the passing trade from the logistics sector. Gateway for trade to Uganda and central Africa B5 – Promote sustainable development at the Lwakhakha border point Coordination across the hospitality and tourism sector. B6 - A strong advertising campaign that highlights the unique assets and amenities of Bungoma.

Table 4-15 - Markets, trade, and services soft initiatives Aim Action Support polycentric growth through the development of Bungoma’s market towns

Soft Initiatives, Training and Capacity Building

B1 - Develop the unique selling points of Bungoma’s market towns B2 - Integrate Bungoma’s hawkers and informal traders with nonpermanent structures in the plans for development of the town.

116 4.3.1

B3 - Better support for businesses and start-ups

B1 - Develop the unique selling points of Bungoma’s market towns Each of Bungoma’s market towns serve a unique purpose and draw in footfall from different towns in the region. Build an understanding of the current offering, role, and attraction of these different market towns to provide a strong basis for planning the development of each of the market towns. Bungoma’s market towns need a step improvement in their infrastructure provision. Local place-making, and infrastructure proposals for Bungoma Town have been highlighted in the Anchor projects in section 4.3.2 including: > Bus drop-off points; > NMT links through Bungoma CBD; > Green open spaces; > Spaces designed for traders; and > Sanitation facilities and water access points.

The new infrastructure should follow principles of inclusive design to ensure easy access, safety, and use for everyone, and climate resilience to reduce disruption from extreme events. There are specific social inclusion and climate resilience recommendations for each infrastructure project in section 4.3.2.1.

Case Study - National Law of Street Vending (India)

The potential for growth of MSMEs is restricted by inadequate capital, limited market access, poor infrastructure, inadequate knowledge and skills, and rapid changes in technology.

> Integrate informal vendors in urban management; and

> Reserve stalls in existent markets for street vendors to use. Incorporate principles of universal design and provide adequate shading;

> Encourage membership-based organisations to strengthen their negotiation capacity;

Recommendations for their socio-territorial integration involve:

> Build public toilets and well-illuminated shelter.

It is recommended to consider additional options that are accessible and affordable to SIGs, particularly to those that might not actively participate in cooperatives. An example of this is the Community-Based Entrepreneurship Development (C-BED) initiative from the International Labour Office (ILO).

B4 - Plan to engage and serve the passing trade from the logistics sector.

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Currently a few drivers will stop off overnight in Bungoma to rest, there is an opportunity to attract more overnight visitors from the logistics sector. Firstly, the Malaba, Busia and Lwakhakha border points are all lacking affordable parking facilities. Parking facilities along the A8 in Bungoma would incentivise drivers to stop and rest here. Section 4.3.3 presents the infrastructure proforma for an HGV parking area. The primary economic benefit from this intervention, however, would come through the creation of supporting businesses that would surround the facilities, these could include hotels, restaurants, bars, refuelling/repair facilities, shops and stalls.

> Work with informal vendors’ and their associations to designate specific spaces for their commercial activity. This should be done in a participatory way;

Plans to support businesses and start-ups in Bungoma should look to facilitate: > Access to knowledge; > Access to finance; > Access to markets; and > Knowledge networks.

Cooperation with the border points, EAC, TMEA and other key international organisation could also provide a queuing system and other services where truck drivers can wait in the parking facilities until they are called to the border.

The parking would need to be highly affordable or free to truly unlock this economic activity and to decongest the A8 road, and the CBD.

B2 - Integrate Bungoma’s hawkers and informal traders with non-permanent structures in the plans for development of the town. Informal street vendors are a key stakeholder of Bungoma’s economy. Yet, local economic development plans rarely consider their livelihood security and often result in their economic displacement. Moreover, hawkers face several challenges while engaging in this activity. For example, in Bungoma they face increasing hostility and harassment in their search for public space access. They also face occupational health and safety risks due to sun exposure or heavy rains.

B3 - Better support for businesses and start-ups Development of the service sector could include support to Bungoma’s entrepreneurs, start-ups, traders, and businesses.

It is also key that local businesses have the opportunity to provide services and set up businesses in this space, as well as larger chain businesses. It is also likely that this intervention will attract informal traders, where it will receive high levels of footfall if successful. It should therefore provide space that would integrate these traders.

One vehicle for facilitating this is cooperatives. Some of the potential training services to be provided by SME accelerators are highlighted in Kenya’s Agricultural Transformation and Growth Strategy. This activity should seek to include specific support to business to help adapt to climate change and manage business disruption from extreme events.

The Self-Employed Women’s Association (SEWA) and the National Association of Street Vendors of India (NASVI) have been key stakeholders for the sanction of the National Law of Street Vending. This law regulates and protects street vendors and their livelihoods.

Development of this proposal (B4) and the following B5, should look to align with both the Northern Corridor Strategic Plan 2017-2021, and the Masterplan for logistics along the Northern Economic Corridor 2017.

B5118 – Promote sustainable development at the Lwakhakha border point

Border cities and their constant flow of people and trade can become a risky environment in terms of gender-based violence (GBV) and (sexual and labour-related) human trafficking. Potential mitigation measures include:

It is also important that development in this sector is Community-led, and provides local people with the opportunity to influence and become involved with developing their own communities. It brings about improvements in local, social, recreational, environmental, and historic amenities for locals and visitors alike, and it 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.

There are a number of different communities and cultures that have influenced the character and economy of Bungoma.

It is also viewed as the gateway to Mount Elgon, where it has a number of natural assets and heritage attractions. Bungoma County is unspoilt by high flows of tourists and offers visitors the unique opportunity to have a genuine experience of western Kenya. Bungoma’s tourism sector is in its infancy and there is a need to better understand the role that Bungoma plays in the western circuit’s tourism offering.

> Reduce vulnerability of potential victims by contributing to their socio-economic development (e.g. alleviating poverty, creating employment opportunities, tackling social exclusion). See the ISANGE ‘One Stop’ case study below. B6 - A strong advertising campaign that highlights the unique assets and amenities of Bungoma.

Bungoma is a diverse county where tradition still runs strong.

Key parties could include the public sector (the Bungoma Department of tourism and the Bungoma Tourism Committee), the private sector (key hotels and services), community groups, and national level ministries and agencies such as the Kenya Tourism Fund and Kenya Airports Authority.

> Work with bordering local governments to improve cooperation and coordination; > Work in partnerships, for example, liaising with national governments, specialised international organisations (e.g. International Organisation for Migration, United Nations Office on Drugs and Crime), and NGOs;

The proposed infrastructure in the CBD, alongside the above interventions in the other sub-sectors will also be key to enticing more visitors to Bungoma.

This includes development of initiatives and campaigns aimed at enhancing the marketing of Bungoma as a destination.

One way this could be encouraged could be through a Bungoma Tourism board, gathering key stakeholders to provide a plural representation that accounts for various needs and expertise. The ultimate goal of the working group should be to develop a representative tourism offer for Bungoma, which provides socio-economic benefits for the local population, and ensures effective levels of cooperation in its delivery.

> Apart from media campaigns, develop awareness sessions to sensitise communities and discourage demand. These workshops/sessions could be held in community meetings, religious organizations, and schools;

The border point has been identified by national investors to be a high potential border point for trade activity between Uganda and Kenya, and an opportunity to relieve pressures on the Busia and Malaba border points. Given the planned development there is a need to introduce sustainable construction guidelines here which, accounting for the intrinsic value Lwakhakha’s communities and environmentally-sensitive assets in future design and planning, is not only crucial for long-term sustainable development, but it can also benefit Lwakhakha, its residents, and its stakeholders. These will help to protect Lwakhakha from rapid unplanned development, and benefit Lwakhakha’s current residents.

> As was done in Rwanda, train police officers to identify victims of human trafficking. Likewise, develop training targeted at the hospitality sector; and

74 The New Times, Gender summit delegates visit Isange one Stop Centre (2019). Available at: delegates-visit-isange-one-stop-centre,https://www.newtimes.co.rw/news/gender-summit-(Accessed:17/02/2022).

Currently, there are several points countrywide, and each one concentrates all services to support persons experiencing these types of violence in one place, allowing for better coordination between different government agencies tackling GBV and mitigating further risks (e.g. by reducing travelling times and providing emergency services such as offering medical and psychological support, testing for sexually transmitted diseases, etc.). In these centres, the survivor, whose confidentiality is always ensured, meets a social worker who aims at understanding the case, and offers care and/or referrals whenever needed.

In recent years, Isange’s responsibilities have been expanded to give assistance to victims of human trafficking. To do so, Rwandan police officers are trained on how to handle these specific cases.

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Source: 7273, Image74 72 John, G. (2019) Analyzing the strategies of prevention and control of human trafficking in Rwanda, Sociology International; 3(4): 304-309.

73 DARPG, Isange one stop centre model – Rwanda National Policy (RNP) (no date). Available at: https://www.darpg.gov.in/sites/default/files/Rwanda.pdf, (Accessed: 17/02/2022).

Despite there being aspects of the initiative that could be improved, this model is considered an overall success story, and it has been studied and replicated in other countries and regions.

Case Study ISANGE ‘One Stop’ Centre (Rwanda)

Rwanda has developed an initiative to prevent and respond to gender-based violence (GBV) and violence against children. This initiative, called ‘feel welcome’ started in 2009 at Kacyru Police Hospital (Kigali) and it is part of a partnership between the Rwanda National Police Health Services and the United Nations in Rwanda, with support from UNIFEM (now UN Women), UNFPA and UNICEF. The centre provides 24/7 free services and support to people experiencing these types of violence.

There is a strong case to develop an integrated proposal that addresses functional and operational issues as well as urban quality and the user experience in this central hive of activities. These proposals are part of an integrated spatial strategy across the Town centre, in particular the CBD area acting as one of the nodes elevated as a high quality urban destination along the north-south axis between Musikoma and Kanduyi. The other important node is the airpstrip site, 15 minutes’ walk further north of the CBD.

The CBD would benefit from two catalysing proposals: > CBD market block transformation and > Upgrade and repurposing of the existing bus park by the C33 (See fig Figure 4-17)

The existing CBD market is relatively rundown and would benefit from an overall upgrade, including increased capacity. Along with these developments, there is a marked lack of quality public realm and open space.

120 4.3.2 Anchor Projects 4.3.2.1  Anchor Project A: CBD market and bus station Project EconomicOverviewdevelopment is a fundamental component for the SUED proposals. The vision for Bungoma’s urban development adopts a polycentric approach across its key urban nodes, these have been developed as mixed-use neighbourhoods that support and promote local economic activities. The rapidly growing Bungoma Town centre is the County’s largest node that operates as a hub for businesses, visitors, students and traders from across the region to access markets, education, services, and health facilities. Despite a wide mix of building heights, the CBD is the densest area in the County. A robust gridiron network develops west from the C33 (the major north-south transport and access corridor). The bus station represents the central gateway to town, this, in turn, has influenced the type of uses and amount of activity around the CBD. Matatus and boda-bodas dominate and overwhelm the streets which are already occupied by informal traders. There is very limited greenery or open space to provide respite to the visitor, as such, the immediate visitor experience is marked by hard surfaces, congestion, a lack of safety, and a general sense of disorientation.

The current CBD market and the adjacent bus park are both located in the heart of Bungoma CBD. The existing bus park, adjacent to the C33, has reached operational capacity, leading to vehicular spill-over onto adjacent roads and intersections, which interrupts traffic flow and exacerbates congestion.

Another potential site under consideration for a new bus station is to the north of the A104 in Kanduyi.

121BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) Figure 4-15 – Diagram showing proposed zoning and key circulation routes Source: Atkins analysis, 2022

> Increased capacity of the current market (depending on demand) by consolidating more uses on multi-storeys (up to 2/3);

> This adds porosity to the urban fabric and helps decongest and declutter the environment;

> The rooftop of the CBD market is designed as a place of play and relaxation to give the market an additional dimension and interest (elevated views) and character to the skyline of Bungoma;

> Hawkers/traders occupying the streets can access either spaces in the market or use temporary stalls in the plazas, thanks to the proposed market upgrade.

a) CBD market block transformation

The CBD market transformation is aimed at delivering new quality spaces for both retail and socialisation, and it comprises the following elements:

> The two plazas (to the north and to the south of the market) and new multi-use civic spaces at ground level are also proposed. These can be used for pop-up events, temporary markets or as amenity spaces;

> Enhanced streetscape surrounding the market plot, particularly on the Moi Avenue side, are widened and used as shared surfaces;

Figure 4-16 – 3D diagram showing land use allocations to each floor of the proposed market Atkins, 2022

In122both cases, the overarching development principles include development and enrichment of current land uses and, where appropriate, integration in the proposals of County and/or Municipal projects or aspirations. A fundamental step change is the provision of new community spaces that add urban quality to the cluster and enriches the visitor experience.

> A new natural canopy featuring new trees, will have more space and become a component of the urban skyline; and

Source:

> Reconfiguring the land uses at ground floor to include community space, food and beverage provision; on the rooftop, a new recreational experience is fully integrated with commercial and retail uses;

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> The most southern section of the plot will be developed into a new civic space, with green areas for aesthetic appeal and SuDS elements. This zone directly links west into the newly established Market Plaza.

The two new civic spaces with year-round activities have the potential to be a catalyst for urban regeneration in the block as well as its surrounding areas, adding further value to businesses operating in the town. These spaces connect to the proposed green link along Moi Avenue (detailed in section 4.3.2.2) that runs through the wider Town centre. The link has the potential to transform the interface between the market and existing vehicular access routes making it more pedestrian-friendly.

In order for this space to work effectively, traffic reorganisation is required, subject to feasibility studies the County Government should create a traffic flow plan. A new traffic circulation pattern is proposed, that introduces one-way traffic movements in order to prevent through traffic from using the Town centre streets, simplify intersection movement, reduce speeds, and reclaim excess carriageway space for other users. The design self-enforces the uni-directional flow of traffic through a combination of tight turns and narrow intersections with restrictions on free turns.

A detailed survey and feasibility study to assess traffic flows, vehicle numbers and pedestrian movement across the wider CBD is required before design and implementation.

Key aspects of the proposals include:

New opportunities for pedestrian-only zones are carefully selected due to their low traffic volumes and high pedestrian traffic. Together, with the green link, the new spaces enhance connectivity throughout the town.

b) Upgrade and repurposing of the existing bus park

The newly-proposed bus park plot morphs into a multi-purpose space including regulated transit and stop/go for buses, matatus and boda-bodas, a new pocket park, and a series of well-arranged retail stalls along the site perimeter.

> The retail space, subject to further viability studies, might also be configured in multi-storeys (2/3) for commercial/budget short stay hospitality (currently not shown in diagrams); and

> Reducing the bus and matatu park to a short stop point and simplifying circulation patterns;

Locations for loading and offloading can be introduced by reclaiming and revitalizing the existing passageways between buildings that have currently been neglected due to poor pavement conditions, lack of lighting and solid waste disposal.

> Redeveloping the freed-up space into a retail space that will include ticketing facilities, food and retail shops and facilities for the drivers as well as visitors;

124 Figure 4-17 – Diagram showing proposed vehicular and pedestrian circulation. Source: Atkins analysis, 2022

125BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) Figure 4-18 – 3D view of CBD market and bus station. Source: Atkins analysis, 2022

126

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Table 4-17 – Anchor Project A Basic Analysis and Timeline

> The project is located in Focus Area 1 in the Bungoma Town centre, off the C33 road.

Pre-feasibility study Detail site survey required and land ownership information Impact on access to local businesses due to upgrades Short to medium-term Land acquisition, detailed design and other necessary activities to unlock the land for development should be completed in the short-term.

Linkages > The anchor project links to the ongoing dual carriageway upgrade to the C33 as well as the desire to move the bus park to an alternative location stated in the planning documents.

> Other SUED infrastructure/urban projects: The project links to the CBD green link (Anchor project C), bus park relocation (project 5), street lighting (project 7), accessible public toilet blocks (project 6), Town centre redundancy links (project 8), urban improvements to the C33 and road safety (project 9) and solid waste segregation, storage and collection (project 17).

> Links to SUED principles: resilience, resource efficiency, social inclusion and sustainability. Category > Feasibility study/design > Capital investment: New Table 4-16 – Anchor Project A Summary Information Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders › TOD mixed-use › TOD mixed-use rooftop › CBD market › CBD market rooftop › CBD retail kiosks › Bus station structure › Plaza Space CBD market. › Plaza Space TOD mixed-use › Bus station paving (queuing, bays and circulation) › Boda-boda stages › Pedestrian street › Shared street › streetLoading-unloading › Traffic forfeasibilitycirculationsurveysreorganisation › KES 59.2 million › KES 6.6 million › KES 239.3 million › KES 48 million › KES 29.3 million › KES 63.6 million › KES 38.6 million › KES 10.1 million › KES 33 million › KES 8.8 million › KES 13.9 million › KES 77.2 million › KES 7.3 million › KES 10 million Total cost = KES 644.9 million › Improvement of market efficiency and urban fabric › Reduction in car use - lower emissions and congestion › Support more and safer pedestrian and footfall movements, with widening and improved appeal › Support active mode and healthy behaviours › Space for events and activities to encourage visitors and support revenue › Typically, public funded projects › Potentially, localpartnershipinwithbusiness Private sector funding for development and operation of market › Municipality › BIDs realmLocalizedimprovement(Businessdistrict):areas,publicandanimation › responsibilityMaintenance of Municipal Government for public areas and owners for private › Employ local SMEs for waste services › Light NGOsandmaintenancetouchanimation:andCBO

Location128

Existing trees and public realm may need to be removed

Source: Atkins, 2022 Challenges Data gaps Time frame, key dependencies

›

Anticipated resistance to proposals - due to disruption to traffic and traders’ relocations

Sufficient funding available and effective contributions from private sector

Soon after the implementation of the project should occur and continue into the medium-term

Enhance benefits for the community

Suitable parking reduction enforcement will be required Consult with traders and local groups

› Implement wayfinding signage that is appropriate to people with hearing and visual impairments or learning disabilities. It is recommended to utilise easy-to-read text or simple symbols. Avoid reflective material that could cause confusing glare; and › Provide public PWD-friendly toilet facilities with adequate space for caregivers. It is also recommended to install baby-changing facilities.

› Ensure there is easy access from public transport stops; that the area is well-illuminated, and that it is well-maintained. Liaise with local cooperatives, local SMEs, or with the National Hygiene Program (NHP) Kazi Mtaani (a programme that employs informal settlement dwellers, particularly the youth, whose economic activities were interrupted/ severely affected by the global pandemic) for the maintenance of the park.

› Avoid graded routes and when changes in levels are unavoidable, include ramps. Include tactile paving at crosswalks;

Safety

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› Ensure the bus park is well-connected to social infrastructure such as education and health facilities, as well as markets General considerations › Communicate to local residents the implementation schedule of the different supporting projects to mitigate the disruption of traffic, everyday life and economic activities. This communication should be timely, and in a format and language that is accessible to all people;

The project, if implemented based on the recommendations in the Sector Action Plans, will contribute to integrating hawkers into the new CBD market.

SUED Principles Climate change interactions and approaches

› Consider shelter for the rain/sun exposure at the bus park and market;

This project provides a range of climate resilience benefits, for example planting trees provides shade for pedestrians from high temperatures and solar radiation. Connection to the CBD green link (Anchor Project C) encourages active travel and provides associated emissions reduction and health benefits. The traffic reorganisation measures will reduce traffic congestion and emissions in the CBD. Permeable paving and drainage with allowances for high rainfall events should be incorporated to increase the centre's resilience to flooding.

› Ensure there are transport means accessible for PWD and regulate transport fees to avoid differential amounts for them, as it has been reported in other Kenyan towns.

Links with social infrastructure

Social inclusion interactions and approaches The urban development of the area and its supporting projects will contribute to local communities’ social cohesion and increased sense of belonging. Well-designed urban infrastructure projects contribute to local economic development, for example, by increasing revenues of the adjacent hospitality offer, leading to new employment opportunities.

Increased capacity of the market for traders will increase business' resilience to climate change impacts as, similar to above, resilience measures such as appropriate drainage with allowances for high rainfall and shading to protect traders and customers against extreme temperatures and solar radiation can be included in the design. Heat stress awareness and education programmes could also help mitigate the risk of high temperatures affecting workers’ health and productivity. Flood risk assessments should be undertaken and, if required, flood resilience measures can be included in the design, for example the layout of internal space can be designed to reduce the impact of floods.

› Develop a timely, well-informed, participatory strategy for the implementation of the market and the allocation of stalls. Reserve stalls for women, youth, and PWD-owned businesses;

General recommendations: Challenges Time frame, key dependencies Accessibility Adopt inclusive design standards that allow easy access and use for everyone:

› Consider materials that are firm and non-slippery for footpaths, particularly during wet weather;

› Within the bus park, promote transport inter-modality, that is, the connection between different means of transport to enhance positive benefits from this intervention (such as improved access to employment and economic opportunities, and social infrastructure). This has a particularly gendered impact since women rely more on public transport and non-motorised transport means than men; and

75 The World Bank, Global roadmap of action towards sustainable mobility (2019). Available at: GenderGlobalRoadmapofAction.pdf,org/en/doc/229591571411011551-0090022019/original/https://thedocs.worldbank.(Accessed:17/02/2022).

75 76 Urban and transport infrastructure design has often been gender-blind, ignoring the specific mobility patterns and needs of women and men emerging from gender roles and social norms. For example, women rely more on public transport and non-motorised transport means than men (mainly due to lower income levels and possibly less access to credit) and are more likely to engage in shorter/ more frequent trips. Similarly, they are usually accompanied by children and elderly people due to their disproportionate care responsibilities.

76 1Media, El Municipio de Morón instalará 60 Paradas Seguras y 30 tótems de monitoreo en puntos estratégicos del distrito (2020). Available at: en-puntos-estrategicos-del-distrito/,de-moron-instalara-60-paradas-seguras-y-30-totems-de-monitoreo-https://unmedioenmoron.com.ar/2021/12/29/el-municipio-(Accessed:17/02/2022).

130 Case Study ‘Safe Bus Stops’ (Paradas Seguras) in Buenos Aires, Argentina

Road transport is unfortunately associated with a high risk (and fear of) gender-based violence and harassment (GBVH), particularly for some users such as women travelling alone or at night. A recent report from the World Bank, for example, shows that women have a strong preference about travelling on public transport when there are female drivers, particularly when travelling alone or at night, due to the fear of experiencing GBVH.

For these reasons local governments in Argentina have worked towards safer bus stops by incorporating ‘panic/ anti-harassment buttons’, phones, and security cameras for women (and other vulnerable groups) to feel safer (see picture below). Other general design considerations for gender and social inclusion normally comprise easy access to and from locations, easy movement within locations, good lighting and visibility, easy-to-read wayfinding, well-maintained and clear footpaths, mixed uses whenever possible, shelter from cold/ hot weather (refuge from rain/shade for the sun), provisions for children and the elderly, and accessibility considerations.

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The CBD market is imagined as an urban realm upgrade and growth of the existing market utility to a public gathering space while accommodating existing and new traders. A collective market redesigned from the 19th Century Thomas Neal’s Warehouse, to accommodate 25 independent food outlets, along with a bar and bookshop, Seven Dials Market in London has two divisions. Cucumber Alley is an indoor lane of specialist London producers, and Banana Warehouse houses renowned street food traders and new restaurants. The spaces in the market are on different levels of enclosure, with the permanent shops, pop-up stalls, open plan seating areas all arranged around a courtyard. 77 Seven dials market, About us (2022). Available at: https://www.sevendialsmarket.com/about-us/, (Accessed: 24/02/2022).

Case Study Seven Dials Market, London

77

78 Archilovers, Mini-Mall (2012). Available at: https://www.archilovers. com/projects/54503/mini-mall.html, (Accessed: 25/02/2022).

132 Case Study Shopping Market –Mini Mall, Rotterdam

Developed by regenerating a 19th Century viaduct, Mini Mall, Rotterdam is a mixture of mall, pop-up shops, art events and gallery spaces – formed by subdividing the space into different scale volumes. Its concept mixes permanent places for people to visit alongside providing parts of the space being leased out as an opportunity to short-term entrepreneurs to come and sell their goods. The courtyard is opened up to make the market accessible, with a flow-through space from surrounding streets. The roof is used during suitable weather as a gathering space where people can enjoy music, theatre, film, dance and food, with the city of Rotterdam as the backdrop.

78

> Creating opportunities for growth; > Increasing wellness, safety and tackling social skills; and > Building quality living environments that are inclusive, integrated, and vibrant.

Bungoma’s unused airstrip presents great potential in the heart of a densely populated and land constrained town. It is centrally located at five to ten minutes’ walking distance from the CBD market and bus park. It is one of the largest vacant plots in the centre of Town and is easily accessible from the C33 highway.

The west of the site has medium density residential and mixed uses. River Sio flows north-south further west of the site. The site has good overall access from all sides.

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4.3.2.2 Anchor Project B: Airstrip redevelopment Project BungomaOverviewisoneofthe

Figure 4-19 shows the existing layout for the 14.3 Ha site and its surrounding areas. The area towards the south of the site is predominantly low-density residential. The transport hub and CBD lies 2 km south of the site. The east of the site has medical, educational and government uses.

fastest growing towns in the County. It has a growing middle-class population wanting to live and work in the Town centre. Land is becoming scarce in the Town centre as Bungoma Town grows. Housing conditions are poor and there is a rise in informal settlements in the core Town area. These reduce land available for development. Investment in real estate development is low, but forecasted to rise. There is a clear need for affordable housing provision in relation to the Town centre. In the Bungoma Strategic Plan there is key emphasis on:

Although the land currently belongs to Kenya Airports Authority (KAA), there are ongoing discussions between the County government and KAA to decommission the land and make it available for development. This presents a great opportunity to repurpose this land and provide purpose-built administrative facilities, public amenities, and affordable housing. Although a large site, some residential activity is starting to encroach on the land. Development on this site has the potential to improve the attractiveness and inclusivity of the Town and the overall wellbeing of its residents.

