NYAMIRA COUNTY

BUSINESS AGENDA An advocacy tool for the Nyamira County Business community

Enhancing the Agricultural and Business potential of Nyamira County.

NYAMIRA COUNTY BUSINESS COALITION MEMBERS

Nyamira Jua Kali Association

Nyamira Bar Owners Association

Nyamira Traders Association

Nyamira Boda boda Association

Maendeleo ya Wanawake

Nyamira Youth Bunge Sacco

Nyamira Welders Association

Sunrays Sacco

The NGO Council-Nyamira Chapter

REMARKS BY GOVERNOR

My government is proud to be associated with the Nyamira County Business coalition,

as our collaboration is anchored in the constitution of Kenya whose spirit of devolution

envisions public participation in governance, with services being brought closer to the

people. As such, the concept of a Public Private Dialogue (PPD) with the business

community will be very critical to my government. We are committed to working

closely with the business to ensure inclusivity, accessibility, responsiveness and

accountability in governance and decision making especially on matters that affect the

business climate in Nyamira County. As a government, we take cognizance of the fact

that agriculture is the lifeline of the people in the County. Agriculture provides a one

stop –shop sector for investment through agribusiness strategies already adopted.

Dairy, crops and fisheries provide value chains of choice for a willing investor. The

potential of these sectors need to be fully exploited in production, value addition and

marketing. We intend to move toward commercialization of the agricultural sector by

putting in place a processing and value addition facility in every sub-county. The

private sector plays a very key role in the economy of the County. This is manifest in

value chain financing, capacity building, extension, Market information sharing and

farmer mobilization.

My government is committed to ensuring the Nyamira County is a safe and secure

place for investors and residents alike. As a government, we are committed to creating

an investment friendly climate for the success of the agricultural sector and other

business that are critical to the growth of the economy of the County.

To ensure constant and seamless dialogue between the private sector and my

government, I strongly urge the private sector of Nyamira County to continuously

participate in the county policy making process through public forums being organized

and attending important county assembly sessions during the discussion of bills that

affect their areas. It is also important that the Business coalition continuously document

their views to ensure easier follow up and collaboration with my government.

I value the collaboration and partnership we have with stakeholders and it’s my

intention to work closely with them. I take this opportunity to urge the members of the

County Assembly and Executive committee to institute programmes that foster

collaboration and partnership with both private and public players in all the key

economic sector of the county.

It is my conviction that through sustained dialogue and collaboration with the business

community and our neighboring counties, we shall transform Nyamira County into an

economic hub that will leverage on its readily available agricultural raw materials.

Hon. JOHN NYANGARAMA

GOVERNOR, NYAMIRA COUNTY

FORWARD

It is my pleasure to present to you the first edition of the Nyamira county business

guide.

This guide is a product of interactions between the business community operating in

Nyamira County under the auspices of the Nyamira county business coalition and the

Nyamira County under the leadership of the dully elected Governor Hon John

Nyagarama.

The county business agenda is the main tool for business advocacy for all business

membership organizations in Nyamira County. The business agenda will also be useful

to the Nyamira County Government to identify key initiatives and areas of

improvement that can make Nyamira the most attractive and business competitive

destination for investors. As the private sector, we shall remain steadfast in ensuring

that the county government delivers its promises to the residents of the county through

frequent dialogue with the relevant institutions and ensuring that the private sector also

plays its role in the economic growth of the county. The revenue laws being passed by

the county must be sensitive to the business community and we shall ensure

compliance by participating in the budget making process and any other forums that

require public participation.

As the chair of Nyamira County Business coalition and the chair of KNCCI, I share the

Nyamira County government vision of making the county an economic hub that will

thrive on agro-industry and trade as its key economic drivers. Together let’s make

Nyamira County a preferred investment destination county.

Henry Atunga

KNCCI, Nyamira County

ACKNOWLEDMENTS

The Nyamira County Business guide was prepared from views presented by various Business

membership Organizations from Nyamira County. Valuable input was provided by the Office

of the Governor of the county.

