About Kenya – Kenya Information,
Kenya is a country that epitomizes the transformational power of possibility. A land once known for its Savannah, now earning international repute as the Silicon Savannah. Where the vibrancy of the economy is matched only by the verve of our youth. Where groundbreaking refers not just to the largest infrastructural project in Africa, but also to our trailblazing mobile money transfer technology. A land that reflects the growth of a Continent on the rise. A hub for Investment, Commerce, Trade and Tourism.
Kenya is a land where we have demonstrated that the most significant driver for converting possibility into reality is innovation. And where we understand that investing in women and young entrepreneurs can provide the world with innovative solutions to some of our toughest challenges. Because that’s the potency of entrepreneurship; its ability to elevate people’s lives in a way that honors their dignity.
Welcome to Kenya. Welcome to Opportunity.
Facts About Kenya
Kenya Location – Where is Kenya Located
Kenya is located in eastern Africa and borders Sudan and Ethiopia in the north, Somalia in the east, Uganda in the west and Tanzania in the south.
The Indian Ocean is in the south-east. The country lies between five degrees north and five degrees south latitude and between 24 and 31 degrees east longitude.
Kenya lies exactly astride the Equator, which bisects the country in an east-west direction. The breadth from east to east is about 890km, and 1,030km north to south.
The Indian Ocean coast-line is 536km long, while the total land area is 582,650 sq km. Of this, 569,250 sqkm constitute land area and 13,100 sq km is water.
Kenya Information Guide
Kenya’s Official Name:Republic of Kenya
Conventional long form: Republic of Kenya
Conventional short form: Kenya
Local long form: Republic of Kenya/Jamhuri ya Kenya
Local short form: Kenya
Formerly known as: British East Africa
Kenya’s Location: Eastern Africa, on the East Cost of Africa along the Indian Ocean at 1 00 N,38 00 E
Kenya’s Land Area: 582,646 sq. km
Kenya’s Climate: Varies from tropical along coast to arid in the interior.
Kenya’s Time Zone: GMT +3
Kenya’s Currency: Kenya Shillings (KSh)
Kenya Facts: Demography
Kenya’s Population: 38.6 million (2009).
Kenya’s Population Density: 55 per sq. km.
Kenya population growth rate: 2.444%
Kenya birth rate: 32 births/1,000 population
Kenya infant mortality rate: 44 deaths/1,000 live births
Kenya fertility rate: 3.76 children born/woman
Kenya’s Workforce Population: 11.85 million.
Kenya’s Literacy rate at age 15 and over: 85.1%.
Kenya highest point: Mount Kenya 5,199 m
Kenya lowest point: Indian Ocean 0 m
Kenya’s GDP per capita: $320 (at purchasing power parity, $1035).
Languages Spoken in Kenya: English (official), Kiswahili (National), numerous Ethnic tribes or languages.
Kenya exports: Tea, horticultural products, coffee, petroleum products, fish, cement
Kenya Imports: machinery and transportation equipment, petroleum products, motor vehicles, iron and steel, resins and plastics
About 9% of Kenya’s land is arable.
Tana River is the Longest River in Kenya
Kenya Geography – Geography of Kenya
At 580,367 km2 (224,081 sq mi), Kenya is the world’s forty-seventh largest country (after Madagascar). It lies between latitudes 5°N and 5°S, and longitudes 34° and 42°E. From the coast on the Indian Ocean, the low plains rise to central highlands. The highlands are bisected by the Great Rift Valley, with a fertile plateau lying to the east.
The Kenyan Highlands are one of the most successful agricultural production regions in Africa. The highlands are the site of the highest point in Kenya and the second highest peak on the continent: Mount Kenya, which reaches 5,199 m (17,057 ft) and is the site of glaciers. Mount Kilimanjaro (5,895 m or 19,341 ft) can be seen from Kenya to the south of the Tanzanian border.
Kenya Weather and Climate
Kenya’s climate varies from tropical along the coast to temperate inland to arid in the north and northeast parts of the country. The area receives a great deal of sunshine every month, and summer clothes are worn throughout the year. It is usually cool at night and early in the morning inland at higher elevations.
The “long rains” season occurs from March/April to May/June. The “short rains” season occurs from October to November/December. The rainfall is sometimes heavy and often falls in the afternoons and evenings. The temperature remains high throughout these months of tropical rain. The hottest period is February and March, leading into the season of the long rains, and the coldest is in July, until mid August.
Make It Kenya Video
Kenya Facts: Kenya’s Student Enrollment:
Primary School in Kenya – 7,384, 800.
Secondary School in Kenya – 912,624.
Universities in Kenya – 91,541.
Fun and Interesting Facts About Kenya
Politics in Kenya: Kenya’s Political System
Unitary state with multiparty democracy.
Kenya’s Government and Kenya Politics:
Unicameral National Assembly or Bunge usually referred to as Parliament (224 seats; 210 members elected by popular vote to serve five-year terms, 12 nominated members appointed by the president but selected by the parties in proportion to their parliamentary vote totals, 2 ex-officio members); note – the constitution promulgated in August 2010 changes the legislature to a bicameral parliament consisting of a 349 member National Assembly and a 67 member Senate; parliament members will serve five year terms
Kenya’s Head of State
Kenya’s head of Government:
Legal System in Kenya
Promulgated on 27 August 2010; note – the new constitution introduced major institutional, electoral, and structural reforms, including devolution of power to 47 counties and establishment of a bicameral legislature; Implementation of all elements of the constitution is scheduled to take five years and requires significant legislative action, much of which has been taken
Kenya Facts: Top 10 Cities / Towns in Kenya With Population:
- Nairobi: 2,750,547
- Mombasa: 799,668
- Nakuru: 259,903
- Eldoret: 218,446
- Kisumu: 216,479
- Thika: 99,322
- Kitale: 75,123
- Malindi: 68,304
- Garissa: 67,861
- Kakamega: 63,42
Kenya Facts: Administrative Divisions:
Kenya Has 47 Counties
- Baringo County
- Bomet County
- Bungoma County
- Busia County
- Elgeyo Marakwet County
- Embu County
- Garissa County
- Homa Bay County
- Isiolo County
- Kajiado County
- Kakamega County
- Kericho County
- Kiambu County
- Kilifi County
- Kirinyaga County
- Kisii County
- Kisumu County
- Kitui County
- Kwale County
- Laikipia County
- Lamu County
- Machakos County
- Makueni County
- Mandera County
- Meru County
- Migori County
- Marsabit County
- Mombasa County
- Muranga County
- Nairobi County
- Nakuru County
- Nandi County
- Narok County
- Nyamira County
- Nyandarua County
- Nyeri County
- Samburu County
- Siaya County
- Taita Taveta County
- Tana River County
- Tharaka Nithi County
- Trans Nzoia County
- Turkana County
- Uasin Gishu County
- Vihiga County
- Wajir County
- West Pokot County
Kenya Facts: Political Parties in Kenya and Their Leaders
- Kenya African National Union or KANU – Gideon MOI
- The National Party Alliance or TNA – Uhuru KENYATTA
- Orange Democratic Movement or ODM – Raila ODINGA
- National Rainbow Coalition-Kenya or NARC-Kenya – Martha KARUA
- Orange Democratic Movement-Kenya or ODM-K – Kalonzo MUSYOKA
- United Democratic Forum Party or UDF – Musalia Mudavadi
- United Republican Party or URP – William Ruto
- Wiper Democratic Movement or WDM – Kalonzo MUSYOKA
Kenya Facts: Local Connectivity in Kenya
Fully Digital Network.
Mobile Connectivity in Kenya:
28 million. (2012)
Internet Users in Kenya:
17.38 million. (2012)
Data Services in Kenya
Ken stream, Jambonet, ADSL services, Analogue leased lines(Kenline), Kenpac, Kensat, ISDN.
Satellite Services in Kenya:
International Broadcast, VSAT, Voicecast.
Global Connectivity in Kenya:
Satellite links. and Fiber Optic
Interesting Facts About Kenya
Facts About Kenya 1: About 44 million people live in Kenya as at the time of this writing.
Facts About Kenya 2: Kenya was a British colony and was under British colonial rule between 1895 and 1963.
Facts About Kenya 3: Kenya’s Great Rift Valley was formed around 20 million years ago, when the crust of the Earth was split.
Facts About Kenya 4: Kenya only has only two seasons. One rainy season and one dry season in a year.
Facts About Kenya 5: Kenya’s capital is Nairobi.
Facts About Kenya 6: There is great disparity between the rich and the poor, those that are rich are very rich and those that are poor are very poor with very few in the middle class
Facts About Kenya 8: Kenyan environmentalist Professor Maathai won the Nobel Peace Prize in 2004. She was the first African woman to win that price
Facts About Kenya 10: The Majority of the people in Kenya are Protestants.
Facts About Kenya 11: About 70 percent of Kenyans are Christians, about 25 percent are adherents of indigenous religions while the remaining 5 to 6 percent are Muslims. There are also Hindus, Sikhs, Parsees, and Bahai’s particularly among the Asian communities.
Facts About Kenya 12: Embu tribe in Kenya is famous for dancing on stilts performed by men wearing long black coats and white masks?
Facts About Kenya 13: Kenya’s wildlife is unrivalled by any other in the world, both in terms of numbers and variety of species. Thousands of tourists visit Kenya every year to view the wild life particularly the wildebeest migration. Animals such as lion, leopard, buffalo, elephant, rhino, giraffe, zebra, crocodiles, hippopotamus, gazelles, cheetahs, hyena and a wide range of bird species can all be found in Kenya.
Facts About Kenya 14: About 2000 B.C.. Scientists discovered the earliest-known remains of human beings in Kenya. Although very little is known about these people but it’s believed that they are the ancestors of today’s Kenyans.
Facts About Kenya 15: Masai People, a tribe in Kenya are tall and slender and are known for their skill in the use of weapons and their strongly independent ways.
Facts About Kenya 16: English, Swahili and Numerous indigenous languages are spoken widely in Kenya. Swahili is also called ‘Kiswahili’.
Facts About Kenya 17: The Currency of Kenya is shilling, one shilling = 100 cents.
Facts About Kenya 18: Kenya won independence in 1963 and has been a republic since 1964.
Facts About Kenya 19: In the world stage of sporting activities, Kenya is best known for Athletics
Facts About Kenya 20: About 99% of Kenya’s population is made up of black Africans but there are also white Kenyans.
Fun Facts About Kenya – 10 Kenya Fun Facts
- Before marriage Kenyans still pay a dowry to the bride’s family, which starts at 10 cows.
- Everyone wants to know what you think of Obama.
- Corn is the top commodity.
- Kenyans’ are very well dressed people.
- There is no such thing as personal space.
- Sleeping under a mosquito net is like making a tent in the living room when you were a little kid.
- For the Kenyans, coffee is considered an export product, not something for local consumption. The local favorites are tea and beer.
- Kenyans usually drink their beverages either room temperature or hot never cold.
- The men of Kenya are allowed to have more than one wife.
- In Swahili the word “chai” means tea . . . so in America when we order a chai tea we are actually saying tea tea.
Health Sector In Kenya
The government of Kenya is has developed the Health Sector PPPs Strategy. The Strategy provides a number of investment opportunities in health service provision involving a private sector partner having management control of the public hospital in order to get a return on investment at a rate that does not hamper access.
Other PPPs -related investment opportunities are telemedicine; referral or sharing of medical resources; local manufacture of generic drugs, adjusting products to meet unmet demand; creating new model for mobile; remote and home based health care; and creating new opportunities around rapid penetration of mobile phone
1. Make Kenya a regional health services hub
The Vision 2030 recognizes role of private sector in improving the delivery of health care in partnership with the public sector. With support of private sector, Kenya intends to become the regional provider of choice for highly-specialized health care, thus opening Kenya to ‘health tourism’. The term health tourism includes spa and gym, naturopathy, yoga, meditation and many other mental and physical exercises and treatments that are beneficial for health and rejuvenation. Kenya has plenty of geothermal mineral water springs (in Rift Valley province and parts of Western province) whose mineral contents have the potential for the development
of health spas to serve as curative centers as well as tourist attractions. The most significant hot water springs are found in the following places: around lakes Bogoria and Baringo. The two lakes are 345 Km from Nairobi and are within National Game Parks; around Lake Turkana which sits at the borders of Kenya, Ethiopia and Sudan; Olkaria and Eburu near Lake Nakuru which is famous for flamingos; and Simbi on the shores of Lake Victoria. The area is close to Maasai Mara Game Reserve renowned for its wildlife. Beside health tourism, there is medical tourism. Medical tourists are broadly defined as people who seek quality treatment abroad, or in a neighboring state where the cost is significantly lower, leaving them with enough money to tour the host country as part of their recuperation. Kenya is steadily catching up with development of new medical facilities; a local private hospital is already pioneering medical tourism in Kenya and has upgraded infrastructure and equipment, and is now able to perform, at a fraction of the cost, many procedures that previously could only be done in South Africa, the West or India.
2. Pharmaceutical and medical equipment manufacturing
The Kenyan pharmaceutical market is booming as a result of a growing population that is increasingly able to pay for better health services and pharmaceutical products. The health sector has experienced remarkable development in recent years with the country spending about 7% of the GDP on health. The rapid growth of the pharmaceutical market in the region has presented the need to increase quantity of production, and also increase the export ratio for quality products. More prospective opportunities lie in the expansion of product portfolio, search for new markets, and support for medical research. The rapid growth of the pharmaceutical market in the region has presented the need to increase quantity of production, and also increase the export ratio for quality products. Kenya is currently the largest producer of pharmaceutical products in the Common Market for Eastern and Southern Africa region, supplying about 50% of the region’s market. Out of the region’s estimated 50 recognized pharmaceutical manufacturers, 30 are based in Kenya. The industry has a strong multinational heritage, with many foreign firms maintaining significant operations.
3. Health services provision
The private sector’s complements the government in improving access to health care. There are 6,190 health facilities in Kenya, 48% of these facilities are manned by government while 34% by private enterprises. In essence, the country has the largest private health care segment in the region and holds significant potential for financial returns. Opportunities can be found in inpatient and outpatient care, preventative care and diagnostic services. High end clinics that target growing middle and upper-income groups are especially profitable and provide high quality care that attracts patients as well as experienced staff. High volume, low cost hospitals usually located in high density areas targeting low income earners also offer high returns.
