Nakuru County Government is working on a strategic plan aimed at economic reconstruction through the revival of collapsed industries and creation of new investment opportunities.
Governor Susan Kihika said that in a bid to enhancee Nakuru’s status as an economic hub, her administration would continue focusing on policies and legislations that promote ease of doing business while rehabilitating infrastructure and eventually reducing poverty levels.
Ms Kihika noted that establishment of industries in the devolved unit would have a trickle effect in neighbouring counties’ economies and urged potential investors to capitalise on the enormous business opportunities in Nakuru to expand their operations.
Speaking during a dinner event organised by Kenya Association of Manufacturers (KAM) South Rift Chapter where she was the chief guest, the governor indicated her commitment to revive collapsed local industries by giving incentives and other support to ensure youth in Nakuru get jobs.
“There is a huge potential for establishment of industries to process dehydrated vegetables, potatoes, peas and even canned beans, and other fresh produce which can be sold locally and to the COMESA region,” the governor told the business community.
She pointed out that economic survey findings by various institutions show Nakuru is fast rising to become the most preferred investment destination for local and international investors.
Results of a survey released by the Institute of Economic Affairs showed it is easier to start a business in Nakuru town compared to five other populous urban areas. Economists attributed this to the mainly reduced tax burden that has made it more attractive to investors. The study gave the county an overall score of 89 in the tax sub-cluster followed by Eldoret (78) and Machakos (67).
Ms Kihika projected that the county has an economic potential worth Sh200 billion in agricultural value addition, manufacturing, geothermal exploration, tourism and real estate.
She stated that to make Nakuru a more economically vibrant city smart master planning was being implemented by her administration.
“We are correctly designating outlying areas for new industrial locations, residential estates for both higher and middle class and other institutions. The move will be followed by the provision of roads, water and power,” added the Governor.
Geothermal power generation at the Menengai Crater, observed Ms Kihika, is also an economic opportunity that should be harnessed for agricultural industries.
The geothermal steam wells at the crater have a capacity of 105 Mega Watts with the potential to attract easy ‘green’ funding for new investments.
The Governor observed that the new flow of local and foreign investments into Nakuru was also being aided by the County’s location, good infrastructure, affordable power from Olkaria geothermal plants, the upcoming airport in Lanet and the Standard Gauge Railway (SGR).
The National Government she noted had gazetted 404.7 hectares (1,000 acres) in Mai-Mahiu within Naivasha Sub-county as a Special Economic Zone as industrialisation is the driving force for any economy.
The ongoing construction of the Naivasha Industrial Park, she said, has raised the profile and will open up Nakuru as a commercial hub in the East African region.
“We need industrialisation to grow. With its agricultural hinterland, Nakuru County is a major source of raw materials for industries. Geographically, the town is centrally located in relation to the rest of the country and is therefore more accessible,” stated the Governor.
“We will continue to formulate policies that promote the competitiveness of local industry, encourage value addition and diversity of locally manufactured products. I will work with the County Assembly towards enacting legislation that protects and encourages investors,” added Ms Kihika.
A recent survey on the Gross County Product by the Kenya National Bureau of Statistics had stunning revelations to the effect that Nakuru is the second biggest economy after Nairobi, ahead of bigger cities of Mombasa and Kisumu.
The County’s 6.1 percent contribution to the economy, second to Nairobi’s 21.7 percent may rise further following ongoing and planned industrial developments expected to create more wealth and employment opportunities.
Governor Kihika said her administration has been developing policies and enacting laws that have made it profitable for local companies to export again, boosting their capacity to expand within the country while focusing on growth and productivity of Small Medium Enterprises.
“We have been working with other agencies in both National and County government and the private sector to facilitate potential investors through the establishment of a one-stop desk where they are issued with all the required documentation. We have in place deliberate and predictable policy interventions.
We are also exploring direct use of steam from Africa’s largest geothermal power plants at Menengai and Olkaria for small and medium level agricultural enterprises as an initial step towards setting up cottage industries,” said the County boss.
Ms Kihika said continued improvement of road infrastructure including the construction of two interchanges along the Nairobi-Nakuru-Eldoret will help ease transportation to and from the County, which she said is vital for industrialisation.
“We also invite investors to take advantage of the 1,000 acres of land in Satellite along the Mai Mahiu- Suswa Road that has been gazetted as an industrial zone,” said Ms Kihika.
Kenya Association of Manufacturers (KAM) South Rift Chairperson, Ms Peris Mbuthia, described the entry of new factories as a pointer to Nakuru becoming the second most preferred investment destination in the country after Nairobi.
Ms Mbuthia added that the upcoming factories have an opportunity to shine and succeed if they produce products of unmatched quality to beat competition from plants based in other cities.
The County once hosted mega industries such as Coca Cola’s flamingo bottlers, dry cell manufacturer Eveready, Nakuru Oil Mills, Savanna Saw Mills, the once giant Unga Group, and Milling Corporation of Kenya among others.
Major industrial concerns that either collapsed or relocated from Nakuru include East Africa Industries, ABC Foods and Elliots Bakeries Limited which exited scene in 1994, Eveready Dry Cell Manufacturers which folded up in 2015 following influx of cheap battery imports from China and the pre-independence Kabazi Canners that was a major livelihood for farmers and residents of Subukia and Bahati Sub-counties.
Flamingo Bottlers and Sam-Con Limited, a steel-body fabricating company that held a franchise for Isuzu trucks moved their operations to Nairobi.
The situation was further complicated when key government agencies such as Agricultural Development Corporation farms (ADC), Pyrethrum Board of Kenya (PBK), Kenya Farmers Association, Kenya Planters Cooperative and Kenya Railways either scaled down operations or collapsed.
There is a ray of hope as Public-Private Partnerships have resulted in setting up of key projects such as the Oserian Industrial Park, KenGen Textile City Park, Lord Egerton Agri-City, and Kabarak University Smart City.
Egerton and Kabarak Universities have joined the fray by setting up industrial parks and agro-cities that will offer raw materials and employment to local residents while at the same time providing market for their produce
