Industrialization and Enterprise Development

Industrialization and Enterprise Development

INTRODUCTION

NANDI GEARS UP FOR INDUSTRIAL INVESTMENT AND ENTERPRISE DEVELOPMENT

Since the advent of devolution and the transformation agenda envisaged by H.E Governor Stephen Sang’s manifesto, Nandi County has made several initiatives towards the development and growth of the industrial and enterprise development sector. The chief mandate of the Industrialization sub sector is to create an environment that is conducive for industries to thrive thereby transforming our society both socially and economically to an industrial state. This is through creation of friendly policies, availing of support services and infrastructure as well as regulating the sector properly.

To achieve these goals, for the next five to ten years, we are aligning ourselves with the Central Government’s big four agenda where manufacturing is one of the pillars. We are focusing on manufacturing through Agro-processing, value addition, and developing & supporting cottage industries. We are also encouraging both public and private sector led investment in setting up of coffee processing plants, a milk processing factory, a leather processing unit, a maize milling and animal feeds plant.

By the end of this calendar year, we will have a fully functioning textile and apparel unit established at Kapsabet town. This will be able to train more than 100 youth annually on tailoring, embroidery, design and pattern making. After training, most will be supported to set up their own enterprises and be supplied by the factory. This will create thousands of indirect jobs while earning the county revenue. The subsector is working on a policy that will culminate in the creation of a County Enterprise fund which will be available for youth and women engaging in cottage industry businesses, small and medium sized enterprises, and boda boda businesses. Once operational, the county will pump in more than 20 million Kenya Shillings annually, both from its own resources as well those of development partners like the Kenya Industrial Estates, while a portion of the monthly sticker and license fees paid by the target traders will also be channeled into the revolving fund and be lent to them on very little interest rates. This will enable them grow their capacities and in the process create more jobs. They will receive training and attend capacity building clinics to ensure that proper business management skills are imparted in them.

Public participation was conducted at Kibigong market in Chemelil/Chemase ward on 2nd May 2018 where the locals were taken through the importance and the legal requirements on the establishment of the Special Economic zone on a 200 acre farm in the area. The Export Processing Zone (EPZ) which is on course will create employment opportunities to thousands of residents in Nandi, increase the economy of the county and promote trade through value addition.

INDUSTRIAL INVESTMENT OPPORTUNITIES IN NANDI COUNTY

Nandi County is richly endowed with immense opportunities for industrial development as follows;-

1. Textiles and apparels;-

The textiles and apparels sector has been identified as a priority sector by the county Government of Nandi. Its prominence in the manufacturing pillar under the ‘Big Four’ agenda and the Kenya Industrial Transformation Programme is a manifestation of its importance to the county Government of Nandi in income generation.

Textile, Garment and apparel manufacturing has a very high potential in the county. A particularly attractive investment is nucleus textile plants producing quality fabric and utilizing small garment makers to produce for export.

2. Leather and leather products

The hides and skins currently produced in the county are exported to Eldoret and Kisumu for further processing. Most hides and skins are processed up to the wet blue stage for export while investment opportunities exist in production of finished leather, offering potential for the manufacture of shoes and other leather products such as wallets, briefcases, bible covers, ciondos, handbags, cushions, key holders, sandals, watch straps and traveling bags. Leather work products have certain components that could be subcontracted such as fixing buttons and buckles, making insoles and soles for shoes, installation of lining especially in bags and briefcases.

1.3. Milk processing plant.

This plant will have a processing capacity of 200,000 litres per day. To support it there will be at least two cooling plants per ward. We already have 319,950 dairy cattle producing 142 million litres valued approximately kshs.4.2 Billion per year.

4. Brick and tile –making;

The requirement for this project is dependable source of suitable clay which is available in the county. This type of project can either be small scale using locally made and hand operated tools to a large scale one which is mechanized. Many large construction companies would buy bricks in bulk and local contractors and individuals could also be interested.