Private hospitals can achieve local accreditation as training institutions for nurses, midwives and laboratory technicians; and large multidiscipline universities.
4.Market incentives for investment in health care
The country recognizes that collaboration and partnership between the public and private sector in health is an important guiding principle in the delivery of health services. Market incentives for private sector investment in health care in Kenya include: range of tax incentives, stable pro-investment government; business friendly reforms; large pool of skilled enterprising workers; strategic location as a financial, communication and transport hub; improved physical infrastructure; well established legal and regulatory framework; low cost of internet connectivity an undersea and terrestrial fiber optic cable infrastructure connecting Kenya to the world wide network, no foreign exchange controls; and capital repatriation, remittance of dividends, and interests are guaranteed to foreign investors.
Land Sector in Kenya
The land is the single most important resource that Kenya is endowed with. It is critical to the economic, social, political and cultural development. In order to ensure that land is held, used and managed in an equitable, efficient, productive and sustainable manner, the Government in partnership with investors has prioritized the following opportunities:
1. Development of the National Land Information Management System (NLIMS)
This is a computer-based information system that enables the capture, management, and analysis of geographically referenced land-related data in order to produce land information for decision-making in land administration and management. This will be achieved through the establishment of a transparent, decentralized, affordable, effective and efficient GIS-based Land Information Management System, digital mapping and modernization of land registry. It will also involve revamping the recording system, revising the land maps and computerization of land registries for effective service delivery.
Development and Operationalization of NLIMS provides an opportunity for investors to develop the system in a Public-Private Partnership (PPP), Government to Government Partnership (GGP) way or as development consultants. The major areas for investment include:
• Safeguarding and digitizing of land paper records all over the country
• Establishing an electronic land records management system to manage the digitized records
• Development of National Land Information System databases
• Provision of infrastructure to link the field stations with the Ministry headquarters
2. Preparation of National Spatial Plan
This is a long-term framework to guide the sectoral integration and rationalization of the social, economical and territorial development of the country in a spatial context. It will cover the following areas but not limited to: agricultural development and food production; Commercial, industrial and infrastructural development; Human settlements development; environment and natural resource preservation; Natural heritage, cultural and strategic resources preservation; and land use information management, legal and institutional linkages.
The plan will guide the development of the country in the next 50 years. Preparation of the National Spatial Plan provides an opportunity in consultancy as the Government develops this plan.
3. Establishment of Kenya National Spatial Data Infrastructure (KNSDI)
This is the technology, policies, standards and institutional framework that facilitates the easy availability of, access, sharing, and dissemination of spatial data across all levels of government, the academia and the private sector. It is very vital to the development of various sectors of the economy such as petroleum and minerals, forestry, agriculture, transportation and aviation, security and defence, tourism, census, health and water resources etc and also facilitates informed decision making for managing the environment, land reforms, taxation, drainage and flood control, disasters and others. This is, therefore, establishing a national repository of spatial data holdings and providing a mechanism to facilitate its access, sharing and dissemination. The opportunities for investment include:
- Development of large-scale spatial data framework (digital topographical maps) for major urban centers in the country
- Digitization and revision of Medium Scale Topographical Maps covering the whole country
- Modernization of the National Coordinate Reference Network
- Digitization of Land Registration Maps
Environment, Mineral Sector, And Environmental Problems In Kenya
The sustainable management of the environment and natural resources in Kenya is critical for economic growth and development of a country. There exists a wide range of priority investment areas within this sector ranging from climate change prediction and adaptation, catchment protection, sustainable exploitation of economically viable mineral resources to enforcement of environmental legislations.
1. Mining Sector
Kenya is endowed with a wide range of minerals resources, some of which are already being explored and exploited by private companies. Currently, the Minerals sector, excluding quarrying for construction materials, contributes only about 1% to the GDP which is rather low compared to the available potential. This implies that a good percentage of the country’s mineral resource is yet to be explored and exploited. Most of the minerals still remain unexploited due to inadequate knowledge on their status,
economic viability and appropriate mining technologies. Already, an appropriate mineral prospecting and mining policy conducive to investment and Private Public Partnerships (PPP) in the mining sector is in place. Therefore, opportunities exist in mineral exploitation, mining and value addition through direct or joint venture partnerships. Ecotourism through rehabilitation of disused mines (based on Bamburi Haller Park) is also in opportunity for investment. The minerals and areas of occurrence are as indicated below:
Mineral Area of occurrence
Soda ash Produced from the mineral trona that occurs at Lake Magadi which is situated within the Great Rift Valley. Lake Magadi is known to be one of the largest natural sources of trona in the world (annual production of 350,000 tonnes of soda ash)
Fluorspar Occurs and is mined near Eldoret within the Rift Valley. The mine produces acid grade Fluorspar of which the bulk is for export (100,100 tonnes per year)
Diatomite which is known to occur in a number of localities within the Rift Valley wherein it is produced for both export and local markets Vermiculite which occurs in large quantities in the northern central part of the Rift Valley and Eastern parts of the country
Limestone marbles and dolomites occurring widely in various parts of the country where they are exploited for use in cement and construction industry
Natural Carbon dioxide
associated with the rift system and currently being extracted for both local and export purposes from Kereita, in Kiambu county and Sosian in Uasin Gishu county
Gypsum Found in North Eastern, Coast, Rift Valley and Eastern Parts of the country with El WAk Deposit in north Eastern believed to be the largest in the world. The Gypsum mined for use in the local cement production and for export Gemstonnes Kenya boasts of a wide range of coloured and ornamental stonnes, which include ruby, tsavorite, sapphire, corundum various types of garnet, peridot,
tourmaline, aquamarine, Zoisite and rhodolite
Gold occurs in parts of Western Kenya and Rift Valley
Titanium which is known to occur in large quantities at the coastal area
Coal Deposits of considerable quantities have been discovered within the Mui Basin of Kitui county. Other occurrences are reported within the Karoo rock formation in Kwale and Kilifi counties
Iron Ore deposits found in parts eastern, western, rift valley and coastal region of the country
Rare Earth Elements (REE) and Niobium which occur at Mrima Hill in Kwale county and are also known to occur in Ruri and Homa Hill areas in Homa Bay county
Lead which occur largely in eastern and coastal regions of the country
Silica sand deposits found in Ramisi area of Kwale county where they are exploited for glass manufacture
Manganese deposits occurrences found in Kilifi county at the coast, Samburu and Moyale counties in the rift valley and eastern regions respectively
Copper occurrences which have been reportedin various parts of the country including Kitui, Taita Taveta, and West Pokot counties
Chromite deposits found at Sigor, West Pokot county in the rift valley and at Dabel, Moyale county in Eastern region
2. Carbon Trading Schemes
Opportunities exist for investment in carbon markets in order to promote conservation and compensation for environmental services. This is a relatively new field and enormous potential exist in consultancy and capacity building to enable communities and corporations/firms access global carbon markets within the framework of Clean Development Mechanism. Tree planting projects for carbon schemes can be undertaken in forest areas like Mt. Kenya, Mt. Elgon, Cherengani, Aberdares and Mau forests and also in private and community land. These opportunities include: –
(i). Energy Based Investments opportunities:
i. Renewable energy (Geothermal, Wind, Solar, Hydro power and biogas)
ii. Energy efficiency (cook stoves, energy saving bulbs/lamps etc)
iii. Fuel switching (new technology that allow for fuel switching)
iv. Afforestation and Re-afforestation programmes within the ASALs and water towers through REDD+ initiatives and other Sustainable Land Management programmes.
v. Co-generation programmes
(ii). Agriculture based investment opportunities
This sector provides several opportunities for investors to earn certified carbon credits. Adapted grazing land management, for example, reduces the amount of greenhouse gas emissions associated with raising livestock or producing dairy. Various other sustainable farming techniques which facilitate either increased carbon storage in, or leakage from, soil, are also becoming recognized as qualifying for carbon credit accreditation as offset projects.
3. Climate Change Programmes
Kenya’s economy being mainly natural resource-based is highly vulnerable to climate change and variability. The economy has recently suffered from climate change related disasters, which include droughts (2000/2001), floods and mudslides (1997/98, 2006/7). Such events have caused damages to private property, loss of economic opportunities and life. In addition, the country’s main source of energy, hydro-power is seriously threatened by climate change.
Potential for Public Private Partnerships exist in securing global funding mechanism to implement adaptation and mitigation programmes in Arid and Semi-Arid Areas Lands (ASALs), high-risk zones and Early Warning Systems and environmental monitoring covering climate change events such as floods, droughts, landslides and seismic occurrences.
Construction works for dams, pans and drilling of boreholes as well as establishment of centre of excellence in climate change issues, and the promotion of education, training and public awareness relating to climate change are potential areas for private investment.
4. Integrated Waste Management
There are huge investment opportunities in Solid waste management in the country especially in Nairobi and other major cities like Mombasa and Kisumu. Nairobi city produces an average of 2,400 metric tonnes of solid waste per day. Management of this waste through recycling will reduce environmental pollution and offer employment opportunities through commercial ventures. Investors are welcome to invest in solid waste management. Recycling of waste can be undertaken through Public Private Partnerships (PPPs) and may be extended to other cities and towns in the country. Specific areas of investment interests include
- Waste disaggregation
- Sanitary landfills
- Waste Conversion into various products including fertilizer (waste composting), methane gas and electricity generation (Bio Energy Projects) by digesting organic waste which on average constitute over 70% of waste generated in urban centres
- Recycling of waste (paper, glass, plastics, metals)
- Managing Waste Transfer loading stations
- Supplying and operating waste compactors
- Supply of wheeler bins
- Motorised street cleaning services
- Disposal of hazardous waste
- Sewerage system infrastructure construction and maintenance services
- Solid Waste Management Infrastructure construction and maintenance services
In addition, cleaning of the Nairobi and Ngong rivers and other rivers and water bodies near major urban areas and establishment and maintenance of public parks along the river banks and shores respectively (based on adopt a park concept) also offers potential opportunities for investment.
5. Resources Assessment
The country is faced with a challenge of estimating the value and value addition potential of most of its environmental resources. Data and information on the status and distribution of various environmental resources will assist in estimating the value of environmental resources as well as identifying value addition potentials. In addition, such data and information will identify major threats facing environmental resources. There are therefore opportunities for investment in environmental resources assessment through appropriate and state-of the-art technologies and data/information sharing for planning purposes.
6. Space Technology for ICT and Resource Management
Presently, countries are exploring means and ways of enhancing space satellite communication and sensor platforms for the management of resources. Kenya is no Island in this aspect and thus wishes to explore various opportunities to invest in robust space research and technology. The ambitious investments in earth observatory systems are truly transformational embracing the current era of space missions to cover neighboring frontiers to address national security. Earth observation mission, especially within our frontiers, has never been more important to our national security than it is today.
But while addressing national security, space missions also undertake ground observations for assessment of natural resources thereby enhancing monitoring of environmental concerns and climate change responses, mineral surveys, and disaster predictions. In this way, Kenya will join the international space community in tracking down occurrences of natural phenomena, regular security updates and communication network.
7. Meteorological Services
Investment opportunities for PPP exist in the modernization of meteorological systems in the establishment of early warning systems, tidal gauge station, marine automatic weather stations, and seismic systems: weather modification e.g in fog and frost suppression flash flood forecasting using Doppler weather surveillance technology. Investment opportunities exist in the following areas:
i. Modern laboratory: For the Kenya Meteorological Department (KMD) to fully utilize the data it generates, it requires a Research Laboratory well equipped with computing facilities including data receiving and retrieving facilities. It also requires ArcGIS applications to help store spatial data, analyze, and compile primary & secondary data and enhance accessibility and exchange of information between different departments within and outside the organization for relevant decision making through central database update.
ii. The establishment of the e-learning system for supporting online education at the Institute for Meteorological Training and Research (IMTR);
iii. Establishment of the WMO Integrated Global Observation System (WIGOS) / WMO Information System (WIS) ;
iv. Support to the acquisition of the Aviation Weather Wind Profiler to enhance operations in the airports;
v. Sharing of experience in Product dissemination in customized service delivery and public weather services using modern technology through attachments and on-job training;
vi. Development and dissemination of value-added climate products to decision-makers to improve conditions in climate-sensitive sectors. In addition, collaboration in the enhanced use of the UK developed PRECIS (i.e. Providing Regional Climates for Impact
Studies) Model where the UK Met Office can provide KMD with the boundary conditions for the model initialization in a view to addressing climate change vulnerability analysis in the country.
vii. Climate data recovery and modernization through the transfer of climate data recovery technologies and development of climate data preservation system Software including necessary hardware components.
viii. Human Capacity building in specialized training to the level of MSc and Ph.D. and dynamical modeling and interpretation of Numerical Weather Predictions (NWP) products by building the capacity of the Institute for Meteorological Training and
Research (IMTR). In addition, strengthen Software Development for meteorological applications.
The major environmental problems, issues, and challenges in Kenya include:
- Environmental degradation;
- Deterioration of water quality and quantity;
- Pollution and waste management;
- Impacts of Climate change and Global Warming;
- Inadequate adoption of Bio-Technology
- Lack of an integrated environmental planning strategy towards attaining the sustainable development objective
- Unclear delineation of some roles for lead agencies in environmental matters
- Inadequate appreciation of the role of NEMA by the public and lead agencies
- Poor governance
- Poverty level which leads to desperation and sacrifice of the environment as people seek a livelihood
- Widespread poverty exacerbated by the impact of HIV/AIDS
- Erosion of cultural values in environmental conservation
- Conflicts on natural resource use
- Inadequate national accounting for natural resources
- Cultural practices which are unfriendly to the environment
- Inadequate data, research, and research funding
Environmental Problems: How to solve environmental challenges in Kenya
Environment is a term used to mean our home environment with human population and its physical surrounding, in other words, Environment refers to living and nonliving things and how they interact with their surroundings including the atmosphere, air, water, and land. It is the surrounding which includes human as well as environment ecological dimensions and physical environment.
Environmental management is the protection, conservation and sustainable use of the various elements of the environment. Good environmental management involves activities that enhance the environment and create conditions favorable to people and other living organisms.
The National Environment Management Authority is mandated to coordinate all those institutions that may have an interest in environmental management. These are some ways through which environmental challenges can be solved.