The guide was compiled through concerted efforts of a dedicated team at the Kenya National

Farmers Federation (KENAFF), including Phelix Rapando, Elvin Nyagaka, Mercy Rewe and

Kevin Maina. It benefited immensely from the views provided by a number business coalition

which included: KNCCI, KAM, Nyamira Jua Kali Association, NGO council Nyamira County,

Bar Owners Association, Nyamira Youth Bunge Sacco, Nyamira Boda boda Association,

Nyamira Traders Association among others.

The role of the business coalition in addressing the challenges facing their respective sectors can

-not be over-emphasized, with the devolved system of governance, BMOs need to align

themselves so that they can take lead in engaging the county governments on various issues

that affect their members. The federation will continue playing a major role in creating an

enabling environment that will make farming a profitable venture. The enforcement of the

potato produce and marketing bill is one of the areas the federation will work closely with the

relevant authorities to ensure that it is fully implemented to the benefit of farmers.

I am grateful to Business Advocacy Fund (BAF) for the financial and technical support accorded

to this project. The preparation of this Business agenda would not have been possible without

their support.

Dr. John K. Mutunga,

Chief Executive Officer, KENAFF

PART I

Introduction

Background of the county Round Tables in Kenya

With the concept of devolution firmly enshrined in the constitution of Kenya, 2010, the

private sector reckons the urgent need for reorganizing its advocacy approach to ensure

that devolution works for businesses, without interrupting them or taking away the

gains already from previous business advocacy.

Armed with this realization, and appreciating the importance of the solidarity in

advocacy, Business Membership Organizations (BMOs) jointly organized a national

consultative forum dubbed ‘Ensuring Devolution delivers for the Business: Building

Coalitions in the pursuit of Business Interests’ in April 2013. This national forum

resolved that ‘devolution must not interrupt business; it must deliver for business and

the country at large’

To ensure that devolution delivers to businesses, the national consultative meeting for

Business Membership Organizations further resolved to adopt a new advocacy strategy

for lobbying county governments. This, the BMOs agreed to formulate clear, structured

and workable ways and channels of engaging county governments to ensure coherence

and consistency in their advocacy. In line with this, BMOs in each county would create

coalitions through which to pursue advocacy in the county governments through well-

organized forums preferably, county Governor’s Round tables. The national meeting

also resolved that BMOs in each region in Kenya would strive towards establishing a

regional Business Agenda to avoid multiple and repetitive encounters with county

leadership. This would in turn ensure coherent and consistent statement on business

issues with a strong united voice.

Main objectives of the BMOs Coalitions

To create a platform for advocacy to deal with business issues in the counties through frequent dialogue and engagement mechanisms;

To better place the business community so as to influence county governments on business climate issues

To establish a platform for expanding trade and investment framework in each county.

To provide stakeholders with an opportunity to critically participate in the governance and growth of the county as contemplated by chapter eleven of the constitution.

Key objectives of Nyamira County Governor’s Round Table

To lay a foundation for the formation of Nyamira county Business Coalition to advance county Business Agenda;

To create a platform for advocacy of business related issues in Nyamira County through frequent dialogue and engagement mechanisms with Nyamira County Government;

To ensure Business Community in Nyamira County will be better placed to influence the county leadership towards the creation of business friendly environment;

To establish a platform for expanding agribusiness, trade and investment framework in Nyamira County;

To provide the stakeholders in Nyamira County with an opportunity to critically participate in the governance and growth of their county;

To identify key flagship projects within Nyamira County In Line With Kenya vision 2030;

To discuss incentives that can be extended to investors in the county by the county government.

The Nyamira county Governor’s Round table was graced by among others the county

Governor Hon John Nyagarama, County Minister of Agriculture, County Economic

Advisor, MCAs representing various committees in the assembly, BMOs in the county

and many non -affiliated business people. Issues affecting the Business community in

the county, opportunities for investment in the county and governance issues were

explored through presentations by both the business community and the county

leadership.

The issues focused on the following areas:

1. Agriculture 2. Transport and Infrastructure 3. Tourism 4. Information and communication technology (ICT) 5. Trade, commerce & industry 6. Security

Expectation of the Business Community from the Nyamira County Governor’s

Round Table

That following the first round table in Nyamira county, a foundation for a lasting relationship between the business community and the county government will have been established, and that going forward, the Nyamira county business community would form a county coalition as a forum for active engagement with the county government during the 2013-2017 tenure.

