Figure 1.2 UEP process

1.3 Approach

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 LM. The aim was to enable a collaborative approach between different local stakeholders and the consultant team to assess LMs’ economy in a systematic way, develop an agreed economic vision and prioritise actions that will have maximum impact and are ready to attract donor co-financing. The preparation of the UEP comprised four main phases:

> Phase 1 – Inception phase: which focused on the Kick-off

Meeting. The aim was to present the approach of the UEP and capture key opportunities and challenges affecting economic growth in LM as defined by local stakeholders > Phase 2 – Diagnostics phase: this was undertaken to provide a comprehensive and wide-ranging assessment of

LMs’ 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 LM and identified, assessed and prioritised urban and economic growth opportunities and their requirements. > 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 LM 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.

Figure 1.2 UEP process

Inception Phase Diagnostics Phase Technical Briefing Paper Phase UEP Phase

Gather initial comments through stakeholder engagement - KOM

Source: Atkins

Policy Framework International/ National trends

/=, /-, K

Economic and Demographic

Infrastructure and Transportation provision Analysis of Strengths, Weaknesses, Opportunities and Threats of key economic sectors Setting the principles for the development of the UEP

Evaluating and prioritising VC opportunities

Assessing requirements & impact of shortlisted VC opportunities Setting Vision

Climate Resilient Infrastructure Proposals

Value Chains and Sector Action Plans

Environmental & Climate change risk profile Evaluating climate resilient green infrastructure opportunities Gender & Social Inclusion & Climate Vulnerability Risk Assessment

Identification of short listed VC opportunities and climate resilient infrastructure

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

Stakeholder Engagement

The purpose of stakeholder engagement was to ensure that stakeholders’ interests are taken into consideration throughout development and reflected in the LM Urban Economic Plan. More specifically, the aims were: > To ensure that the development of the UEP is inclusive and is undertaken in a manner that fits with LM’s business and community culture; > To ensure that all stakeholders are clear on the purpose, scope, recommendations and outcomes of the Urban

Economic Plan as well as meeting key stakeholders’ aspirations and gain buy-in from them; > To understand better the interests of specific groups and how the Urban Economic Plan can benefit them; and > To provide a regular flow of information to and from key stakeholders.

The LM stakeholders include:

> County Government including the County Director;

CECM Lands and Physical Planning; Chief Officers, County

Administration and County Assembly members; > Municipal Board including Chairperson, Vice-Chair,

Municipal Manager and Board Members; > Business Representatives including Chamber of

Commerce (KNCCI), organised business groups, traders and

Jua Kali, SACCOs, banks and finance organisations, Lamu

Tourism Association (LTA), LAPSSET Corridor Developmet

Authority, fisherfolks and farmers; > Utilities and Service Providers including the Water

Resource Authority (WRA), LAWASCO, boda boda associations; KURA, KENHA, KPLC; and > Special Interest Groups (SIGs) including representatives for women, youth, the elderly and people living with disability (PWD). > NGOs and CBOs such as Lamu Organization for Youth & People with Disability, Lamu Women Alliance, Shela

Environment Resident Group, Old is Gold, Flipflopi and Takataka

Heroes, Mtangwanda Restoration Group and Save Lamu. A critical process in developing the UEP report has been stakeholder management including:

> Project Steering Group meetings; > Stakeholder workshops; > Formal social inclusion consultations with SIGs; and > Business consultations.

A Project Steering Group (PSG) was formed to enable the exchange of ideas and information between the Municipal Board and the SUED technical team. The PSG was formed of the following members:

> Municipal Manager; > County Governor’s Office Representative; > County Physical Planner; > County Engineer; > County Economist; > Special Interest Group’s Representative; > Chamber of Commerce Representative; > Climate Change Champion; > Municipal Board Representatives.

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.

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. 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. Virtual and physical stakeholder workshops were undertaken depending on the COVID-19 restrictions in place at the time, including the Kick-off Meeting (KOM) to gather feedback from stakeholders throughout the project. The first workshop KOM, in March 2021, presented the project and process and collated information from 78 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 site visit and workshop with the PSG and Municipal Board (MB) in June 2021 included discussions on the sectoral SWOTs and identification of emerging economic opportunities. A further site visit in July 2021, focusing on conducting business surveys, was undertaken. A virtual workshop was conducted in October 2021 to focus on gathering feedback from the PSG and wider stakeholders on the findings of the diagnostics assessment. A wider stakeholder workshop in November 2021 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.

A business consultation was also undertaken to understand how businesses operate in LM and their views on future growth opportunities and constraints. This consultation was composed of one-to-one interviews with 60 businesses, reflecting LM’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 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.