134 Figure 4-19 – Site analysis Anchor Project B Source: Atkins, 2022

Figure 4-20 – Character areas Anchor Project B Source: Atkins proposal, 2022

Based on site analysis, detail study, and local engagements with key stakeholders’, various opportunities were identified for development on this site. The key uses proposed are County/ Municipality offices, mid-density residential (affordable housing and civil servants’ accommodation), low-density residential (governor’s residence and senior government officers residential), recreational spaces, such as neighbourhood parks, city parks and a civic plaza. Internal roads, SuDS and required infrastructure are also included within the proposal.

The following figures illustrate the different components defining the proposed masterplan for Bungoma Airstrip. Character areas The masterplan is defined by four-character areas, Figure 4-20, which are related to the proposed land uses and located based on the site analysis and future functioning of the site.

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The proposal responds to a potential need for phasing in a way that each major component could work in independently.

The Greenway and the Civic Plaza The areas listed above are linked by a proposed meandering pedestrian link, the Greenway, which connects the wetlands around the River Sio and the existing neighbourhoods to the west with the civic components to the east. The Greenway will run through the proposed neighbourhoods towards the Civic Plaza which is proposed at the heart of the Government complex and will finish at the recreational city park.

1. Residential – medium density affordable houses with distributed neighbourhood parks which serve the existing and future community located to the west completing the existing urban grain; 2. Government residences – government officials residences including the governor’s residence, the senior officer’s residential and civil servants’ accommodation; 3. Government complex – offices and shared facilities; 4. The City Park – recreational and events; large recreational space for the wider community.

One of the barriers of growth identified in the analysis is that there is a real lack of adequate and affordable housing in Bungoma, and existing housing stock is falling into disrepair. There are also a number of informal settlements around Bungoma Township that lack any form of planning and that are normally under-serviced by utilities and have low levels of sanitation. There is insufficient land for development which results in encroachment onto environmentally-sensitive areas, building on flood plains or unsuitable land, activities spilling onto streets and roads, and congestion. Restricting development across environmentally-sensitive areas is needed, together with compact development to ensure urban sprawl is mitigated over agricultural land and to accommodate the growing population and demand for services.

Compact walkable cities with integrated neighbourhoods providing the full range of civic and cultural services, access to education and health facilities, open space and recreation, commercial/retail opportunities are all engendered in the eco-city principles. In order to kick-start this process, affordable housing is proposed on the western strip of this land. A range of housing options targeting lower and middle-income families should be considered within the proposed residential mixed-use clusters identified in Figure 4-21. These should be supported by a range of community facilities located within the various neighbourhoods and linked to the wider parts of the development core, such as the commercial and administrative/civic zones, as well as the public open spaces.

Medium-density Affordable Housing

136 Figure 4-21 – Land uses Anchor Project B Source: Atkins proposal, 2022

Here, event anchors such as an amphitheatre and a small theatre are located closer to the major road (C 33). They will benefit from the good access and work as a landmark and event-attractor. The setting will be defined by large green areas accessible to all, trees and a wide soft buffer to the edge of the road. The Park is complemented and enriched by indoor and outdoor sports facilities facing the green link and the proposed green area to the east included within the land use.

A greenway is the structuring concept of the proposal, as it will act as a strategic link connecting each component from east to west and beyond the project boundary. A key objective of the proposal is to ensure that the masterplan is fully integrated within the overall Bungoma urban fabric and well-linked to key destinations. The ambition is for the project to work as strategic town-wide component (greenway, civic plaza, etc.) adding value to the Town’s landscape. By deviating the proposal from a traditional approach where the greenway is aligned to the vehicular road (Figure 4-22) we are a proposing segregation between highway and pedestrian movement. The vehicular road will define the edge of the boundary and the greenway will be centred within the masterplan (Figure 4-23). The meandering alignment will provide opportunities to create pocket parks with seating and playground areas for the community while providing interesting views for a recreational walk through the site.

Government complex Complex is located defining the green link frontage and benefiting from excellent access from the Mumias-Bungoma road. The proposal strives to deliver a car-free environment with vehicular roads defining the boundaries of the area and parking located to the north and south entrances as we approach from the green link (Figure 4-21). The complex will include shared facilities for the different offices such as training spaces, gyms, canteens, etc. and these will foster a sense of community cohesion and create greater networking opportunities, while promoting the sharing of knowledge and social support.

The greenway

The governor’s residence and senior government officers’ residences are proposed as low-density housing at the heart of the masterplan. The governor’s residence will be located adjacent to the existing high-end residences defining the southern edge and the senior government officers’ residences will define the northern edge. The location is secluded and away from the major road infrastructure to achieve a tranquil environment, but in sufficient proximity to other facilities and offices, to benefit from the great access offered by the green link. We are proposing an ‘oasis’ setting for these residences defined by green areas that act as buffers from the additional uses.

The City Park - recreational and events hub

This is medium-density accommodation located in between the affordable housing to the west and the high-end governor’s residence. It will benefit from good access from the Mumias-Bungoma road and secondary roads and will be located within walking distance of the Government office complex.

Governor’s residence and senior government officers’ residences

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Civil servants’ accommodation

The eastern side of the site is defined by a large recreational space for the town-wide community. This will include facilities to cater for events, recreation, leisure and sports.

138 Figure 4-22 – Linear Greenway concept Anchor Project B Source: Atkins proposal, 2022

139BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) Figure 4-23 – Meandering greenway concept Anchor Project B Source: Atkins proposal, 2022

The new government complex will work as a landmark and destination for Bungoma County, therefore the traditional inaccessible governmental buildings are, in this instance, replaced by an inviting civic plaza, supporting Bungoma’s public needs and aspirations (Figure 4-24). Symbolically, here, the County meets and embraces the community at its heart. The plaza will be located at the centre of the complex and structured by the crossing of the greenway, defining the site, and the strategic Moi Avenue green link proposed for the overall Town of Bungoma. The plaza will be bounded by landmark governmental buildings with active ground floors with food and beverage uses, terraces and high-quality public realm. 4-24 – Civic Plaza concept

Figure

Source: Atkins proposal, 2022

The140 greenway is proposed as an active transport link for pedestrians and cyclists. A fully integrated sustainable drainage system SuDS, including rain gardens, tree pits, swales and bio-retention ponds is central to this proposal to manage surface water runoff generated by the site and to further magnify its role in biodiversity and amenity improvement within the site. Furthermore, permeable paving is proposed to be utilised throughout to reduce the runoff generated from impermeable surfaces. The civic plaza

Source: Atkins proposal, 2022

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The Green link pathway along the airstrip section is proposed to be a pedestrian priority shared surface with high quality materials and street furniture. Masterplan proposal Below are some images of the overall proposal for the Bungoma airstrip

Figure 4-25 – Bungoma airstrip masterplan from Southeast

142 Source: Atkins proposal, 2022 Figure 4-26 – Bungoma airstrip masterplan from northeast

Source: Atkins

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Landscape and biodiversity Principle: Maximise the resilience of the ecosystems through urban landscape mitigating the urban heating stress, using plants for urban cooling and air purification. Increase the number of tree planting to absorb CO2.

Principle: Invest in green and open spaces to increase public safety and quality of life for the community.

Urban design principles

The following design principles guide the development of affordable housing and infrastructure proposals and ensure that an inclusive, sustainable, and resilient design is integrated across the project.

Flexible Principle:designFoster the design of flexible uses and spaces to create resilient cities to physical, social and economic challenges. Cities are able to face and adapt to local but also global changes and dynamics, such as current social distanced measures due to the COVID-19 pandemic which require a flexible use of space.

Principle: Mixed-use and compact urban developments will reduce the demand for mobility requirements helping to reduce carbon emissions and from a demographic’s perspective will encourage social integration and diversity. Climate resilience and passive design Principle: Promote tailored strategies for each urban development in order to take advantage of their unique characteristics and to address local climate conditions, such as reducing urban heating island (UHI), and mitigating global climate change effects.

Principle: Promote the design of passive buildings and districts to reduce electrical cooling, heating, ventilation and lighting while guaranteeing comfortable conditions for all users.

Design Principles

Plan Design& What does an Eco City look like? > Compact urban form & mixed use > Climate resilience & passive design > Flexible design > Landscape & biodiversity How is an Eco City managed? > Clean energy > Zero-waste > Water management > Local & sustainable materials > Sustainable transport Who is this for? > Inclusive, diverse & healthy communities FigurestructureInfra-People4-27–

Smart integrated renewable energy systems should be implemented to achieve an efficient use of natural resources by distributing surpluses based on demand.

Principle: Decentralise and diversify land uses by creating mixed use districts which become sustainable and self-sufficient neighbourhoods.

Compact urban form and mixed-use

Urban

Principle: Encourage the urban revitalization and regeneration in favour of the new development.

Clean Principle:energy To utilise local renewable energy sources such as solar energy, wind power, biomass, geothermal energy or hydroelectric power to reduce the demand of fossil fuels.

Principle: Provide ways to facilitate management of risks and disaster reduction through smart technologies, inclusive to all, in order to achieve resilient and sustainable developments.

Principle: Promote the use of smart technologies using information to digitalize transport infrastructure allowing the exchange of information in between vehicles, drivers, passengers and transfer hubs optimizing traffic flows. An example of this is streetlights that are capable of monitoring parking spaces and traffic patterns.

Inclusive, diverse and healthy communities Principle: Integrate a diverse range of economic and cultural activities maximising social diversity and interaction of users within each zone. This could be achieved by promoting mixed used districts, which can benefit from 24-hour liveable cycles.

Water Principle:management Promote sustainable urban water cycles by implementing rainwater collection, storm water retention, harvesting techniques and wastewater recycling.

144 Principle:Zero-waste

Principle: To promote a sustainable and efficient manufacturing and agricultural industry, fostering innovation. Sustainable transport Principle: Promote and prioritise public transport, cycling and pedestrian circulation over vehicular.

Principle: Promote responsible consumption across residents.

Principle: Promote an efficient use for water resources, such as in drip irrigation, and ensure good water quality while protecting environmental assets.

Principle: To encourage the shortening of supply chains by using local materials and food, manufacturers and techniques, activating the local economy, minimising transport requirements and promoting local knowledge and experience.

Principle: The urban design should focus on improving the public space network and designing cities with a streetscape which promotes healthy and active lifestyles where residents are encouraged to walk rather than travel by car.

Principle: Promote social equity by providing affordable housing.

Principle: Promote the use of smart technologies to achieve healthy and inclusive communities. An example of this is a mobile phone app that helps people navigate within cities and buildings, or the use of street lighting that can monitor air quality and temperature.

Principle: Data-driven smart city technologies should be part of the water management strategy, improving its resilience. Local and sustainable materials

Principle: Measures including recycling, upcycling and composting waste to produce energy, i.e. plant and animal waste to produce energy sources, biomass. Special attention and studies need to be given around the reuse of industrial waste.

Rethink the waste management system to turn waste into resources.

Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders Medium-density housing › High-quality residences Offices › Government buildings › Mixed-use building Sports facilities Events facilities › Civic plaza. › Office complex hard landscape › Residential courtyards › High-end landscaperesidences › Neighbourhood parks › City Park › Events park amphitheatrewith › Linear Park (SuDS) Shared surface at main road › Road › Parking area KES 2.669 billion › KES 364 million › KES 1.752 billion › KES 1.447 billion › KES 354.9 million › KES 81.9 million › KES 182 million › KES 39.5 million › KES 67.5 million › KES 136.4 million › KES 109.8 million › KES 67 million › KES 77.9 million › KES 111.1 million › KES 149.9 million › KES 161.2 million › KES 244.4 million › KES 37.7 million › Total cost = KES 8.053 billion piece of Government public areas owners for private local SMEs for waste services maintenancetouch and animation: NGOs and CBO Data gaps Time frame, key dependencies resistance to proposals due land ownership funding available and effective contributions from private sector Local DetailPre-feasibilityconsultationstudysitesurveyrequired land ownership information Short, medium and long-term. Land acquisition, detailed design and other necessary activities to unlock the land for development should be completed in the short-term. Soon after the implementation of the project should occur and continue into the medium and long-term

Anticipated

and

BUNGOMA MUNICIPALITY

›

›

land opened-up for development › administrativegovernmentConsolidatedandfacilities › Dedicated government official residences › Affordable housing kick starter › andpublicHigh-qualityrealminfrastructure › Typically, public funded projects › Potentially, localpartnershipinwithbusiness › Private sector funding for development and operation of market › Municipality › BIDs realmLocalizedimprovement(Businessdistrict):areas,publicandanimation › responsibilityMaintenance of Municipal

for

› Light

›

Location > The project is located in Focus Area 01 on the Bungoma airstrip, off the C33 road.

›

> Links to SUED principles: resilience, resource efficiency, social inclusion and sustainability. Category > Design > Capital investment: New Table 4-18 – Anchor Project B Summary Information Table 4-19 – Anchor Project B Basic Analysis and Timeline

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Sufficient

Challenges

› Employ

›

Linkages > Which existing projects/proposals (if any): The anchor project links to the current desire of the County to redevelop the airstrip. > Other SUED infrastructure/urban projects: The project links to the CBD green link (project Anchor Project C), street lighting (project 7), accessible public toilet blocks (project 6), Town centre redundancy links (project 8), urban improvements to the C33 and road safety (project 9) and solid waste segregation, storage and collection (project 17).

›

› Central

and

This project incorporates a wide range of actions that deliver clear resilience benefits, including mitigation of urban sprawl, adoption of passive designs for developments, harnessing clean energy and circular economy principles, and implementation of greening measures and SuDS. The key risks from climate change are changes in temperatures and precipitation (drought events) which impact water supply and demand, and storm events and flash flooding which can damage water supply and power supply. The site location of the dwellings and commercial buildings will need to be resilient to increased rainfall and risk of flooding. Road surfaces should be designed to withstand high temperatures and appropriate drainage should be included to ensure the development remains operational during high temperature and heavy rainfall events.

> Implement the principles of universal design for the new green areas and social infrastructure, guaranteeing there are accessible to all.

Social inclusion interactions and approaches

> Provide housing options for lower economic segments of the population, in particular SIGs (i.e. female-headed households) and other disadvantaged groups such as informal settlement dwellers, unemployed or underemployed people should be prioritised, and access should not be conditional to working in the formal sector.

SUED146 Principles Climate change interactions and approaches

> Ensure these new housing opportunities are transparent and available to all regardless of ethnicity, gender, (dis)ability, etc.

> The use of smart technologies should be accompanied by skills development to tackle the existent digital gap and make this initiative even more inclusive.

The urban regeneration of the area carries several socio-economic benefits, such as the provision of affordable housing, new green areas, and equipment for institutional and civic development. However, to maximise benefits for SIGs and other disadvantaged populations, it is recommended to:

79

Humanitarian causes During the refugee crisis of the mid- to late-2010s, the former hangars of Tempelhof Airport housed refugees from countries including Syria, Kosovo and Afghanistan. During this time, public access to the site as a recreational area remained unaffected. The park currently plays a key biodiversity role as shelter for animals and protected plants within Berlin. 79 Future landscaped, Tempelhofer feld (2018). Available at: https:// futurelandscapes.ca/tempelhofer-feld/, (Accessed: 24/02/2022).

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Sport The site works as a location for several organised sporting events, such as the Berlin ePrix and the FIA’s single-seat electric motorsport championship. The area has a 6 km cycling, skating and jogging trail, which is used by runners to train ahead of the Berlin Marathon.

Case Study Berlin Tempelhof Airport

Tempelhof Airport, Berlin, was built in between 1936 and 1941 and played a key role in history, as an airport where American cargo planes landed during the WWII and a USA air force base during the Cold War. Tempelhof Airport closed all operations in 2008 leaving a significant area of vacant land available for use, 386 Ha open space, including the former terminal building, numerous hangars and the airfield. In 2010 the city announced it would re-open the site as an urban park named Tempelhofer Feld, one of the world’s largest inner-city parks. The park is currently being used for some of the following activities: Recreation Tempelhofer Feld is an area with non-motorised traffic offering large areas for recreational activities including 2.5 Ha for barbeques, 4 Ha dog walking field and picnic area. There is also an urban gardening section collectively used by the wider community.

Events The new park acts as a venue to host concerts and shows such as awards ceremonies.

Filton Airfield redevelopment80 Repurposing the Filton Airfield in Bristol, United Kingdom is underway, to host 3,675 new homes to meet the increasing growth and demand in the city. The new development will include employment space, schools, a health centre and shops as well as a public park with water features that will be the biggest in the area. The proposed sustainable drainage systems features are integrated into the green spaces and built environment, providing a link to the wider ecological aspirations.

148 Case Study

80 Alder King, Filton Airfield, Filton, Bristol BS997AR (2013). Available FILTON-AIRFIELD-BROCHURE-2015.pdf,https://sites.southglos.gov.uk/wp-content/uploads/sites/241/2013/03/at:(Accessed:24/02/2022).

Bungoma CBD is one such node where improvements will help enhance social cohesion and unlock economic opportunities. Bungoma Town, similar to any other Kenyan town, has grown along its major key road corridors. The C33 highway runs through the centre of the CBD, splitting it in two halves. The road carries traffic and pedestrians, and this stretch of the Town centre a very vibrant and desirable area. Many of Bungoma’s key urban functions are located along the 5 km length of this north-south thoroughfare. These comprise of the Kanduyi stadium, Bungoma Airstrip and education quarter including Bungoma University, Bungoma Railway Station, CBD market and existing bus station, and hospital. journey

Images – A

Anchor Project C: CBD green link Project Overview

down Moi Avenue

4.3.2.3

The perception of a place is mostly through the images that visitors and residents retain when using and visiting it. The arrival experience, ease of movement, security, cleanliness, quality space of the public realm, and good quality architecture are all elements that combine to deliver a good urban environment. This stimulates repeat visits and creates an engaging economic and social environment for investment, business, and users.

Successful urbanism projects are multidisciplinary, and they integrate a wide range of diverse inputs to create a strong, coordinated vision that underpins the overall development.

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150

Congestion has been identified as one of the main issues in Bungoma Town centre. The Town is crossed by two main highways passing through it - Mumias-Bungoma Road (C33) and, further north, the Trans-African highway (A104). The CBD streets are dominated by motor vehicles and informal traders, further impacting pedestrian space and safety, as well as the quality of the air and urban environment. However, thanks to the rational urban structure west of the C33, an alternative route runs parallel to the main vehicular corridor. This CBD feature lends itself to create a pedestrian friendly “green-link”, effectively a new green boulevard enriched with pedestrians and cycle priority spaces, trees and sustainable urban drainage (SuDS) which take priority over vehicular traffic.

The proposal focuses on Moi Avenue and portions of the C33, and ties together the most important nodes within the CBD forming a safer and more effective urban greenway – a new and greener Moi Avenue. Through a series of illustrative interventions, the Moi Avenue Green Link transforms various interfaces within each micro-neighbourhood, introducing a series of solutions and benefits to local businesses and residents alike.

Moi Avenue Green Link is an enhanced urban trail that puts people at the core of its activities and helps to address the main concerns by linking the key nodes, managing the growing vehicular traffic by introducing traffic calming measures, and by supporting pedestrian movement and footfall, which in turn makes street-side businesses more resilient and profitable, and introduces new spaces for kiosks and stalls to be temporarily accommodated. Figure 4-28 sets out proposed areas for streetscape improvements, showing how they interact with other projects and proposals for the urban centre. Streetscape improvements can initially be introduced on critical roads, and those with forthcoming upgrades. There is an opportunity to provide multiple uses across different days in the week, such as market and delivery days (or times), where street vending can be accommodated in a ‘furniture zone’. Streets with high pedestrian footfalls are recommended to be considered earlier for such streetscape improvements and NMT measures. Indicative street sections, including streetscape improvements, are illustrated in (Figure 4-29) for different areas along the link.

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Source: Atkins, 2022

152 Figure 4-28 – Different areas along the green link Source: Atkins, 2022

153BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) Figure 4-29 – Different sections along the green link Source: Atkins analysis

154 Figure 4-30 – 3D view of green link Source: Atkins, 2022

Linkages

Category > Design > Capital investment: New Table 4-20 – Anchor Project C Summary Information Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders C33 Road (Section AA). › Permeable paving › Trees › Streetlights › Drainage cover › Median Moi Avenue (Section BB) › Trees › Permeable paving › Streetlights › Hard shoulder › SuDS › Footpath › Perennial drain Rail road intersection (Section CC) › Rail gates Moi Avenue (Section FF) › Trees › Permeable paving › Streetlights › SuDS C33 (Section EE) › Trees › Permeable paving › Streetlights › SuDS/Median on either side › Permeable paving for bazaar area Moi Avenue (Section DD) › Trees › Permeable paving › Streetlights › SuDS/ Median on either side › KES 107.3 million › KES 2.27 million › KES 23.6 million › KES 11.35 million › KES 28.4 million › KES 803,400 › KES 44.2 million › KES 16.67 million › KES 26.8 million › KES 9.65 million › KES 20.1 million › KES 138.9 million › KES 1.3 million › KES 600,600 › KES 66.1 million › KES 12.5 million › KES 8 million › KES 1 million › KES 95.1 million › KES 21.5 million › KES 20.7 million › KES 107.2 million › KES 152,100 › KES 10.1 million › KES 3.2 million › KES 2 million › Total cost = KES 779.5 million › Enhanced image of the street will attract more businesses › Larger footpaths and crossings will moreencouragepedestrians › Higher revenue from increased footfall › Versatility of space offers opportunities for regular and seasonal activities encouraging more people to visit › Safer environment for pedestrians by limiting vehicular access › Improved drainage for surface water run-off › Improved land value along the road public-fundedTypically, projects › Potentially, localpartnershipinwithbusiness Private sector funding for development and operation of market Municipality BIDs of Municipal Government Employ local SMEs for waste services Light maintenancetouch and animation: NGOs and CBO

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> Links to SUED principles: resilience, resource efficiency, social inclusion and sustainability.

Location > The project is located in Focus Area 1 in the Bungoma Town centre.

›

›

›

›

realmLocalizedimprovement(Businessdistrict):areas,publicandanimation › responsibilityMaintenance

›

> Which existing projects/proposals (if any): The anchor project links to the ongoing dual carriageway upgrade to the C33.

> Other SUED infrastructure/urban projects: The project links to the CBD market and bus station (Anchor Project A), airstrip redevelopment (Anchor Project B), street lighting (project 7), accessible public toilet blocks (project 6), Town centre redundancy links (project 8), urban improvements to the C33 and road safety (project 9) and solid waste segregation, storage and collection (project 17).

›

Social inclusion interactions and approaches Inclusive public spaces are fundamental for communities’ social cohesion, recreation, civic participation, and sense of belonging. Effective lighting contributes to reducing crime and reducing the fear of crime. Green spaces improve local communities’ mental and physical health and contribute to their general wellbeing. Universal access to green spaces is particularly relevant for those living in cramped and overcrowded spaces or settlements.

Anticipated resistance to proposals - due to disruption to traffic and traders’ relocations

156 Table 4-21 – Anchor Project C Basic Analysis and Timeline

Short to medium-term Land acquisition, detailed design and other necessary activities to support the project should be completed in the short-term. Soon after the implementation of the project should occur and continue into the medium-term

Sufficient funding available and effective contributions from private sector Existing trees and public realm may need to be removed

Source: Atkins, 2022 Challenges Data gaps Time frame, key dependencies

Consult with traders and local groups Enhance benefits for the ImpactPre-feasibilitycommunitystudyonaccessto local businesses due to upgrades

SUED Principles Climate change interactions and approaches This project increases the Town centre's resilience to flooding by incorporating SuDS techniques such as permeable paving and trees which also provide shade for users from high temperatures and solar radiation. There is potential to power the street lighting with renewable energy, such as solar photovoltaics (PV), in which case the materials and fixtures should be designed to withstand short peaks of very high temperatures.

Accessibility As recommended for the bus park and CBD market, adopt inclusive design standards that allow easy access and use for everyone:

› Consider materials that are firm and non-slippery for footpaths, particularly during wet weather;

› Related infrastructure will need to incorporate signage to reduce potential accidents. This signage should be accessible to all (e.g. avoid reflective materials, use simple and accessible language, etc.).

› Communicate to local residents the implementation schedule of the different supporting projects to mitigate the disruption of traffic, everyday life and economic activities. This communication should be timely, and in a format and language that is accessible to all people.

› Ensure the park is well-connected and accessible from social infrastructure such as schools, kindergartens, and care services. General considerations

› Avoid graded routes and when changes in levels are unavoidable, include ramps. Include tactile paving at crosswalks;

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General recommendations: Challenges Time frame, key dependencies

› Install benches in every circulation route for people with mobility issues to rest. Consider benches that are appropriate for elderly people and people with reduced mobility. Leave space alongside benches for wheelchair users to sit next to their companions;

› Provide parking spaces accessible and specifically designated for PWD. Safety › Ensure the area is well-illuminated and that is well-maintained. Liaise with local cooperatives, local SMEs, or with the National Hygiene Program (NHP) Kazi Mtaani for the maintenance of the park. Liaise with conservation NGOs or co-operatives to engage in tree planting.