Environmental Problems: Encouraging Afforestation Projects
Wood fuel is still the most important source of domestic energy in Kenya. Trees are also required as a source of timber both for domestic consumption and export. Tree cutting has, therefore, lead to deforestation, soil erosion, and desertification in many parts of Kenya. Regional tree planting initiatives should be established and encouraged to help save the forests.
Environmental Problems: Pest Control Programmes
Specific programs geared towards the areas affected by pests and diseases like those affecting the pastoral farmers should be introduced in such areas to educate and enable such farmers understand the nature of these problems especially in relation to the environment and how effective measures can be taken to control such problems.
Environmental Problems: Conservation of Biodiversity
In Kenya, there is a rapid depiction of living natural resources.
Deforestation, land degradation, and desertification are the main processes affecting the loss of biodiversity. Citizens should be educated on the needs to protect the environment since the majority of the Kenyan population are either not aware of the importance of managing their environment or the dangers that wait them having degraded their environment.
Environmental Problems: Community ParticipationEnvironmental Problems in Kenya
Local participation in the identification and implementation of development projects is essential since the complex interaction between social, cultural, economic and environmental factors are best understood by those involved, and their contribution to the planning process would promote the preparation of appropriate development strategies.
Participation can be direct or indirect. It is seen as a process by which local people become managers of their own development and are simultaneously becoming more empowered. Participation entails the involvement of communities in designing, planning, implementing and evaluating their resource development programs. Thus a major hindrance to community participation has been the attitudes and behavior of the public sector development workers.
In retrospect, the encouragement of local communities to participate in conservation practice should be given priority so as to ensure a sound foundation upon which relevant environmental policies could be effectively implemented.
Environmental Problems: Environmental Education and Awareness Initiative (EEIA)
EEAI provides a platform to inform, educate and engage various stakeholders. The goal is to enhance voluntary initiatives and participation in environmental conservation activities by every Kenyan through education and awareness campaigns. This is expected to foster inclusiveness and partnerships in environmental conservation and management. The implementation of EEAI should ensure effective stakeholder involvement and resource mobilization in environmental management.
EEAI should aim to;
i) Increase environmental awareness and participation in environmental activities
ii) Mobilize the general public to get involved in the protection and conservation of the environment and especially catchment conservation.
iii) Encourage media to embrace effective, positive and informative environmental coverage in order to enhance awareness and prioritization of the environment.
These could be achieved through;
• Public awareness campaigns
• Outreach and education
• Tree planting
• Clean-up campaigns
• Creating awareness of environmental challenges and solutions
• Promotion of best practices
• Dissemination of environmental messages through mass and folk media.
Environmental Problems: Involvement of Religious Organizations
Almost all religions in Kenya believe that the Earth is a creation which requires nursing. However, few of these have incorporated environmental planning and conservation in their teachings. These religions could be very effective in spreading environmental information, considering the very large number of followers they have.
At present some of these tasks are being handled by other NGOs which seem to have been better equipped, but they have very minimal coverage. On the other hand, the potential held by traditional religions in this regard remains untapped.
Environmental Problems: NGOs in Kenya
NGOs in Kenya gather its membership from international, regional and national NGOs operating in Kenya and working with a host of CBOs and groups.
These NGOs are active in a cross-section of sectors including agriculture, water, education, environment, health, human rights, gender and development, children’s rights, poverty alleviation, peace, population, training, counseling, small scale enterprises, disability, and many others.
Water and Irrigation Sector in Kenya
The water sector in Kenya offers good investment opportunities given that as the economy expands all sectors will require huge supply and efficient use of water. Potential areas for public-private investment include;
1. Water Storage and Drilling: Capacity Building of National Water
Conservation and Pipeline Corporation Kenya is a water-scarce country, with per capita freshwater endowment and water storage well below international standards. The country’s water storage capacity is among the lowest in the world and stands at 5.3m per capita. Development of water storage capacity is therefore of the highest priority for the Ministry of Water and Irrigation. The Government has set a goal of increasing per capita storage capacity to 16m by 2012.
As the construction arm of the government in the water sector, National Water Conservation and Pipeline Corporation (NWCPC) is mandated to undertake the construction of Dams and boreholes. It is, therefore, necessary to strengthen its capacity to complement the capacity of the private sector to build the national water storage, and to inject price competitiveness, hence ensuring value for money.
Opportunity therefore exists for investors to partner with National Water Conservation and Pipeline Corporation (NWCPC) in establishing 3 fully equipped dam construction units each consisting of Dozers, D7 or equivalent ( 2), Excavator (1), Compactor (sheepsfoot) (1), Scrapper (4), Shovel (2), Lorries (Tippers) (4), Mobile workshop (1) and 5 drilling units each consisting of fully mounted drilling rig (capacity of 450m, compressor 1300cfm (350psi) Mud pump) and accessories, 10 Ton Lorry (1) Mobile workshop (1), 4 wheel drive vehicles (2), 6m3 Tanker (1), 2m3 Water dowser (1). The construction and drilling units will enable the NWCPC to effectively construct dams and boreholes thereby enhancing the capacity of the corporation.
Other potential areas of investments include; expansion on infrastructure in 15 satellite towns and in 26 medium towns; construction of 180 new water and sanitation projects annually in the rural areas; drilling of 140 boreholes annually in the ASAL areas, expanding storage facilities by constructing 22 medium-sized and 2 large multipurpose dams, construction of 160 small dams/water pans annually in the ASAL areas, expansion of water and sanitation in the proposed resort coastal city, development and expansion and rehabilitation of irrigation infrastructure countrywide.
2. Mzima II Pipeline Project
This is a high capital investment project that is intended to deliver about 160,000m3/day of water from Mzima Springs to Mombasa, over a distance of about 220km. The main component is a conveyance system to transport water by gravity.
There is an opportunity in this regard for a turnkey arrangement involving the provision of financing as well as engineering design and construction services, at terms to be negotiated. There is also the potential for Joint Ventures (JV), and Build, Operate and Transfer (BOT) arrangements. The estimated investment cost is US$300million.
3. Tana Delta Irrigation Rehabilitation and Expansion
The Tana Delta has a high potential for increasing irrigation acreage, thus contributing significantly to food security particularly rice production in this country. The project, therefore, needs rehabilitation and expansion to realize its full potential which is estimated at 6,000Ha. An opportunity, therefore, exists for investors to team up with the Tana and Athi River Development Authority (TARDA) to actualize this project. The estimated cost is US$50million.
4. Maragua Dam for Nairobi Water Supply
The Ministry of Water and Irrigation has identified the development of Maragua Dam to be implemented on Design-Build and Transfer basis which is ideal for the type of support that the Government of China provides. The implementing agency and asset owner will be the Athi Water Services Board as provided for under the Water Act 2002.
A preliminary appraisal of the project was undertaken and advertised internationally for interested and suitable Engineering Firms to submit technical and financial proposals for design, implementation, and transfer. The Chinese Firm of Sinohydro Corporation was eventually identified as the most suitable. Implementation of the dam project is estimated to cost KSh 25 billion and will be constructed over a period of 3 years.
Once implemented, the dam will not only bridge the present gap in the water supply to Nairobi but will also go along way in meeting the requirements of the City and its environs for the year 2030.
Trade Sector in Kenya
Wholesale and Retail trade is one of the key sub-sectors in the economic development agenda of Kenya which is expected to expand substantially as the economy moves towards a 10 percent growth target by 2012. There exists high potential and a vibrant wholesale and retail business in Kenya, with wholesale and retail trade accounting for about 10% of GDP and 10% of formal employment, and approximately 59% of employment in the informal sector.
Investment opportunities in the trade sector exist in the following areas:
1. Wholesale Hubs and Producer Markets in Major towns in Kenya
This is intended to provide an avenue for product consolidation, market infrastructure for easier market access, creating better and friendly facilities, and improve the supply chain from small scale producers to retail markets. The Project objectives are to construct a fully equipped integrated mega-producer wholesale markets and encourage large scale agricultural producer groups around the major towns including Nairobi, Mombasa, Kisumu, Eldoret, Nakuru, Embu, and Nyeri. This is expected to increase wholesale business activities in these towns and their environs. The wholesale hubs are expected to have facilities such as wholesale halls, trading halls, open-air daily market sales areas, cash card system, temperate storage, cold storage, fruit ripening facilities among others.
This will ensure smooth supply chain between the producers and the retailers. The government will put in place the required infrastructural facilities such as rail and road networks for ease of movement of producers and retailers.
The Ministry of Trade is currently liaising with related ministries to make land available in the identified areas for the construction of the markets. The construction of the markets is expected to also increase other related activities around the areas of operation such as banking, recycling facilities among others.
The project is expected to stimulate business activities within the region, with the investors once the projects are completed, expected to run the projects through the Build Operate and Transfer (BOT) scheme.
The potential areas of investment in wholesale Hubs include:-
- Building wholesale markets through the Build Operate and Transfer (BOT) scheme
- Operating cold storage, ripening equipment, waste disposal facilities in the markets
2. Construction of a model tier-one retail market in Athi-River near Nairobi
The retail sector in Kenya is vibrant. However, most of retailing is conducted informally and unregulated in open-air markets that are not conducive to business operators and the environment is degrading. A Tier 1 retail market is a multi-lane outlet that offers variety and exceptionally high-quality goods and services. On completion, the project would provide the final link to the wholesalers and sanitary environment for consumers and be a retailing model to be replicated in other regions throughout the country.
The ministry of Trade is liaising with related ministries to make land available for the construction of the market. Once the Athi-River project is completed, it will be replicated in other areas. The project is expected to stimulate business activities within the region, with the investors once the projects are completed, expected to run the projects through the Build Operate and Transfer (BOT) scheme.
Fisheries Sector in Kenya
The fisheries sector in Kenya plays an important role in the national economy. The sub-sector Contributed 0.5% to GDP in the year 2011. This figure may be higher if value addition at the various stages of the supply chain are considered and post-harvest losses minimized.
Fisheries in Kenya is an important socio-economic activity and a major source of livelihood. The fisheries sector promotes other auxiliary industries such as net making, packaging material industries such as net making, boat building, and repair, transport, sports and recreation. The sector supports about 80,000 people directly and 800,000 indirectly, assuming a dependency ratio of 1:10. In 2011, a total of 150,000 metric tons of fish worth over worth over Kshs 16 billion was produced in the country. In the same year, fish exports earned the country approximately Kshs. 7.5 billion. There are three major sources of fish in Kenya which include inland lake and reservoirs, marine water of the Indian Ocean and aquaculture.
1. Development of Marine Capture Fisheries
This aims to enhance sustainable utilization of marine water fisheries and sustainable utilization of marine fisheries resources while addressing the challenges and constraints facing the marine capture fisheries which include: lack of modern fishing technology by domestic fishermen to exploit fisheries resources in deep waters at industrial level; lack of fish port and fish port facilities to promote lending and servicing of foreign fishing vessels; underdeveloped marine fisheries science and management capacity; weak Monitoring, Control and Surveillance (MCS) system leading to increased illegal, unregulated and unreported fishing; and post-harvest wastage of fish of up to 16 percent.
2. Development of Inland Capture Fisheries
This aims at enhancing sustainable utilization of inland water fisheries while addressing the following constraints and challenges: lack of fish handling facilities at landing beaches that meet the set sanitary and phytosanitary standards; lack of management plans for specific fisheries; weak monitoring, surveillance and enforcement capacity; slow process of adopting and internalizing common management regimes for trans-boundary fisheries such as Lake Victoria and Lake Turkana; poor road infrastructure linking Lake Turkana fisheries and major markets; infestation by parasite of Lake Turkana Nile perch fish stock; use of non selective and destructive fishing methods and gears; and environmental degradation
3. Development of Aquaculture
The project intends to enhance aquaculture production. The project will address challenges and constraints facing the sector e.g. poor genetic quality of fish seed (fingerlings) due to poor brood selection, inbreeding and hybridization; inadequate supply of quality species-specific formulated feed; weak aquaculture extension and support services resulting in poor adoption of appropriate aquaculture technology; lack of policy and regulatory framework for the aquaculture industry; lack of a certification and quality assurance mechanism for fish seed and feed which has hampered the development and supply of quality inputs. Proposed Areas for Private Sector Investment are;
• Value addition in fisheries products
• Certified fish seed breeding facilities to avail quality seed to fish farmers.
• Fish feed industry
• Fishing Gear/equipment industry
• Joint ventures in the exploitation of Kenya’s EEZ
• Investment in Tropical Aquaria parks for local and overseas tourism
• Fish leather industry
• Infrastructural development in the Fisheries sector
• Development of fish port, auction center, marketing, cooling storage facility, and seaport.
Specific areas identified for private sector investment are;
• Cooling-plants in major landing bays of Mbita, Sindo, Sori, Sio port, Usenge, Port Victoria and along the Kenyan coast.
• Fish processing plants for freshwater fish mainly for export in Kisumu, Homa Bay, lake Naivasha, Lake Jipe, lake Challa, Tana river dams and Turkana.
• Small vans and cold storage vans.
Marine fish: Kenya produces about 6,000 metric tonnes of marine fish annually. It, however, has the potential to produce up to 260,000 tonnes.
Aquaculture: There is a large unexploited potential for aquaculture to supplement the capture of marine resources.
Tuna: At the moment Kenya has only one tuna factory that produces cooked frozen tuna loins for further processing in EU countries. Investment in a fully-fledged tuna processing factory is therefore needed.
Livestock Sector in Kenya
Livestock sub-sector contributes about 10% of the GDP and accounts for over 30% of the farm gate value of agricultural commodities. The population of major livestock species in 2009 was 40 estimated at 17.5 million cattle,17.1million sheep,27.7million goats, 2.9 million camels, 334,689 pigs, 25.7 million indigenous chicken, over 6 million commercial chicken, and 1.8 million beehives.
Livestock farming is practiced in all parts of Kenya either under the pastoral extensive system in the Arid and Semi-Arid Lands (ASALs) or under intensive, ranching and smallholder systems. The pastoral and commercial ranch systems traditionally
contribute to the supply of beef and small stock meat.