That the Nyamira County Business Coalition will co-ordinate and support efforts by the entire business community in Nyamira county to influence the county government to implement business-friendly regulations that encourage investment, thus making Nyamira county the most competitive county in Kenya.

That the issues identified in this Business Agenda will form part of the county integrated plan and a checklist of actionable issues by the Nyamira County Government for the next five years.

Despite the fact that some of the issues identified in this Business Agenda will evolve, with some being addressed within one year from the date of this Business Agenda or even shorter period, it is the expectation of the business community in Nyamira County that the county government will use this Business Agenda as reference document in mapping out investment plans for the county.

PART II

Nyamira County Fact File

Nyamira is located in the former Nyanza Province of Kenya;

The County has got a population of 700,000 people, which consist of majorly the

youth at 60 per cent.

The county has 4 constituencies namely, West Mugirango, North Mugirango,

Borabu and Kitutu Masaba.

Nyamira County is divided into two agro ecological zones, namely, highland

(LH I & LH II) which covers 82 % and upper mid-land (UM I & UM II) covering

18%.

The County’s main economic activity is Agriculture, with tea, banana, Vegetables

and dairy farming some of the economic activities worth investing in.

ISSUES FACING NYAMIRA COUNTY

Agricultural Sector

Due to its favorable climatic conditions, agriculture is the main economic activity in the

county supporting 90 per cent of the population. The county has prioritized developing

value chains that include dairy, banana farming, local vegetables and fisheries. The

value chains will be implemented under the location Marketplace Transformation

Framework. The county government in an effort to support the sector allocated 205

Million during the 2013-2014 financial year on the crops livestock and fisheries

department to boost in the production and marketing of agricultural produce. The

Governor committed to putting in place a fund for agricultural development where

farmer organizations can access the funds to increase productivity by addressing the

challenge of high inputs and low investment by farmers. Employment of field extension

officers tops the County government agenda to ensure that all farmers are reached with

information on good agricultural practices. Commercial agriculture needs a vibrant

agribusiness and entrepreneurship approaches and skills and the Governor called upon

the business community to identify strategic areas in which they can invest in and be

part of the County government vision of migrating to commercial agriculture.

Challenges faced

The agricultural sector in Nyamira County is however faced with numerous challenges.

The most notable are:

Lack of a clear agricultural policy that can guide the sector towards prosperity.

Poor roads and infrastructure especially in high potential agricultural areas.

Subsistence agriculture that does not support income generation.

Inadequate value addition of agricultural produce from the county.

Use of outdated farming techniques.

Overreliance on rain fed agriculture.

Lack of education by farmers on best farming practices

Lack of clear marketing strategies leading to exploitation by middlemen

especially Bananas being produced from the County.

High post-harvest losses due to poor roads and limited market access.

Inadequate knowledge on climate smart agriculture and

Low number of youth involvement in agriculture.

Investment opportunities in Agriculture

The county has great potential given it is endowed with fertile soils and receives well

distributed rainfall throughout the year. The investment opportunities in the sector

include:

Value addition of agricultural produce from the county and branding of these

products.

Investment in the production of Tissue Culture Bananas (TCB) and hardening

nurseries which have got a ready market.

Investment in A.I services to serve the large number of dairy farmers in the

county.

Investment in provision of drip irrigation kits

Avocado processing industry

Small scale milk processing

Honey and wax processing

Small scale juice processing

Fingerlings production

Feed milling factory

Construction of abattoirs(slaughter house) of class B and C)

Trade Commerce and Industry Sector

The trade commerce and industry sector plays a crucial role towards attainment of

national development objectives envisaged under vision 2030. Since taking over power

as the Governor of Nyamira County, the county government has put in place various

measure to ensure that the sector is able to contribute the economic growth of the

county. Various initiatives such as street lighting project targeting towns and major

trading centers to increase business hours and enhance security have been put in place.