5. Canned food plant

The county produces horticultural crops such as tomatoes, citrus, brassicas and onions. These crops would be better marketed with an added value if they are canned.

6. Animal feeds plant.

The county is in dire need of an animal feeds plant to satisfy the Local demand of livestock industry. Animal feeds have to be obtained from Eldoret at the moment and not many livestock farmers are able to obtain them due to the distance and high prices involved.

7. Cane sugar factory.

The county’s sugar cane production has been increasing over the years (from year to year) to the current 500,000 Bags. Acreage has increased from 6,000 hectares in 2010 to 9500 hectares in 2016.

An annual growth rate in hectarage is anticipated to rise upto 15,000 hectares by the year 2022.This increased production calls for a factory within the county to process the cane into sugar.

8. Honey refinery.

All the honey produced in Nandi is sold out of the county. There is therefore a need for a refinery within the county to help increase the added value from honey processing as well as create employment to the Local people. This project will reduce exploitation of farmers by middlemen.

9. Farm implements

There is potential in the county for producing implements required on farms since the majority of the people derive their livelihood from crop and livestock husbandry. Examples of such implements that would be produced are hoes, wires and milking equipment.

10. Basic consumer goods and household equipment

Since the income of the population is rapidly growing from the sale of milk and agricultural products there are prospects for the manufacture of basic consumer goods and household equipment. Items like furniture, metal utensils and plastic products would get a good market within the county and beyond.

11. Technology/Business incubation programmes

Establishment of Nandi County Incubation Centers will be keen to facilitate product innovation and development through technological parks and export oriented incubation centers in partnership with other institutions. Science techno parks and incubators will provide opportunities for upcoming entrepreneurs and investors to develop their innovations to marketable products. Research and development can be conducted as a licensed service activity.

The NIICs will form strategic partnerships with the business community, universities and specialized research institutions to catalyze the development of local technology, product innovation and marketing.

The techno parks will act as centers where the business community can obtain new products, undergo improvement stages and commercialize them through research at the parks.

CATEGORIES OF MICRO, SMALL AND MEDIUM INDUSTRIES (MSMIs)

Increased agricultural incomes along with renewed emphasis on development of industries which utilize local resources will create increasing opportunities for micro, small and medium industries (MSMIs).

Investment decisions are best made on the basis of an objective assessment of the costs and benefits of doing business. Several factors go into making business viable. These include the economies of scale, market availability, comparative prices, marketing strategies, availability of raw materials, appropriate technology, proper packaging and use of appropriate labour. Generally the higher the risk the attainable profits.

There are various categories of industries that can be done in Nandi County;-

1 Raw material based industries

1. Dairy industries e.g. Fresh milk, mala, yoghurt, cheese, ghee and ice cream.

2. Gemstone molding

3. Fish Lures

4. Stone Crushing

5. Leather Processing

6. Animal Feeds

7. Grain Milling

8. Fruit Processing

9. Honey Processing

10. Potato Crisps

11. Edible Oil Milling

12. Biscuits

13. Meat processing e.g. sausages

14. Extraction of caffeine from tea waste.

15. Berries

6. Furniture making

17. Candle making

18. Soaps

19. Vegetable processing

2. Market based manufacturing industries.

These are industries which have a strong base because of availability of market within Nandi and outside;