Livestock production in the ASAL accounts for nearly 90% of the employment opportunities and nearly 95% of the family incomes. The ASAL region contains 24 million hectares of land suitable for livestock worth Kshs 173.4 billion, with an annual turnover of Kshs 10 billion. However, production still falls far below potential due to a number of challenges that must be addressed if the region is to
achieve the national goals and the MDGs. Some of the key interventions that will be given priority are investing in abattoirs and beef processing units in pastoral areas and investment in hides and skins processing in Northern Kenya. Investment opportunities exist in the following areas;
1. Development of Disease Free Zones,
Under the vision 2030 at least five disease-free zones will be established to revive the livestock sector and turn Kenya into an exporter of high-quality beef and other livestock products. The project involves eradication on zonal basis of Foot and Mouth Disease (FMD) and Contagious Bovine Pleuropneumonia (CBPP) with the acquisition of the recognition of free status by the World Organization for Animal Health (OIE). Six zones have been identified with the first priority zone being Zone 1 in the coastal region of Kenya and which has a population of 2.7 million persons who rear 600,000 cattle, 200,000 sheep and 1,000,000 goats.
Zoning is a “public good” investment where Government will be the lead agency financing the animal health control and product safety aspects and in creating the right environment for the private investors in the meat and dairy value chains. The available investment opportunities to the private sector include meat and milk production, processing and international marketing of the commodities emanating from the zones.
These flagship Projects are expected in total to have an impact of over 8% GDP growth rate per year. Zone 1 will produce annually an additional 48,000 MT of meat, 5 million of milk and 160,000 hides. The available markets which have indicated the possibility of importing Kenya’s meat and Milk, once safety and health conditions have been satisfied, are Israel, Qatar, United Arab Emirates, Iran, South Africa, Malaysia, European Union and Allana Company of India.
Kenya has started with Zone 1 in the coastal region and will progress to other regions in the coming years such that all the targeted 5 zones in Kenya Vision 2030 are realized or surpassed.
Some of the major tasks accomplished or on-going in zone 1 include:
a) Zoning proposal development
b) Policy/legal review on zoning
c) Identification of diseases for consideration
d) Cost/benefit analysis of zone 1
e) Strategic Environmental Assessment of Zone 1
f) Rangeland resources baseline survey for zone 1
g) Target disease baseline survey for zone 1
2. Meat industry
Investment opportunities exist in the following areas;
a) Beef processing units to be put up in major production area such as Nakuru
b) And Eldoret in Rift Valley Province.
c) Poultry and Pig processing; at present commercial poultry processing are
d) Almost under monopoly. There is an opportunity to set up a second large scale
e) Production and processing facilities in order to supply chicken and pig
f) Products at affordable prices to the Kenyan consumers and Export market.
g) Game meat; this is a new area, which has a very wide investment scope such
h) As in ostrich farming, crocodile farming among other emerging livestock
i) Opportunities which have proven to be profitable.
j) There is investment potential in deep-sea fishing (for prawns, lobsters, Tuna etc) prawns, farming, fish filleting, and fish farming.
3. Animal feeds and mineral supplements
The cattle population in the country is estimated to be over 13 million heads requiring a substantial amount of animal feeds. There is also an inadequate and uneven distribution of mineral supplementation. There is, therefore, potential in production, purification, and packaging of mineral nutrients and fabrication of milling and pelleting equipment.
4. Dairy industry
Production of milk surpasses the demand at peak seasons leading to a heavy loss and shortage during a dry spell in the country. In Nyandarua District, there is a potential in investing in processing milk into powder for local market and export. There is untapped potential in goat milk processing in the Mt. Kenya region e.g. Meru and camel milk processing in the Eastern and North-Eastern provinces e.g. Garissa and Isiolo.
5. Improved Breeding Programme
With an increased demand for livestock products in the export market, there will need to improve the livestock breeds to increase the quality and productivity of animals for better prices. This offers investment opportunities in:
i. Breeding materials in poultry production. The ever increasing demand overwhelms the production capacity of the available hatcheries.
ii. Superior livestock breeding materials and breeding services to increase quality and productivity.
Boosting The Livestock Sector in Kenya
Many initiatives have been started to improve the livestock center in Kenya:
• Pan-African Tsetse and Trypanomiasis Eradication Campaign Programme
• National Agriculture and Livestock Extension Programme (NALEP) which deals with institutional setting and extension approaches.
Phase one started in July 2000. NALEP has been implemented through the Ministries of Agriculture and Livestock. The objective is to assess the impact and prepare for phase two. An assessment was done in 2006 in four provinces, Central, Nyanza, Eastern and Western
The smallholder Dairy Programme is aimed at increasing incomes in poor rural households that depend on production and trade in dairy products, while the ASAL Livestock and Rural Livelihood Support Projects is designed to improve the livelihoods of communities through improved incomes. The project is funded by the Government and African Development Bank and implemented by the Veterinary Services and Livestock Production departments. The beneficiary contribute at least 20%of the cost of their projects.
The Kenya Agricultural Research Institute (KARI), International Livestock Research Institute (ILRI), Kenya Camel Association, the University of Nairobi and the Ewaso Nyiro North Development Authority are the main collaborators.
The improvement of livestock production projects aims to increase carcass weight and boost livestock health. The focus is on the local breeds and others suited to local breeds and others suited to tropical conditions. They include the Boran and Sahiwal cattle, Galla and small East African goats, Black Head Persia, Red Maasai and Dorper Sheep.
Agricultural Sector in Kenya
Agriculture is the mainstay of the Kenya economy with great potential for growth. It currently accounts for 24% percent of GDP. More than a third of Kenya’s agricultural produce is exported and account for about 60% of Kenya’s total exports. The vision for the agricultural sector is to be innovative, commercially oriented and modern. Agriculture offers the following investment opportunities.
1. Production Infrastructure
The country has enormous water and land resources to produce own food. Poor infrastructure contributes significantly to low food production and accessibility throughout the year. Massive investment opportunities exist in the development of multipurpose dams and irrigation infrastructure. Kenya has vast irrigation potential estimated at 540,000 ha of which only about 105,000 ha is exploited. Feasibility studies have already been completed for the following multipurpose dams: High Grand Falls, Mwache multi-purpose dams, Nandi multipurpose dam, Kiserian and Maruba dams in Machakos, Badasaa in Marsabit, Chemasusu in Baringo, Umaa
in Kitui , Nzoia dams ( Upper, Middle and Lower) in Bungoma, Thwake in Makueni, Yattta in Machakos, Koru in Nyando, Magwagwa in Sondu and Mwache Dam in Kwale.
2. Market Infrastructure:
Only 10% of Kenya’s fresh agricultural produce finds its way into regional and other global markets with most of it consumed locally. However, due to the perishability nature of these products, producers and marketers incur post-harvest losses ranging between 30 – 75%. This is basically due to poor transport networks, low-value addition, lack of storage and preservation facilities among other factors. There is, therefore, the enormous potential for investment in post-harvest management facilities; grains storage; cold storage facilities; value addition; and warehouse receipts.
3. Value Addition
Potential exists for investment in value addition. This entails setting up of small to medium scale industries for value addition in several agricultural commodities including Tea, Coffee, and fruits aimed at the production of branded value-added products.
Investment Opportunities in Specific Crops
4. Sugarcane Development, Processing, and Cogeneration
Kenya Domestic production is 520,400 Metric Tons against a demand of 743,000 metric tons with a deficit of 222,600 Metric Tons, which is met through imports. Main areas of sugarcane production include South Nyanza, consolidation of Nyando sugar belt and expansion of sugar factories in Western Kenya. Potential area available is between 1,000 to 15,000 hectares of land suitable for cane development and establishment of sugar processing, especially in Busia County. Further sugarcane development potential exists in the coastal region especially south coast and the Tana delta (LAPSSET- Lamu Port South Sudan Ethiopia Transport Corridors). Tied to sugarcane development is the potential expansion of milling capacity, power alcohol production, electricity co-generation and other diversified by-products.
There are investment opportunities for increased trade and investment in Kenya tea industry in the area of tea trade and value addition. The main areas of investment in value addition include various branded teas, decaffeinated, instant, flavored, iced and specialty teas (herbal, orthodox, green, purple, white, organic) and Packaging.
Investment opportunities are in the establishment of a National Coffee Roasting and Branding Plant for the Kenya Coffee Marketing Cooperatives as well as the establishment of an Instant Coffee Processing Factory.
The cotton industry is currently being revitalized in Kenya and there are enormous investment opportunities in research and seed production, ginning, value addition, textile, and apparels.
Tied to this is an investment in commercial production of cotton and Cotton Gauze Factory; establishment of Cotton Gauze Manufacturing Plant, and establishment of Cotton Sanitary Towels Manufacturing Plant.
Kenya produces 110,000 Metric Tons of rice against an annual consumption of 420,000 Metric Tons, leading to a 310,000 Metric Tons deficit met through imports. The potential to invest in rice production is enormous in terms of capacity building and infrastructure development in order to boost production. Investment opportunities exist in expanding land under Rice cover, with a potential of 800,000 hectares under irrigation and 1.0 million hectares under rain-fed rice production.
Transport and Infrastructure Sector in Kenya
Infrastructure investments require enormous financial resources that cannot be adequately met by public sector finance. The government of Kenya is, therefore, seeking private capital support for investment in the areas identified below.
1. Development of a Duty-Free Port/Special Economic Zone at Dongo Kundu
Development of a duty-free port/special economic zone within Mombasa at Dongo Kundu is one of the priority projects under vision 2030. A total of 3000 acres of land is available for investment in Dongo Kundu, south mainland. The Government is funding a feasibility study and a master plan from June 2010 for the next 12 months. The actual implementation of the project will be done under a public-private partnership framework. Therefore investors are welcome to participate in the actual infrastructure development and the operations of duty-free port/special economic zone.
2. Development of Cruise Ship Facilities
Kenya as a tourist destination has few cruise ship experiences despite being endowed with a long coastline in the Indian Ocean. There is great potential for more cruise ships that may connect Mombasa, Lamu, Zanzibar, Dar-es-salaam, and Seychelles. There is also great potential in Lake Victoria. Opportunities exist for the development of cruise ship facilities at both ports of Mombasa and Lamu, which have a high economic potential given that 75% of tourists are normally destined for the coast. Design of the proposed cruise terminal in Mombasa has been carried out and is ready for implementation.
3. Development of Airport Infrastructure and Services
A study done in 2005 on private sector participation in airports infrastructure and services in Kenya showed some airstrips situated in tourist circuit areas of Masai Mara and south coast of Mombasa can be viably developed on Build Operate and Transfer (BOT) or Build Operate and Own (BOO) terms.
4. Development of a Dry dock Port and a Car Bazaar
The new mandate of Kenya Railways is the management of non-conceded assets. It has plans to develop a concept which is aimed at the establishment of a dry dock port and a car bazaar on a 100-acre piece of land at Voi, 100km from the port of Mombasa. The features of the proposed car bazaar will include storage and clearing facilities for imported vehicles, facilities to store and sell cars to prospective customers and support facilities/amenities e.g. offices, banks, hotel, and restaurants. Investors are welcome to partner with Kenya Railways in this venture.
5. Construction of a Second Port at Lamu and a New Transport Corridor
A second port is needed to sustain the growing need for access to sea brought about by the heavy demands of south Sudan and landlocked Ethiopia. It has been recognized for a long time now that Kenya as the principal gateway to sub-region needs an alternative port. The government is financing a feasibility study for corridor development and a port master for Lamu port within the next ten months. Investors are welcome to participate in infrastructure development under BOT arrangements. The cost of implementing the project is USD 5,300 million. The cost for short term plan including the first 3 berths is USD 664 million. The expected Internal Rate of Return will be 23.4%
6. Development of a New Transport Corridor from Lamu
If a second port is developed in Lamu, a new transport corridor that will provide sea access to Northern Kenya, South Sudan, and Ethiopia will be required and comprise of a railway line, oil pipeline, airport, and a road. This will assist in meeting the demand for transport and tourist recreational services in line with Kenya’s Vision 2030. This is a good opportunity for investment.
7. Development and construction of Malindi Jetty
This involves completion of the jetty. The part so far constructed is the access and the remaining part comprises of the jetty head where all operations of loading/unloading of goods take place including passengers use. Berthing of sea vessels is also expected once the jetty is completed. The works involve the construction of a reinforced concrete jetty approach and loading bays at the end of the existing 300m long approach deck. Both electrical and mechanical facilities will be provided for optimum operation of the jetty.
When completed the jetty will have a great impact in the following areas:
(i) The fishing industry will be greatly improved due to the provision of berthing and unloading facilities of bigger boats. With increased fish catches the likelihood of fish processing plants starting is high. This will result in job creation thus impacting positively on poverty reduction.
(ii) It is anticipated that there will be an increased number of tourists visiting Malindi which is already a prime tourist destination in Kenya. This will be due to the berthing facilities which can be used for marine sports including international sport fishing competitions.
(iii) The Kenya Navy, Kenya Police and Fisheries Department will be using the jetty’s berthing and mooring facilities while on security patrols along the coastline thus reducing chances of piracy attacks.
(iv) It will form an alternative route by sea from Mombasa and Lamu for transportation of goods and passengers.
(v) It will serve as a rescue facility in case of disasters such as the recent ‘Tsunami The project will be executed as design, build, operate and transfer.
8. Proposed Ngomeni Jetty and Sea Wall
The project is located at about 20 kilometers north of Malindi town. The works will involve the construction of a reinforced concrete jetty approach and loading bays, electrical and mechanical facilities will be provided for optimum operation of the jetty. It will also involve the construction of a seawall of the overall length of 500 meters. When completed the jetty will have a great impact in the following areas:-
(i) The fishing industry will be greatly improved due to the provision of berthing and unloading facilities of bigger boats. With increased fish catches the likelihood of fish processing plants starting is high. This will result in job creation thus impacting positively on poverty reduction.
(ii) It is anticipated that there will be an increased number of tourists visiting Malindi and its environs which is already a prime tourist destination in Kenya. This will be due to the berthing facilities which can be used for marine sports including international sport
(iii) It will enhance cultural tourism
(iv) It will form an alternative route by sea from Mombasa and Lamu for transportation of goods and passengers.
Phase I which involved the construction of the existing approach deck was completed in 1984 (this is 10% of the project). Site investigation for the proposed Phase II of the project was done in 1996/97. The design of Phase II and tender documentation was completed in May 2002.
Another site investigation needs to be done to reconfirm the site conditions after which it will be established if the design needs to be changed to suit any changes. This is because the last site investigation was done 14 years ago. Rehabilitation of the existing approach deck will also need to be done for it has deteriorated over the years.
The revised cost of the project is about Kshs.2.4 billion and construction will take three years to complete if there is no funding constraint.