Links with social infrastructure

› Implement wayfinding signage that is appropriate to people with hearing and visual impairments or learning disabilities. It is recommended to utilise easy-to-read text or simple symbols. Avoid reflective material that could cause confusing glare; and

158 Case Study Inclusive Squares in Woolwich Squares, London81 82

81 Gustafson Porter + Bowman, Woolwich Squares. Available at: http://www. gp-b.com/woolwich-squares/ (Accessed: 18/02/2022).

This project has been designed by Gustafson Porter + Bowman as part of the Woolwich Masterplan (Royal Borough of Greenwich). The project’s vision was to create an accessible public space for all, which at the same time, was specific to the historic background of Woolwich. The squares were designed to enhance the experience of local communities and to respond to their needs. To ensure the accessibility and usability of the square, the design incorporates terracing with level routes. It also considers best practice for lighting, seating, ramps and planting, and an accessible water feature. The project also incorporates soft landscaping that, while functional, provides a sense of relaxation. From the design phase, the project team had regular meetings and consultation with key users e.g. PWD organisations, and youth groups, to inform decision-making processes and to accommodate different needs. During the construction, these groups were invited to test the usability of the space.

82 Designing Buildings Wiki, New Woolwich Squares (2020) Available at: Squares#Inclusive_Designhttps://www.designingbuildings.co.uk/wiki/New_Woolwich_(Accessed:18/02/2022).

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159

New York City increase in rain gardens across the city centre84 Completed rain gardens include a notch in the curb to allow storm water to flow in and plants to beautify the garden, as well as aid in evapotranspiration of the collected water.

84 The partnership for water sustainability in, New York City’s $US 1.9 Billion Program to Combat Flooding includes Hundreds of Rain Gardens in the Borough of Queens (2019). Available at: billion-program-to-combat-flooding-includes-hundreds-of-rain-gardens-in-the-borough-of-queens/,https://waterbucket.ca/rm/2019/11/30/new-york-citys-us-1-9-(Accessed:18/02/2022).

Case Study

Case Study Grey to Green Project, UK’s largest retrofit SuDS Scheme83 Transforming 1.3 km redundant roads into attractive new linear public spaces. The planted areas will also provide an innovative SuDS. 83 Nigel Dunnett, Grey to green, (2022). Available at: https://www.nigeldunnett.com/grey-to-green-2/, (Accessed: 18/02/2022).

In collaboration with key stakeholders, two sites have been identified as suitable, one adjacent to the Kanduyi Stadium on the Trans-African highway as illustrated below in Figure 4-30, and the second in Musikoma on Mumias-Bungoma Road (C33).

The Musikoma site has already been the subject of proposals for a market and new bus park development, this forms part of the decentralisation strategy currently under consideration. Location Source: Atkins, 2022

160 4.3.3 Climate InfrastructureResilientProjects 4.3.3.1 Project 5: Bus park relocation

Project Bungoma’sOverviewbusstation, currently located on a 5,000 sqm (1.30 acres) plot in the CBD west of the C33, is a vital point of access for people visiting and operating businesses across the County. As a centre point of activity and vicinity to the Uganda border, it offers business opportunities for national and international trade. As a result, the County receives high flows of people and activities within a limited space. Despite improvements to the bus stand, demand has outgrown the site’s capacity whilst the provision for retail space has been built to a basic to low-quality standard and lacks access to basic amenities. The bus station’s infrastructure and operations are already compromised and intense congestion around the CBD is a cause of concern to pedestrians’ safety. Forecasts for Bungoma suggest a marked, steady urban growth (+21.5% between 2009 and 2019) and, consequently, a likely increase of buses incoming into Town with intensified congestion and pollution. In this scenario, there is a likelihood that informal businesses will continue to overspill designated areas and take up what should be pedestrian spaces. This is typically associated with pedestrian risk and safety. To address these issues, and as part of a more strategic urban regeneration strategy entailing an upgrade of the CBD and market district, it is proposed that long-distance services currently operating at the bus station are relocated to an alternative site.

Figure 4-30 –

of the proposed site

The proposal aims to uplift the entire northern node and capitalise on existing assets and potential land availability –potentially beyond its immediate boundaries. This project will anticipate the typical phenomenon associated with bus stands, such as the establishment of informal trading areas and congestion, and channel this through the active provision of a suitable development framework. The project will cater for this demand – rather than repress it. The importance of integrating informal traders into Bungoma’s plans is highlighted in section 4.3.1. The planned mixed-use cluster in Kanduyi shown in Figure 4-31 , offers trade commercial and transport land uses.

The new bus station location, on a 2.7 Ha plot (6.7 acres), will enable planning for more efficient operations such as: dedicated pedestrian footpaths and crossings, a service for matatus and boda bodas to link the bus terminal with rest of the urban areas, and routes for larger buses which can avoid travelling through the town, relieving the Town centre from further pressure.

Figure 4-31 – Diagram explaining Circulation and Access to the Bus Park Site Source: Atkins, 2022

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This proposal explores the possibility of developing the Kanduyi site into a Transit Orientated Development (TOD) (mixed-use transport hub). This scenario presents an opportunity to develop a new bus station that can accommodate future growth whilst providing modern-day amenities for businesses and people utilising public transportation. Its proximity to the Kanduyi Stadium adds another unique opportunity to cater to the stadium users without crossing the CBD and indirectly supporting a sustainable movement approach. Access and egress from the A104 are to be carefully positioned to avoid natural congestion on the main road; bus routes are located in such a way that serve the rest of the neighbourhood as well.

162 3D visuals of the Bus Park site

163BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 3D visuals of the Bus Park site

164

› KES 173 million › KES 53.6 million › KES 143.7 million › KES 803.1 million › KES 24.7 million › KES 171.7 million › KES 61 million › KES 63 million › Total cost = KES 1.494 billion

> Other SUED infrastructure/urban projects: The project links to the CBD market and bus station (Anchor project A), street lighting (project 7), Town centre redundancy links (project 8) and urban improvements to the C33 and road safety (project 9).

Location > The project is located to the north of Focus Area 1 in the Bungoma town centre, on the northern edge of the A104 road.

Real estate investment opportunities are included in the package. The real estate land uses support economic growth and benefit from the proximity to best-in-class public transport. Developable blocks are strategically located at the junction between A104 and C42, benefitting from a high degree of visibility from the main routes of travel and can, therefore, better attract investors.

› Increase of sustainable transport options › Increase revenue for Municipality/County › Typically, public funded projects

Challenges Data gaps Time frame, key dependencies

Anticipated resistance to proposals due to disruption to traffic Sufficient funding available and effective contributions from private sector Existing trees and public realm may need to be removed

Linkages > Which existing projects/proposals (if any): The project links to the current desire of the County to relocate the main CBD bus station to an alternative location within the Municipality.

> Links to SUED principles: resilience, social inclusion, and sustainability. Category > Design > Capital investment: New Table 4-22 – Project 5 Summary Information Table 4-23 – Project 5 Basic Analysis and Timeline Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms

Subject to a detailed feasibility study, the new hub could include amenities such as a business complex, SACCO offices, a new civic square and potential car parking. Such a project has the potential to be a catalyst for a new localised business centre in Bungoma at close distance to the CBD, and relieve pressure on the existing Town centre.

› Potentially, localpartnershipinwithbusiness › Private sector funding for development and operation of market

Impact on access to local businesses due to upgrades

Implementation agency and stakeholders › Bus station structure › Bus circulation › Bus parking › Built up mixed-usespace,blocks. › Green strip › Market space › Plaza space (mixed-use block, drop-off points. › Other paved paving)(footpaths/permeablesurface

LandShort-termacquisition, detailed design and other necessary activities to unlock the land for development and the implementation of the proposal should be completed in the short-term to facilitate the further development of the anchor projects, in particular the CBD market and bus station project

› Support future growth and public transport demand increase › Increased footfall to adjacentsupportbusinesses › Increase revenue for businesses adjacent to the bus park

A public service transport plan should be completed in the longer-term once the proposal is fully implemented

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› Municipality › BIDs realmLocalizedimprovement(Businessdistrict):areas,publicandanimation › responsibilityMaintenance of Municipal Government for public areas and owners for private › Employ local SMEs for waste services › Light maintenancetouch and animation: NGOs and CBO

Consult current landowners. Pre-feasibility study Detail site survey required and land ownership information

166

Social inclusion interactions and approaches

Road surfaces should be designed to withstand high temperatures and appropriate drainage should be included to ensure the bus route remains operational during high temperature and heavy rainfall events. Providing dedicated market spaces will increase business' resilience to climate change impacts as resilience measures such as appropriate drainage with allowances for high rainfall and shading to protect traders and customers against extreme temperatures and solar radiation can be included in the design.

There are several socio-economic benefits associated to this intervention, which will be specified in Project 5 - bus park relocation. For example, good quality, accessible public transport facilities support access to jobs, education, and health for all residents irrespective of gender, age, or disability. The project will also support job creation with the enhanced space for retail at the bus park, and with an increased capacity for matatus and new routes. However, to maximise social benefits for SIGs and other disadvantaged groups, it is recommended to: > Consult with long-distance transport services, matatus and boda boda drivers and corresponding SACCOs to understand particular needs and expectations and avoid disrupting their livelihoods;

SUED Principles Climate change interactions and approaches By alleviating congestion in the town, this project reduces emissions and associated healthcare costs.

> Complement the relocation with the development of a transport management plan for matatus and boda boda to improve safety and comfort of pedestrians and road users; and > If there is a need for land acquisition and economic/ physical displacement of local populations at the new site, this should be planned in advance, consulted with the affected populations, and communicated in an appropriate, accessible, and timely manner to avoid potential negative impacts on livelihoods or income-generation sources. In those cases, a Resettlement Action Plan (RAP) should be prepared.

Lublin Bus Station, Poland: environmentally friendly, tackles air-pollution, public realm, upgrading proposed project87

85 Construction review online, Mbezi bus terminal project (20121). Available at: mbezi-bus-terminal-project/,https://constructionreviewonline.com/news/tanzania/(Accessed:18/02/2022).

The existing bus terminal at Ubungo is at the heart of Dar es Salaam. The terminal will be moved to the new terminal at Mbezi. The construction of the upcountry modern bus terminal at Mbezi began in 2019. The preparation of the project took a long time, due to the various government procedures including land acquisition and compensation. The new terminal is expected to accommodate the intercity bus services which currently travel through the city centre. The cost of the project is estimated to be US $22 m (KES 2.3 bn).

Ubungo Bus Terminal Tilburg Central Bus Station, Netherlands: self-sufficient, energy production, completed86

87 Eurobuild, Lublin approves bus station design (2018). Available at: approves-bus-station-design,https://eurobuildcee.com/en/news/24622-lublin-(Accessed:18/02/2022).

Case Study

167BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

Ubungo Bus Terminal, Dar es Salaam, Tanzania85

86 Arch daily, bus station tilbury/architectenbureau cepezed (2019). Available at: tilburg-architectenbureau-cepezed,https://www.archdaily.com/926342/bus-station-(Accessed:18/02/2022).

168 4.3.3.2 Project 6: Accessible public toilet blocks Project Overview

There is an opportunity for the toilets to be run by a small business whereby an operator is appointed and collects an affordable fee per use. The fee pays for running costs such as the water, the sewerage fees and maintenance plus provides a wage for the operator. This arrangement provides an incentive, and funds for the operator to ensure the facilities are functioning and providing a service to the community.

The County may want to further subsidise particularly vulnerable or low-income people or give them a free pass.

Figure 4-32 – Typical features of an accessible toilet block

Public toilets in the County typically do not meet the requirements of women and girls, nor PWD88. Failing to plan, design or manage public toilets to ensure they are female-friendly and accessible to all users restricts the movement of women and girls, as well as older people and PWD, and limits their ability to participate in public life89 .

89 UNICEF, WaterAid and WSUP (2018). Female-friendly public and community toilets: a guide for planners and decision makers. WaterAid: London, UK. Available at: files/Female_friendly_toilet_guide.pdf,https://www.wateraid.org/us/sites/g/files/jkxoof291/(Accessed:07/02/2022).

The toilet blocks can be connected to the Bungoma sewer network and wastewater can be treated at the Bungoma sewage treatment works. Given the issues with reliable water supply the toilet blocks should seek to employ water efficiency measures such as water-saving flushes and recycling handwashing water to flush toilets.

88 UNICEF, WaterAid and WSUP (2018). Female-friendly public and community toilets: a guide for planners and decision makers. WaterAid: London, UK. Available at: files/Female_friendly_toilet_guide.pdf,https://www.wateraid.org/us/sites/g/files/jkxoof291/(Accessed:07/02/2022).

Source: WaterAid, Female-friendly public and community toilets: a guide for planners and decision makers (2018).

The redevelopment of Bungoma CBD, as well as the development of the airstrip land in Focus Area 2, provides an opportunity to ensure that accessible public toilets are constructed to meet the sanitation needs of the people using the CBD and its markets as well as those who travel into the area for business and leisure activities.

The toilets must be safe and private, make provision for menstrual hygiene, be accessible to all users, be affordable, meet the requirements of care-givers and parents, and must be well-maintained and managed.

› Public sector and Donor/IFI › NZOWASCO water company through the Water Sector Trust Fund › The implementation agent would be NZOWASCO water company whereas the stakeholders would be local businesses, women and girls, elderly people and PWDs

Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts

› Improves the attractiveness of Bungoma to potential business investors

Implementation agency and stakeholders

› The toilet blocks could be run as a small business therefore a private sector partner could also be considered as a stakeholder

TheShort-termcoordination, design and implementation of the project should be completed in the short-term to support the development of the anchor projects

169BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) Location > The project will be located in Focus Areas 1 and 2. Linkages

> Links to SUED principles: resource efficiency and social inclusion. Category > Capital investment: New Table 4-24 – Project 6 Summary Information Table 4-25 – Project 6 Basic Analysis and Timeline

> Which existing projects/proposals (if any): This project links to the ongoing bulk water and sanitation project lead by the Lake Victoria South Water Works Development Agency to improve sanitation for the people of Bungoma County.

› Two publicaccessibletoiletblocks › Total cost = KES 17 million › Enables women and girls, as well as older people and PWDs to participate in public life by providing them with access improved sanitation › Contributes to an improved sanitation environment for the people of Bungoma

Challenges Data gaps Time frame, key dependencies

Establishing ownership and maintenance of the accessible toilet blocks Information on the current provisions of public toilets in the CBD

> Other SUED infrastructure/urban projects: The project links to the CBD market and bus station (Anchor project A), airstrip redevelopment (Anchor project B) and supporting the sewer network expansion (project 14).

Financing options and delivery mechanisms

To maximise benefits for SIGs and in line with the national policy on menstrual hygiene management (MHM)91, it is recommended to develop awareness sessions to improve menstrual education and wellbeing and reduce girls’ stigmatisation and infection risks.

Climate Finance Options Access to climate finance increases the capacity of projects to deliver climate mitigation and adaptation actions. There are a range of specialised funds and instruments available which could provide a source of finance for this project, including: • The Adaptation Fund (AF) • The National Treasury • The Special Climate Change Fund (SCCF)

90 UNICEF, WaterAid and WSUP (2018), Female-friendly public and community toilets: a guide for planners and decision makers. WaterAid: London, UK. Available at: files/Female_friendly_toilet_guide.pdf,https://www.wateraid.org/us/sites/g/files/jkxoof291/(Accessed:18/02/2022).

Users pay 5 taka (KES 6.60) for defecation and urination, 10 taka (KES 13.20) for a shower and 10 taka (KES 13.20) to buy a sanitary pad. The toilet use fee is waived for people who say that they cannot pay.

Social inclusion interactions and approaches Well-designed, affordable, and accessible public toilets will improve access to the public space to all, particularly for women, the elderly, and PWDs. This project also represents employment opportunities for small businesses as toilet facilities’ operators, and for local NGOs or community groups for the toilets’ maintenance.

Case Study - Accessible toilets in Dhaka, Bangladesh92 A 2011 study of public toilets in Dhaka, Bangladesh, showed that the city had only 47 public toilet blocks serving around 7 million people. 75% of the blocks did not have female-friendly and child-friendly features, and more than 30% were in very unsafe locations. Furthermore, almost 60% of the blocks did not have a reliable water supply, and more than 80% had no lighting, making them impractical, undesirable and unsafe for women and girls.

• African Financial Alliance on Climate Change (AFAC) Section 5.5 provides more information about available climate funds in Bungoma.

The city municipalities decided to start reversing this problem by increasing the number and quality of public toilets to meet the requirements of all, especially women, girls and people with disabilities. They committed to building 100 new public toilets in partnership with WaterAid and other NGOs. As part of the Sunrise project, WaterAid has helped build dozens of female-friendly and accessible public toilets. They have separate male and female sections and features, including handwashing facilities, showers, safe drinking water, reliable water and electricity supplies, CCTV cameras and professional male and female caretakers.

SUED170 Principles Climate change interactions and approaches Provision of accessible toilet blocks would improve the sanitation of the surrounding area and reduce negative effects on the environment and public health. The key risks from climate change are changes in temperature and precipitation (drought events) which impact water supply and demand, and storm events and flash flooding which can damage water supply and power supply. The toilet blocks should be designed to withstand increased rainfall and risk of flooding. Allowances for increased rainfall should be included in the design of associated sewer lines and connections to reduce the risk of overburdening the systems during extreme precipitation events or flooding.

92 Water Aid, Female-friendly public and community toilets (2018), Available at: Female_friendly_toilet_guide.pdf,https://www.wateraid.org/us/sites/g/files/jkxoof291/files/(Accessed:07/02/2022).

91 Health, Menstrual Hygiene Management Framework (2020), Available at: MHM-Policy-11-May-2020.pdf,https://www.health.go.ke/wp-content/uploads/2020/05/(Accessed18/02/2022).

> Develop a participatory process to establish opening times, user fees and special needs from SIGs90 > Ensure toilet facilities are well-managed and maintained. Liaise with local NGOs or programmes such as Kazi Mtaani for toilets’ maintenance.

> Ensure toilet facilities have a baby-changing station, and that PWDs’ toilets have enough space for them and their caregivers. Facilities should be well-illuminated.

The purpose of this project is to increase the coverage of areas covered by street lighting, and also to optimise the technology solution and implementation model for Bungoma Municipality to ensure climate resilience, and financial and operational sustainability.

> Review maintenance equipment and staff training levels and ensure staff and equipment are sufficient to meet the long-term requirements;

> Deploy new lighting solutions and remove redundant fittings from key areas.

4.3.3.3 Project 7: Street lighting Project Overview

> Review and update Bungoma’s current financial arrangements for street lighting, with the aspiration to improve the economic situation for the Municipality and ensure long-term maintenance of installed streetlights; and

Linkages > Which existing projects/proposals (if any): Street lighting installation identified in the Bungoma County Integrated Development Plan with a budget in the Public Works Sector of KES 122.5 million. 85% of his budget is allocated to Bungoma Town.

Location > This project will target Focus Areas 1 and 2 with an aspiration to provide street lighting to 100% of the main roads and in particular the roads mentioned in Transport Projects 8, 9 and 10 of this UEP.

Street lighting is present in many areas of Bungoma Town, primarily along the main roads, via traditional fittings connected to KPLC poles but coverage is limited, and maintenance has been a long-standing issue. The main issue has been the high cost of the maintenance of traditional grid-powered lights provided by KPLC which led the Municipality to explore different maintenance options. Recently the County purchased a cherry picker to facilitate the repair and maintenance of streetlights.

> Review of the technology choices for street lighting to find suitable products for the environment i.e. use of solar power and robust construction; > Review of current street lighting plans to ensure coordination with proposed urban development plans and augment the plans to ensure coverage of all main streets in Bungoma Municipality, markets and areas of public congregation;

> Other SUED infrastructure/urban projects: The project links to the CBD green link (Anchor project C), CBD market and bus station (Anchor project A), airstrip redevelopment (Anchor project B), bus park relocation (project 5), Town centre redundancy links (project 8) and urban improvements to the C33 and road safety (project 9).

171BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

This project has several components:

> Links to SUED principles: social inclusion and sustainability. Category > Developing policy > Feasibility study > Capital investment: improving existing

https://www.engoplanet.com/single-post/2019/07/22/Africa-and-Solar-powered-Street-lights,

Challenges Data gaps Time frame, key dependencies

95 The World Bank, Energy-efficient street lighting PPPs (2021), Available at: https://ppp.worldbank.org/public-private-partnership/energy-and-power/energy-efficient-street-lighting-ppps, (Accessed: 15/02/2022).

Implementation agency and stakeholders

› Design study to ensure suitable coverage of target area › Equipment review and selection

Sub-components

94 Kiambu, Municipality street lighting projects (2022), Available at: https://kiambu.go.ke/2020/06/municipality-street-lighting-projects/, (Accessed: 15/02/2022).

Currently selected technology Current commercial arrangements between Bungoma Municipality, KPLC

172 Table 4-26 – Project 7 Summary Information Table 4-27 – Project 7 Basic Analysis and Timeline

BungomaAchievingtechnologybuy-infromMunicipality, KPLC

Detailed implementation schedule for new street lighting

TheShort-termcoordination, design and implementation of the project should be completed in the shortterm to support the development of the anchor projects

Source: Atkins, 2022

93

› Development of new commercial plan (procurement, deployment, implementation, maintenance)

›

› Review current implementation plan Review current commercial and technical arrangements

Finding robust street lighting

Detailed maps showing current street lit areas

Source: Atkins, 2022

Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms

› Benchmark: KES 150,000 per pole93, KES 4-5 million per km depending on spacing › Estimated total based on part coverage to new areas, part reworking of existing areas › Actual total: › KES 40-50 million based on 10 km of road covered. › Total cost = KES 50 million › Improved finances for municipalities › Improved safety and security › Longer operational hours at commercial centres › Financing can be sourced from a number of options, including World Bank funded Kenya Urban Support Programme, which has funded street lighting in Thika, Ruiru and Limuru94 › The World Bank also offers advice, sample legal documents and further reading on using a Public Private Partnership route for street lighting, detailing projects completed in Brazil, Mexico and India95 › Site selection –Bungoma Municipality › Equipment selection – street lighting design specialist › Construction and implementation – Bungoma Municipality › Operation and maintenance – responsibility of Bungoma Municipality EnGo Planet, Africa and solar powered street lights (2022), Available at: (Accessed: 15/02/2022).

SUED Principles Climate change interactions and approaches The potential to use solar-powered light fittings will reduce the use of grid electricity and therefore reduce greenhouse gas emissions. Increases in extreme temperatures, and potential increases in solar radiation, may cause the streetlight assets to decay more rapidly, requiring more regular maintenance. This should be considered when planning operational maintenance for the project. Social inclusion interactions and approaches Street lighting reduces street harassment, crime, and fear of crime, contributing to the safety of women, PWD, elderly persons, and other disadvantaged groups. Better lighting allows markets and businesses to operate for longer hours, improving the economic outlook of vendors and market traders.

173BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

The city funded a study to determine the feasibility of upgrading its street lighting to more efficient technology. The study compared the potential costs and benefits of three technologies: ceramic metal-halide lamps, induction lamps, and LEDs. It concluded that ceramic induction lamps would be a suitable replacement for existing street lighting, while LED luminaires, which were quite expensive at the time of the study, would only be suitable for new installations.

96 ESMAP, Proven delivery models for LED public lighting: Municipal financing delivery model, Quezon City Case Study (2016), Available at: Models8_Optimized_Final.pdf,Quezon%20City%20-%20Proven%20LED%20Delivery%20https://www.esmap.org/sites/esmap.org/files/DocumentLibrary/(Accessed:15/02/2022).

174 Case Study Quezon City, public lighting delivery models, Philippines96 Quezon City (QC) had been actively exploring and implementing upgrades to its street lighting system. Many streets and roads were not lit at night, so public safety was an ongoing concern. The Mayor created a Task Force to look at installation, repair and maintenance of street lighting. This body was charged with overseeing an initiative to expand night-time lighting coverage across the city. QC subsequently embarked on a city-wide street lighting programme to illuminate 80 percent of the public road network. It involved installing 3,000 new streetlights, with an additional 1,000 streetlights retrofitted by Meralco, a private electricity utility. In the past, QC had relied on traditional lighting technologies. However, the emergence of the first generation of LED streetlights prompted a rethinking, since any improvements in energy efficiency would translate into desirable budget savings.

A constraint arising from the conversion of QC’s streetlights to LEDs was the split ownership of the assets and the flat rate charged by Meralco on a portion of the assets, as identified in the study. To solve this, the Mayor signed a Memorandum of Agreement with Meralco that turned over the nearly 3,000 ornamental streetlights owned by the utility to the QC government for a price of PHP 5.7 million (KES 12.6m). Meanwhile, the City installed meters on all of the ornamental streetlights so that savings from the retrofit of LEDs would yield energy cost savings. For the remaining pole-mounted streetlights that are owned by Meralco, the utility on its own authority has undertaken a project to convert the streetlights in its ownership to LEDs. Since QC continues to pay Meralco a flat rate per pole, the LED retrofit undertaken by Meralco increases their profit, and the city benefits from better lighting.

Figure 4-33 – Roads to be upgraded to provide alternative routes to C33

Source: Atkins, 2022

Project BungomaOverviewTowncentre

175BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

4.3.3.4 Project 8: Town Centre redundancy links

is characterized by a central axis road buttressed by a series of feeder roads. Most of these are often in very poor condition and underutilized. This lack of redundancy in the street’s network limits route choice, with most vehicle trips between different neighbourhoods being channelled to the C33 where they mix with other traffic and compete for limited road space with few options for diversion of traffic around incidents or locations of congestion. This is usually intensified around the CBD area where the lack of circumferential roads forces many peripheral trips through the centre. New links are proposed to provide alternatives routes for Town centre traffic and ease the concentration of vehicles along the C33. About 5 km of road is identified that connects the airstrip redevelopment area with the C33 at Musikoma. This link could provide an outlet for southbound traffic from the new development zone and provide northbound traffic from Musikoma, a route to bypass the city centre.

