3.3 Economic Development – Sector Plans and VCs

2.4 Diagnostics Conclusion: Drivers and Barriers for Growth

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

Agriculture, the local population largely rely on this sector as the main economic subsistence activity.

Industry and agri-processing, driven by KIDA and Kenya’s Agricultural Sector Transformation Growth Strategy (ASTGS).

Trade, services and eco-tourism, reflecting the existing commercial activity in KKM and its strategic location, as well as the future growth opportunities presented by eco-tourism. Barriers to Growth Poor and limited infrastructure within KKM has been a key barrier to economic growth. KKM will need to upgrade existing infrastructure and commit to successful implementation of low carbon, climate resilient and inclusive infrastructure projects to support economic growth and sustainable development.

Limited land availability for development is one the biggest barriers for industrialisation in KC, with intensifying levels of urbanisation increasing pressure on land in urban areas. Private sector companies are interested in building facilities in KC, however their land requirements cannot be met locally at present.

Key historic climate-related hazards affecting KKM and future climate change could result in loss of life, crops, natural assets and property as well as damage in water, transport, waste, sewerage and energy infrastructure that is critical to economic growth.

Lack of specialised skills, meaning experts often have to come from Nairobi or even outside Kenya at significant cost. Ensuring that the right pool of skills and technical knowledge is available will be crucial to ensuring that key market sectors can be further developed.

Competition from major cities or regional hubs, which are often larger and where the service industry can be more developed. Finding the Municipality’s unique selling point and assessing both competition and synergies across the counties is crucial.

Future urbanisation pressures will also exacerbate resource depletion and uncontrolled development if not well planned and managed. Drivers for Growth KKM benefits from a strategic location in central Kenya, owing to its proximity to Nairobi and other large regional hubs. The Municipality benefits from strong accessibility by road and rail, which gives both KKM and KC a significant boost and advantage for all its sectors.

The Municipality is able to grow a great variety of agricultural products due to its location across the three main ecological zones, with potential for economic growth. Development of climate-resilient projects will help farmers adapt to changing conditions and preserve KC’s strong agricultural position.

It has the potential to upscale the agricultural sector, by investing in agri-processing value chains (VCs) to retain more value addition at the local level, reduce wastage caused by overproduction or poor access to markets, and ensure consistent revenues to farmers. Institutional support, through involvement of KIDA, will be a critical driver in this process.

Development of services will be pivotal to transforming the economies of KC and KKM. Improved education and learning programmes that aligns with the economic needs of the County and Municipality will be critical to developing a skilled and technically enabled workforce tailored to local needs.

Tourism and eco-tourism can play a key role in the future development of KC and KKM, particularly due to key natural assets such as the Mt Kenya Natural Park and the County’s forests and rivers.

Adopting a Green Blue Development (GBD) approach will help KKM to preserve its unique water and natural resources while allowing a sustainable economic growth.