Once completed, there will be berthing facilities for small and medium boats, loading and offloading facilities for goods and passengers which will also involve access of vehicles of up to 7 tons. Fishing, including sport fishing, would go on uninterrupted even during low tides. The huge traffic generated will in effect increase economic activities in addition to the provision of basic social services, hence reducing poverty.
Under the BOT agreements the investor should get returns on investments from levies on sea crafts, sport fishing facilities and fishing activities and other users of the facilities the investor is expected to recoup his investments after 15 years.
9. Construction of the standard gauge railway line from Mombasa to Malaba
The railway line from Mombasa to Malaba (Uganda Border) has never been upgraded since its construction in 1900. The Government has, therefore, made the decision to develop a standard gauge railway line. Towards this end, the Kenya Railways Corporation (KRC) completed feasibility in March 2011 and by end of July/August 2012, the preliminary designs for the standard gauge railway network will be completed. It is planned that construction of the railway line will be undertaken on Engineering, Procurement and Construction (EPC) arrangement and investors are invited to participate.”
10. Nairobi Metropolitan Mass Transport Programme
The Transport Strategy is to develop a Mass Rapid Transit system (MRTS) as part of the vision for an integrated multi-modal Mass transport system comprising a Bus Rapid System and a Light Rail System. The feasibility study has been completed and based on the demand assessment; nine corridors have been identified as suitable for the mass rapid transit system in the Nairobi Metropolitan Region (NMR), which covers an area of 32,000km2. It includes the districts of Nairobi, Kiambu, Thika, Machakos, and Kajiado and the County Governments of Nairobi, Kiambu, Machakos, and Kajiado. The investors are invited to participate in the detailed designs and development of the Bus Rapid System and a Light Rail System.
11. Modern Commuter Rail Service for Nairobi City
Kenya Railways Corporation is looking for investors to rehabilitate and modernize 100km of the existing rail system within Nairobi City, construct 6.5km of new track to the Jomo Kenyatta International Airport (JKIA), and modernize stations and other facilities. With a population of 3.5 million and 1.5 million daily commuters per day, Nairobi City has chronic traffic congestion, which can be solved by developing a modern rail transport system. According to the project’s feasibility study, the number of rail passengers is expected to increase from 5 million a year to 15 million a year at the completion of the project, which will have a capacity for 60 million passengers per year. Compared to minibusses, the project would provide faster and cheaper transportation. The project aims to replace the existing inefficient rail, signaling equipment, stations and locomotive-hauled coaches with modern and efficient rail infrastructure and passenger coaches with Multiple Unit technology, which is more suited to commuter rail operation. It will also enable rapid transport between JKIA and the Central Business District, further cementing Kenya’s capital city as the commercial hub of East Africa.
The total cost of investment for the project is estimated to be USD 335-million under a Public-Private Partnership (PPP) framework. The project is estimated to have an Internal Rate of Return of up to 17%.
12. Road sub-sector
Given the network size, traffic composition, and projected future growth rates, the demand for infrastructure investment in Kenya exceeds budgetary financing capacity. Off budgetary financing has, therefore, become of necessity in order to meet the challenge of the growing road traffic. Private sector participation in financing infrastructure delivery on commercially viable terms has been found to be critical in bridging the financing gap.
(i). Concession for Nairobi Urban Toll Road
Kenya’s ministry of roads is offering a concession to credible investors for the proposed Nairobi urban toll road. The project will involve the construction of overpass section through Nairobi Central Business District, extension of dual carriageway to the proposed ICT City at Konza, construction of four (4) interchanges, and tolling and maintenance operations for 30 years.
The project would reduce the transportation cost on the Northern Corridor route by 25%, and reduce travel time between the port of Mombasa and the hinterland by two (2) hours. Other benefits would include reduction of traffic congestion in and around the CBD, and expansion of spatial development opportunities for the greater Nairobi Metropolitan area. The feasibility study shows that the northern corridor concession 2 (Nairobi Urban Toll Road) that carries an average of 18,000 vehicles per day is one of the most viable sections for concessions. The toll road transverses Nairobi, Kenya’s capital city and regional economic hub for business, and is
the backbone of the Trunk Road System that links city bypasses and arterial roads to surrounding towns.
Scope of works
- Construction of 4-lane overpass (viaduct) and a flyover (5.9 km).
- Upgrading 2 km section to 8-lane dual carriageway
- Construction of 2-lane frontage roads on both sides of the viaduct (6km)
- Construction of facilities for non-motorized traffic and street lighting
- Construction of two mainline toll plazas and ramp plazas
- Extension of Dual Carriageway to Konza ICT City (7 km)
- Upgrading of Interchanges at Airport North Road
- Strengthening and capacity upgrades on existing 4-lane road section (27.2 km)
- Construction of remaining two Mainline and Ramp Plazas.
- Government contribution
- The government of Kenya is prepared/has made arrangements to provide the following enhancements to the project:
- Provision of Investment Guarantees
- Tax Exemption during development Phases I and II
- Financing for the Nairobi Southern Bypass
- Upgrading Machakos Turnoff – Nairobi Airport
- Provision of Land for Developments, ROW and Toll Plazas
- Relocation of Services and Utilities
(ii). Privatization of Weighbridges
The management of weighbridges is being privatized to allow the private sector to play a bigger role. The thirteen (13) weighbridges countrywide plus other mobile weighbridges are scheduled to be under private management. Five of these weighbridges are static and strategically located in Mariakani, Gilgil, Athi River, Webuye and Isebania. Other mobile weighbridges are situated in Eldoret, Kisumu, Malaba, Juja, Busia, Mtwapa, Isinya and Mai-Mahiu. Operation and Management of the weighbridges are considered by the Government as an area that is ripe for private sector investment.
Transportation in Kenya
Kenya has a number of travel options that offer safe and efficient domestic transport between the major cities and towns in Kenya.
Air Travel in Kenya
Kenya has a number of airlines that offer safe and efficient domestic flights between the major cities of Mombasa, Malindi, Kisumu, and Eldoret, as well as charter planes that fly to smaller cities, game parks, and northern Kenya.
Flight times between the major cities are an hour at the most. A popular domestic air travel route runs between Nairobi’s JKIA and Mombasa International Airport. Other domestic airports include the Wilson, Malindi, Eldoret, Kisumu, and Lokichoggio airports.
Some domestic Kenya flights can be booked online while others require local booking through a travel agent. Major airlines and charter airline companies that offer domestic Kenya air travel include Kenya’s national carrier, Kenya Airways, as well as Air Kenya, Fly540, JetLink, East African Safari Air Express (EASAX), African Express Air, and Air Uganda others. You are required to be at the airport an hour before departure for domestic flights. Nairobi is also the hub for regional air travel serving destinations in the COMESA region.
Bus Travel in Kenya
There is an excellent shuttle service to the airport and main residential suburbs, The main bus stage is outside the post office on Kenyatta Avenue. New Bus service in Nairobi is Citi Hoppa (yellow and green bus). This bus operates on most of the routes in Nairobi. The shuttle buses run regularly, every 10 – 20 minutes from the main bus stops (ask locally if unsure)The Sunday service at the time of writing operates only to Karen, but check the situation locally. There are plans to extend the service to Upperhill, Ngong, and Kileleshwa. There are also normal buses, which tend to be packed, and, matatus, which are cheaper (KSh 10 – 30, depending on how far you are going).
Taxi Travel in Kenya
Taxis are readily available for hire, found at the airport, outside the large hotels and at the shopping centers around town. Agree a fare first, Among taxi firms operating in Nairobi are Jambo taxis (tel: 020 822011), Hallo taxis (tel: 020 825469) and Edmar taxis (tel: 020 827296).
National Heritage and Culture Sector in Kenya
Kenya being a multi-cultural society endowed with a rich diverse cultural heritage, a lot of investment potential exists in the heritage and cultural area. Investment in these areas will also add value to holiday experiences. With a growing economy and tourism sector, there is an increasing demand for fresh entertainment options such as cultural heritage, clubs, theatres, traditional food restaurants, music, and an International Culture and Arts Centre.
The existing cultural outlets such as the Kenya National Theatre, the Godown Arts Centre, the Bomas of Kenya, Municipality Social Halls, Foreign Cultural Centres, Community Cultural Centres, Tourist Hotels that have continued to flourish during open-air national or social events unfortunately lack the capacity and thrust to provide an all-inclusive space for the development, harnessing, promotion and consistent dissemination of these cultural goods and services of Kenya in a comprehensive purposeful and respectful manner.
The following are some of the investment opportunities to promote culture and heritage;
1. An International Culture and Art Centre
Investment in a state of the art International Culture and Arts Centre for creative industries will provide a focal point for development, promotion, and dissemination of cultural information, education, skills and talents development, research and cultural enjoyment for Kenyans and international communities. This will market the country as a tourist destination through cultural tourism, and also enhance the cordial relationship and cultural exchange programs. The center is expected to be the melting pot for cultural matters at local, regional and international levels.
2. Building New Exhibition Galleries for the Nairobi National Museums
The Nairobi National Museum will require new, more relevant, engaging and exciting exhibitions. The new exhibitions will include cultural and natural artifacts, which will give a more comprehensive account of Kenyan culture and history. These displays will promote patriotism and national pride as well as be a major tourist attraction for domestic and international tourism. Other displays will include human origins (Kenya is a cradle of mankind), geology, the ecology of Kenya and artifacts. It is expected that by holding blockbuster exhibition events and having innovative and creative events around the various exhibitions throughout the year, the return to investment would be positive
3. Sports Facilities and Stadia
The government of Kenya recognizes the role played by young people in the process of national development. In respect, the government through the Ministry of Youth Affairs and Sports is inviting investors to invest in the construction and development of 30 regional sports stadia countrywide. The proposed investment will generate income to investors from fees and charges from the hiring of the facilities and advertisements and will create employment opportunities for the Kenyan youth.
The establishment of the International Sports Academy is one of the investment opportunities for excellence in training, research and consultancy service in sports. It will focus on skill development in Olympics sports, training of coaches, sports administrators and trainers. The academy will also have hostels and hotels, indoor sports facilities, administration blocks, pitches, and sitting terraces. Investors are invited to participate through a joint venture or PPP framework. The IRR for the investment will be 18.1%.
Manufacturing Sector in Kenya
The Government of Kenya in recognition of the role of the private sector in spearheading industrialization has put in place a policy framework to foster the creation of a conducive environment for private sector participation in economic development. Pursuant to this, the Government has designed suitable incentive packages and export promotion programs to attract investment in manufacturing in Kenya to tap the larger markets of East African Community (EAC) and Common Market for Eastern and Southern Africa (COMESA).
These include Manufacturing Under Bond (MUB), Export Promotion Zones (EPZs), and Value Added Tax Remission. Other incentives enjoyed include tax holidays, exemption from duty on machinery, raw materials and intermediate inputs as well as the removal of restrictions on foreign capital repatriation. In addition, Kenya has been designated as a beneficiary sub-Sahara African country to benefit from Africa Growth and Opportunity Act (AGOA). Under the AGOA initiative, Kenya’s manufactured products enjoy duty-free market access into the USA market. The Government has put in place measures to take full advantage of this arrangement.
Both foreign and local investors are encouraged to channel their resources towards the production of textile, leather, horticulture, fish, rubber, iron and steel products which can benefit under the AGOA scheme.
Kenya offers numerous investment opportunities in, agro-processing, agrochemicals, chemicals, pharmaceutical, mining and mineral processing, metallurgy, engineering, and construction industry.
Kenya has no generalized incentives schemes governed by an industrial development law. Certain fiscal incentives may be available on a case-by-case basis. To encourage industrial development the Government allows an investment allowance of 150% for investments located outside Nairobi, Mombasa, Kisumu, and Eldoret (35% in Nairobi and Mombasa) on the plant, machinery, buildings, and equipment in the first year of business. This is also applicable to the hotel industry. The allowances are given as tax deductions in the year of expenditure.
Depending on the earnings of the business, the investment allowance can produce a tax-free holiday of several years.
1. Development of Industrial and Manufacturing Zones
In order to harness the resources available in different parts of the country, region-specific industrial and manufacturing clusters will be promoted. Necessary infrastructure and services will be provided to stimulate the development of these clusters. Investment opportunities exist in the development of Industrial Parks including Small and Medium Enterprises (SMEs) Parks and Export Processing Zones (EPZs) which offer a range of fiscal incentives that help in reducing start-up and operational costs thereby making exporters internationally price competitive. The investor will recover his/her investments either through rent or selling the units.
Potential location for Industrial Parks includes Nairobi due to its proximity to most important markets, Eldoret due to its location in high-potential agricultural areas and access to the airport, Kisumu due to access to the regional markets and availability of raw materials such as limestone (Koru), chemicals (e.g. ethanol from sugar factories).
Special Economic Cluster (SEC) will be set up in Mombasa to allow for the easy importation of necessary raw materials and exporting of finished goods. The project will include an agro-industrial zone incorporating activities like blending and packing of fertilizers, tea and coffee, and a consolidated meat and fish processing facility. The second SEC will be located in Kisumu to allow for access to regional markets and availability of limestone to support cement, chemicals and metal industries; agro-processing through increased horticultural production along the lakeshore.
2. Development of Small and Medium-Enterprises (SME) Parks
SME industrial parks in key urban centers will be developed. This will entail the development of High Tech Parks which will be set up in Nairobi because of proximity to a most important market, Eldoret because of the location to high-potential agricultural area and access to the airport, Mombasa, Kisumu, and Nakuru.
3. Micro and Small Enterprise (MSE) 2030 Initiative Project
The Government is in the process of developing centers of excellence for micro and small enterprises (MSEs) to promote the transfer of technology, build capacity and market MSE products. The centers will be developed in each province, with specialization in the given subsector of the MSEs. Due consideration will be made to the resource endowment in each region.
The land has been set aside for MSEs operators across the country. Most of these sites are partially serviced and have great investment potential for private investors. To revolutionize and modernize the MSE sector, concerted efforts are required towards upgrading the following sub-sectors; agro-processing such as fruit processing, essential oil extraction, vegetable processing and cereal processing, animal products and fish processing, milk and meat processing, hides and skins and fish products. Other areas are chemical, electrical and electronics, building and construction, metal and metal works and motor vehicles accessories. These present major investment opportunities.