> Links to SUED principles: resilience and resource efficiency.

› Upgrade 5 km of proposed ring roads › Comprises of 2.5 km of upgrade of road from earth to bitumen standards › Corrective works and new overlay on 2. 5km tarmackedofroad › Earth to bitumen = KES 300 million › New overlay on 2.5 km – KES 30 million › Total cost = KES 330 million

Section of the road already in relatively good condition and can be accessed in the interim with minimal grading and signage to inform users of new route

Implementation agency and stakeholders

› KURA and ongovernmentCountybasedroadjurisdiction

› Air quality improvements for residential and commercial areas

Category > Capital investment: New and improving existing Table 4-28 – Project 8 Summary Information Table 4-29 – Project 8 Basic Analysis and Timeline

› Donor partners may also support funding › County government › KURA › Bungoma residents impacted by the roads

Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms

› Decongests the CBD to help realize the benefits from urban regeneration and consolidation

Land acquisition where new road alignments may need expansion Feasibility study and road investment appraisal needed Short to medium-term The proposal would need to be sequenced with the airport redevelopment and other anchor projects.

Location176

> Other SUED infrastructure/urban projects: The project links to the CBD green link (Anchor project C), CBD market and bus station (Anchor project A), airstrip redevelopment (Anchor project B), bus park relocation (project 5), Town centre redundancy links (project 8), urban improvements to the C33 and road safety (project 9) and street lighting (project 7).

> Focus Area 1 CBD market area Linkages

Challenges Data gaps Time frame, key dependencies

› Reduces journey times and costs for freight, improving resilience for industrial development and market linkages

> Which existing projects/proposals (if any): This project links to the ongoing dual carriageway upgrade to the C33.

> Prioritise the employment of local communities for the construction and maintenance of roads; and

Recommendations:

Social inclusion interactions and approaches Good quality roads make a crucial contribution to economic development and growth and bring important social benefits, such as contributing to alleviating poverty, increasing agricultural production (e.g. by contributing to reduce post-harvest losses), reducing transport costs, and providing or increasing access to employment opportunities, markets, education, health services, and recreation spaces. Good quality roads can be fundamental for the socio-economic development of rural and remote communities. Road construction, maintenance and rehabilitation can also become income-generating and provide employment opportunities for local communities.

4.3.3.5 Project 9: Urban improvements along C33 and road safety Project Overview

Location > Focus Area 1 CBD Market Area Linkages > Which existing projects/proposals (if any): the project links to the ongoing dual carriageway upgrade to the C33.

> Considering climate resilience recommendations for the design of roads is fundamental to avoiding disruption of livelihoods or economic activities in case of climate hazards.

There are no direct climate resilience considerations for this project, however, the work should include upgrades to both road surface and drainage to ensure that they remain passable even during high temperature and heavy rainfall events.

SUED Principles Climate change interactions and approaches

Case Study - Nairobi Missing Links project97

97 JiCA, JiCA Kenya newsletter (2008). Available at: https://www.jica.go.jp/kenya/ english/office/others/pdf/news200810.pdf (Accessed: 18/02/2022).

> The displacement of communities and economic activities should be avoided whenever possible. When resettlement is unavoidable, a Resettlement Action Plan (RAP) should be prepared to mitigate adverse socio-economic impacts and the disruption of social safety nets;

In 2014, Nairobi received funding to develop eight missing road links that provided alternative connections that eased congestion in the eastern parts of the city. This was based on the infrastructural improvement programme contained in the master plan for urban transport in the Nairobi Metropolitan Area for 2006-2025.This project involved the redevelopment of six major roads — Lusaka, Enterprise, Quarry and Ring Road Parklands — turning them into dual carriageways and the upgrading of General Waruinge road and Juja road connecting to the superhighway. These link roads helped to ease the concentration of traffic to selected parts of the network, opening up new connections for easier and faster travel.

At present, Bungoma Town has one main arterial road passing through the Town i.e. the Mumias Bungoma road (C33). The road plays a critical role in providing access to major points of activity such as the Bungoma market, the main bus park and commercial space. It experiences heavy volumes of pedestrians, frequent matatu movements, vending, and parking activity; these activities have almost no predefined space. The carriageway space is frequently encroached by shop premises, blocked by parked vehicles, or occupied by street vendors.

177BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

Due to deterioration over the years a 6 km long stretch of road is currently being upgraded into a dual lane to support the heavy traffic flow experienced within the CBD. This much-needed intervention could also be leveraged to incorporate essential urban street features into ongoing works. This could include street features such as safe crossing, traffic calming, greening, dedicated vending spaces that integrate with a wider NMT network proposed along Moi Avenue. These features would also support better mobility for pedestrians moving between the newly redeveloped market and bus park and improve overall safety.

> Other SUED infrastructure/ urban projects: The project links to the CBD green link (Anchor project C), CBD market and bus station (Anchor project A), street lighting (project 7) and Town centre redundancy links (project 8).

> Links to SUED principles: resilience, social inclusion, and sustainability. Category > Capital investment: Improving existing

Challenges Data gaps Time frame, key dependencies

Variation to existing works spaces need to be safeguarded from encroachment

Lack of local underground utilities management standards Short to medium-term

The proposal can be implemented together with ongoing works along C33 and support the other anchor projects leading into the medium-term

178 Table 4-30 – Project 9 Summary Information Table 4-31 – Project 9 Basic Analysis and Timeline Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders › 12 km of NMT facilities on both sides of the road › Introduction of safe crossings at intervals of 1 km along the road › Provision of vending spaces along the NMT space › All to be integrated with a wider NMT network proposed along Moi Avenue › Total cost = KES 120 million › Improvement to the safety and accessibility of CBD › Delivered by Bungoma County MunicipalitythroughGovernmentBungoma › PartnersDevelopmente.g., World Bank through the Kenya Urban Support Programme › KeNHA › County government › Market traders › KPLC and other street furniture providers

Coordination with utilities to avoid incursion into space or disruptive digging works to insert utilities Requires strong urban management

New

Final design of C33 Urban street management policy

Provision of a safe, accessible NMT and public transport facilities will enable equitable access for all by addressing inequalities associated with motorised transport. Good quality NMT provides basic mobility, is affordable and has health and recreation benefits. Recommendations: > Considering climate resilience recommendations for the design of roads is fundamental to ensure the security of farmers’ incomes and households’ food supplies;

179BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

Social inclusion interactions and approaches Improved transport infrastructure is essential to support community livelihoods and socio-economic development. Good transport infrastructure improves access to markets for traders, residents and vehicles, as well as agricultural productivity. Contributing to road safety will have a particular impact on children, young adults, and other vulnerable road users such as elderly people or persons living with disabilities since they are particularly affected by road-related incidents98 98 WHO (N/D) Youth and roads safety. Available at: programme/ncd/Youth%20and%20Road%20Safety.pdfhttps://www.who.int/management/(Accessedon19/02/2022)

> Prioritise the employment of local communities for the construction and maintenance of roads;

> It is recommended that NMT and transport facilities follow principles of universal design and ensure accessibility; and

> Timely communication to local residents and adjacent businesses about the implementation schedule of the different projects to mitigate the disruption of traffic, everyday life, and economic activities. This communication should be in formats and languages that are accessible for all.

SUED Principles Climate change interactions and approaches Inclusion of greening measures and street features to improve the pedestrian experience in the areas encourages active travel and provides associated emissions reduction and health benefits. Road and paved surfaces should be designed to withstand high temperatures and include appropriate drainage with allowances for high rainfall events to increase the area's resilience to flooding.

> The community wanted to reduce truck congestion from the downtown area while accommodating deliveries, thus a rerouting plan was developed and clear signage installed to clearly show new routes and restricted areas.

Streetscape treatments include flowerpots, texture paving, street trees and shrubs Division Street Before Before After After Grandview worked with the consultant to develop a schematic concept for Division and West 2nd Street that could be applied over the entire six-block area.

trafficfeatures,morerearrangement,parkingsidewalks,Widercongestionstreetscaping,minimalsidewalks,Narrowstreetscapecalming

West 2nd Street

One of the key arterial routes through the downtown core, Wine Country Road, it was once a state highway.

> The city installed street furniture, trees and landscaping elements along widened sidewalks, enabling increased pedestrian activities. A pocket park was added to reinforce the local character.

Downtown core: Division and 2nd Street

> The city catalogued available surface parking and found out that one curb of angle parking could be converted to parallel parking, with a net loss of 15 slots. This allowed for wider sidewalks.

> Pedestrian walkways were marked with textured paving. Bold stripes and bulb-outs made crosswalks more visible.

In 2006, the city of Grandview developed an action plan, themed ‘Downtown Alive!’ to reinvigorate the downtown core. By 2008, they had secured US $3.8 million in funding. Construction began in March 2010 and was completed in October 2010. The plan created a streetscape that was welcoming, comfortable, and safer to use as a place for people to explore and interact.

180 Case Study Study of Grandview City’s Division and West 2nd Street, Washington State99 Grandview is a Town of 9,100 located South Central Washington State, USA, at the heart of Yakima Valley.

The plan achieved the following:

99 County government of Bomet, BOMWASCO moves in to conserve Nyangores River (2019). Available at: conserve-nyangores-river/latest-news/,https://bomet.go.ke/bomwasco-moves-in-to-(Accessed:21/02/2022).

4.3.3.6 Project 10: Truck parking facilities Project Bungoma’sOverviewstrategic proximity to the northern corridor which links to major cities in Kenya, such as Nairobi and Mombasa, and regionally to Uganda and South Sudan places the Municipality at the centre of significant flows of freight traffic. The Town is also close to Malaba, which is one of the region’s busiest transboundary crossings handling close to 80% of transit goods from Mombasa. This traffic has the potential to contribute to the town’s economic vitality, but its volume and growth is having spillover impact on local traffic and the environment in terms of congestion, pollution, and noise. For instance, the border was congested for weeks in early parts of 2022, with traffic stretching past Bungoma and as far as Webuye, following protests over mandatory COVID-19 retesting at the border100. Such border bottlenecks have been occurring at a more frequent interval and point to the need for interventions to manage traffic flow. Much closer to Bungoma, long distance transit trucks often park on the road edges of the A8, while urban freight vehicles share the same parking spaces as private vehicles and there are no suitable spaces for loading and unloading activities. This creates significant issues such as damage to roads, obstruction of traffic, air and noise pollution, safety concerns and sub-optimal use of precious urban space. A combination of infrastructure provision to match demand, as well as clear regulations to manage further bottlenecks, are required for managing both local and long-distance urban freight needs.

181BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

> Links to SUED principles: resilience and social inclusion. Category > Capital investment: New >

Already, Kenya Ports Authority is in the process of constructing a truck marshalling yard at the Malaba border to hold transit trucks and avoid traffic backing onto the highway. In Bungoma, the County is considering truck parking bays in strategic areas such as Bukembe, Kimaeti and Kanduyi for long-distance vehicles. This proposal expands on the County plans and suggests the introduction of an integrated truck parking and repair shop for local freight vehicles, together with an introduction of measures to manage freight movements within the Municipality. These facilities can be fashioned after roadside stations which can be found operating along the northern corridor. Roadside stations (RSS) provide services that support drivers and travelers on long-haul journeys along the highway with resting and rejuvenation facilities and incorporate local business that support local communities. As a minimum, these RSS provide toilets, restaurants, shops/supermarkets, health clinics/wellness centres, bank/bureau offices and car workshops. There are about 22 RSS along the northern corridor with the closest one to Bungoma located in Webuye.

> Other SUED infrastructure/ urban projects: The project links to the Town centre redundancy links (project 8).

Linkages

100 The Standard, Truck drivers at Kenya-Uganda border on strike over Covid-19 tests (2022), Available at: drivers-at-kenya-uganda-border-on-strike-over-covid-19-tests,https://www.standardmedia.co.ke/national/article/2001433667/truck-(Accessed:22/02/2022)

Location > The specific location will be determined by a feasibility study, however, the truck parking facilities would aid the whole Municipality and County.

> Which existing projects/proposals (if any): there are no links with existing projects.

Key considerations include access to highway, sufficient space and proximity to immediate demand catchment area. This could be paired with freight management provisions to CBD access, including restrictions to certain times of the day, and the trans-shipment of goods from long-haul large trucks to smaller vehicles, from where they can be delivered into Town in smaller vehicles, should be encouraged.

Suitable bylaws strict

land will need to be identified Requires new

and

enforcement

Will require coordination with the road authorities responsible for the parts of the network to be used for goods movement assessment and development of RSS masterplan and supporting strategic goods movement network plan Short to medium-term The coordination and design of the project should be completed in the short-term and implemented soon after leading into the medium-term. This will help to redirect heavy goods vehicles away from CBD

182 Table 4-32 – Project 10 Summary Information Table 4-33 – Project 10 Basic Analysis and Timeline Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders › stationofDevelopmentroadsidemasterplan › Total cost = KES 50-80 million › Optimal use of limited urban road space and improved quality of public spaces › Improved road safety › Ease congestion caused by freight traffic › County government in KeNHAroadwithcollaborationresponsibleauthorities,andKURA. › Donor partners › County government and road authorities › Logistics companies and freight operators Challenges Data gaps Time frame, key dependencies

Full

BUNGOMA MUNICIPALITY URBAN ECONOMIC

> Implement measures specified in the Sector Action Plans such as setting up information points or offices to tackle GBVH and trafficking in surrounding areas (possibly within the roadside stations) as it has been done in Rwanda with the Isange ‘One Stop’ Centre Case Study.

SUED Principles Climate change interactions and approaches The truck parking and repair facilities will need to be resilient to increased temperatures, so materials that can withstand short periods of extreme heat should be included in design.

Social inclusion interactions and approaches Road transport is unfortunately associated with a high risk (and fear of) of gender-based violence and harassment (GBVH), particularly for some users such as women travelling alone or at night101. This is worsened by the constant flow of people and trade in strategic border areas, which often become a risky environment in terms of gender-based violence (GBV) and (sexual and labour-related) human trafficking.

Provision of shade for drivers and workers at the centre will be necessary to protect against heat stress which impacts the health and productivity of workers. Heat stress awareness and education programmes could also help mitigate this risk.

Recommendations: 101 The World Bank, Global roadmap of action towards sustainable mobility (2019). Available at: 0090022019/original/GenderGlobalRoadmapofAction.pdf,https://thedocs.worldbank.org/en/doc/229591571411011551-(Accessed:17/02/2022).

Case Study - Road Side Stations102 Road Side Stations (RSS) address driver fatigue, enhance road safety and provide health facilities for long-distance travelers along highways. In Japan, the roadside service stations are known as Michinoeki and are designed and developed with the help of local communities. They combine highway rest area facilities with business services from local communities. As shown in the figure below these could range from petrol stations to shops and restaurants, to car workshops, truck parking, and bus parking, among a mix of many other complementary services. Some of the benefits of such stations include socio-economic development and income generation for local communities trading along the corridor.

183PLAN (UEP )

Example roadside station: 102 Roadside Stations, Northern corridor roadside stations program, Regional Guidelines (2016), Available at: uploads/2016/10/NC-RSS-Regional-Guidelines.pdf,http://www.roadsidestations.org/wp-content/(Accessed:17/02/2021)

The centre will need to be resilient to flooding so drainage networks should make an allowance for increases in acute rainfall events and flood risk assessments will be necessary.

> For the roadside stations, consider developing a campaign, for example with posters and signage, raising awareness and providing guidance and support regarding GBVH and human trafficking.

> Consider principles of universal design for toilets (i.e. accessibility aspects, baby changing facilities, maintenance, etc.), parking spaces, and other associated equipment and infrastructure. General design considerations for GeSI normally comprise easy access to and from locations, easy movement within locations, good lighting and visibility, easy-to-read wayfinding, well-maintained and clear footpaths, mixed uses whenever possible, shelter from cold/ hot weather (refuge from rain/shade for the sun), provisions for children and the elderly, and accessibility considerations.

Municipality has limited and unreliable energy infrastructure that may not support the Municipality’s current requirements or plans for future development. In Webuye there are major 132/33 kW and 33/11 kV substations, however the nearest main substation to Bungoma Municipality (Sibembe 33/11 kV) is over 6 km from the Town centre and the basic infrastructure serving the Town needs to be significantly upgraded.

Dependence on unreliable power limits the efficiency and capabilities of businesses across all sectors. If Bungoma Municipality is to fulfil its vision of becoming an attractive centre for business, it needs a reliable supply of energy.

There are a number of hydropower projects at various stages of development which will provide over 55MW of power to the region. However, hydropower is the form of renewable energy most vulnerable to the effects of climate change, and it would be advisable to diversify the energy mix by introducing different forms of renewable energy generation, such as solar power.

The following set of infrastructure projects do not directly relate to the VCs or the development of the two key sectors, nonetheless they will still be important to their development, and will all in one way or another impact their development indirectly. For example, increasing the connections of water supply in Bungoma will impact the health and wellbeing on Bungoma’s residents, workers, and businesses and could positively impact the workforce available to support development, or the quality of services offered by hotels. Or perhaps more obviously Landfill rehabilitation would provide a safe waste outlet for the proposed industrial activity.

4.4.1 Project 11: Solar PV Power Generation Project CurrentlyOverviewBungoma

> Other SUED infrastructure/urban projects: no links to other projects, however, the project would indirectly support some of the proposed infrastructure and anchor projects by increasing the reliability of power supply in the Municipality.

> Deployment plan – upskilling of local disadvantaged groups to work as contractors; and

> Links to SUED principles: resilience, resource efficiency and sustainability. Category > Feasibility study / design > Capital investment: new >

Location > The final location of this project will need to be determined by a feasibility study.

> Design of solar arrays, including design of the electricity distribution network to connect the plant to the service area;

> Procurement route – best options for engagement with solar solution providers/ contractors;

This project has four main proposed components:

> Development of procurement and deployment plan. This will include:

> Development of maintenance plan, focusing on upskilling of local marginalised groups to work as maintenance staff.

Linkages > Which existing projects/proposals (if any): this project links to the number of hydropower projects currently under way across the County.

184 4.4 wideCross-sectoral/Bungoma-infrastructureprojects

The purpose of this project is to introduce a small utility-scale solar power system. This project will provide enough renewable energy to support the SUED projects and the Municipality’s general development aspirations. The plant would be sized to consider both the current and future demands, likely to be in the region of 6-8 MW, and would incorporate energy storage. This system will improve resiliency, reduce running costs, carbon emissions, and local air pollution.

> A feasibility study to determine the current and future demand for power, required plant size including phasing, preferred potential location, technical arrangements including preferred technology, local network connections and commercial arrangement options;

› Solar power plants are typically financed using a Build, Own Operate model › Companies such as Globeleq provide finance and construct utility scale projects, whereas specialist impact investors such as Empower103 can finance smaller scale projects (refer to case study)

185BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms

Developing a sound technical and commercial proposition that will ensure participation from suitable solar solution providers and funders

103 Empower, Impact Investment website (2022), Available at: https: https://www.empowernewenergy.com/, (Accessed: 15/02/2022).

› Procurement route – best options or engagement with solution providers/ contractors; › Deployment plan – upskilling of local marginalised groups to work as contractors; and

stakeholdersagencyImplementationand

Securing necessary land No knowledge of suitable solar providers willing to participate ImprovementShort-term. in the power situation is urgently needed, solar power plants can take time to build and become operational, initial stages including feasibility study should be addressed immediately and the development of the plan should occur soon after

Sub-components

› They will complete the thethestudypre-feasibilityandprovidelandtodeveloper

Table 4-34 – Project 11 Summary Information

› KES 20 million to study/completedesign.

› KES 1.0 billion to 8MWcompleteplant.

› Total cost = KES 1.02 billion › Reliable, resilient and green energy supply for the town › Reduced uncertainty and aroundvulnerabilitypowercuts › Make Bungoma a more attractive place to do business › A safer town, less vulnerable to energy outages

› Development of maintenance plan, focusing on upskilling of local marginalised groups to work as maintenance staff

Source: Atkins, 2022 Source: Atkins, 2022 Challenges Data gaps Time frame, key dependencies

› A pre-feasibility study to determine preferred potential locations, required size including phasing, technical arrangements including technology,preferredandlocal network connections, commercial arrangement options › Outline design of solar park › Development of procurement and deployment plan, this will include:

› theagencyImplementingwillbeMunicipality

Table 4-35 – Project 11 Basic Analysis and Timeline

This project has clear climate mitigation and resilience benefits as the energy produced through solar photovoltaics (PV) is renewable and does not contribute to greenhouse gas emissions so will not impact air quality or public health. Additionally, solar photovoltaic energy requires very little water, and so it is resilient to drought events. There are, however, some key risks associated with the project.

Social inclusion interactions and approaches This project will have an indirect effect on improving social conditions. By improving the provision, reliability and resiliency of power in Bungoma this will contribute to reducing power outages which will in turn improve commercial activity, service delivery and education. There is also the potential for the creation of jobs, some of which could be targeted at employing youths, women and PWD through an upskilling programme. Well-illuminated urban spaces, as explained above, also contribute to enhancing safety of all including for women and SIGs. Recommendations:

> Work contracts and employment opportunities created by the project should be distributed equitably across different communities and groups across Bungoma.

Solar PV have an operating lifetime of 20 or more years and their vulnerability to climate change includes flooding, high winds and extreme temperatures. The main components of a PV power plant are PV modules, mounting systems, inverters, transformers and grid connection. Flooding could increase the risk of erosion to the support structure and foundations, high wind speeds may damage the mounting systems, and extreme temperatures can limit the efficiency of the power plant. There are a number of measures that could increase the resilience of this project to climate change, including:

• Sustainable Energy Fund for Africa (SEFA) • Africa Regional Climate and Nature Programme (ARCAN) Section 5.5 provides more information about available climate funds in Bungoma.

> Choose modules with more heat-resistant PV cell and module materials designed to withstand short peaks of very high temperatures

SUED186 Principles Climate change interactions and approaches

> Ensure the new system is affordable for low-income communities and that there are financial mechanisms to support these households connect to the new energy system; and

> Use designs that improve passive airflow beneath PV mounting structures, reducing panel temperature and increasing power output; and

Climate Finance Options Access to climate finance increases the capacity of projects to deliver climate mitigation and adaptation actions. There are a range of specialised funds and instruments available which could provide a source of finance for this project, including:

• Green Climate Fund (GCF) • The Special Climate Change Fund (SCCF) • Clean Technology Fund (CTF) • Africa Adaptation Acceleration Program (AAAP)

Solar power deployed at Premium Poultry, Nigeria104 Premium Poultry is Nigeria’s largest egg producer, producing about 600,000 eggs daily. It decided to construct a solar PV plant at its Abuja factory to provide clean reliable and cheaper energy and reduce its carbon emissions. It partnered with impact investor Empower New Energy, who specialise in the investment of smaller capacity systems in the utility and commercial/industrial sectors and Rensource, a leading West African renewable energy services provider. The 700 kW ground-mounted PV installation will generate about 1,000 MWh of electricity annually and offset 25,000 tonnes of CO2 over its lifetime of 25 years. The plant created 40 jobs during its construction and operation phases.

187BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

Case Study

104 Tribune, Rensource, Premium Poultry Partner Empower to deploy solar to poultry farm (2020), Available at: deploy-solar-to-poultry-farm/,com/rensource-premium-poultry-partner-empower-to-https://tribuneonlineng.(Accessed:15/02/2022).

> A study to review and select energy efficient pumps and control equipment;

> Which existing projects/proposals (if any): this project links to the ongoing bulk water and sanitation project lead by the Lake Victoria South Water Works Development Agency to improve water supply for the people of Bungoma County.

Category > Feasibility study/design > Capital investment: improving existing

4.4.2 Project 12: Renewable energy/ energy efficiency project supporting Matisi water treatment works Project Overview

> Other SUED infrastructure/urban projects: the project links to the increasing connections to Bungoma water supply (project 13).

> Links to SUED principles: resilience, resource efficiency and sustainability.

> Deployment of pumping and renewable energy systems to the facility; and > Capacity building with utility operatives to ensure maintenance of systems.

This project will provide new efficient pumps and renewable energy solutions to the Matisi water treatment works that serve Bungoma.

This project will definitely improve the resilience of the water supply and will potentially reduce costs for consumers. It has several proposed components:

> A baselining exercise to determine the current pumping requirements, the state of the existing equipment and operating costs;

188

Linkages

> A study to review and select renewable energy technology to provide power to the facility;

> Calculation of future demands and system requirements;

Location > The project will cover the existing Matisi water treatment works that serves Bungoma.

Currently the town’s water utility operator is experiencing high electricity bills that impacts its revenue, and therefore it reduces its rates of water treatment and it experiences increased interruptions, meaning the level of service provision to the people of Bungoma is poor, and has led to rationing of the water supply.

189BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) Table 4-36 – Project 12 Summary Information Table 4-37 – Project 12 Basic Analysis and Timeline Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders › study/Baselineaudit › Selection of new equipmentpumpingtreatment/ › Design of energyrenewablenewsystem › Development of procurement and deployment plan › Implementation › Maintenance plan › KES 5 million to study/completedesign › KES 30 - 40 million for installation)(equipment,implementation › Total cost = KES 50-80 million › Reduced cost for water company treatment costs leading to service improvements › Potential to pass this on to the consumer via reduced bills › Reduced withemissionscarbonassociatedwatersector › IFI/ donor finance for energy energyrenewableefficiency/programmes › Nzoia Water and Sanitation company › Energy Services Companies (ESCOs) for delivery of commercial solutions Challenges Data gaps Time frame, key dependencies Effort needed to obtain comprehensive data on current situation Obtaining funding No knowledge of current situation TheShort-termcompletion of needs assessment, system design, as well as the implementation, should be completed in the short term to reduce electricity costs associated with the treatment of water

• Green Climate Fund (GCF) • The Special Climate Change Fund (SCCF) • Clean Technology Fund (CTF) • Africa Adaptation Acceleration Program (AAAP) • Sustainable Energy Fund for Africa (SEFA) • Africa Regional Climate and Nature Programme (ARCAN) Section 5.5 provides more information about available climate funds in Bungoma.

and approaches

The use of energy efficient and renewable energy pumps has clear climate mitigation benefits by not contributing to greenhouse gas emissions and the consequent impacts on air quality and public health.

The pumps are to be powered by solar photovoltaics (PV) which have an operating lifetime of 20 or more years and their vulnerability to climate change includes flooding, high winds and extreme temperatures. The main components of a PV power plant are PV modules, mounting systems, inverters, transformers, and grid connection. Flooding could increase the risk of erosion to the support structure and foundations, extreme temperatures can limit the efficiency of the power plant and high wind speeds may damage the mounting systems, although projections for changes to wind speeds in Bungoma are uncertain. Measures to increase the resilience of this proposal to climate change include: > Using designs that improve passive airflow beneath PV mounting structures, reducing panel temperature and increasing power output; and > Choosing modules with more heat-resistant PV cell and module materials designed to withstand short peaks of very high temperatures.

ClimatePrincipleschangeinteractions

Climate Finance Options Access to climate finance increases the capacity of projects to deliver climate mitigation and adaptation actions. There are a range of specialised funds and instruments available which could provide a source of finance for this project, including:

SUED190

Social inclusion interactions and approaches Indirectly, the project will have an indirect effect on improving social conditions. Directly, it contributes to improving water treatment services (and all associated socio-economic benefits) and could potentially support users by reducing bills. There is also the potential for the creation of jobs, e.g. operators and maintenance staff, some of which could be targeted at employing youths and other disadvantaged groups in Bungoma through an upskilling programme.

> Links to SUED principles: resilience, resource efficiency and social inclusion.

4.4.3 Project 13: Increasing connections to Bungoma water supply Project Overview

Linkages

In their Capivari water treatment plant they installed variable speed drives, improved pumping efficiency, replaced old pumping equipment with more energy efficient pumps, and optimized pumping operational schedules. These energy efficiency measures resulted in annual energy savings of 1.8 GWh and KES 20 million with an investment of KES 130 million, for a simple payback of about 6.5 years.

Campinas programme,managementenergyBrazil

There are two major water projects underway, one funded by the South Korean government and the second funded by Lake Victoria South Water Works Development Agency (LVSWWDA) aimed at increasing the supply of water in the county by providing treatment and supply infrastructure.

105

> Other SUED infrastructure/urban projects: The project links to the renewable energy/energy efficiency project supporting Matisi water treatment works (project 12); and

> Which existing projects/proposals (if any): This project links to the ongoing bulk water and sanitation project lead by the Lake Victoria South Water Works Development Agency to improve water supply for the people of Bungoma County;

Category > Capital investment: improving existing >

Location > Underserved and low-income areas in the Municipality.

The water supply system in Bungoma Municipality is inadequate. Water demand currently exceeds supply, and the water supply network does not cover the entire municipality.

191BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

The city of Campinas in Brazil established an energy management programme, including specific energy efficiency improvements, as a part of operational management to improve the overall operational efficiency and to enhance financial performance.

The company should look to reduce high water losses in the systems by replacing key mains that are leaking, ensuring that more water reaches the customer. To fully realise the impact of increased availability of clean water, it is necessary for the company to connect new customers to the network including poor and marginalized people. Where affordable, customers should cover the cost of connecting to the water network.

Case Study

105 ESMAP, Good practices in city energy efficiency: Campinas, Brazil –Energy management in the provision of water services (2011), Available at: https://www.esmap.org/node/1171, (Accessed: 15/02/2022).

The existing water supply systems rely heavily on pumping which requires electricity and is expensive. Alternative power sources for treatment and pumping are considered in project 12. Residents use alternative sources of boreholes or rainwater harvesting. Informal settlements within the municipality are served with water through water kiosks and communal connections with few individual connections.

In low-income areas which are underserved, or unserved, the water company should consider developing a pro-poor subsidy/loan system for connecting to the piped water system, which is repaid as part of the water bill. New water connections should be metered to discourage water wastage and options to improve billing and payment to ensure the new system is financially sustainable should be investigated.

192 Table 4-38 – Project 13 Summary Information Table 4-39 – Project 13 Basic Analysis and Timeline Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders › connectionsLast-mile for 1,000 households › Rolling loan fund to support households1000connectiontheoflow-income › KES 18 million › KES 18 million › Total cost = KES 36 million › Improve public and environmental health and ensure that low-income areas have access to water › The project would be funded through IFI or Water Sector Trust fund › The main implementation agent and stakeholder would be the water company › Other stakeholders include the low-income households Challenges Data gaps Time frame, key dependencies

Securing funding A status update on the ongoing projects; it is understood that the projects are expected to be completed in end 2023

Short, medium and long-term. This project should be implemented alongside the bulk water infrastructure project currently underway at the County and regional scale. This will ensure low-income households are connected to the water network

193BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

107 In Tunisia the water company, SONEDE, has managed to expand by around 70,000 connections a year through the use of a connection loan scheme. Customers can pay the cost of the connection on a quarterly basis over five years. New customers who opt for a credit connection receive a bill each quarter that includes the tariff for consumption during the previous quarter, and a loan repayment instalment.

Access to water is critical for socio-economic development and the improvement of public health. Provision of clean water will reduce incidences of waterborne diseases within the community and consequently reduce money spent on healthcare and time away from productive activities. Household connections improve accessibility to water for PWD and other consumers. This will also reduce time spent by some women fetching water for the household, contributing to their wellbeing, and freeing-up time for income generation and other activities. > It is recommended to ensure there are strategies such as instalments, subsidies, or loans support low-income populations with the connection to the water system; and

107 Center Blog, Creation of the new water company (Sonede) (2019), Available at: Creation of the new water company (Sonede) (centerblog.net), (Accessed: 09/02/2022).

SUED Principles Climate change interactions and approaches This proposal enables greater access to clean water and associated health benefits. Decentralised treatment has lower energy requirements which can allow off-grid operation and alternative energy sources. Decentralised systems are also less likely to be impacted by large-scale events and natural disasters so can help maintain a clean water supply to communities during such events.

The key risks from climate change are changes in temperature and precipitation (drought events) which impact water supply and demand, as well as storm events and flash flooding which can damage water supply and power supply. There can be challenges in supplying water to rural areas, however, sustainable solutions for water reuse and treatment can aid the management of limited supply alongside demand management education/awareness raising schemes106 .

106 Global Infrastructure Hub, Last mile infrastructure for water provision in developing countries (2020). Available at: mile-infrastructure-for-water-provision-in-developing-countries/,https://www.gihub.org/resources/showcase-projects/last-(Accessed04/02/2022).

> To ensure there are employment opportunities for SIGs and local NGOs during implementation of the project on available casual labour.

Case Study Société

Eauxded’ExploitationNationaleetDistributiondes(SONEDE)

Social inclusion interactions and approaches

In water-scarce areas, or where people cannot afford the sewerage tariff, the water company should look to improve on-site sanitation, through advice and training on the construction on safe, improved pit latrines and septic tanks, and expand sludge emptying services to ensure that vehicles used can access small streets.

Source: Water and Sanitation Program, The experience of condominial water and sewerage systems in Brazil (2005).

In order to support this expansion of the sewer services within Bungoma Municipality, whilst helping to utilise the current capacity of the sewer network and STW, this project proposes to support low-income households connecting to the sewer network through the implementation of a rolling loan support programme or a lower sewerage tariff and subsidy for toilet constructions. The loan programme would provide financial aid to households who are close enough to connect to the sewer network but would otherwise be reluctant to connect to the network due to costs associated with connecting to the mains sewer. Furthermore, the implementation of condominial sewerage systems should be explored for the future expansion of the sewage network in Bungoma. Unlike conventional sewer systems, where sewer services are provided to individual housing units, condominial sewerage systems provide sewage services to each housing block or group of households which form a neighbourhood. Using such systems can reduce the length of the main pipe required and can lead to reduced connection costs among households due to lower capital requirements for the implementation of infrastructure.

There is a greater need for stakeholder engagement when designing and implementing condominial sewerage systems, which can result in better relationships between key stakeholders and the sewer network implementation agent.

Municipality has a sewer reticulation system which covers around 80% of the historic CBD, there are only around 2,400 sewer connections which equates to around only 15% of households within the Municipality. The effluent for the sewer network moves southwest to the Bungoma sewage treatment works (STW). The STW has a treatment capacity of around 4,500 m3/day, however, less than half of this is utilised due to the low number of household connections to the sewer network. Many homes are rented or do not have title deeds to the land and therefore their tenants are under the threat of eviction. These circumstances mean that households are reluctant to invest in the infrastructure needed to connect to the sewer system and a large proportion of households, businesses and institutions use pit latrines and septic tanks.

194 4.4.4 Project 14: Supporting the sewer network expansion Project AlthoughOverviewBungoma

There are currently a number of projects proposed in Bungoma Municipality, these include the proposal for a new sewer line running along the western edge of the Town to increase the coverage of the sewer network, and a new STW along the River Sio to handle the increased volume from the new customers. In addition to this there is a proposal to increase the capacity of the current Bungoma STW in order to handle greater effluent quantities. Finally, there is a proposed project to build a new sewer network in Kibabii, due north of Bungoma Town, and expand the STW found at Kibabii University in order to improve the access to improved sanitation among households in Kibabii. Currently these projects are seeking the appropriate funding in order to get underway.

Figure 4-34 – Example of condominial sewerage systems

Challenges Data gaps Time frame, key dependencies Securing funding for the sewer connection as well as the fence for the STW Working with households who are reluctant to establish a sewer connection Number householdsof which would be willing to connect to the sewer system Short, medium, and long-term

› Sewer connection of 500 households within low-income households › Rolling loan to support connection of 500 low-income households › Bungoma STW fence

The connections to the sewer network could be carried out in the short term whilst funding is secured for the new sewer line and STW, this would include the construction of the fence around the STW to protect the land

195BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

Implementation agency and stakeholders

› The proposed fence would safeguard land at the Bungoma STW for future expansion allowing for increased effluent treatment capacity › Public sector and Donor/IFI

› Stakeholders include the NZOWASCO water company, Countythelocaltohouseholdslow-incomeconnectingthesewersystem,businesses,andMunicipality/government

Location > The project will be located in Focus Area 1.

The project could continue into the medium and longterm as the future sewer line is constructed

› KES 25 million › KES 15 million › KES 12-17 million, based on 10,000ofofofperimeteralengththeSTWsite1.7kmatacostKES7,000topermetre

> Links to SUED principles: resilience, resource efficiency, social inclusion and sustainability.

Category > Capital investment: new > Capital investment: improving existing Table 4-40 – Project 14 Summary Information Table 4-39 – Project 14 Basic Analysis and Timeline

Linkages

> Other SUED infrastructure/urban projects: no links to other projects, however, the project would indirectly support some of the proposed anchor projects by increasing sanitation and the number of household sewer connections in the Municipality.

> Which existing projects/proposals (if any): This project links to the ongoing bulk water and sanitation project lead by the Lake Victoria South Water Works Development Agency to improve sanitation for the people of Bungoma County. The project also links to ongoing efforts to expand the Municipal sewer network and STW

Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms

› Total cost = KES 52 million

› Increasing the number of household connections to the sewer system will improve sanitation among the population of the Municipality › Furthermore, this will help to improve the attractiveness of the Municipality for future investment

› Funded through the public sector such as the NZOWASCO water company › The watertheagentimplementationwouldbeNZOWASCOcompany

In addition, the project proposes the construction of a fence around Bungoma STW in order to protect any land owned by the water company from land encroachment by neighbouring property owners. This would ensure all land that is owned by the water company is protected and can be used for future expansions and upgrades of the STW. Similarly, land at the proposed STW along the River Sio, as well as land at the expanded Kibabii University STW, should be fenced in order to protect it from urban encroachment, safeguarding it for future construction and expansion works or the STW.

Climate Finance Options Access to climate finance increases the capacity of projects to deliver climate mitigation and adaptation actions. There are a range of specialised funds and instruments available which could provide a source of finance for this project, including:

> It is recommended to implement a subsidies scheme (see case studies below) or link low-income communities with existent instruments, to make the connection to the sewer systems affordable.

•

SUED196 Principles Climate change interactions and approaches Increased connection to the sewer network will improve the sanitation of the surrounding area and reduce negative effects on the environment and public health. Increased temperature and variable precipitation (drought events) can reduce flow rates in the system and cause stagnation which can increase the rate of deterioration of pipes108. Storm events and flash flooding increase the risk of sewage overflows which can cause harm to water bodies and public health.

• The Adaptation Fund (AF) The National Treasury • The Special Climate Change Fund (SCCF) • African Financial Alliance on Climate Change (AFAC) Section 5.5 provides more information about available climate funds in Bungoma. Social inclusion interactions and approaches Improved sanitation improves public health and reduces healthcare-associated costs, which is often a significant burden on low-income groups. Access to toilets protects the dignity of those who previously did not have a private and clean place to go.

Allowances for increased rainfall should be included in the design of sewer lines and connections to reduce the risk of overburdening the systems during extreme precipitation events or flooding. Drought events are set to increase in Bungoma and water availability and the utilisation in the sewer extension should be assessed prior to design.

108 Chappelle, C., McCann, H., Jassby, D., Schwabe, K., Szeptycki, L. Managing Wastewater in a Changing Climate. Public Policy Institute of California (2019). Available at: wastewater-in-a-changing-climate.pdf,https://www.ppic.org/wp-content/uploads/managing-(Accessed22/02/22)

111 pS-Eau, Choosing and implementing small-bore sewers, case study, Brazil (no date), Available at: case-study_non-conventional-sewers_brazil.pdf,https://www.pseau.org/sites/default/files/fichiers/r_d/(Accessed:08/02/2022).

109 The World Bank, Connecting the Unconnected (2020), Available at: https://openknowledge. worldbank.org/bitstream/handle/10986/34791/154444.pdf, (Accessed: 08/02/2022).

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The Nairobi City Water and Sewerage Company (NCWSC) developed the OPA connection programme using commercial finance combined with a grant from the Global Partnership for Results-Based Approaches (GPRBA).

Case Study - Nairobi sanitation output-based aid programme (OBA) in Nairobi, Kenya109

The GPRBA subsidy to NCWSC reduced the cost of a sewer connection for customers by 65% to US$270 (KES 30,000); NCWSC obtained the KES 680 million commercial credit, allowing the utility to offer on-lending to customers with the option to repay this US$270 through monthly repayments of US$4.50 (KES 500) per month for 60 months. Evaluation of the project suggested that NCWSC had significantly increased the knowledge and developed the skills required to implement sustainable water and sanitation solutions in low-income household areas. Furthermore, the programme showed that using a blend of finance models to provide a combination of subsidies and credit to customers, challenges associated with the provision of household infrastructure connections the sewer system could be significantly mitigated. Using a commercial loan was particularly important as it eliminated the potential of overstretched government budgets impacting the programme.

Large-scale condominial sewerage systems, Brazilia, Salvador and Parauapebas, Brazil110 111

During the duration of the programme, 2012-18, the programme invested US$4.92 million to subsidize the cost of water and sewer connections to low-income households and secured financing for the remaining costs associated with connections through on-lending to customers. The targeted programme areas were able to achieve high connection rates, and the programme reached more than 130,000 people, through the provision of 9,843 household sewerage connections and 7,683 water connections.

Financial support for household connections, such as subsidies or loans, which were later paid back to the water company through household monthly water bills, was provided in order to increase the affordability of connecting to the municipal sewer network.

110 Water and Sanitation Program, The experience of condominial water and sewerage systems in Brazil (2005), Available at: https://www.wsp.org/sites/ wsp/files/publications/BrasilFinal2.pdf, (Accessed: 08/02/2022).

Since the late 1990s Brazil has adopted the use of condominial sewerage systems in many of its urban areas, as opposed to tadeonal sewer systems, as a way of providing improved sanitation and sewer network coverage to many peri-urban and urban areas across the country. The main challenges associated with providing sewerage services in Brazil included high costs associated with the required infrastructure, the cost of establishing a household connection, the lack of space for a conventional or onsite sewerage management system in low-income areas, as well as maintenance and repair fees of sewerage systems. By steering away from traditional sewerage systems and implementing a condominial sewerage system, the number of household connections in urban areas, such as Brazilia, Salvador and Parauapebas, increased quickly while costs associated with infrastructure provisions and household connections to the sewer system decreased. In Brazilia the average cost of connecting to the condominial sewerage system is around Brazilian Real 580 (KES 12,500). Furthermore, the increased levels of improved sanitation led to decreased levels of waterborne diseases among the population of urban areas where condominial sewerage systems were implemented.

This project covers the construction of a materials recovery facility (MRF), for municipal waste which aims to maximise the extraction of valuable and recyclable materials such as paper, metal, glass and plastic. Once segregated these can be sent for processing in the Municipality itself or for onward sale to recycling facilities in Mombasa, Nairobi, and/ or Uganda. The MRF will be small/ modular and simplistic at first, with basic sorting tables for the segregation of different recyclables (recyclables will already be segregated from general waste and organics through the collection process). It can then be built up with sorting equipment, plastic shredders, metal shredders and paper/cardboard balers over time.

Location > Municipality/County wide – the location to be determined during the design phase of the project.

›

198 4.4.5

› Total cost = KES 70-75 million Reduces the volume of waste going to landfill Increased wasteemploymentformalinthesector

› serviceand/orPartnershipPrivate-Public(PPP)privatewasteprovision

› Support from NGOs, community groups

> Which existing projects/proposals (if any): identified as an objective in Solid Waste Policy and seen as an investment opportunity in the Investment Guide

› Turns waste into a positive component of the economy Higher quality materials which can be sold to recycling brokers

Project 15: Construction of recycling facilities Project Overview

Linkages

> Other SUED infrastructure/urban projects: the project directly links to the other solid waste management projects (project 16, 17 and 18), furthermore, the project would indirectly support some of the proposed infrastructure, anchor, and VC projects as they would all generate some waste which would require sorting and recycling. The MRF relies on a good transportation network, therefore there are links with the Town centre redundancy links project (project 8).

Exact volumes and types of waste generated to procure the correct type and quantity of sorting equipment

TheShort-termMRFshould be designed and constructed in the short term in order to provide the necessary capacity for waste management once the solid waste segregation, storage and collection project if fully implemented

›

Challenges Data gaps Time frame, key dependencies

Exact location of the MRF will need to consider future developments Need to integrate waste staff (informal or formal) into new MRF Obtain funding for initial equipment/ machinery/ engineering Secure markets for recyclates

›

> Links to SUED principles: resilience, resource efficiency, social inclusion and sustainability. Category > Capital investment: New Table 4-42 – Project 15 Summary Information Table 4-43 – Project 15 Basic Analysis and Timeline Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms

Implementation agency and stakeholders

› Revenue generating aspects: marketablematerialssegregatedwillbeaproduct

› Construction of a materials recovery facility (MRF)

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On the other hand, flash flood occurrences on site can adversely affect operations in cases of inundation of site facilities (e.g. weighbridge, roads and offices depending on site location). Site location and design should account for potential surface water flooding. As good transport links are an important part of the project, upgrades to roads to improve surface, and increase storm drainage, would ensure better access all-year round and could be considered as part of the development of a more resilient transport system.

SUED Principles Climate change interactions and approaches Capital assets such as MRFs have a long lifespan, as they are expected to be operational for decades. Climate change is already affecting waste management processes and operations that are subject to weather-related impacts and its impacts are expected to increase over the coming decades. The MRF could be sensitive to changes in temperature, fluctuations in precipitation, and storms and high winds. Higher temperatures could reduce workers’ productivity and in extreme cases adversely affect workers at risk from heat stress. Higher temperatures may require changes to equipment due to increased potential of dust, odour, and bioaerosol release and combustion risk, in both waste receptors and processing areas. Precipitation decrease may reduce water availability for site management (e.g. dust suppression).

Social inclusion interactions and approaches Solid waste recovery at the MRFs represent formal employment opportunities, providing salary, equipment, and training. > Ensure informal waste pickers’ livelihoods are not disrupted by integrating them in the new solid waste management system and consulting their preferences and needs; and > As recommended above, engage local communities and NGOs and develop education campaigns to generate awareness about the importance of source segregation and appropriate solid waste disposal.

200 Case Study Taka Taka Solutions112 Taka Taka Solutions provides waste management services through collection, sorting, recycling and composting across the Nairobi Metropolitan Area (Nairobi, Machakos, Kajiado and Kiambu). It provides waste management services to a variety of waste producers including residential, offices, restaurants, schools, shopping malls, factories and hospitals. It collects and manages 60 tonnes of waste per day across its sites, which include: • Three sorting sites; • One composting plant; • Two plastic recycling plants; • One incinerator; and • Three buy-back centres; At these facilities Taka Taka Solutions sorts through more than 40 different waste fractions using conveyor belts and other machinery as well as hand sorting. As a result, Taka Taka Solutions recycles 95% of the waste that it manages.

112 https://takatakasolutions.com/

Linkages > Which existing projects/proposals (if any): the CSP, CIDP and Bungoma Infrastructure Mega Accelerator Project recognise potential of biogas generation.

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Location > Municipality/County wide - Municipality in general for collection of organic waste with the AD facility itself being located alongside the MRF.

4.4.6 Project 16: Organic waste Project Overview

> Links to SUED principles: resilience, resource efficiency, social inclusion and sustainability.

This project will provide a sustainable solution to managing organic solid waste, through the construction of an anaerobic digestor (AD) and reduce the volume of waste in the environment and being sent to the landfills. This in turn leads to less impact on the environment through degradation of land and pollution. This project relies on organic waste being segregated at source and collected separately from other waste streams. Once the organic waste is collected, it would be processed through the AD, which can produce fertiliser and biogas (which can be used to generate electricity or bottled for domestic use that can offset the use of kerosene and firewood). It is important to consider future space requirements for organic waste processing to support potential future growth in the VCs and local businesses. Future space requirements could be for either additional AD units or a single larger unit.

> Other SUED infrastructure/urban projects: the project directly links to the other solid waste management projects (project 15, 17 and 18), furthermore, the project would indirectly support some of the proposed infrastructure, anchor and VC projects as they would all generate some organic waste which would require processing. The project would reduce or eliminate the volume of organic waste going to landfills, which generates methane (a greenhouse gas) and provide fuel which would reduce the use of wood from forests. Furthermore, it will be important to ensure necessary arrangements are in place for the sale of electricity (if it is generated). There are also links with the Town centre redundancy links project (project 8) as vehicles will bring in organic waste and take out liquid and solid fertiliser.

Category > Capital investment: New

202 Table 4-44 – Project 16 Summary Information Table 4-45 – Project 16 Basic Analysis and Timeline Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders › Assessment of the waste arising based on adoption of wastesegregateddoor-to-doorcollection › ofDevelopmentADplant › Total cost = KES 150 million › Reduction of waste to landfill and methane production in the landfill › Potential source of renewable energy › Better alignment to circular economy › Supply of fertilizer to local agricultural market › serviceand/orPartnershipPrivate-Public(PPP)privatewasteprovision › Revenue generating aspects; biofuel is a marketable product › AD plant developer/ operator to implement and maintain

TheShort-termdesign and construction of the AD facility should occur in the short-term in order provide the necessary capacity for waste management once the solid waste segregation, storage and collection project if fully implemented

Throughput guarantees and off-take agreements for heat, electricity and fertiliser To provide the AD plant when the doorto-door waste collection begins Waste quantity and composition currently not fully known Limited knowledge of suitable developers/ operators/ partners

Challenges Data gaps Time frame, key dependencies

Limited number of proven and established developers/operators

Funding and bankability

As mentioned above, appropriate management of organic waste will reduce the volume being sent to landfill or ending up in the environment, thereby reducing land degradation and pollution, and improving public health. The site of the AD plant would need to be chosen to reduce the risk of flooding and ensure good access. The collection system is dependent on a strong road network, and ideally the roads used should undergo upgrades in both road surface and drainage to ensure that they remain passable, and that collection can continue, even during high temperature and heavy rainfall events. Indirect resilience benefits of this project are an increased supply of fertiliser to farmers, which could help enhance yields, while mitigation benefits are clear in the reduction of methane.

> The project presents employment opportunities for SIGs. Many young men already work in transportation, and they could be engaged in waste collection. There are also employment opportunities for PWD, for example in back-office activities to manage collection operation and logistics.

SUED Principles Climate change interactions and approaches

The potential of producing biogas also represents several socio-economic benefits and opportunities for women’s economic empowerment. For example, women can generate new livelihood opportunities, reduce risks and time spent collecting fuel, and lower their expenditures on fuel. This is particularly relevant for women who are often in charge of these tasks. It could also contribute to reducing health risks and smoke-related illnesses, while mitigating climate change113 . 113 Libaisi, J., and Njenga, M., (2018), Biogas as a Smart Investment for Women’s Empowerment and Livelihood Enhancement, Recovering bioenergy in SubSaharan Africa: gender dimensions, lessons and challenges, pp.33-38.