Renovation of various parks such as Keroka and other towns are well on course .Co-

operative sector has trained staff of 57 co-operative societies on governance, conducted

AGMS in 34 societies and auditing 35 societies. Trade sub sector has trained 1800

traders on entrepreneurship and disbursed Kshs.5.09 million to 90 traders. Weights

and measures sub sector has purchased accurate weighing and measuring equipment to

promote fair trade practices. Enterprise Development sub sector has promoted existing

Juakali sheds like Bisembe, Richieri and Nyamaiya to provide incubation services to

micro and small enterprises

Investment opportunities in manufacturing and trade industry

There is need to invest in Cottage industries such Banana processing, dairy

processing for value addition

Development a proper master plan for Nyamira town to ensure that the town is

well positioned to attract investors.

Development of tourist attraction hotels facilities and tourism home stays and

Development of business incubation centers.

Transport and Infrastructure

Infrastructure is an essential component towards achieving the development goals and

objectives of any country. Road network has been improved by opening178 Km of new

access roads across the 20 wards in the county.20 Km of back streets have been opened

in Nyamira and Nyansiongo towns. Tender documents have been prepared for 125

projects to be funded by the county, Keroka Bus Park has been refurbished, recarbating

Nyamira county headquarters offices car park and constructing Nyamira walkway.

The department has purchased 7 assorted plant and machinery to increase

departmental capacities in roads and infrastructure. It looks forward to open new access

roads and construct four more Box Culvets and five Foot Bridges to enhance

accessibility and connectivity.

Opportunities for investment

Development of a road policy that will provide guidelines on how roads should

be constructed and maintained in the county.

Partnering with the private sector in the development and maintenance of roads.

Education, ICT and, youth employment

The Directorate of ECDE has recruited 406 ECDE teachers and a Director, constructed

20 model classrooms and planting of trees in all schools .Directorate of Youth

polytechnics &Home craft centers has recruited Director and constructed classrooms in

26 polytechnics and looks forward to strengthen curriculum implementation and

provision of assorted equipment to polytechnic workshops. Directorate of ICT has

deployed enough staff, developed website for 20 schools.

A county website has been created (http://www.nyamira.go.ke) LAN, installed PABX

and structural cabling has been done. The department looks forward to provide fiber

optic trench and develop a website for one school in each Sub County as well as

initiating home craft and child care centers. It zeroes in to establish a public university

and other model learning institutions.

Investment Opportunities

Establishment of specialization centers, developing of curricula and impacting

practical and relevant knowledge in colleges and training centers needed for

make the youth become self-employed

Partner with the private sector in the securing of relevant internship programs

that will benefit graduates from the county. .

Educational funding and training

Empower young people to contribute greatly towards good governance and

democracy

Facilities that offer preventive and curative health services for youths

Set policies that govern the youths in the county to curb crime and drugs use

To take the advantage associated with ICT to foster youth development.

Health sector

Five modern fully-equipped ambulances have been purchased to provide emergency

services, medicines and pharmaceutical products have been procured and distributed to

various hospitals/health centers such as a computerized Tomography (CT) scan

machine and 3 X-Ray machines and installing 160,000 liter capacity high and low level

water reservoirs connection to Nyamira county hospital as well as doing electrical,

mechanical and physical renovations. The Department is investing in eliminating

communicable diseases such as TB, malaria and HIV/AIDS among others.

The Department is pushing development agenda to see the hospital becoming a fully-

fledged referral hospital status inclusive of scan radiography, dialysis unit, doctor’s

plaza and equipping maternity theatre.

Challenges

There are a few operating theatres, poor health integrated management

information system, few and outdated pharmaceutical equipment.

Staffing in most hospitals and health centers is still not enough to offer the

services to the residents of the County.

Investment opportunities

Put in place a medical workers volunteer program to help reduce the burden of

few health officers in the hospitals.

Partner with the private sector in upgrading the medical facilities in the County.

Equipping health dispensaries at ward level to better serve the locals.

The County to ensure that medical staffs are exposed to further trainings to

equip with the latest knowledge on diseases.

Pursue exchange programs with other countries to increase competence of health

professionals in the County.