4. Tyre Manufacturing Plant
The country currently has only one tire manufacturing facility i.e. Firestone (E.A.) Limited. Another tire manufacturing facility would be a feasible proposition.
5. Agro-processing industry
The government has created an enabling environment for agro-processing by both local and international investors in urban and rural areas. Kenya is a member of regional trading blocs (i.e EAC and COMESA) and signatory to various trade protocols that enable Kenyan businesses to participate in international trade competitively. It has a thriving private sector that can service any business and offers stiff competition to ensure high standards are maintained. Agro-processing is a lucrative business venture in Kenya in the processing of tropical fresh foods, fruits, and vegetables. There is a guaranteed source of raw materials, cheap labor, unexploited local, regional and international markets for products and the ever-growing demand for foodstuffs.
(i). Processing of White refined Industrial sugar
Refining of industrial sugar is an area of great investment potential. It is a critical input in the food, beverage and pharmaceutical sectors. Currently, it is imported. There is a large market for the inputs and the demand is growing.
(ii). Processing of Fruit Concentrates
Fruit processing is an industry, which is growing. Kenya produces only two types of concentrate namely pineapple and mango. The rest of the concentrates are imported outside the EAC region. There are investment opportunities in the processing of other concentrates.
(iii). Vegetable Oil Processing Industry
In some areas in Kenya, oilseeds are grown commercially. This requires a very strong oilseed processing industry to utilize the products and to sustain local production of oilseed. This presents investment opportunities. Cashew nuts: Establishment of cashew nut processing factory at Kwale in Kenya’s South Coast. A facility with the capacity to process up to 20,000 tons of raw nuts per year. Up to 85% of the output will be for export. An earlier facility at Kilifi (North Coast) has closed down due to mismanagement. This was processing 15,000 tons of raw nuts per year. Soya Bean: There is huge potential for the creation of joint ventures for processing of vegetable oil.
There is ample scope of investing. Processed horticultural produce consists of a range of products. These include Frozen: French beans, snow peas, Juice concentrates; Canned products: Baby corn, Juices, Jams, Marmalade, Pineapple Slices, Pickled Cucumbers, Mango Slices, etc; Dehydrated products: Cabbages, Onions, Carrots, etc. Most of the processed products have been canned, dehydrated or preserved in brine water. However, the market trend is shifting from canned to frozen products. Facilities for freezing of popular fruits and vegetables for export by sea need to be introduced.
7. Development of Tanneries
Currently, the country has 13 tanneries mostly processing 88% of hides and skins up to wet blue and 2% finished leather. The remaining 10% is exported in raw form. Most of the tanneries are located in Nairobi and its environs, far from the livestock rearing regions. The finished leather is used to make shoes and other leather products locally. The main shoe factories produce approximately 1,000,000 pairs of shoes annually while the informal sector produces 3,000,000, making a total of 4,000,000 pairs of shoes. However, the national demand for shoes is estimated at 28,000,000 pairs per annum. Therefore, there is a demand gap of 24,000,000 shoes costing the nation Kshs. 12 billion and 10,000 lost jobs and revenue annually.
This scenario is replicated across the Eastern African region showing that the development of leather clusters will be able to serve not only Kenya but also the entire region. Furthermore, footwear constitutes the most valuable product under the leather value chain, but Kenya’s domestic production falls short in catering to the domestic as well as international demand for the same. The top four provinces in livestock production are Rift Valley, Eastern, Nyanza and North Eastern in descending order. Rift Valley province alone accounts for 34.4 percent of beef cattle available in the country. (KIPPRA Study Report on Cluster Analysis for enhancing productivity
and Competitiveness of the Kenyan Economy 2010)
The Location of Kenya gives her a major comparative advantage in the raw materials sector needed for the leather sector which makes it in principle very appropriate for leather product exporting: All Kenya’s neighbors keep a healthy population of livestock with Ethiopia boasting the largest livestock production in Africa and the 10th largest in the world. Development of the Garissa and Kajiado meat and leather industry requires approximately Kshs 7.112 billion of which 5 billion is for infrastructure development. The proposal, therefore, seeks Kshs 2.0 billion from the Kenya Government / Development Partners to kick off. According to a report by the Kenya Leather Development Council, the potential of the leather sub-sector in Kenya is worth approximately Kshs 100 billion, if the leather is processed and converted into finished products locally.
The government of Kenya, therefore, invites interested investors to set up tanneries in the country, especially in Garissa and Kajiado counties.
Hides, Skins and Leather industries: Various potential areas of interest have been identified and recommended due to wide collection, proximity to catchment areas and high yielding neighboring countries where the raw material can easily be sourced. These areas are;
- – Eldoret (which can capture the whole of the North Rift Valley and western)
- – Kitale (to capture raw materials from Western, Nyanza, North Rift Provinces and
- – Kisumu (to capture raw materials from Western, Nyanza, Uganda and Tanzania)
- – Mariakani (to capture raw materials from Coast, North Eastern, and Tanzania)
- – Sagana (to capture raw materials from Central province and Eastern)
- – Athi River and Njiru (in Nairobi suburbs to capture the National flow).
In these areas, there is land, assured raw material availability and also willing Kenyans who are ready to partner with potential investors. Sole investment opportunities are available in leather processing, footwear, and leather products.
8. Textiles and Clothing Sector:
Potential to invest in garments manufacture for exports to the US under the AGOA facility. Investments aimed at reviving and or rehabilitation of the closed textile mills ranging from spinning, weaving, and garments making for local and export markets. Opportunities also exist for the revival and or rehabilitation of the cotton-growing irrigation schemes. Potential exists for the establishment of a synthetic fibers’ plant to utilize the chemicals available at the petroleum refinery plant at Mombasa; Investment in dye manufacture, starch production, and spare parts manufacture, which are currently imported; and Fabrics manufacture to replace
9. Chemicals industry
(i). Manufacturing of fertilizers
Fertilizer is one of the major farming inputs in the country and it is widely used. Kenya and the Eastern African region do not have a fertilizer manufacturing plant. All fertilizers used in the region are imported.
Kenya’s annual fertilizer consumption is 532,000 Metric Tons. There is potential to increase this to over 1 million Metric Tons to increase agriculture productivity. A feasibility study is complete which proposes three types of plants that can manufacture 350,000 Metric Tons of fertilizer per year locally. The options include; CAN only, DAP only and a combination of CAN and DAP at an investment cost of 278 million USD, 115 million USD and 393 million USD respectively.
Through the fertilizer cost reduction initiative identified under the Vision 2030, a fertilizer manufacturing and blending plant in Mombasa and Nakuru to serve the local and regional demand would be a feasible investment opportunity to be undertaken under Public-Private Partnership.
There is also potential in the following areas:-
- Establishment of an inorganic fertilizer plant in Mombasa to manufacture DAP, CAN, NPK using imported intermediate inputs
- Organic fertilizer manufacturing plant in Nairobi
Kenya is endowed with huge quantities of organic wastes which have not been fully utilized for enhanced agricultural production and business opportunities. The organic wastes from pit latrines and those from household and agricultural produce markets can be harnessed for recycling into organic fertilizers. Bat guano which can be incorporated during the recycling of organic wastes due to its high contents of nitrogen and phosphorous occurs as a loose, fine brown powder in Rift Valley and Eastern Province. The plant is expected to produce basal, top dressing and organic fertilizers appropriate for Kenya and Eastern Africa Region.
- Establishment of a bio-fertilizer plant in western Kenya (Mumias Sugar Co. Ltd) to utilize bagasse and wastes from timber industries.
- Production of nitrogen-fixing microorganisms such as Rhizobium which can be used in leguminous plants to increase crop yields.
(ii). Dyes for textiles industries
There are investment opportunities in the manufacture of dyes which are important for the textile industry.
(iii). Value addition in Pyrethrum and other plant Value plants
Kenya produces a lot of pyrethrum which is exported in a semi-processed form or as dried flowers which fetch little money in the world market. Opportunities exist in processing the plant into a final product. In addition, there are opportunities for manufacturing of Insecticides and fungicides using some imported ingredients mixing with locally available filler materials such as soapstone, limestone, and clay for the local and export market.
The processing of Neem tree extract as a source of raw material should also be explored. The tree is being promoted by ICIPE in Kenya and it has been found that the extract has pesticidal properties. The Aloe Vera, which has been proved to have medicinal value, grows naturally in the arid and semi-arid areas of Kenya such as Baringo, the Coast, Laikipia, Nanyuki. Commercial farming of Aloe Vera is now practiced in Laikipia and Baringo. However, most of the raw Aloe Vera is exported raw for processing to the EU and Asia.
All these plants offer a very promising area of investment since the extract are a natural organic substance that is biodegradable and hence poses less danger to the environment due to less persistence.
10. Manufacture of Cement
Currently, Kenya has three cement plants namely: Bamburi Portland Cement Company (BPCC) in Mombasa, Kaloleni Lime Cement works Ltd in Kaloleni, Kilifi and East Africa, Portland Cement Company Ltd (EAPCC) at Athi River. The current total capacity for the three cement producers is far much below demand. This sector is identified as one of the core industrial sectors, with ample scope to boost the other sectors of the economy, especially in the building and construction industry. There is a growing demand of cement from within and from outside the country from places such as Southern Sudan, Rwanda, and Burundi. There is a need for additional investment to cover the existing gap. New areas with investment opportunities in this sector are West Pokot, Koru (Kisumu), Athi River and Shimoni in Coast Province. The market for this sector is both local and also exports to EAC and COMESA countries.
11. Sheet Glass Production
Currently, Kenya has no sheet glass plants. There is a growing demand for sheet glass due to increasing construction activities. Kenya has the capacity to produce sheet glass because there is Soda Ash production at Lake Magadi. The market for this will be local, for EAC and also COMESA countries. The location for this industry which is viable is Magadi and Machakos.
12. Salt, Sulphur, Lime, and Cement:
Potential projects in these areas include the following:
Koru: Vast amount of limestone exists in Koru area of Western Kenya. Currently, only a small portion of the lime deposit in Koru is being exploited. The limestone deposits in Koru are contaminated with about 2% phosphate, which must be removed for quality cement manufacture.
The phosphate so obtained could be used as a fertilizer directly or be blended with other elements to manufacture compound fertilizers. Thus the Koru limestone deposits could be harnessed to produce fertilizer.
Shimoni: The south coast of Kenya is endowed with abundant coral limestone deposits that can be harnessed to produce quality cement. There is a potential for a cement factory with a capacity of 600,000 tonnes per annum.
Other potential investment areas include using cement in the paving of the country’s roads. This would raise the demand for cement, hence the need for more cement plants.
13. Plastics and Rubber Products:
Investment opportunities exist in the following areas: Manufacture of quality electrical appliances like sockets, plugs and automotive plastics spares, so as to replace imports, and since the use of such items is on the increase; Manufacture of household wares like plastics kitchenware; Manufacture of petroleum-based chemicals used in production of synthetic fibres for textile industry; Manufacture of plastics spares and housings for electronics industry.
14. Motor vehicle components manufacturing
There are investment opportunities in the manufacturing of motor vehicle components. There is a big market for vehicles in the EAC and COMESA regions.
15. Iron and Steel Industry
Kenya has large quantities of iron and steel that could be exploited for commercial ventures. Large deposits are found in Kitui, Taita Taveta, Homa Bay and Kakamega. An Integrated Iron and Steel plant With Billet Casting Facility: The total requirement for billet would be over 300,000 tons per annum by the year 2030. To meet these demands consideration should be given to the establishment of an integrated iron and steel plant with Billet Casting Facility to feed the existing rolling mills in the three East African countries. Billets will be supplied to downstream mills in Tanzania, Kenya, and Uganda. Billets, blooms and finished products can be exported to Mauritius, Madagascar and neighboring countries which are COMESA countries like Mozambique and Zambia.
16. Manufacture of Aluminium Cans
In Kenya and East Africa region, all cans for use in packaging of canned beers and soft drinks are imported. Consumption of canned beverages is becoming very popular. Export of Kenyan beers in bottles is being hampered by the limitations of glass, which include bulkiness and breakages. The production of beers and carbonated beverages in Kenya has grown tremendously over the years. Investors are invited to put up an aluminum canning plant, which can also cater for the needs of Uganda, Tanzania, Mauritius, Rwanda, and Burundi.
17. Component Manufacture
Design and Local Manufacture of components and parts for use in the steel plants with capacities of 10-30,000 tons per annum which are very popular in the COMESA region is lacking. The rate of growth of steel mills in the region has been steadily rising pointing to an exciting business opportunity for whoever can supply such equipment with good spare part back up and after-sales services. Currently, these plants are being imported complete from India. There is no reason why at least some of this equipment cannot be produced locally.
18. Manufacture of Ductile Iron rolls
There is only one country (Egypt) which is currently producing such rolls in the region. Gauging by the over 20 mills in the country and the East Africa region at large, a great deal of business opportunity exists in this field.
19. Production of High Strength Reinforcement Bars
A hot-rolled square bar of mild steel, subsequently twisted when cold to produce the required strength is used almost exclusively in Kenya for concrete reinforcement purposes. This technology has completely been phased out in major steel companies in the world.
20. Production of casting sand/Molding
A majority of foundry industries in the country still employ sand casting techniques. The sand casting material is available in the country but has not been fully exploited for commercial purposes. Such a project would meet casting sand requirement for the whole spectrum of foundry industries in the country. Along with foundry sand is the design and production of dies and patterns. The import bill on spare-parts is still increasing due to the inability of local plants to produce them. A study to take stock of both industrial and agricultural spare parts requirements would be necessary, as this would form the basis upon which to set up a center or an institute to start mass production of components and replacement parts.
• Forgings to manufacture wagon wheel, railway components, axles, etc
• Powder Metallurgy components for auto-spares
• Foundry and Shops for the manufacture of pumps and motors
21. Machine Tool Industry
There is a big market in Kenya for the production of the following products: Industrial machinery and spares for agriculture, transport industry and workshop, pumps for irrigation, domestic waste handling purposes, equipment and hand tools for the building sector, metal and woodworking machine tools. The government is looking for a joint venture between local and foreign investors in the manufacture of high precision engineering capital goods; and industrial spares.
22. Manufacture of Medical Equipment
There are vast opportunities for investment in the manufacture of medical equipment including electro-medical equipment. Investment in such opportunities could be in the form of assembly with the target market being EAC and COMESA.