1 Ferro cement block making

2. Soil block making

3. Roofing Tiles

4. Brick Making

5. Chalk Manufacture

6. Textiles

7. Tailoring and garment making

8. Laboratory and chemical processing

9. Shoes

10. Socks

11. Plastic industries e.g. buttons, plates etc

12. Precision industries e.g. watches, pins, hinges.etc

13. Agricultural implements

14. Wood and Stone carving

15. Botiks

16. Pharmaceuticals

17. Paper and paper board

18. Tyre and Tube

19. Juices e.g. mango, orange, pineapples, artificial flavors

20. Canned foods

21 Rubber products

22 Pencil products/manufacture

23. Toilet paper

24. Pesticides/fungicides etc

3. Service Based Industries

1. Tourist Hotels

2. Food preparation (Hostels/Restaurants)

2. Tourist Hotels

3. Take away (fish, chicken, chips, etc)

4. Entertainment- film and video shows and mobile cinemas.

5. Dry cleaners and laundries

6. Secretarial and computer Bureaus

7. Bicycle/motorbike repair/servicing

8. Hair salons

9. Hatcheries

4. Export Based Industries

With the opening up of Eldoret international airport and the Kenya ports authority inland container deport, there is great potential in Export products.

The county government in collaboration with the National Government is encouraging the development of Export processing zones (EPZs) with Chemase one on course. Enterprises operating in EPZs enjoy several benefits e.g. exemption of import duties on machinery, raw materials and intermediate inputs: Exemption from stamp duty and operate on one license only.

Some of the products that can be manufactured for export include:-

1 Confectionery e.g. sweets

2 Dairy products

3 Vinegar

4 Garments

5 Computer products (software)

6 High quality curved furniture

7 High density board from saw dust

8 Wooden toys

9 Tooth picks

10 Sporting goods e.g. cricket bats/rackets

11 Dehydrated fruits and vegetables

12 Electronic toys

1. 1. Leather made goods
  2. Garment accessories

1. 1. Electronic goods and telecommunication equipment
  2. Jewelry and watch manufacture
  3. Pharmaceuticals
  4. Building materials
  5. Agricultural equipment/machinery
  6. Paper products

POTENTIALLY VIABLE PROJECTS FOR INVESTMENT IN SUB-COUNTIES

The potentially viable projects for investment in sub-counties are as tabulated below:

S/ No.	PROJECT NAME/ LOCATION	DESCRIPTION OF ACTIVITIES	JUSTIFICATION	FUNDING SOURCE
1	Honey/wax processing plant at Aldai sub-county	Construction of a honey/wax processing plant	There is enough honey to be processed. Honey production is currently 300,000kg of crude honey and 50,000kg wax, but there is still more potential	Private investor
2	Milk processing and packaging plants at Tinderet, Mosop and Emgwen Sub-counties.	Construct milk processing plants in each of the mentioned Sub-counties.	There is plenty of milk produced in the county yet the processing is done in the neighboring Uasin Gishu County hence need for the the plants in Nandi County.	Private investor
3	Tannery at Kapsabet town, Emgwen Sub-county	Put up a tannery in Kapsabet town to produce both finished and semi-finished leather	A feasibility study has been done by the lake basin development Authority and the county has exhibited a lot of potential. There is plenty of hides and skins to serve as raw materials for the tannery	Private investor
4	Animal feeds plant at Kapsabet town, Emgwen Sub-county	Put up animal feeds plant in Kapsabet town.	Over 90% of the farms in the county are under grain crop growing which will serve as raw materials for the plant	Private investor
5	Grain milling at Kapsabet, Mosoriot and Nandi hills urban centers.	Put up milling plant in each of the urban centers to process grain produced in the county	There is no single commercial miller in the grain(maize) producing sub-counties .the maize produced is taken to the neighboring counties	Private investor
6	Edible oil processing at Mosop, Emgwen and Chesumei sub-counties	To put up an edible oil processing plant to produce high quality edible oil from oil seeds such as sun flower, soya beans, etc.	Currently there is no any oil processing plant in the county	Private investor
7	Small dehydration plants at Chesumei, Emgwen, Mosop and Nandi hills sub-counties	To put up small dehydration plants to utilize vegetables which are wasted during the peak season	The county produces a lot of cabbages and kales.	Private investor
8	Bakery at Kapsabet and Nandi Hills town	To put up a bakery to produce bread for local consumption	Currently the county does not have a commercial bakery	Private investor
9	Fertilizer plant at Nandi Hills town	To put up a fertilizer plant. The proposed plant will make fertilizer from Tea waste	The county currently has over 15 Tea factories which produce several tones of tea waste every year	Private investor
10	Laundry soap plant at Kapsabet town	To put up a laundry soap plant to make laundry soap from available resources such as tallow.	To utilize tallow from Kapsabet abattoir and the slaughter-houses in the Sub-counties	Private investor
11	Layer and broiler hatchery at Kapsabet town, Emgwen sub- county	To put up hatchery to produce commercial eggs and meat by making daily old chicks available to interested farmers.	To improve on poultry meat and egg production to meet both domestic demand and export	Private investor
12	Industrial incubation centre in each of the Six sub-counties(Emgwen, Chesumei, Aldai Mosop, Nandi Hills and Tinderet)	Construction of industrial incubators in each of the Six Centers (IICs)	To provide premises to potential start-up small scale industrial entrepreneurs. To provide a base for the establishment of a light industrial area(industrial development centre) in every sub-county	County Government of Nandi (CGN)
13	Fish processing plant at Emgwen, Chesumei and Aldai Sub-counties	Construct a fish processing plant	Create employment and market for fish farmers	Private investor
14	New coffee factories at Aldai, Mosop, Nandi Hills, and Tinderet Sub-counties	Construction of coffee factories for processing coffee	To raise income from coffee by improving quality and marketing parchment rather than mbuni.	County government of Nandi (CGN)
15	Cane sugar factory at Aldai, Tinderet, Mosop Sub-counties	Construct a sugar factory for processing sugar	The county’s sugar cane production has been on the increase. An annual growth rate in hectarage is anticipated to rise upto 15,000 Ha. This increased production calls for a factory within the county to process the cane into sugar. This will create job opportunities for the youth; Ease congestion at Chemelil and Miwani sugar factories; Raise farm incomes and thus living standards of the farm families in the proposed areas	Private sector
16	Agribusiness innovation/ incubation centre (AIC) at agricultural training center(ATC) -Kaimosi	Construction of innovation-based incubators at ATC	Nandi county has tremendous potential to support a thriving agribusiness sector. A focused effort to support post- harvest processing would facilitate economic growth and create jobs. The AIC will provide entrepreneurs with comprehensive services, including business coaching, market research, marketing and procurement facilitation, technology identification, technical training and access to processing technologies and financial services including a small seed-capital fund. Additionally, due to the AICs commitment to helping this business serve as demonstration models and to spur uptake of technology and marketing innovation beyond the enterprises directly served by the incubator, the AIC will host innovation challenges and award and engage in select advocacy activities.	County Government of Nandi (CGN)
17	Tomato processing at Tinderet and Aldai Sub-counties	Construct a factory/plant for processing of fruits and tomatoes in those areas.	Utilize the excessive tomato production during the peak periods. Utilize the available market in big towns such as Kisumu, Eldoret and Kakamega. Create employment in these areas.	Private sector
18	Textile and apparel manufacture	Establish a textile and apparel plant at Kapsabet town, Emgwen sub-county	Currently there is a high demand for garments locally and internationally.	County Government of Nandi (CGN)

SOME PROJECTS ENVISIONED UNDER THE PPP MODEL

S/No.	SECTOR	MODEL
1.	Investment in financing and establishing an animal feeds and mineral supplements manufacturing and supply chain	Private
2.	Investment in financing, construction and development of small-medium industries for value-addition in textile, leather, poultry and pork	PPP
3.	Investment in financing, establishing and development of an eco-friendly solid waste collection and recycling plant in Kapsabet and Nandi hills town	PPP
4.	Investment in establishment and management of stone crushing, ballast making and construction blocks at the Mosoriot and other quarry sites	Private
5.	Investment in financing and development of SME parks, Jua kali stalls in partnership with the county government	private
6.	Investment in financing and development of industrial incubators, and manufacturing zones and centers	private

Mr. Jacob Tanui

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