Security sector

Security continues to pose a threat to conducive business environment in Nyamira

County. This problem is prevalent in most major market centers within the county due

to high unemployment and school dropout rates by the youth. There is need to improve

security by providing police patrols, improved street lighting and installation of

security cameras at strategic points of the County particularly in the major markets and

towns.

PART III

Proposals on way Forward in Each Sector

Agriculture

Farmers need to be organized into groups for ease of production and marketing

of their produce to avoid exploitation by brokers.

Work with existing bodies to provide direct market linkages between farmers

and manufactures.

Intensive afforestation to reduce the effect of climate change especially in the tea

sector.

Climate change and adaptation strategies need to be incorporated in the county

policies and programs.

Put in place subsidy schemes to facilitate farmers to afford necessary farm inputs

e.g. seeds and fertilizer

The county government needs to build on the existing structure of extension and

avoid total overhaul of the extension system.

Investment in agro-industries that will add value to the agricultural produce

from the county.

Target on the reduction of post-harvest losses through capacity building of

farmers on modern post-harvest management technologies.

The road connectivity especially in the high potential areas should be improved

for ease market access and reduction of post-harvest losses.

Farmers to be trained on the importance of value chain approach and

agribusiness

The private sector and the county government need to ensure that farm inputs

are availed to farmers on time to ensure proper planning.

Farmers to invest in production of green tea to benefit from the recently

developed Kerumbe Tea factory which is privately owned.

Trade and commerce

To increase loan amount allocate to micro and medium enterprises by joints

loans board

To partner with other service providers to train entrepreneurs on business

skills/business development services

Streamline assurance of business licenses to ensure fairness.

Development of an investment bill that will stipulate how the county

government will give out incentives such as land to investors.

Put up modest markets in every ward to serve farmers.

Increase loans to the business community through development of a proper

legislation that will guide the management of the kitty.

Establish a one stop shop for business licensing and single business permit for

Nyamira County.

Transport and infrastructure

To provide infrastructural support and enhance economic development, the county

should provide.

Security

Putting in place a street lighting in all major towns to boost security in all the

major towns within the County.

Establish rapid response units within the County.

County government to pass laws requiring private developers within the major

towns to install security lights on their premises.

Tourism

The county Government intends to build and establish tourist attraction centers at

Manga Ridge, Keera water fall, Kiabonyoru hills that is a source of River Kuja,

Nyabisimba hills and Kemasare hills.

Low lying fruits from the way forward.

To jump start the economy of Nyamira County, the most immediate and urgent areas

that the county government needs to pay attention on include:

Improvement of roads to facilitate easy access to markets by smallholder farmers

Investment in value addition of agricultural produce especially bananas, Milk ,

Avocados and Tea

Fast track the proposed location Market Place Results Transformation

Framework (LMPRTF) to promote the agribusiness sector.

Ensuring that the County Assembly releases all county bills with adequate notice

for scrutiny by stakeholders and these will prevent unrest that has been

witnessed previously.

Construction of juakali shades across the county to harness the youth talent that

has not been exploited

Tracking and controlling revenue collections and allocations to minimize

mismanagement.

Investment in town planning of Nyamira and Keroka town to make them

attractive to investors.

Improvement of the genetic resources of the animals for increased animal

production through subsidized A.I services.

Developing a one stop shop for business pertinent information

Ensure the public is well consulted on any revenue laws being passed by the

county

Ensuring that farmers afford certified seeds and other farm inputs through a

subsidy program.

Investment in the health sector

Conclusion

The benefits of collaborations and dialogue between any government and the private

sector cannot be over emphasized. As such, and recognizing the fact that there are few

business membership organizations in Nyamira County, there is need for all the

business people to form a coalition that will enable them engage with the county

government and other institutions in a more structured manner as this is the best way

of ensuring that their voices are heard. Such a coalition will be instrumental in ensuring

that the county government of Nyamira through the office of the Governor, works

closely with the private sector, thus ensuring consultations and inclusion in decision

making on matters that affect the business climate of the County, as provided by the

constitution.

References

The constitution of Kenya 2010

The World Bank, doing Business report 2013

The Kenya vision 2030 progress report 2013

http://www.investmentkenya.com