(i). Pharmaceutical plants
Possible areas of investment in this area include:
• Setting up pharmaceutical manufacturing industries which can produce drugs, ARVs, and Vaccines;
• Provision of production of medical gases and oxygen generators plants;
• Production of Medical Equipment and Maintenance;
• Provision of specialized diagnostic services e.g., DNA tests, MRI, Nuclear/radiologist tests and open heart surgery in specific centers.
• Multipurpose chemical plant for bulk production of intermediate inputs such as paracetamol, aspirin, etc.
• Chemical plant to manufacture the anti-tuberculosis, anti-leprosy, antibiotic rifampicin from the penultimate state.
• Manufacture of Quinine by extraction from Cinchona bark and subsequent purification and synthesis to Quinine sulfate.
• Extraction of Hecogenin from sisal waste and synthesis of Betamethasone from Hecogenin.
Once fully explored, these opportunities will lead to the production of adequate pharmaceuticals/nonpharmaceuticals, medical equipment and specialized services for use in the country and for export to EAC and COMESA market.
(ii). Raw materials for the pharmaceutical industry
Considering the majority of the inputs used for making pharmaceutical products are imported, there is a wide scope for investment in making these inputs available to EAC and COMESA market.
(iii). Manufacture of Male Latex Condoms and medical
The Government of Kenya welcomes with optimism any proposal that seeks to set up a factory to manufacture medical latex products including male latex condoms and gloves. The manufacturing facility should be a fully automated dipping line along with modern electronic testing and packing equipment with a modern laboratory. Kenya would then be the second country in Africa to manufacture male latex condoms and therefore, this initiative would be most welcome.
Currently, the Government is engaged in discussions on how to adequately provide incentives for this venture so as to ensure its successes and promote sustainable industrial development. This project would receive considerable attention within the Government, as a project of national strategic importance. The Kenya National AIDS Strategic Plan III 2009 – 2013 identified condoms as the most effective tool to combat HIV/AIDS prevalence.
The ICT sector in Kenya
The Information and Communication Technology (ICT) sector plays a crucial role in the Socioeconomic Development of the Country. The Government has recognized the importance of ICT as a powerful tool in accelerating the productivity of all sectors and empowering people to meet the challenges of the 21st century. To optimize the sector’s contribution to the development of the entire economy the government is currently offering investment opportunities to the private sector.
The ICT sector in Kenya provides investment opportunities in the following areas under the
Public-Private Partnership arrangement.
1. Data Centre and Disaster Recovery Centre
A secure information system requires a data center and recovery site. The government will partner with the private sector to build a National Data Centre (NDC) and a Disaster Recovery Centre to provide world-class services to both public and private sector operators.
The services to be provided will include disaster surveillance and management and early warning. The operations of the NDC will be managed and controlled from a Network Operations Centre (NOC) that will need to be established. The establishment of this data center will include site identification, construction of ideal premises, procurement of equipment and requisite services, and establishment of the NOC. The projects are expected to be undertaken through Public-Private Partnerships.
2. Deploying of Digital Broadcast Network
The government has developed the analog to digital broadcast switchover strategy by 2012. The government is proposing to initiate a public-private partnership for deploying a digital broadcast network to provide signals to broadcasters countrywide. This will improve the signal quality, and increase broadcast coverage area countrywide.
3. Rolling out of E-government services
The government is digitizing most of its services to improve service delivery. The government is, therefore, looking forward to partner with the private sector in PPP arrangement to roll out e-government services. Major areas include motor vehicle registration, pension services, judiciary case management, land registration, and many others.
4. Multimedia Technology Parks (MTPs)
The government considers the establishment of an ICT Park as a top priority since they have a significant potential to contribute to ICT infrastructure development in particular and enhancement of economic growth of the country in general. The government has already
identified the land where the first ICT Park would be established. This will be a Public-Private Partnership initiative where investors will be invited to venture.
5. Software and Hardware Development
The government is promoting locally produced software and hardware in order to help build skills and capacity in the assembly of the various hardware components into complete IT equipment. Because of the favorable fiscal policy environment such as tax holidays on ICT hardware, and the relatively low cost of domestic labor, it is anticipated that per-unit price of such locally assembled IT equipment will be relatively much lower than an imported one.
Investors are therefore invited to take advantage and invest in the development of software and assembly of hardware. Jomo Kenyatta University of Agriculture and Technology, University of Nairobi, Strathmore University and Kenya College of Communications Technology have been selected as “Incubation centers” to run this program.
6. Business Process Outsourcing Park (BPO)
The government is committed to market Kenya as a premier center of excellence in Information and Communication Technology. The government, therefore, plans to develop special economic zone in Nairobi that will be served by superior telecommunications infrastructures, affordable and readily available energy and that is easily accessible to international transport facilities. The Zone will encompass Multimedia Technology Parks, Malls, Office Parks, Industrial Park and Recreational Facilities among others. The special
economic zone is expected to provide opportunities that will stimulate Business Process Outsourcing (BPO) activities across the borders.
To achieve this, the government will partner with the private sector to construct a state-of-the-art ICT Park within the zone. This would, in turn, seek to transform the country into a major ICT hub particularly for the Business Process Outsourcing (BPO) which holds a huge potential for job creation and economic development. The parks will be used to promote locally produced software and hardware in order to help build skills and capacity in the assembly of the various hardware components into complete IT equipment.
The government has already identified 100 acres of land in Athi River which is only 30 Kms away from Nairobi City Central Business District. The area is along Mombasa road and is well served by transport telecommunications and energy infrastructure. This will be a Public-Private Partnership Initiative where international investors will be invited to venture. Investors are therefore invited to take this advantage and invest in hardware and software development locally.
7. Konza Technology City
Konza Technology City will be developed on a Greenfield site 60 km from Nairobi easily accessible via Mombasa-Nairobi Highway. Kenya’s Vision for the project centrally positioned within regional population hub of 110 million, is to create 200,000 jobs in business outsourcing services and related sectors over 20 years (to be implemented in Four Phases). Approximately 5000 acres of land for the project has been acquired and fenced. The estimated cost of Phase 1 (2012-2016) is USD 2.3 billion for both infrastructure and project development with investment make up of USD 1.3 billion. The Government will fund backbone infrastructure and master planning.
8. Development of International Teleport (Exchange Point) in Mombasa- Co-location Facility
Co-location facility of Communication Interchange including a Primary and Secondary Network operations Center that will manage both National and Regional Fibre Network and that aims at transforming Mombasa into an International Teleport (Exchange Point) such as London, New York, and Amsterdam is key investment opportunity. Posta Towers in Mombasa has been purchased for this purpose.
Energy Sector in Kenya
Electric power supply in Kenya falls far below the demand. This calls for private sector investment in power generation for sale to the national grid. The current peak electric power demand is estimated at 1,191 MW recorded in May 2011, up from 1105 MW recorded in the 2009 and 708 MW in 2000 and it is projected to grow at 7% annually over the next 10 years, to reach 2,263 MW by 2018.
This demand growth is driven by an accelerated consumer connection policy and anticipated robust economic growth performance. Annual Electricity consumer connections have continued to rise sharply over the last three years from 133,047 in 2007 to 309,287 customers as at June 2011. The Government’s policy is to connect at least one million new consumers in the next five years.
To meet this projected demand in electricity, the installed generating capacity will have to be raised from 1,534 MW currently to 1,860 MW by 2013 and to 2,263 MW by 2018. These supply projections have in-built reserve (security) margin of 15% above peak demand. This projected growth rate in demand will require corresponding increases in capital outlay to provide the needed incremental generation capacity and associated supply and distribution infrastructure.
It is envisaged that the private sector will play a key role in providing the required capital either on its own or through Public Private Partnerships. The projected growth in electricity demand, therefore, presents a golden opportunity to invest in the energy sector. Highlighted below are some of the priority projects that present immediate opportunities for private sector investments.
1. Transformer Manufacturing
In order to achieve the government’s objective of connecting one million customers in the next five years, a total of 20,000 transformers will be required. It is also estimated that an additional 2,000 transformers will require repairs annually.
This provides a very good investment opportunity for manufacturing and repairing of transformers. In addition, there exists a high potential for manufacturing of other related equipment such as switchgears, insulators and electricity energy meters. Indeed, the proposed factory for the manufacture of transformers will also benefit from both the EAC and COMESA markets. The transformer factory will trigger other related primary and secondary industries. The cost of setting up the factory is estimated to be USD 60 million.
2. Geothermal Development
The geothermal resources in Kenya are concentrated in the Rift Valley of Kenya with an estimated potential of between 7,000 to 10,000 MW. Out of this resource potential, 202 MW has been developed for electricity generation in Olkaria by the Kenya Electricity Generation Company (KeNGeN) – 150MW, Orpower4 (a subsidiary of Ormat International) – 48MW,and Oserian Development Company – 4 MW.
The government, under its economic blue print “Vision 2030” is targeting at least 5,000MW of geothermal by 2030, and has invested heavily to support scientific research, drilling and generation in order to develop the industry. It has been slow to develop geothermal in the past due to lack of private investment, with the major challenge for investors being the high upfront risks and the capital-intensity nature of energy projects.
10 The Geothermal Development Company (GDC) has pledges worth an estimated $400-million, which is 40% of the amount it needs for a 10-year plan to produce 2,000 megawatts (MW) of steam. To mitigate upfront risks for private investors, the company will undertake exploration and drilling for all fields and provide steam. The GDC has committed to enforce Power Purchasing Agreements (PPAs), and provide reasonable tariffs that can yield appropriate return on the investment. Previously it was challenging for companies to invest in the industry due to cumbersome entry procedures. The processes have now been simplified through the
establishment of a one-stop advisory and investment facilitation service at the GDC. There are many investment opportunities for potential investors ranging from supply of equipment and materials, development of steam fields and power plants and supply of early generation equipment to civil engineering and construction.
The Government intends to have a continuous drilling campaign to provide adequate steam for development of at least another 2000 MW for geothermal plants by the years indicated in the table below. The total cost of the project is estimated at $525 million with Expected Rate of Return will be 15.6%. Project Name Capacity (MW) Year
- Longonot I 70 MW – 2015
- Menengai I 400MW – 2015
- Menengai II 400MW – 2018
- Longonot II 70 MW- 2017
- Suswa I 70MW – 2016
- Akiira Ranch- Mt. Margaret 70 MW – 2015
- North Rift I (Arus-Bogoria) 400 MW – 2018
- North Rift II (Silali-Paka) 700 MW – 2020
3. 300 MW Coal Fired Plant
The Government of Kenya plans to establish 600 MW coal power plant in the coast region. The plant will require about 2.2 million tonnes of coal per year, part of which will have to be landed at the coast. The government has identified a suitable parcel of land in Kilifi District near the coastline and is in the process of procurement. There is therefore an investment opportunity in a coal handling facility and coal power plant. The coal handling facility can also be used to serve other coal users such as cement factories in Kenya and the region.
4. Coal Exploration and Exploitation
The Government of Kenya is currently carrying out coal exploration in the Mui basin, Kutui County since 1999. The basin covers an area of approximately 500km2 and is situated about 180km North East of Nairobi. The main objective of the exploration is to identify, quantify and establish the quality of the coal reserves. The basin was sub-divided into four (4) blocks (designated as A, B, C and D), as shown in the table below to fast track the investigations.
- A (Zombe-Kabati) 121.5 sq km
- B (Itiko-Mutitu) 117.5 sq km
- C (Yoonye-Kateiko) 131.5 sq km
- D(Isekele-Karung’a) 120.0 sq km
Seventy wells have been drilled in the basin so far with depths ranging from 65 metres to 455 metres and coal seams encountered in forty(40) of the drill holes. Coal seams of varying thicknesses have been encountered in depths ranging from 20 metres to 320 metres below the ground.
Due to the encouraging preliminary results, the Government commissioned detailed studies in Block C to estimate the commerciality of the coal reserves. The coal reserves in Block C have been found to be at least 400 million tonnes. Coal sample analysis carried out has established the coal ranks from lignite, through sub-bituminous to bituminous with average calorific value of 18MJ/Kg. Coal bed methane occurs along the coal in some of the drill holes.
The Government is in the process of finalizing concessioning of the four blocks to bidders who expressed interest and forwarded Request for Proposals (RFP) to undertake further investigations and develop the coal and coal bed methane resources.
The Ministry of Energy has also started reconnaissance exploration for coal in the Karoo system in Kwale, Mombasa and Kilifi Counties in the Coast region. The three counties, among others, share the Karoo system, which extends from South Africa through Botswana, Zambia, Zimbabwe, Mozambique, Malawi, and Tanzania into Kenya, and is well known for high-quality coal.
5. Small Hydropower Development
The Ministry of Energy is keen on promoting the development and utilization of small hydropower. The estimated theoretical potential of small hydropower is about 3,000 MW. Studies are done so far to identify the sites have reviewed about 300 sites with a potential of about 600 MW.
The studies are still on-going and site assessments have been done in the five drainage basins of Tana, Athi, Lake Victoria, Rift Valley, and EwasoNgiro North. In its effort to increase installed small hydro capacity, the Government has been assisting investors and developers with resource assessments and feasibility studies. In 2009/2010 financial year, the Government undertook feasibility studies for development of small hydropower for tea factories in 12 sites and their arrangement for their development are ongoing to generate 12 MW.
Further, the Ministry commenced another feasibility study for other 14 sites and the study is almost complete, and investors will be invited to express interest to develop the power stations. Development of such schemes by private investors has been facilitated by the establishment of the Feed-in Tariffs (FITs) policy, which was launched in April 2008. The FITs policy allows power producers to sell and obligates the distributors to buy on a priority basis all renewable energy sources generated electricity at a pre-determined fixed tariff for a given period of time. For small hydro, the tariff ranges from 8-12 US cents, depending on the size of
6. Renewable Energy
Increased use of solar and wind energy for industrial and domestic use will promote the use of environmentally friendly technologies which will help in water conservation and protection of water catchment areas. In addition, they will also reduce the dependency on oil-based energy sources
1. Solar Electricity Generators
Kenya lies astride the equator and has an average annual installation of between 4 and 6 kilowatt-hours per square meter per day. A vibrant solar energy market has developed in Kenya over the years for providing electricity to homes and institutions remote from the national grid, and for medium temperature water heaters for domestic and commercial usage.