Social inclusion interactions and approaches Both processes, organic waste collection and its processing into fertilisers, represent employment opportunities, providing salary, equipment, and training.

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Climate Finance Options Access to climate finance increases the capacity of projects to deliver climate mitigation and adaptation actions. There are a range of specialised funds and instruments available which could provide a source of finance for this project, including:

• The Adaptation Fund (AF) • The National Treasury • The Special Climate Change Fund (SCCF) • African Financial Alliance on Climate Change (AFAC) Section 5.5 provides more information about available climate funds in Bungoma.

The Energy Park processes 50,000 tonnes of Gorge Farm’s organic residue to produce biogas, through anaerobic digestion, and 35,000 tonnes of fertiliser. The biogas is burned in two engines to produce the electricity and heat. It is estimated that producing the same amount of electricity and heat using diesel would require 5 million litres of fuel annually, plus the extra fuel required to transport the diesel from Mombasa. The use of biogas to produce the electricity is also estimated to save 7,000 tonnes of carbon dioxide emissions annually.

204 Case Study

114 Reuters, Africa’s first grid-connected biogas plant powers up (2017), Available at: energy-biogas-idUSL5N1EZ1KL,https://www.reuters.com/article/kenya-(Accessed:14/02/2022).

Biojoule Kenya, the independent power producer that operates the Gorge Farm plant, sells the power to Gorge Farm and to Kenya Power and Lighting Company for $0.10 per Kw/h. Diesel-generated power, by contrast, costs $0.38 per Kw/h to produce.

114 Since 2016 the Gorge Farm Energy Park in Naivasha has been producing 2 Mw of electricity, which is used at Gorge Farm itself, owned by the Vegpro Group, and has sufficient surplus to meet the power needs of 5,000-6,000 rural homes. The Energy Park also generates heat, for the farm’s greenhouses, and fertiliser which can be used by local farms, displacing the need for synthetic fertiliser.

Tropical Power supplied engines for the Energy Park, in conjunction with Clarke Energy, a UK-based engine service provider and locating the plant very close to the grid interconnection point meant engineering challenges were minimised. The project is seen as an example of how locally produced feedstock can be used to generate clean and cost-effective power for Kenya.

A policy analyst at the Kenya Institute of Public Policy Research and Analysis believes biogas could generate between 29 and 131 Mw of power in the country.

The Gorge Farm Energy Park, Kenya

There would be provision of a three-bin system (dry recycling, organic waste and residual waste) for all households/neighbourhoods and businesses to enable recycling, organics processing (using anaerobic digestors AD) and reduced waste to landfill, supplemented with a Municipality-wide, frequent and reliable collection service. This would also need to integrate the waste from the Industrial activities to be based in Webuye.

Location > Municipality/County-wide - the door-to-door waste collection would be Municipality/County-wide with storage space for recyclables and offices needed in/near Bungoma.

This project relies on a strong transportation network, with the use of more waste collection vehicles and more collection routes. This would increase traffic on the roads and emissions of CO2 into the environment, which can be mitigated with good collection route planning and scheduling and use of vehicles with stringent emissions standards, and/or using biofuels. Waste collection vehicles do not have to be large nor carbon-intensive, they can be a combination of bicycles with trailers, boda bodas with trailers, three-wheeled rickshaws and larger collection vehicles. It is noted that the waste receptacles and the waste collection vehicles would need to be compatible.

It has been identified in the Bungoma Municipality Strategic Plan and the Solid Waste Policy that door-to-door waste collection is needed to improve waste management practices. This project would aim to create a better system for the collection of waste, discouraging informal dumping and open burning, as well as significantly reducing the health and environmental impacts of open waste deposits. This would offset the effects of improper waste management on the environment, water resources, and subsequent climate effects.

Linkages > Which existing projects/proposals (if any): key output identified in the Bungoma Municipality Strategic Plan 2020-2024 and identified as an objective in Solid Waste Policy; > Other SUED infrastructure/urban projects: the project directly links to the other solid waste management projects (project 15, 16 and 18), furthermore, the project would indirectly support some of the proposed infrastructure, anchor and VC projects as they would all generate some waste which would require collection. The waste collection system relies on a good transportation network including roads, vehicles, and traffic routes, therefore there are links with the Town centre redundancy links project (project 8); and

> Links to SUED principles: resilience, resource efficiency, social inclusion and sustainability.

Category > Capital investment: improving existing

The Municipality will need to engage with recycling organisations in order for them to buy and use the segregated recyclable waste and the residual waste will be disposed of at the existing/new landfill (project 18)

As well as the procurement of new waste receptacles and new collection vehicles, the project would also need storage space for the recyclables before they are collected by recycling organisations – organic waste would go directly to the AD plant and residual waste to the landfill – and staff and offices to manage collection operations and logistics. This would include public awareness and education campaigns to encourage recycling and reuse, and proper waste disposal.

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4.4.7 Project 17: Solid waste segregation, storage, and collection Project Overview

Current capacity of system unable to serve future community needs and waste quantities

Segregation

Very low levels of containerization of wastes deposited for collection causing nuisance and negative health and environmental impacts Waste generation and compositional study to identify how many collection vehicles would be required

206 Table 4-46 – Project 17 Summary Information Table 4-47 – Project 17 Basic Analysis and Timeline Source: Atkins, 2022 Source: Atkins, 2022 Sub-components Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders › Purchase of bins/ containers and collection vehicles › Running maintenanceand of vehicles annually › KES 25 annuallymillion › metalsbewasteaspects:generatingRevenuevaluablestreamstosegregatede.g.,andplastic › Total cost = KES 25 million › Reduced wild dumping of waste and improved sanitation › Provides an increased level of service and engages community › Encourage source-segregation (residual, recyclables, organic) therefore reducing volume of waste to landfill › Improves sanitation and flood and surface water management ability › Higher quality materials which can be sold to recycling brokers › Private wasteand/orPartnershipPublic(PPP)privateservice › Support from NGOs, community groups, waste pickers Challenges Data gaps Time frame, key dependencies No formal recycling in place

Obtain funding for new collection infrastructure Provide adequate training and support systems Launch public awareness campaign Short to Improvedmedium-term/ongoingwastemanagementneeds to be implemented in the short term in order to reduce the effects of mismanaged waste on human health and the environment storage and collection will continue after the project is implemented fully

Current systems in place for collecting do not comply with appropriate health and safety standards

> Local communities and NGOs should be engaged in sensitisation campaigns to generate awareness about the importance of source segregation and appropriate waste disposal.

The project also presents employment opportunities for SIGs. Many young men already work in transportation, and they could be engaged in waste collection. There are also employment opportunities for PWD, for example in back-office activities to manage collection operation and logistics. Recommendations:

SUED Principles Climate change interactions and approaches

Climate Finance Options Access to climate finance increases the capacity of projects to deliver climate mitigation and adaptation actions. There are a range of specialised funds and instruments available which could provide a source of finance for this project, including: • The Adaptation Fund (AF) • The National Treasury • The Special Climate Change Fund (SCCF) • African Financial Alliance on Climate Change (AFAC) Section 5.5 provides more information about available climate funds in Bungoma.

Social inclusion interactions and approaches Improved waste management practices and the discouragement of informal dumping will bring significant benefits to public health. Source segregation reduces costs in waste handling and recycling represents potential revenues. A cleaner environment contributes to the commercial and tourism development of the area.

As mentioned above, the collection system is dependent on a strong road network, and ideally the roads used should undergo upgrades in both road surface and drainage to ensure that they remain passable, and that collection can continue, even during heavy rainfall events. Similarly, flood risk assessments would need to be undertaken for the recyclables storage space to ensure resilience against flooding.

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> Waste collectors should receive training in safe working methods, road safety, and receive the adequate PPE. They should also be trained on how to segregate the waste, and on how to handle waste properly to avoid dropping it on the way from households to the collection point and negatively affect local communities; and

There are no direct climate resilience considerations for the project. There is, however, a clear benefit that the reduction in solid waste and wild dumping will reduce the amount of waste which is swept into drainage systems, and which can cause blockages, and localised flooding. As such, a solid waste collection system should help to increase resilience to flooding.

208 Case Study Waste collection Kenya115 A UK Aid funded project delivered in by WasteAid and local partner organisation Kwa Muhia Environmental Group (KMEG), will set up a waste and recycling centre that will create green jobs and contribute towards a cleaner environment.

The community of Kwa Muhia has no formal sanitation or waste management provision and is on the southern shores of Lake Naivasha. This is threatening the conservation status of Lake Naivasha, an internationally-important wetland site, due to plastic pollution from the community, and agricultural runoff from the nearby flower farms. As part of the project the local team will organise a waste collection service with waste taken to a new community waste management and recycling centre. There, waste will be processed into useful products that can be sold in local markets. In addition, KMEG will be running an awareness raising campaign to encourage waste-wise behaviour in the community. The project is seen as an opportunity to improve public health by reducing diseases spread by uncollected rubbish and convert waste into wealth. It will introduce simple and affordable waste management and recycling skills for disadvantaged women, youths and people with disabilities, creating jobs and cleaning the environment for current and future generations.

115 WasteAid, WasteAid awarded UK Aid funding for community recycling in Kenya, (2019), Available at: funding-for-community-recycling-in-kenya/,https://wasteaid.org/wasteaid-awarded-ukaid-(Accessed:14/02/2022)

4.4.8 Project 18: Landfill rehabilitation Project Overview

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This project covers the rehabilitation of Tuuti dumpsite to a NEMA standard engineered sanitary landfill. The new engineered sanitary landfill will need to consider sensitive receptors like residential areas, schools and rivers, as well as taking into consideration future developments, so the landfill does not constrain development. The existing dumpsite poses a health risk, degrades natural resources with the pollution of surface water bodies, groundwater aquifers and soils, and contributes to GHG emissions through the production of methane from decomposition of waste. Rehabilitating the existing dumpsite and commissioning a new engineered sanitary landfill will reduce risks to human health and the environment by installing appropriate liners for leachate containment and collection, as well as a landfill gas capturing system, which can be processed and used as biofuel.

Location > Municipality/County-wide - Current Tuuti dumpsite Linkages > Which existing projects/proposals (if any): identified in the LUDP; > Other SUED infrastructure/urban projects: the project directly links to the other solid waste management projects (project 15, 16 and 17), furthermore, the project would support some of the proposed infrastructure, anchor and VC projects as they will all generate small amounts of waste that will require disposal. This project is dependent on good road links, the location of the new landfill requires a well-managed feeder road for transport of waste, and therefore there are links with the Town centre redundancy links project (project 8). There is also a link between the catchment management in Mt. Elgon water (project 19) as rehabilitation of dumpsite should improve groundwater quality in the area around the dumpsite; and > Links to SUED principles: resilience, resource efficiency, social inclusion, and sustainability.

Category > Capital investment: Improving existing

›

›

Site investigations for the new landfill site should take into account increases in the risk of both surface and river flooding under climate change, as well as the potentially destabilising effect of increases in heavy rainfall. The rehabilitation of the existing landfill site should, where possible, include stabilisation measures, and measures to reduce leaching.

Challenges Data gaps Time frame, key dependencies Waste being dumped, buried, and burnt Exact location of the new landfill will need to consider future developments Ensuring landfill does not become uncontrolled/ unmanaged Undertake appropriate surveys and site investigations to ensure good quality of works Obtain funding for construction of new engineered landfill Designated size of the new landfill area (i.e. capacity) versus volume of waste that is produced in the Municipality and lifetime of the landfill

› Revenue generating aspects; biofuel is a marketable product Support from NGOs, community groups

›

Estimated cost (KES range) Benefits and impacts Financing options and delivery mechanisms Implementation agency and stakeholders

Table 4-48 – Project 18 Summary Information Table

›

TheMedium-termlandfillrehabilitation should occur in the medium term once a more efficient solid waste management strategy is in place This will help to deal with any remaining waste that cannot be sorted in the MRF or AD facility in an appropriate manner and to high environmental standards

and

Source: Atkins, 2022 Source: Atkins, 2022

›

Basic

›

› KES 3 million initial feasibility study KES 106 million to KES 426 million (dependent on the size and number of cells) KES 25-50 million initial start-up costs for landfill gas collection and processing Total cost = KES 479 million Improved ground and water quality around existing dumpsite and new landfill Reduces methane emissions from the dumpsite Provides employment › Reduction in deforestation for fuel (instead biogas generation) Protects public health serviceand/orPartnershipPrivate-Public(PPP)privatewasteprovision

SUED Principles Climate change interactions and approaches The landfill site needs to be designed to minimise flood risk, and to ensure that heavy rainfall events do not lead to excess leaching, and contamination of water resources.

– Project

Social inclusion interactions and approaches

210

Sub-components

Well-engineered landfills contribute to the improvement of public health. They also have the potential to contribute to social inclusion and economic development through new employment opportunities and the involvement of local communities and NGOs. Recommendations: > Develop training on occupational health and safety for all employees. Provide adequate PPE; and > Engage local communities and NGOs in sensitisation campaigns to generate awareness about the importance of source segregation and appropriate waste disposal. 4-49 18 Analysis Timeline

›

›

› Construction of new landfillengineeredcells › forprocesscollectionofConstructionlandfillgasandsystembiofuels

›

After the Akreuch dumpsite near Rabat, Morocco became uncontrolled and over-capacity, polluting local groundwater and rivers, it was closed, and a new sanitary landfill was commissioned a few kilometres away. Oum Azza landfill was developed with the assistance from the World Bank but is managed by private landfill operator Pizzorno. It receives waste that is collected from 13 communes in the region and has an annual capacity of 850,000 tonnes. Oum Azza is exemplary for this region, where waste is seen as a resource rather than trash, combining recycling with the generation of value chains, and jobs.

The Oum Azza landfill also derives value from the large organic waste stream (60%) by capturing the biogas from waste decomposition and converting it to electricity at a nearby cement factory furnace, for onward sale onto the national electricity grid.

116 The World Bank, Morocco lets nothing go to waste (2016); Country report on the solid waste management in Morocco (2014). Available at: morocco-lets-nothing-go-to-waste,https://www.worldbank.org/en/news/feature/2016/02/16/(Accessed:14/02/2022).

There is an organised system at the landfill, integrated with waste collection. Waste is shovelled onto a metal conveyor belt and spread evenly over a drum, where biomass is separated from the rest. Residual waste feeds into further conveyor belts where it is sorted manually. Valuable waste streams include cardboard, bottles, plastic, foil, and metals.

Informal sector waste collectors who were originally working at the Akreuch dumpsite were organised into a cooperative called Attawafouk, supported by the World Bank. This cooperative consists of 176 employees, 22 of whom are women. These employees are organised into teams that pick out different types of recyclables from the conveyor belt. Each employee is paid the same monthly salary of ~2,600 Dirhams per month, receives formal training, professional equipment, protective clothing, health insurance, access to a bank account and a low mortgage rate. Selected employees also receive vocational and career development via established diplomas in waste management.

The cooperative plays a strong role in the management of waste, governing whom the recyclables are sold to, and at what price. The private operator funded the initial machines however, the landfill now turns over more than 460,000 Euros per year from recycling, from which the cooperative has been able to buy more equipment.

Oum Azza landfill, Meghreb, Morocco

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Case Study

116

This project would adopt land and water management initiatives for the Mt. Elgon catchment area in order to reduce the risk of flooding and drought and to balance environmental, economic and social demands to bring long-term improvements to the catchment area117. Mt Elgon water tower is a trans-boundary resource between Kenya and Uganda. The water tower covers 170,983ha (Mt Elgon National Park - 10,542 Ha, Chepkitale National Reserve - 19,768 Ha, gazetted forest area - 72,548 Ha and 5 km buffer zone of 68,080 Ha). It traverses Bungoma and Trans-Nzoia Counties118

> Promotion of agroforestry to enhance sustainable land management and increase tree cover within the water tower and identified ESA. Trees and shrubs are planted to reduce soil erosion and to smooth rainfall run-off by impeding water flow. Increased vegetation can reduce the frequency of flash flood and stabilises base flow in rivers. Reducing erosion also decreases siltation in rivers;

117 Mount Elgon Foundation, Kenya Water towers Status Report – Mt. Elgon (2018). Available at: uploads/2021/02/Kenya-Water-Towers-report.pdf,https://mountelgonfoundation.org.uk/wp-content/(Accessed:21/02/2022).

Location > The project will be County-wide, but with specific focus on Mt Elgon water tower and the reclaimed forest lands like Chetambe, Sang’alo and Kabuchai Hills, etc.

Project 19: Catchment management in Mt Elgon water tower Project Overview

This effort will also be complimented with rehabilitation and reforestation of other degraded areas as well reclaimed forest lands like Chetambe, Sang’alo and Kabuchai Hills, etc. In addition to water resource benefits, improvements to the catchment would increase biodiversity and could act as a carbon sink, reducing climate change.

However, utilization of the benefits derived from the water tower has resulted in positive and negative impacts in the water tower. There has been a decline in forest cover as a result of over-exploitation and encroachment in the protected areas. On the other hand, there has been an increase in forest cover within the buffer zone as a result of promotion and adoption of agro-forestry activities in the farmlands. Besides encroachment, Mt Elgon water tower also faces illegal logging of endangered tree species, charcoal burning, and forest fires. The impact has been declining forest cover in the gazetted areas, resource conflicts, drying of rivers and springs and reduction of biodiversity119 . To curb these negative impacts and ensure conservation of this water tower, reclamation of encroached areas within the gazetted areas as well as critical catchment areas to allow for natural regeneration and enhance quantity and quality of river flows will be important.

118 Mount Elgon Foundation, Kenya Water towers Status Report – Mt. Elgon (2018). Available at: uploads/2021/02/Kenya-Water-Towers-report.pdf,https://mountelgonfoundation.org.uk/wp-content/(Accessed:21/02/2022).

The catchment management options appropriate for the Mt Elgon catchment and other environmentally -sensitive areas (ESA) include:

> Which existing projects/proposals (if any): the project can also be linked to the numerous tree planting initiatives in the CIDP and IDeP; > Other SUED infrastructure/urban projects: the project does not directly link to any of the other infrastructure proposals. However, it will provide employment opportunities and enhance opportunities for an ecosystem services approach within the County; and

212 4.4.9

119 Mount Elgon Foundation, Kenya Water towers Status Report – Mt. Elgon (2018). Available at: uploads/2021/02/Kenya-Water-Towers-report.pdf,https://mountelgonfoundation.org.uk/wp-content/(Accessed:21/02/2022).

> Formation of a capacity-building multi-stakeholder coordination forum to spearhead conservation activities in the water tower and other ESA. This forum would also help to promote community sensitization and awareness on conservation matters, as well as create local ownership of the water tower and the other ESA; and

> Links to SUED principles: resilience, resource efficiency, social inclusion and sustainability. Category > Capital investment: New and improving existing.

> Strict enforcement of relevant laws and regulations to curb illegal activities in the water tower.

Linkages

> Increasing soil infiltration: enhancing the soil structure to increase the levels of water that can be absorbed into the soil. This reduces the effects of drought as a result of healthy soil retaining water for longer in dry period;

Short, medium and long-term

Benefits

> Active engagement of the proposed community forest associations to be the custodian of the initiative and to take care of planted trees; and

› The initiative should be coordinated by the County, with inputs during the design phase and fundingdonors/IFIcommunityKFS),Wateragenciesphaseimplementationbygovernmental(e.g.KenyaTowersAgency,theprivatesector,groups,andclimatebodies

SUED Principles Climate change interactions and approaches This project has both environmental and climate resilience benefits. Afforestation will help reduce erosion, and lower flood peaks, and as such, if done at sufficient scale, would have significant downstream flood reduction benefits. Care should be taken that the selection of tree types is appropriate (and indigenous) and considers steadily rising temperatures. Mixed forest will lead to greater biodiversity, and also increase the resilience of the forest to climate change.

Implementation agency and stakeholders

› Trees seedlingsand planting › KES 550 per tree › Number of trees dependant on land and funding available (>65,000 and above) › Total cost based on 65,000 trees = KES 35.7 million

> To increase survival and/or success rates for the planted trees, planting to be timed during the onset of rains;

> There should also be incentives for local people to encourage tree planting and agroforestry at farm level to spearheaded sustainable agriculture and conservation activities. This can be delivered through cooperatives.

› The optionfinancingcanbe andbudget,County/sector,betweencross-collaborationatheprivatepublicsector,MunicipalityDonors/IFIClimateFunds

213BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) Table 4-50 – Project 19 Summary Information

The planning, setting up of the coordination team, initiative design, pilot, procuring of finance and setting tree planting targets should be conducted in the short term (0-3 years) with tree planting occurring soon after Expansion of the initiative across the County should occur in the medium to long term (4 years >)

> Relevant government agencies like KFS, KWS, KWTA together with relevant county government department should take lead in raising the seedlings;

Recommendations: > The afforestation initiative should adopt indigenous tree species for planting;

Financing

Table 4-51 – Project 19 Basic Analysis and Timeline

Unifying approach across all agencies and partners for implementation and catchment management Funding could be a challenge if the initiative is not well planned, considering there are competing initiatives across the world Information about land use and buffergazettedTheTopographicalownershipsurveysboundarybetweenzonesandzone

Source: Atkins, 2022

› Reduced water flow and increased infiltration reduces river siltation

Challenges Data gaps Time frame, key dependencies Mt Elgon is gazetted both as national park and game reserve; this would require consultation with governmental agencies (e.g. Kenya Water Towers Agency-KWTA, KFS and KWS) and enforcement of regulation to stop tree cutting and slash and burn farming

Source: Atkins, 2022 Sub-components Estimated cost (KES range) and impacts options and delivery mechanisms

› Reduce soil erosion and increase resistance to water flow › Increase soil infiltration, reducing the effects of drought as a result of healthy soils retaining water for longer in dry periods

•

• The Global Sub-National Climate Fund (SnCF Global) The Adaptation Fund (AF) The Special Climate Change Fund (SCCF) African Financial Alliance on Climate Change (AFAC) Africa Regional Climate and Nature Programme (ARCAN)

•

Since this project will be developed in the Mt Elgon region, its implementation will need to pay attention to the different communities residing in the area, or that depend on it for their livelihoods. While Bungoma is a relatively peaceful County, conflicts in the past have occurred due to land disputes and family conflicts, with politically instigated conflicts being more sporadic and less common. The County Spatial Plan 2016-2025 also mentioned conflicts involving wildlife in forested areas such as the Mt Elgon region. Yet, these conflicts have remained at a controllable level.

•

•

Recommendations: > Ensure all cultural groups in the area are consulted in a meaningful, timely and culturally appropriate manner about the implementation of this project. Ensure the project’s benefits are accessible to them and that they are involved in its activities; and > Actively and deliberately involve local conservation groups, youth and women in planting and caring for the planted trees until they are well established; this will also contribute to communities’ increased sense of ownership.

214 Climate Finance Options Access to climate finance increases the capacity of projects to deliver climate mitigation and adaptation actions. There are a range of specialised funds and instruments available which could provide a source of finance for this project, including:

The water levels of the Nyangores River, which is a tributary of Mara River, have kept diminishing over the years. In 2019, the Bomet County Water and Sewerage Company (BOMWASCO) partnered with Sustainable Water Partnership (SWP), Green for Africa Foundation and other local stakeholders to conserve the river. One of the possible causes of the river level decline was attributed to the planting of water-thirsty Eucalyptus trees along the riverbanks and basin. The conservation plan targeted planting of over 20,000 indigenous trees within the basin and riparian zones of the Nyangores River. This was a multi stakeholders’ effort. Other agencies involved included Kenya Forest Services (KFS), Ministry of Water, Sanitation and Environment, Ministry of Agriculture, NEMA, Kenya Red Cross Society, Nyangores Water Resources Users Association (WRUA).

Section 5.5 provides more information about available climate funds in Bungoma. Social inclusion interactions and approaches Flood reduction will particularly benefit surrounding communities, local farmers and low-income populations who are more vulnerable to, and disproportionally affected by, the impacts of climate change. Likewise, reduced river pollution through siltation will reduce the need to treat water, and contribute to public health.

120 County government of Bomet, BOMWASCO moves in to conserve Nyangores River (2019). Available at: conserve-nyangores-river/latest-news/,https://bomet.go.ke/bomwasco-moves-in-to-(Accessed:21/02/2022).

Case Study - Conservation of River Nyangores in Bomet120

215BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

222 5.

5.1 Introduction Effective urban and economic planning by strong, empowered municipal governments is critical to the success of cities in responding to current and future challenges. The Municipal government’s central role in the coordination of actors that shape urban development and economic growth is becoming even more important as devolved governments are required to address increasingly complex challenges. Planning plays a critical role in directing and controlling land use, urban form, infrastructure, and service delivery as well as ensuring resilience of the urban system. A number of other factors also have an impact on the ability of cities to respond to risks and development needs. These include the skills available in the workforce and within local authorities, an effective and transparent governance structure, and 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.

PlanImplementation

> Increase in the variety of formal employment in the sectors of industrial/agricultural processing, retail and trade, and services. Improve socio-economic opportunities across society, providing employment opportunities and accessibility to facilities to those from SIGs who currently face a lack of income security, in particular Bungoma’s youth; and

It will be critical to identify potential risks to the implementation of the UEP, including risks and impacts from the current COVID-19 crisis or other external shocks, as well as increasing stresses from the effects of climate change. This will need to be a continuous process of reviewing identified risks starting from planning and design to implementation stages. The proposed UEP and projects within the Economic Development Framework have considered the existing and emerging economic and urban context including institutional and financial capacity of the County and Municipality.