A preliminary survey was done in 2005 established that the annual market demand for Photo Voltaic (PV) panels was 500-kilowatt peak (KWP) and this was projected to grow at 15% annually. A government program which commenced in 2005 to provide basic electricity to boarding schools and health facilities in remote areas has increased the annual demand for PV panels by 200-kilowatt peak.
Out of approximately 3,000 eligible institutions, 744 have been equipped with PV Systems with a combined capacity of 1.65 megawatts peak in the last seven years. Another 46 institutions are earmarked to benefit from the installation of PV Systems with a combined estimated capacity of 80 kilowatts peak. There is also the wider market provided by the other member states of the East African Community (EAC) and COMESA regions. It is estimated that the initial market demand for PV Systems is one-megawatt peak and this presents a great opportunity to investors in PV panels manufacture. An opportunity also exists for manufacture of associated components and accessories, such as charge controllers, inverters and PV batteries.
The Northern Kenya and other arid lands have strong reliable sunshine throughout the year thus providing high potential for investment in solar energy for sale to the national grid. Almost the whole of North Eastern province has this potential.
2. Wind Power Generation
Preliminary wind resource assessment shows that wind regimes in certain parts of Kenya (such as Marsabit, Ngong and the Coastal region) can support commercial electricity generation as they enjoy wind speeds ranging from 8 to 14 meters per second. This preliminary assessment has been used to develop a wind map for the whole country. To facilitate decision-making in
wind power generation investment, the government is undertaking wind data logging in high potential areas of Kenya. However, detailed feasibility studies would be carried out to determine the viability of specific sites identified in the wind map. The Kenya Government would, therefore, like to invite the private sector to invest in wind power electricity generation.
There are high wind speeds in various parts of northern Kenya and other arid lands. Specific areas that have been identified for wind power generation are Marsabit, Laisamis and Samburu. These areas have the potential to produce over 150 MW of wind power for sale to the national grid.
7. Bio-Fuel Production
Bio-energy is the energy derived from various sources of solids, liquids and gaseous biomass, including fuelwood, charcoal, ethanol, biodiesel, and biogas. Bio-energy is currently the focus of attention due to dwindling global resources of fossil fuels and rising prices. Their potential to mitigate climate change adds their attractiveness. Jatropha, a plant grown in arid and semiarid lands is seen as the best source of bio-diesel across the country. Consumption stood at 1.4 and 3.3 million liters of petrol and automotive diesel respectively per day in 2006 with an average growth rate of 2.8% per year. Projections indicate that Kenya will require 2.7 and 6.5 million liters of petrol and automotive diesel respectively per day by 2030. Currently, Kenya requires 77 million liters of ethanol per year for a national 10% (E10) blend at current consumption levels. This will need to grow to 148 million liters by 2030.
Opportunities in production and processing of Jatropha and sweet sorghum into bio-fuel exist in Galana and other areas of the country such as Eastern, North-Eastern, Rift-Valley and Nyanza Provinces. In addition, consultancy opportunities exist in research work and capacity building in biotechnology and related industrial potential for the production of bio-fuel.
8. Exploration of hydrocarbons and petroleum
Kenya has drilled thirty-two (32) exploration wells over its sedimentary. This translates into an average well density of one well in every 13,000 km2. All these wells did not encounter commercial hydrocarbon deposits. The number of good density that has been drilled is considered very low compared to other East African countries.
Petroleum exploration projects are undertaken in small units called exploration blocks within the larger sedimentary basins. Currently, there are a total of 38 Exploration Blocks that were gazetted by the Minister for Energy in December 2006. The number of blocks is set to increase in the near future with further subdivisions of the existing ones in line with Policy guidelines to reduce the size of petroleum exploration blocks.
This presents huge investment opportunities in the exploration of hydrocarbons and Petroleum in the North-Eastern parts of the country.
9. Mombasa Petroleum Trading Hub
The development of Mombasa Petroleum Trading Hub being planned by the National Oil Corporation of Kenya (NOCK) shall become a modern petroleum terminal comprising of: (i) Two offshore petroleum jetties (single buoy moorings) with one dedicated to loading/offloading of crude oil and black fuels and the other on to refine products. (ii) A modern Greenfield petroleum tank farm with a design capacity of 800,000 MT to be developed in phases from an initial minimum capacity of 300,000 MT. the project will position Kenya as a regional petroleum hub and will spur other investments and create employment. An investor may participate through providing finances, a joint venture or under PPP framework (with BOT period of 10-15 years). It is estimated to cost USD 513 million with IRR of 17.46%.
Jua Kali Sector In Kenya – Informal Sector in Kenya
There is a booming informal sector in Kenya of small-scale traders, craftspeople, and entrepreneurs in Kenya known as the Jua Kali sector. Many small traders operate from roadside kiosks (small wooden sheds), others from single rooms in custom-built trading blocks.
A large percentage is known as “Jua Kali” (“in the hot sun”) because they work by the roadside, sometimes with shelter, sometimes not. Supremely adaptable, whatever you want to be made, copied, or created, the Kenyan informal business sector can provide it—and fast. One Nairobi-based furniture designer reckoned that it took approximately eight hours for her latest designs to be noted, copied, and available for sale by the side of the road.
Informal Sector in Kenya
The Jua Kali, as the name suggests – hot sun (or under no shelter businesses are operated either in the open or under temporary shelter (kiosks). In Kenya, the operators of Jua Kali businesses are almost caught in a culture of not just remaining small, but also never graduating to the formation and more organized businesses. Some of them are doing pretty well and others are in businesses with big potential for expansion.
When you talk with them, they realize they can expand their businesses or even operate them in a more organized way, such as by keeping records and advertising. What l have found among many of these operators is that they realize that they can do better if they operated their business in a formal way. But they are not interested. They are not in a hurry to do that. Reason? They have some fear of converting to formal business.
Jua Kali Sector in Kenya
In the Jua Kali industry, apart from trade council licenses, taxes and their related accountancy costs are not there. Modern offices also require additional staff like a secretary and some basic facilities like a telephone. Nonetheless, some Jua Kali operators are, for all practical purposes, running a modern office. The difference is the premises. Indeed it is the premises that distinguish formal from the informal sector. Formal businesses are usually conducted in permanent buildings with identifiable offices whereas informal ones are in temporary sheds or just in the open, or even from the residential house.
Jua Kali Products in Kenya
Many Jua Kali businesses produce a variety of quality goods and equipment. Many shops in shopping centers stock Jua Kali products which one might think are manufactured in big modern factories. For instance, many furniture items you find in high-class shops in the towns are made by Jua Kali artisans in their sheds. The artisans are capable of duplicating any design available. If they conducted their business more formally, they could expand and improve their products for a wider distribution network.
But this can only be done in an organized and better working environment. ln this way, the business would grow and produce better goods, offering job opportunities. A visit to various Jua Kali sheds is an eye opener to many business people looking for products to stock in their shops. One discovers with surprise the variety of equipment and light machinery manufactured by these artisans, and which can be used in industries.
Jua Kali Sector in Kenya – Briefcase Businessmen
Many educated people have joined the Jua Kali sector after failing to get jobs, or after being frustrated in poorly paying jobs. Some of these elite Jua Kali entrepreneurs are now known as “briefcase businessmen” because of their mobility. They have no fixed offices but instead, move around with a briefcase that contains vital documents that they need in their business.
The future of the Informal Sector in Kenya
To all Jua Kali operators, I would say – The future belongs to them. But this is conditional. Being in Jua Kali, survival is not easy since funds initially are a problem but with patience, they can establish themselves to make money and gain invaluable business experience.
Those that will capitalize in full on this vital experience are best placed to reap the full fruits of a reviving economy. Such entrepreneurs will have one distinguishing factor, big dreams, and willingness and the ability to expand and take risks associated with business growth. In the process, they will create jobs, goods, and services for the society, money and a name for themselves. ‘The less enterprising will remain trapped in the culture of remaining stagnant for lack of vision and fear to venture into the more organized formal sector.
Jua Kali Industries in Kenya
The Jua Kali learn business survival the hard way. With little initial capital and having to adjust to a hostile environment, they become hardened quickly. Many risks are taken, losses absorbed and lessons learned the hard way. The determined and skilled ones survive, making progress to transform their businesses and lives.
But it is only those with great vision and ambition to apply knowledge and experience to expand their businesses and grow who will succeed. Not the fearful and the dull. The future belongs to the informed and the courageous.
Frequently Asked Questions About Kenya
Where is Kenya Located in Africa
Kenya is located in eastern Africa and borders Sudan and Ethiopia in the north, Somalia in the east, Uganda in the west and Tanzania in the south.
The Indian Ocean is in the south-east. The country lies between five degrees north and five degrees south latitude and between 24 and 31 degrees east longitude.
Kenya lies exactly astride the Equator, which bisects the country in an east-west direction. The breadth from east to the east is about 890km, and 1,030km north to south.
The Indian Ocean coastline is 536km long, while the total land area is 582,650 sq km. Of this, 569,250 sqkm constitute land area and 13,100 sq km is water.
What is the Capital of Kenya
The capital of Kenya is Nairobi City.
Nairobi Kenya is the only capital city in the world with a national park on its boundaries, making it a prime tourist destination. Nairobi city has a diverse and multicultural composition; there are a number of churches, mosques, temples, and gurdwaras within Nairobi city. Nairobi is home to several museums, sites, and monuments, plus spectacular five-star hotels to cater to safari-bound tourists.
Whether you are visiting Nairobi for business or pleasure there are many activities and experiences that would suit any traveler.
Kenya Neighboring Countries – Kenya Bordering Countries
Kenya is bordered by Tanzania to the south and southwest, Uganda to the west, South Sudan to the north-west, Ethiopia to the north and Somalia to the north-east. Kenya covers 581,309 km2 (224,445 sq mi), and had a population of approximately 48 million people in January 2017
What is Kenya Known For – What is Kenya Famous For.
Kenya is a country that epitomizes the transformational power of possibility. A land is once known for its Savannah, now earning international repute as the Silicon Savannah. Where the vibrancy of the economy is matched only by the verve of our youth. Where groundbreaking refers not just to the largest infrastructural project in Africa, but also to our trailblazing mobile money transfer technology. A land that reflects the growth of a Continent on the rise. A hub for Investment, Commerce, Trade, and Tourism.
How Safe is Kenya
More than a million tourists visit Kenya every year and most visits are trouble-free. In our opinion, Kenya can be considered a safe travel destination, even more so if the purpose is an organized safari. An overnight stay at a reputable hotel or an organized visit to one of the many attractions in Kenya is generally safe.
Please use the links below for government’s travel advice on Kenya.
- Australia: www.smartraveller.gov.au
- Canada: www.voyage.gc.ca
- Ireland: www.dfa.ie
- New Zealand: www.safetravel.govt.nz
- United Kingdom: www.gov.uk
- United States: travel.state.gov
Where to Stay in Kenya,
Accommodation in Kenya is an experience of lavishness and comfort, with an extensive variety available, plus great dining destinations taking your taste buds on a trip around the globe. Nairobi being a modern multicultural city, the choices available for consumers are endless. Several five star hotels offering luxury and serene accommodation and endless choices of great restaurants available to quench any appetite.
What is The Population of Kenya
The population of Kenya is approximately 48 million people as of January 2017
What Government Does Kenya Have
Kenya is a presidential representative democratic republic. The President is both the head of state and head of government and of a multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the National Assembly and the Senate. The Judiciary is independent of the executive and the legislature. There was growing concern especially during former president Daniel Arap Moi’s tenure that the executive was increasingly meddling with the affairs of the judiciary
What is the Time in Kenya Now
Kenya Standard Time is 3 hours ahead of Greenwich Mean Time ( GMT+3 ). Kenya is in East Africa Time Zone ( EAT ). Kenya does not operate Daylight Saving Time. The International Dialling Code for Kenya is 254.
Kenya Map – Map of Kenya – Map Kenya – Kenyan Map
Where is Kenya in Africa Map
My Kenyan Experience
Hollywood actress, Stefanie Powers, telling us why she loves Kenya.
I first came to Kenya in 1973 with the actor, William Holden. He wanted to show me ‘his’ Africa, and I wanted to love everything that he loved. My initial response to Kenya was a feeling of familiarity. I felt immediately at home. The scenery was similar to that I had known in Southern California and, having grown up surrounded by exotic animals on my stepfather’s stud farm I was already committed towards the preservation and celebration of all wildlife. But when I saw the Kenyan game dashing across the savannah in such great numbers – I fell immediately in love with Kenya. And I have remained so ever since.
At that time, Bill had established the Mount Kenya Game Ranch along with his partner, Don Hunt, and our visit was timed to coincide with the inauguration of a project dedicated to capturing and relocating significant numbers of endangered Grevy’s zebra from northern Kenya to Tsavo National Park, where they could be protected. I was captivated, and thereafter I began to spend more and more time in Kenya: I learned the language and the customs and, as I did so, my affection grew both for the Kenyan people and the Kenyan ecosystem, both of which continue to captivate me some 45 years later. Eventually, I became a partner in the Ranch and was proud to be able to harness my celebrity in raising funds to support its work.
After Bill’s untimely death in 1981, I wanted to create a living memorial to him. Bill had often told me that, despite the celebrity he had attained in his life, he had always felt that his greatest life’s work had been the creation, in 1960, of the Mount Kenya Game Ranch. His dream, however, had always been to build an educational center that would enhance and expand the Ranch’s conservational work.
Bill did not live to see the establishment of such a facility but, in 1983, The William Holden Wildlife Foundation (WHWF) was established and dedicated to wildlife conservation and environmental studies for local people. Since that time, over 11,000 young Kenyans have benefitted by having the first-hand experience of their national wildlife legacy and, thanks to the generosity of our global donors, we have established numerous satellite educational facilities in the rural communities that surround Mount Kenya.
As an initiative, WHWF has surpassed all expectations. It has also proved a fitting memorial to the life and work of Bill Holden, whose dearest wish was to provide a sound foundation for the invaluable work he had begun in the protection of earth’s species for the generations to come.
Stefanie Powers is an American actress best known for her role as Jennifer Hart in the American mystery television series Hart to Hart alongside Robert Wagner, which ran from 1979 to 1984 and was translated into 8 movies in the 1990s. She is a two-time Emmy Award nominee and five-time Golden Globe nominee; the recipient of a Star on the Hollywood Walk of Fame, and the holder of the Sarah Siddons and Steiger Awards. She is the founder and president of the William Holden Wildlife Foundation (www.whwf.org).