> Improve resilience to climate change: the UEP has understood the main climate risks and has integrated resilience-building into the VCs, the economic development framework and SAPs and its individual climate-resilient infrastructure proformas;

The following sections discuss relevant considerations across partnerships, funding and scheduling for the proposed VC and climate-resilient infrastructure projects and the wider economic development plan. Crucial aspects to the implementation of these are capacity-building, and recommendations for social inclusion, and climate resilience, which are provided further below.

The UEP is an advisory document aligned with the existing regulations and planning policy framework and is built upon the priorities of both the County and Municipality to boost development. The UEP will then support the realisation of benefits, including:

The draft Bungoma Municipality Integrated Development Plan 2018-2022 is the guiding instrument to deliver basic services, promote investment with greater socio-economic impact and endorse environmental protection. However, this plan needs to be aligned with a long-term spatial strategy to ensure optimisation of limited developable land, well-coordinated infrastructure delivery and economic development. This long-term plan is in the Integrated Strategic Urban Development Plan 2016-2026 and aims to guide future growth, providing an integrated physical development by setting out the zoning and proposed land uses. As mentioned in section 2.1, the boundaries of the Municipality are in the process of being expanded. Therefore, there is a need for significant coordination of Municipal plans to ensure objectives, proposals and outcomes are well integrated with each other, and the proposed UEP, in order to deliver resilient, resource-efficient, inclusive, and sustainable urban growth across the Municipality.

> Value addition of the agricultural sector and better income security for farmers, with training centres for additional skills and diversification of produce, access to shared resources and service groups with optimal machinery, and best practice techniques that enhance production, and better storage facilities and collection centres, to increase shelf life of perishable products;

> Value uplift to the commerce, markets, and cross-border trade through better market infrastructure in the CBD, better planning around the future of trade, greater integration between the key sectors of Bungoma, targeted training and business support;

> Supporting Bungoma’s role as a commercial, service, and logistics hub for the County and the wider region, through developing the sectors that pull people in, attracting new businesses to Bungoma, and supporting the existing businesses through the VCs and SAPs;

> Improved access to the constrained resources. The climate-resilient infrastructure proformas look to support existing provision, meet the current demand, and expand to provide for the future demand for resources in Bungoma. This includes water, waste, energy, and transport.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 223

Bungoma and its departments maintain good relations with the County government and various communication channels exist vertically and horizontally since the Municipality is a department on its own and works closely with other departments. Nonetheless, it is imperative for the Municipality to use the good working relationship it enjoys at the County to keep the County government appraised of progress and developments on SUED projects and to ensure that efforts are coordinated across the County.

> Involvement of stakeholders in steering committees and working groups: the Municipal Board and a continued PSG should involve a broad range of stakeholders throughout the lifecycle of any SUED VC and climate-resilient infrastructure projects, sharing information and monitoring progress on intended outcomes for different stakeholders.

> Agriculture Sector Development Support Programme Phase Three (ASDSP III); > Kenya Climate Smart Agriculture Project (KCSAP);

> Vertical governance which refers to the strength of coordination across multiple levels of government at national, regional, and local levels; and

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 roll-out of supporting climate-resilient and inclusive infrastructure and their associated costs.

Synergies with other development programmes FCDO, the World Bank, the AfDB, UNIDO and other multilateral institutions have ongoing programmes within the County, the LREB, and Kenya which will provide synergy with the SUED programme and potential for partnerships.

Horizontal governance recommendations The following are likely to support the effective implementation of the UEP:

Examples include the World Bank’s Kenya Urban Support Programme (KUSP), which could provide an important partnership, supporting proposed urban improvements. The KUSP has already supported roads being upgraded to Tarmac standards and parking lots within Bungoma Municipality.

> National Agricultural and Rural Inclusive Growth Project (NARIGP);

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

> The Municipality should engage with key organisations such as Kenya Investment Authority, ICDC, and others to ensure investments are focused on areas where Bungoma has a competitive advantage.

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 multi-level governance:

224 5.2

There are a number of agricultural funds that can be tapped into, to support cooperative and other key actors in Bungoma’s agriculture and livestock sector, including:

> A mapping exercise should also be undertaken to identify the relationships and partnerships that exist at both 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 partnerships as well as identification of opportunities for partnerships with new and emerging entities.

Vertical governance recommendations Devolution is the backbone of Kenya’s planning policy to transfer power, funds, and resources to accountable, transparent, and inclusive local governments. Bungoma County is one of the two-tier governance systems with granted powers in terms of overarching planning and development within the County territory and in relation to management and governance of Bungoma Municipality. The Municipal Board administers and manages the Municipality on behalf of the County government. The Municipal Manager is the secretary to the board, and he/she oversees day-to-day management of the Municipality and implements decisions made by the Board in accordance with Urban Areas and Cities Act 2011 (Rev 2017).

Implementation Costs and Potential Funding Sources

> Agri-Fi Kenya Challenge Fund – implemented by Self Help Africa (SHA;) > Kenya Investment Mechanism (KIM) Program –implemented by Palladium International; > GIZ Farmer Equipment (support for formation of Coop Union and Training); > Heifer International Funding through Chicken Basket Ltd; and > NURU International (USAID Fund) on Upscaling.

> Other thematic working groups or project teams could be established, drawn from representatives from the government and community stakeholders to develop particular actions and track its implementation. These groups could be formed around the key sectors and urban elements, such as: markets and trade, waste management, sustainable transport, land use and planning permissions, environmental protection. These working groups and project teams should report back to the Municipality.

> To support the delivery of training, the County Government and Municipality should partner with the existing training institutes in the County including Mabanga ATC, San'galo TTI, and Kabianga University.

The poultry farming VC would further benefit from establishing partnerships with: > Farming cooperatives, feed suppliers, hatcheries, aggregators, and slaughterhouses.

The success of the value chain opportunities outlined in section 4.2.2 and 4.2.3, depends on building strong connections along the supply chains, and establishing close partnerships with suppliers of the required inputs to each of the VCs. The recommended approach to developing these partnerships has been outlined in detail in 4.2.1.

In the context of Bungoma, the nature of partnership can be enhanced with public sector involvement and NGOs to help direct and attract additional funding for public realm and infrastructure improvements. The key benefits of this are an accountable, proactive and flexible approach, whilst bringing wider regeneration benefits.

BIDs have often been implemented with regard to retail, hospitality and tourism-related areas, to ensure the area remains appealing to customers, and visitors and supports businesses’ operation within this space.

There is also a need to further consider the role of local and international Uganda/Bungoma business networks and relationships, which have a significant impact in Bungoma.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

225

A popular concept for the establishment of zonal organisation is the formation of Business Improvement Districts (BID). A BID is a business-led partnership (and a 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 they set priorities for local investment such as cleaning, safety, improvement of the local area and promotion, and building local networks that support local supply chains.

The dairy VC would further benefit from establishing partnerships with: > Existing cooperatives and link into the milk cooling and aggregation centres.

Business Improvement Districts

The three anchor projects could be a suitable pilot for a BID delivery mechanism where this would help to realise the potential benefits of an improved urban fabric with rationalised land uses, enhanced footfall, active mode access and flexible entertainment offerings which support business revenue. It would be in the business community’ interests to coordinate and ensure that an appealing environment is maintained for residents, students, and visitors from the wider region.

Value chain partners

Close collaboration with FBOs to establish collection networks would support both VCs facilitating and formalising the relationship between VC facilities and those supply inputs to the VCs. The collection networks will be mostly privately run with support and coordination across the supply chains, overseen by the umbrella organisation.

There is a clear need for organisation of the different actors and businesses involved in Bungoma’s key supply chains. This will be integral to the success of the proposed VCs.

The proposed model for this organisation in Bungoma is detailed in section 4.2.1, where there are just a few specialised FBOs (such as farmer associations, farmer interest groups and cooperatives) which focus on just one product, and that sit under one umbrella organisation managed by the County Government. Figure 4-3 shows how this might apply to the key players involved in Bungoma relating to some of the shortlisted VC opportunities.

Implementation Costs and Potential Funding Sources

Total estimated CAPEX for the UEP Agriculture, Livestock and Agri-processing Sector: CAPEX: KES 2,884 million Markets, Trade and Services Sector: CAPEX: KES 11,568 million Cross–sector projects: CAPEX: KES 1,978 million Source: Atkins analysis, 2022

Table 5-1 - Summary Implementation Cost Estimates by Sector

226 5.3

The UEP is an advisory document owned and administered by the Municipality, which is the main responsible authority for its future implementation. Similarly, the Municipality is responsible for agreeing appropriate funding from the County budget, as well as seeking any additional funding from IFI, donors, and/or the private sector to support the implementation of the VC and climate-resilient infrastructure projects. Tables 5-1 and 5-2 summarise the implementation costs and delivery for the VCs, and infrastructure projects across the main economic sectors and the Municipality. Each project is considered by its sub-components, delivery partners and funding sources, capital costs and key cost elements, expected benefits to be realised, and timescale. This brings together the project information set out in section 4. It is important to note that these costs do not include various cost items including land acquisition, design and planning (unless stated, where this could reflect 10% to 30% of the CAPEX costs). Inflation and optimism bias have not been included at this stage, where this would uplift the cost estimates. There will also often be sizeable operational expenditure which will need to be factored in. At a development concept level, the project implementation is summarised below.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 227 # Project title Project Location Project sub-components

Total CostsEstimated(KES)

Focus

› Industrial

Priority VCs VCfarmingPoultry MunicipalityCounty/ wide

VC - Dairy MunicipalityCounty/ wide

The VC project covers the development of a milk processing plant and wide-ranging integration and improvements in the operations of the dairy sector in Bungoma, under the umbrella of the Bungoma Dairy Development Company (BDDC) Bungoma County SUED programme with potential for other public and private funding involvement 200,000,000KES Short-term Zone Area 2WebuyeIndustrialWebuyeZone,Town road network ( including network infrastructure such as: water, power, sanitation, ICT, drainage) units treatment plant siding upgrade and maintenance responsibility of Municipality and training by Municipality or private entity/CBOs from NGOs, community groups of local SMEs for waste services

› Railway

› Use

Implementation agency and stakeholders

› Water

› On-site

Potential sources of financing/ funding and delivery mechanisms

Short-term

Agriculture, Livestock and Agri-processing Sector 1 IndustrialWebuye

› Employment

› Support

Timescale

› Implementation

The VC project is aimed at developing a fully integrated poultry industry in Bungoma, building on the existing farmers, distribution and collection networks, and processors, and filling in the gaps and improving overall efficiency Bungoma County SUED programme with potential for other public and private funding involvement 120,000,000KES

› Public Private Partnership › Private investor: Design Build Operate Maintain (DBOM) › Enabling infrastructure: Public Authorities 2.2KESbillion Short medium-termto 2 ZoneforandwastewaterWater,drainageIndustrial Focus Area 2WebuyeIndustrialWebuyeZone,Town › Feasibility study › Water supply: Borehole, pump and chlorination system › Wastewater: Pre-treatment and reed bed system › ESIA hydro-geotechnicalincluding investigation › The implementation agent would be Municipality with the aid of the SUED programme › The stakeholders would include local businesses and SMEs for the operation and maintenance of services and employees of the Industrial Zone › IFI/Donor and Public sector › Funding through development partners like World Bank or Water Sector Trust Fund › ICDC or local government for capital investment 33,400,000KES Short-term Table 5-2 - Summary Implementation Cost Estimates by Project

determinedlocationswideMunicipalityCounty/-specificby a feasibility study › Establishment of needs for solar refrigeration systems Preparation of design brief for refrigeration systems Development of procurement and deployment plan › Develop training plan, for management, operation and maintenance Site selection – Municipality with assistance from national agricultural specialists Equipment selection – Municipality with assistance from cold chain specialists Construction and implementation - Municipality › Operation and maintenance –responsibility of Municipality › IFI/Donor and Public sector › Donor funding is available from numerous sources, including Self Help Africa and AGRA › Public sector funding may be available from the central government via the Ministry of Agriculture, Livestock and Fisheries KES 7,500,000 Short-term

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228 # Project title Project Location Project sub-components Implementation agency and stakeholders Potential sources of financing/ funding and delivery mechanisms Total CostsEstimated(KES) Timescale 3 (coldrefrigerationSolarstores)

4 Molasses to ethanol plant Nzoia factoryCompanySugarsite › Baseline study › Equipment study and cost plan › Design of plant › Development of procurement and deployment plan › Construction of plant › Fuel delivery/ supply chain development. › Maintenance plan › Nzoia Sugar Company › Energy Services Companies (ESCOs) for delivery of commercial solutions IFI/Donor › IFI/ donor finance for energy efficiency/ renewable energy programmes 320,000,000KES Medium-term Markets, Trade and Services Sector A CBD market and bus station Focus Area 1MunicipalityBungoma › TOD mixed-use › TOD mixed-use rooftop › CBD market. › CBD market rooftop › CBD retail kiosks › Bus station structure › Plaza space CBD market › Plaza space TOD mixed-use. › Bus station paving (queuing, bays and circulation). › Boda-boda stages › Pedestrian street › Shared street › Loading-unloading street › Traffic circulation feasibility surveys for reorganisation › Municipality › BIDs (Business improvement district): Localized areas, public realm and animation › Maintenance responsibility of Municipal Government › Employ local SMEs for waste services › Light-touch maintenance and animation: NGOs and CBO › BIDs (Business improvement district) › Public Private Partnership › Typically, Public funded projects › Potentially: In partnership with local business › Private sector funding for development and operation of market 644,900,000KES Short medium-termto

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›

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›

Total CostsEstimated(KES) Timescale B redevelopmentAirstrip Focus Area 1MunicipalityBungoma Medium-density housing › High-quality residences › Offices › Government buildings › Mixed-use building › Sports facilities › Events facilities › Civic plaza › Offices complex hard landscape › Residential courtyards › High-end residences landscape › Neighbourhood parks › City park › Events park with amphitheatre › Linear park (SuDS) › Shared surface at main road › Road › Parking area › Municipality › BIDs (Business improvement district): Localized areas, public realm and animation Maintenance responsibility of Municipal Government for public areas and owners for private › Employ local SMEs for waste services › Light touch maintenance and animation: NGOs and CBO › BIDs (Business improvement district) › Public Private Partnership › Typically, Public funded projects › Potentially: In partnership with local business › Private sector funding for development and operation of market 8,053,000,000KES mediumShort, long-termand C CBD green link Focus Area 1MunicipalityBungoma C33 Road (Section AA) › Permeable paving › Trees › Streetlights › Drainage cover › MoiMedianAvenue (Section BB) › Trees › Permeable paving › Streetlights › Hard shoulder › SuDS › Footpath › Perennial drain Rail road intersection (Section CC) › Rail gates › Municipality › BIDs (Business improvement district): Localized areas, public realm and animation › Maintenance responsibility of Municipal Government › Employ local SMEs for waste services › Light touch maintenance and animation: NGOs and CBO › BIDs (Business improvement district) › Public Private Partnership › Typically, Public funded projects › Potentially: In partnership with local business › Private sector funding for development and operation of market 779,500,000KES Short medium-termto

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 229 # Project title Project Location Project sub-components

Implementation agency and stakeholders

Potential sources of financing/ funding and delivery mechanisms

Focus Area 1MunicipalityBungoma Bus station structure. Bus circulation Bus parking Built-up space – mixed-use blocks Green strip Market space Plaza space (mixed-use block, drop-off points) Other paved (Footpaths/permeablesurface paving) Municipality BIDs (Business improvement district): Localized areas, public realm and animation Maintenance responsibility of Municipal Government for public areas and owners for private Employ local SMEs for waste services Light touch maintenance and animation: NGOs and CBO › Public Private Partnership Typically, public- funded projects Potentially: In partnership with local business Private sector funding for development and operation of market 1,494,000,000KES

›

›

›

›

›

Short-term 6

Focus Area 1MunicipalityBungoma Two accessible public toilet blocks › The implementation agent would be NZOWASCO water company whereas the stakeholders would be local businesses, women and girls, elderly people and PWDs The toilet blocks could be run as a small business therefore a private sector partner could also be considered as a stakeholder IFI/Donor and Public sector NZOWASCO water company through the Water Sector Trust Fund 17,000,000KES Short-term

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230 # Project title Project Location Project sub-components Implementation agency and stakeholders Potential sources of financing/ funding and delivery mechanisms Total CostsEstimated(KES) Timescale Moi Avenue (Section FF) › Trees › Permeable paving › Streetlights › C33(SectionSuDS EE) › Trees › Permeable paving › Streetlights › SuDS/median on either side › Permeable paving for bazaar area Moi Avenue (Section DD) › Trees › Permeable paving › Streetlights › SuDS/median on either side 5 Bus relocationpark

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›

›

›

›

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publicAccessibletoilets

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›

›

›

10

›

Timescale 7

Focus Area 1MunicipalityBungoma Upgrade 5 km of proposed ring roads › Comprises of 2.5 km of upgrade of road from earth to bitumen standards Corrective works and new overlay on 2. 5km of tarmacked road County Government › KURA › Bungoma residents impacted by the roads IFI/Donor and Public sector KURA and County government based on road jurisdiction Donor partners may also support funding 330,000,000KES Short medium-termto 9 roadalongimprovementsUrbanC33andsafety

›

›

›

›

›

›

›

›

Implementation agency and stakeholders sources of financing/ funding and delivery mechanisms CostsEstimated(KES) Streetlights

›

›

›

›

8

Focus Area 1MunicipalityBungoma Review implementationcurrent plan Review current commercial and technical arrangements Design study to ensure suitable coverage of target area › Equipment review and selection Development of new commercial plan (procurement, deployment, implementation, maintenance) Site selection – Bungoma Municipality Equipment selection – street lighting design specialist Construction and implementation – Bungoma Municipality › Operation and maintenance – responsibility of Bungoma Municipality IFI/Donor and Private sector › Financing can be sourced from a number of options, including World Bank funded Kenya Urban Support Programme, which has funded street lighting in Thika, Ruiru and Limuru The World Bank also offers advice, sample legal documents and further reading on using a Public Private Partnership route for street lighting, detailing projects completed in Brazil, Mexico and India 50,000,000KES Short-term Town linksredundancycentre

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Total

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BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 231 # Project title Project Location Project sub-components

›

Potential

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›

Focus Area 1MunicipalityBungoma 12 km of NMT facilities on both sides of the road Introduction of safe crossings at intervals of 1 km along the road › Provision of vending spaces along the NMT space All to be integrated with a wider NMT network proposed along Moi Avenue › KeNHA › County government Market traders › KPLC and other street furniture providers IFI/Donor and Public sector Delivered by Bungoma County Government through Bungoma Municipality Development Partners e.g., World Bank through the Kenya Urban Support Program 120,000,000KES Short medium-termto Truck facilitiesparking Specific site would determinedbe by a feasibility study › Development of roadside station masterplan › County Government and road authorities › Logistics companies and freight operators IFI/Donor and Public sector County Government in collaboration with responsible road authorities, KeNHA and KURA Donor partners 80,000,000KES Short medium-termto

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232 # Project title Project Location Project sub-components Implementation agency and stakeholders Potential sources of financing/ funding and delivery mechanisms Total CostsEstimated(KES) Timescale Cross-sectoral/Bungoma-wide climate resilient infrastructure projects 11 Solar PV generationpower Focus Area 1MunicipalityBungoma › A pre-feasibility study to determine preferred potential locations, required size including phasing, technical arrangements including preferred technology, and local network connections, commercial arrangement options › Outline design of solar park › Development of procurement and deployment plan This will include: › Procurement route – best options or engagement with solution providers/ contractors; › Deployment plan – upskilling of local marginalised groups to work as contractors; and › Development of maintenance plan, focusing on upskilling of local marginalised groups to work as maintenance staff › Implementing agency will be the Municipality › They will complete the pre-feasibility study and provide the land to the developer › Private sector › Solar power plants are typically financed using a Build, Own Operate model › Companies such as Globeleq provide finance and construct utility scale projects, whereas specialist impact investors such as Empower can finance smaller scale projects (refer to case study 1,020,000,000KES Short-term 12 workstreatmentMatisisupportprojectefficiencyenergy/energyRenewabletowater Matisi Works,TreatmentWaterMatisi › Baseline study/audit › Selection of treatment/pumpingnew equipment › Design of new renewable energy system › Development of procurement and deployment plan › Implementation › Maintenance plan › Nzoia Water and Sanitation company. › Energy Services Companies (ESCOs) for delivery of commercial solutions › IFI/Donor › IFI/Donor finance for energy efficiency/ renewable energy programmes 45,000,000KES Short-term

› Other stakeholders include the low-income households

› Private Public Partnership (PPP) and/or private waste service 30,000,000KES Short medium-termto

Total

and

Implementation agency and stakeholders

› Last mile connections for 1000 households › Rolling loan fund to support the connection of 1000 low-income households › The main implementation agent and stakeholder would be the water company

Timescale 13

Focus Area 1MunicipalityBungoma

› IFI/Donor and Public sector › Funded through the public sector such as the NZOWASCO water company 57,000,000KES mediumShort, long-termand facilitiesofConstructionrecycling

15

› Development of AD plant › AD plant developer/operator to implement and maintain › Private-Public Partnership (PPP) and/or private waste service provision › Revenue generating aspects: biofuel is a marketable product 150,000,000KES Short-term Solid collectionstoragesegregation,wasteand Municipality-wideCounty/ › Purchase of bins/containers and collection vehicles › Running and maintenance of vehicles annually › Support from NGOs, community groups, waste pickers

watertoconnectionsIncreasingBungomasupply

17

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 233 # Project title Project Location Project sub-components

Focus Area 1MunicipalityBungoma

14 Supporting the sewer expansionnetwork

› Sewer connection of 500 households within low-income households › Rolling loan to support connection of 500 low-income households › Bungoma STW fence. › The implementation agent would be the NZOWASCO water company › Stakeholders include the NZOWASCO water company, low-income households connecting to the sewer system, local businesses and the Municipality/County government

determinedlocationswideMunicipality-County/-specificby a feasibility study. › Construction of a Materials Recovery Facility › Support from NGOs, community groups › Private-Public Partnership (PPP) and/or private waste service provision › Revenue generating aspects: segregated materials will be a marketable product 75,000,000KES Short-term 16 Organic waste determinedlocationswideMunicipality-County/-specificby a feasibility study › Assessment of the waste arising based on adoption of door-to-door segregated waste collection

› IFI/Donor

Potential sources of financing/ funding delivery mechanisms CostsEstimated(KES)

› The project would be funded through IFI or Water Sector Trust fund 36,000,000KES mediumShort, long-termand

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234 # Project title Project Location Project sub-components Implementation agency and stakeholders Potential sources of financing/ funding and delivery mechanisms Total CostsEstimated(KES) Timescale 18 rehabilitationLandfill

Tuutiof-Municipality-wideCounty/rehabilitationthecurrentdumpsite Construction of new engineered landfill cells Construction of landfill gas collection and process system for biofuels › Support from NGOs, community groups › Private-Public Partnership (PPP) and/or private waste service provision Revenue generating aspects: biofuel is a marketable product. 479,000,000Kes Medium-term 19 waterinmanagementCatchmentMtElgontower MunicipalityCounty/ wide › Trees and seedlings planting › The initiative should be coordinated by the County, with inputs during the design phase and implementation phase by governmental agencies (e.g. Kenya Water Towers Agency, KFS), the private sector, community groups, donors/IFI and climate funding bodies › IFI/Donor and Public sector › The financing option can be a cross-collaboration between the private sector, public sector, County/Municipality budget, Donors/IFI and Climate Funds 35,700,000KES mediumShort, long-termand

In order to support the dairy VC, the solar refrigeration (cold stores) climate-resilient infrastructure project should also be delivered in the short-term, this will reduce the levels of spoiled product and increase value addition as the shelf life of dairy products would be increased. The development of the Webuye Industrial Zone is suggested to begin in the short-term, with activities such as land acquisition and detailed design of the site occurring in the first few years.

This section sets out the timeframe for the delivery of each climate-resilient infrastructure project for the respective sector action plans. The synergies for each sector action plan are also described in relation to the overall development framework.

5.4 Scheduling

The anchor projects and climate-resilient infrastructure projects associated with the markets, trade and services sector are mainly scheduled to be delivered in the short to medium-term (0-3 and 4-9 years). In order to facilitate the redevelopment of the CBD main market and adjacent bus station, one of the anchor projects, the bus park should be relocated to the new site in the north of the Municipality in Kanduyi. This will unlock the land at the current bus park found in the CBD for development. In order to kick start the implementation of all the anchor projects, activities such as land acquisition and detailed design should occur in the short term, with construction of new buildings, facilities and public services beginning thereafter and continuing into the medium-term.

The anchor projects should also be supported by the implementation of the other climate-resilient infrastructure projects proposed in this sector. The accessible toilets and streetlights climate-resilient infrastructure projects will aid in increasing sanitation, public safety, and overall attractiveness of the public spaces around the anchor projects. Similarly, the upgrade of Town centre redundancy links, coupled with urban improvements along the C33, will help to improve road safety and the quality of public space by decongesting the CBD area of vehicles and encouraging NMT movement across the CBD and the other anchor projects.

235BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP )

Running in parallel, the water, wastewater and drainage for the Industrial Zone climate-resilient infrastructure projects should be delivered soon after the acquisition of land and detailed design phase. This project should be in place in time for light industry to occupy the Industrial Zone in order to provide the businesses with adequate water, wastewater, and drainage services. After the completion of Phase 1 of the Industrial Zone, in the medium-term, expansion of the Industrial Zone should be considered in the long-term. It is however noted that this scheduling will also be driven by market demand, in terms of proponents and operators requiring serviced land for development of their respective industries.

Finally, the implementation of the truck parking facilities should begin in the short-term, with activities such as land acquisition and detailed design, with the infrastructure developed soon after and into the medium-term in order to accommodate vehicles stopping off along the A8 highway on their way to and from the Kenya-Uganda border.

The VC projects and climate-resilient infrastructure projects in the agriculture, livestock and agri-processing sector are mainly scheduled to be delivered in the short-term (0-3 years). As the main infrastructure for both the poultry farming and dairy VCs have already been developed over recent years within the County, the projects mostly focus on the management and organisation of services provided to support the VC activities, as well as capacity building, in order to create further value addition. Therefore, the initiatives proposed in sections 4.2.2 and 4.2.3 should be implemented in the short-term.

The cross-sectoral/Bungoma-wide climate resilient infrastructure projects are mainly scheduled to be delivered in the short to medium-term (0-3 and 4-9 years). However, a number of the projects are expected to continue into the long-term to support the ongoing urban expansion of Bungoma and the services provided to its people.

Solid Waste Management

The236 solar PV power generation and renewable energy/ energy efficiency project to support Matisi water treatment works climate-resilient infrastructure projects should both be implemented in the short-term in order to alleviate some of the current issues associated with high electricity prices across the Municipality and lack of water treatment. This would result in an increase in water supply to the reticulation network in Bungoma Town as higher volumes of water can be treated; furthermore, this will help to balance water demand and supply levels in the short-term before larger projects to improve water supply are implemented at a County and regional scale. An ongoing loan scheme, starting in the short-term and continuing into the long-term, to increase the number of connections to the piped water network for low-income households, as part of the increasing connection to Bungoma water supply climate-resilient infrastructure project, will help to improve access to water to some of the most vulnerable people in the Municipality. Similarly, the climate-resilient infrastructure project to support the sewer network expansion would begin in the short-term and continue into the long-term as the sewerage system expands to support urban growth of the Town over time. A series of climate-resilient infrastructure projects associated with solid waste management should be developed in the short to medium-term. The implementation of these projects will help to support the Industrial Zone and activities in Webuye as well as the anchor projects in Bungoma CBD by addressing the issues associated with the lack of adequate solid waste collection, sorting and disposal methods. Finally, the catchment management in Mt Elgon water tower climate-resilient infrastructure project will aid in rehabilitating and improving the local environment by planting around 65,000 trees in key locations starting in the short-term and continuing into the long-term.

Increasing connections to Bungoma water supply

Solar PV power generation CBD market and bus station

Solid waste segregation, storage and collection

Figure 5-1 – UEP Development Framework Project Schedule

Bus park relocation

Urban improvement along C33 and road safety Landfill rehabilitation Truck parking

Construction of recycling facilities

OrganicStreetlightswaste

Town centre redundancy links

VC - Dairy Water, wastewater and drainage for industrial zone Webuye Industrial Zone

Energy effeciency project to support Matisi water treatment works CBD green link

Solar refrigeration (cold stores) Molasses to ethanol point Agricultural, livestock agri-processingandsector Markets, trade

Airstrip redevelopment

Supporting the sewer network expansion

VC - Poultry farming Short Term (0-3 Years) Medium Term (4-9 Years) Long Term (10+ Years)

/Bungoma-wideCross-sectoralservicesandsectorinfrastructure projects

Anchor Projects

Figure 5-1 demonstrates the full set of proposed VCs and climate-resilient infrastructure projects, showing when implementation would suitably begin and how they are linked:

Accessible public toilets

Source: Atkins analysis, 2022

Catchmentcentre management in Mt Elgon water tower

It is now widely recognised that there is an urgent need to scale-up investment in climate change adaptation and low-carbon development in Africa, and the assessments carried out in the development of this UEP highlights that sustainable urban development can only occur if there is significant investment in climate resilience.

> 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;

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.

> 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; and > Link project activities to the context of climate vulnerability (e.g. socio-economic conditions and geographical location), reflecting only direct contributions to climate resilience.

5.5 Funding Investment attraction experts, as part of the SUED programme, will develop feasibility studies for the proposed projects which will include estimated capital expenditure and operating expenditure requirements. It will likely be necessary to 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.

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 from 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 in 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.

Philanthropic and NGO grant funding could also be leveraged through initiatives such as businesses dedicating 1% of profits to corporate social responsibility (CSR) initiatives.

Climate-resilient infrastructure and VCs funding

There is an increasing focus on how to finance activities related to climate change adaptation and mitigation, with a range of specialised funds and financial instruments available. This includes a significant number of donor and IFI-led initiatives, but the field of private sector sustainable finance is also growing rapidly, and many investors are starting to look for investments which demonstrate clear environmental, social and climate benefits. The growing appetite to invest in projects which are aligned with low carbon and climate-resilient development outcomes provides a new potential source of finance to bring to bear to finance adaptation, resilience, and climate mitigation in East Africa.

Successfully accessing resources to support adaptation, and low-carbon development, depends on a good understanding of the investor’s perspective and procedures. The IFI and MDBs for example, have adopted the following principles for a project to be classified as contributing to adaptation:

The World Bank’s Kenya Urban Support Programme (KUSP) has also been identified as a source of potential funding support for some of the UEP projects, including public realm improvements and urban drainage solutions.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 237

Private238 sector financiers, on the other hand, are looking for clear metrics through which they can demonstrate the sustainability and impact of their investments. This is more closely aligned to existing impact investing and guidelines for demonstrating environmental, social and governance elements of an investment, or emerging criteria for sustainable finance, such as those outlined in the EU Taxonomy on Sustainable Finance. International climate funds have more stringent eligibility requirements, and so a comprehensive grasp of eligibility criteria, as well as the different financial mechanisms and the extent to which they can be combined is important.

In addition, two specific GCF investments provide further opportunities: The ACUMEN Resilient Agriculture Fund (ARAF). The ARAF, which is currently operational, and is scheduled to end in 2031, provides finance to support innovative private sector businesses that enhance the resilience of smallholder farmers in Uganda, Kenya, Ghana and Nigeria. There is a specific focus on providing innovative MSMEs with the finance they need to adopt longer-term approaches to adapting to climate change, including increased use of digital approaches and climate-smart agriculture. Given the needs outlined through the UEP development process, there is a potential opportunity to attract finance for innovation, developing models and approaches that could then be replicated more widely.

5.5.1 Climate action funds Presented below is a snapshot of the available climate change funds that cover climate adaptation and mitigation, and the climate-resilient infrastructure projects in this UEP they could be applicable to. International climate funds generally deal in relatively large investments, and as such projects would need to be grouped and aggregated to provide investments that are large enough in scale. The following should be seen as indicative of the type of funding that might be able to be leveraged.

Green Climate Fund (GCF): The GCF seeks to promote a paradigm shift to low emission and climate-resilient development, taking into account the needs of nations that are particularly vulnerable to climate change impacts including African nations and Small Island Developing States (SIDs). The GCF aims to deliver equal amounts of funding to mitigation and adaptation measures. Its activities are aligned with the priorities of partner countries through the principle of country-led programmes and implementation. The financial delivery mechanism for the GCF is grants, loans, equity or guarantees. This fund could be a finance source for: > Project 3: Solar refrigeration (cold stores) > Project 11: Solar PV Power Generation > Project 12: Renewable energy/energy efficiency project supporting Matisi water treatment works > Project 4: Molasses to ethanol plant

The Global Sub-National Climate Fund (SnCF Global). The SnCF Global uses GCF backing to overcome the barriers to the financing of smaller-scale adaptation and mitigation projects at a sub-national level. The fund is managed by the International Union for the Conservation of Nature (IUCN) and was approved in November 2020. It will operate in Kenya, Rwanda, and Uganda, and will attract private finance to projects previously not deemed to be investible in, on a commercial finance basis. There is a focus in the fund on nature-based solutions, and it represents a possible avenue for investment in some of the project opportunities identified. This fund could be a finance source for: > Project 19: Catchment management in Mt Elgon water tower

The VCs and infrastructure projects have had climate change resilience actions embedded in their proposals, and further recommendations have been made, as per sections 4.2.2 and 4.2.3. This will aid the projects in accessing funding by demonstrating their significant contribution to climate change actions. The section below provides a brief overview of some of the main sources of funding available for projects, and to support low-carbon and climate-resilient development.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 239

> Project 12: Renewable energy/energy efficiency project supporting Matisi water treatment works

> Project 14: Supporting the sewer network expansion

> Project 4: Molasses to ethanol plant

A clear climate rationale would need to be developed for these projects, however, there is a case to be made that these investments serve to strengthen the overall resilience of the municipality, given increasing climate impacts.

The Special Climate Change Fund (SCCF). The SCCF was established to address the specific needs of developing countries to cover the 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. This fund could be a finance source for: > Project 3: Solar refrigeration (cold stores)

> Project 11: Solar PV Power Generation

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. 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.

> Project 2: Water, wastewater and drainage for Industrial Zone > Project 19: Catchment management in Mt Elgon water tower

>

> Project 2: Water, wastewater and drainage for Industrial Zone > Project 17: Solid waste segregation, storage and collection

NEMA is the National Implementing Entity (NIE) for the Adaptation Fund in Kenya. The AF raised US$35.6 million at COP26, which will be used to continue supporting developing countries in their adaptation measures, as well as encouraging climate-resilient economic recovery from the COVID-19 pandemic121. This fund could be a finance source for: > Project 14: Supporting the sewer network expansion > Project 13: Increasing connections to Bungoma water supply

> Project 2: Water, wastewater and drainage for Industrial Zone > Project 19: Catchment management in Mt Elgon water tower

Project 13: Increasing connections to Bungoma water supply

> Project 13: Increasing connections to Bungoma water supply

The National Treasury. This is the Kenyan National Designated Authority (NDA) for the GCF in Kenya. It has developed the Kenya National Green Climate Fund (GCF) Strategy,119 with a vision to channel investment 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 low-carbon initiatives. The Strategy provides a roadmap for stakeholders in harnessing resources from the GCF. This fund could be a finance source for:

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.

121 Adaptat Fund, Adaptation Fund raises record US$ 36 million in new pledges at COP26 for its concrete actions to most vulnerable (2021), Available at: Adaptation Fund Raises Record US$ 356 Million in New Pledges at COP26 for its Concrete Actions to Most Vulnerable - Adaptation Fund (adaptation-fund.org), (Accessed:15/12/2021).

> Project 14: Supporting the sewer network expansion

The Kenya County Climate Change Fund (CCCF) Mechanism. The expansion of the CCCF across the country is one of the priorities in the Kenya National Climate Change Action Plan (NAP), 2018-2022.

The CCCF improves a County’s readiness to access and distribute national and global climate finance to support community-prioritised investments to build climate resilience. The CCCFs are aligned with national priorities set out in the NAP and enable County governments to strengthen and reinforce national climate change policies while delivering on local adaptation priorities. Post COP26, the Kisumu County government has pledged to allocate 2% of its annual budget towards climate change mitigation measures, in line with Kenya’s commitments outlined in its NDC, with other counties set to make similar pledges.

AFAC was established with the aim of increasing financial sector participation to drive climate change initiatives across Africa. Bringing together key financial players, including private banks, multilaterals and sovereign funds, and the pan-African alliance will help to mobilise private capital investment towards a climate-resilient development path.

240 The Pilot Program for Climate Resilience (PPCR). The PPCR provides funding for climate change adaptation and resilience-building. It aims to 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. This may include technical assistance to integrate climate resilience into national development plans, or funding for public and private sectors when implementing climate resilience initiatives. 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. Following on from the PPCR the CIF is supporting four thematic programme areas aiming to support the transition to a low-carbon, climate-resilient economy. There may be particular opportunities to access funding under the Climate Smart Urbanisation programme, and the Nature, People and Climate Investment programme.

African Financial Alliance on Climate Change (AFAC).

Clean Technology Fund (CTF). A multi-donor fund and part of the Climate Investment Funds (CIF). The CTF promotes financing for the implementation of renewable energy technologies with potential to reduce emissions, with the aim of making these more attractive to public and private sector investors. The fund can be accessed via the African Development Bank, and uses a variety of financial instruments including grants, loans, equity and guarantees. This fund could be a finance source for: > Project 3: Solar refrigeration (cold stores) > Project 11: Solar PV Power Generation > Project 12: Renewable energy/energy efficiency project supporting Matisi water treatment works > Project 4: Molasses to ethanol plant The Africa Climate Change Fund (ACCF). This aims to support African countries’ transition to climate-resilient and low-carbon modes of development, as well as scaling-up their access to climate finance. The fund offers grants for projects related 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 secretariat is housed at the African Development Bank.

AFAC’s main aim is to engage in knowledge-sharing and increase private sector participation in climate action, as well as attracting climate investment into national and regional climate projects122. This fund could be a finance source for: > Project 14: Supporting the sewer network expansion > Project 13: Increasing connections to Bungoma water supply > Project 2: Water, wastewater, and drainage for Industrial Zone > Project 19: Catchment management in Mt Elgon water tower 122 African Development Bank, African Investment Forum 2018: African Financial Alliance on Climate Change (AFAC) unveiled guiding principles (2018), Available at: Africa Investment Forum 2018: African Financial Alliance on Climate Change (AFAC) unveils guiding principles | African Development Bank - Building today, a better Africa tomorrow (afdb.org), (Accessed: 15/12/2021).

> Project 3: Solar refrigeration (cold stores)

Effective data gathering and analysis will support the monitoring of strategic objectives for the Municipality, and County, including UEP project implementation, where capturing stakeholder information can be a key element of this. Data management of Municipality and County services, such as waste management, public transport service and open space and SuDS maintenance, will support the Municipality and County in responding to the resident and business needs as well as monitor impact of these services.

> Project 4: Molasses to ethanol plant Sustainable Energy Fund for Africa (SEFA). This is a multi-donor fund managed by the African Development Bank. The fund was set up with the aim of contributing to the development of sustainable energy services across Africa.

124 African Development Bank, Sustainable Energy fund for Africa (2021), Available at: Sustainable Energy Fund for Africa | African Development Bank - Building today, a better Africa tomorrow (afdb.org), (Accessed: 15/12/2021).

5.6 Recommendations for Capacity Building

This capacity building is recommended for Bungoma Municipality and Bungoma County, where a cross-sector taskforce would be a recommended structure.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 241 Africa Adaptation Acceleration Program (AAAP). Endorsed by the African Union, the AAAP was established to raise US$25 billion for adaptation of the impacts of climate change123. The program focuses on four pillars: the creation of climate technologies to combat agricultural losses and food security, building resilient infrastructure, and empowering youth through green job creation. The fourth focus is on the mobilisation of funding for climate action, with consideration given to promoting green growth post-COVID-19. This fund could be a finance source for:

Project implementation Capacity building in project preparation, project management and delivery and maintenance from the Municipality, and County, particularly when it comes to revenue-generating activities and how to ensure revenue is received and used, is recommended. Working with the private sector for the delivery of urban services and projects is increasing in importance and requires knowledge and skills to support effective implementation of market-driven solutions including the PPP mechanism. The UEP promotes an integrated approach to development and there is a need to ensure silo thinking is removed from planning and delivery. This enables an understanding of what needs to come first in the development process, and the wider dependencies and synergies.

The fund supports initiatives through technical assistance grants, combined with concessional investment, via loans and equity instruments124. This fund could be a finance source for:

> Project 4: Molasses to ethanol plant

Data and digital tools

> Project 3: Solar refrigeration (cold stores)

> Project 11: Solar PV Power Generation > Project 12: Renewable energy/energy efficiency project supporting Matisi water treatment works

COVID-19 Strengtheninglessonspreparedness and emergency response capacity is critical. This means better preparedness in terms of financing, service delivery and business continuity including budgeting for future crises, emergency operations centres, capacity building, drills, and human resources redeployment plans.

Several areas are recommended for capacity building for the UEP implementation, where the infrastructure provision for the VCs is mostly already there, capacity building is essential to the success of the VCs and the delivery of the SUED interventions. The following capacity building recommendations would support the effective and integrated approach to sustainable and inclusive economic sector development; infrastructure delivery, operation and maintenance; and climate resilience future-proofing development.

123 African Development Bank, Africa adaptation acceleration program, (2021), Available at: africa_adaptation_acceleration_program.pdf,https://www.afdb.org/sites/default/files/2021/10/19/(Accessed:15/12/2021).

The development of an integrated spatial development plan would be supported with registries on land use and ownership, infrastructure assets and service provision, to better plan and respond, both in normal times and during future shocks.

Bridging the digital skills and access gaps is an important element of capacity building for Bungoma and in upskilling for the implementation of smart city principles and recommendations for industrial sites including logistics management and workforce travel planning.

Climate resilience

It is also recommended that digital platforms be developed, with business and community involvement, to better coordinate and deliver, in the first instance, public transport services. Digital platforms to support online trading and supply chain linkages are recommended as part of the sector action plans including an online marketplace for farmers including SIGs’ access.

Social inclusion

Economic opportunities and Value Chains

It is recommended that the Municipality, and County, departments are supported in their understanding and upskilling of social inclusion, including social inclusion awareness creation for the Municipality and its stakeholders to embed a shift in attitudes and reduce discrimination. This is important to open up socio-economic opportunities and infrastructure and services to all groups, improving social cohesion and addressing the significant outcomes of exclusion. This capacity building with the Municipality and County would suitably support the better application of inclusive contracts such as the Access to Government Procurement Opportunities (AGPO) policy.

242

Capacity building for the sector action plans incorporates the County’s educational facilities, the County Government and Municipality, the business community, local community, and sectoral partners. Further, business incubators are aspired to as local capacity is built with a key location being Focus Area 2 to support MSME growth and innovation.

The sector action plans (Sections 4.2 and 4.3 ) present a series of recommendations around institutional structures and capacity to successfully develop the key sectors and realise the opportunity from the VC projects.

It will be important for the Municipality to develop its understanding of climate change impacts across different sectors, and exposure to risks and vulnerabilities. Such knowledge should be mainstreamed throughout services and projects to ensure resilience is embedded.

The capacity and capability to access available funds should be improved. With all proposed projects being climate-resilient and having specific recommendations, the Municipality and delivery partners will need to be versed in this and include the right expertise as projects are planned, implemented, and operated to manage and monitor outcomes with relevant metrics.

An Agri-industrial Board is also recommended to build cross-sector understanding on the processing ecosystem, markets and export promotion, as well as to track strategic objectives, in collaboration with the AEZ and regional partners.

> Accompany information and communications technologies (ICTs)-based measures with strategies to close the digital gap (i.e. digital skills development, increased access to technology and the internet), particularly for women125. A gender-sensitive approach is required to understand different needs, access, and control of ICTs;

Considerations for social inclusion have been embedded into the development, design, prioritisation and proposed implementation of the Development Framework and the Economic Development Plan and VC projects. Apart from the specific recommendations for the different projects, key recommendations include:

> The introduction of new climate-resilient approaches and technologies that support income generation should be accessible to low-income groups. Prioritise culturally-appropriate and affordable options, and provide financial and technical support to these groups. Green jobs should also be available to SIGs by providing them with adequate training;

> Assess, prevent, and mitigate social risks (i.e. gender-based violence and sexual and labour-related human trafficking) that could be associated with the economic development of border regions; and

> Establish a Gender and Social Inclusion Implementation Unit, which will work under the leadership of the UEP implementation manager to ensure inclusivity proposals in the UEP are implemented and monitored.

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 243 5.7 forRecommendationsSocialInclusion

> Commit to always engage SIGs, local communities and community-based organisations and give them a chance to be informed, to contribute to decision-making, and to actively give views on, and participate in, different matters associated with the programme, especially those that affect them;

> Ensure all communication is timely, and in formats and languages that are accessible for all. This may include material for visually-impaired people (audio, Braille), for people with learning disabilities and literacy difficulties (audio, easy-to-read written material), for people with hearing impairments (written material, sign language), and for people with co-ordination difficulties (easy-to-read written material, audio). The material should also consider people with low-literacy levels;

> The UEP represents an opportunity for working towards a more inclusive agro-industrial sector. Ensure quotas for PWD (established by the Persons with Disabilities Act, 2003) are implemented in all employment opportunities and prioritise SIGs for the programmes’ employment and capacity-building opportunities. If possible, determine target participation of SIGs in the different components of the programme. Ensure all new infrastructure and services adopt inclusive design standards;

> Ensure participation of all in the UEP planning, development, implementation, monitoring and decision-making processes. Stakeholder engagement should be a live process of the programme;

> Mainstream gender into all stages of the programme and its interventions. This will contribute to better understanding and addressing the programme’s implications for men and women, and to better-integrate them to minimise negative impacts on them, and maximise the programme’s benefits. Always accompany women’s economic empowerment measures with awareness sessions targeting women and men at both household and community levels;

> When developing measures that target SIGs, take into consideration that they are not homogenous groups and that they have different needs and face differentiated challenges according to their age, gender, ethnicity, religion, education levels, (dis)ability, etc.;

The full GeSI Report is provided in Appendix C.

125 FAO, Gender and ICTs: Mainstreaming gender in the use of information and communication technologies (ICTs) for agriculture and rural development (2018).

> Always communicate to local residents and adjacent businesses about the implementation schedule of different infrastructure and urban development projects to mitigate the disruption of livelihoods and everyday socio-economic activities. Provide accessible channels to receive and address complaints that might emerge from the development and implementation of the programme;

> Improved access to seasonal and ten-day forecasts;

The projects and recommendations outlined in this report will help to strengthen the resilience of Bungoma Municipality and County to climate change. While the projects and interventions outlined represent strong foundations on which to build, much more will be needed, both in terms of infrastructure investment, and strengthening institutional capacity, to ensure that Bungoma can reach its goals despite the challenging climate conditions.

In summary, key recommendations include:

244 5.8 Recommendations for Climate Change and Resilience

> Improved access to finance for farmers; > Increased awareness of appropriate insurance products (e.g. weather-based index insurance);

> The design of developments to include appropriate drainage (e.g. SuDS) where possible to increase the resilience to high rainfall events and flooding.

> Adopting soil and water conservation measures (including water use efficient irrigation methods); > Training programmes on climate-smart agriculture;

> The design of the processing facilities to include water harvesting, increasing the resilience of the plants to drought;

> The design of buildings to take into account higher maximum temperatures to ensure thermal comfort; and

Key to increasing the resilience of Bungoma is the ability to attract funding to implement climate adaptation projects, alongside overcoming barriers to implementation.

> Promotion of sustainable land management techniques (e.g. land restoration and agroforestry);

This report has highlighted important linkages between poverty, exclusion, and climate change. There is a need to establish the mechanisms so that traditionally-marginalised groups are included in decisions about both the development and implementation of the development framework, the development concept and the wider decision-making processes on climate risk and resilience. Ensuring that there is representation from groups that are particularly vulnerable to climate change will reduce the risk that activities designed to increase resilience have unintended consequences and exacerbate existing vulnerabilities and inequalities.

Five county governments (Garissa, Isiolo, Kitui, Makueni and Wajir) have developed a County-level climate change fund designed to be used to finance key climate change activities in the County and deliver locally on the priorities of Kenya’s National Adaptation Plan. Initial evidence shows that these funds are effective not only in terms of finance, but also for the coordination of climate resilience programmes among different actors, and there are important lessons that could be applied from their experience. We recommend that the County explores whether it is feasible to establish a similar fund for Bungoma, or a body designed to attract inward investment of climate and sustainable finance. Any such fund would need to consider inclusion to help support livelihoods. The projects presented here have undergone a climate screening process and are designed to meet the basic funding criteria for climate finance, although specific requirements will vary, and full project concepts would be needed.

There are a range of VCs that have been selected across Agriculture, Livestock and Processing, and Markets, Trade and Services. Individually some of these VCs are vulnerable to climate change, however the diversity across these VCs will in itself be a source of resilience for Bungoma. Further to this, there are opportunities to integrate appropriate adaptation measures, as detailed for each prioritised VC in sections 4.2.3 and 4.2.4.

> Planting drought and pest/disease-resistant cultivars; > Reducing post-harvest losses;

Scaling-up the lessons from this and similar programmes will require a coordinated programme of investment.

Climate-resilient Agriculture, Livestock and Processing, and Markets, Trade and Services sectors will be essential both for driving growth in the County, as well as for improving livelihoods and reducing poverty. Initiatives such as the Kenya Climate Smart Agriculture Programme provide important learning opportunities and can start to lay the foundations for a resilient agricultural sector.

· Enhance municipal and local capacity to implement the identified projects, and Enable revenue generation to ensure financial sustainability beyond the programme 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)

Capacity building specialists to help:

·

BUNGOMA MUNICIPALITY URBAN ECONOMIC PLAN (UEP ) 245 5.9

Next Steps Following the completion of the UEP, during the next phase of the SUED Programme the proposed projects will be developed further by: Figure 5-2 - Next steps Source: Atkins, 2022

Bungoma KOM meeting and follow up discussions, 29/09/2021

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VulnerabilityChangeAssessment

250 Appendix A. Diagnostics Report Appendix B. Technical Briefing Paper Appendix C. Social Inclusion Study Appendix D. Climate

Bungoma Municipality Urban Economic Plan Sustainable Urban Economic Development Programme SUED April 2022