0
0
The government has initiated a rigorous process to solicit proposals from interested parties to manage and operate the ambitious County Aggregation Industrial Parks (CAIPs). This was announced during a consultative forum attended by top government officials, where Trade Investments Cabinet Secretary Rebecca Miano highlighted significant progress since the recent disbursement of Ksh 1.25 billion for the development of these parks across all counties.
“The development and implementation of CAIPs is a joint venture between the National Government and the County Governments on a 50/50 percent basis. The County Governments Additional Allocation Act 2023 facilitated the recent disbursement of Ksh 1.125 billion from the National Treasury to the 18 Phase I Counties. Each County received Ksh 62.5 million as the first tranche to accelerate the implementation process,” stated CS Miano.
To expedite the process, Miano’s team has already developed proposals for Expressions of Interest in various areas. These include:
- Management of the parks
- Equipping CAIPs to promote value addition of local agricultural and industrial resources
- Construction of additional industrial warehouses and supportive infrastructure within the CAIPs for leasing or manufacturing activities
- Industrial investment in aggregation, value addition, and manufacturing within CAIPs for the identified value chains
- Industrial investment in branding, packaging (design), labeling, and logistics within CAIPs for the identified value chains
Miano noted that despite the recent disbursement of funds, some counties have shown slow progress, with construction activities still below 5 percent. “In view of the above observation, we have initiated further discussions with the counties below 5% of implementation to encourage them and resolve the issues affecting their progress,” she said.
Counties identified as being below 5 percent include Garissa, Murang’a, Kiambu, Mombasa, and Nakuru. Conversely, Embu and Uasin Gishu have progressed to over 25 percent, while Busia, Bungoma, Kirinyaga, Meru, Machakos, Homa Bay, Migori, Nyamira, Siaya, Trans Nzoia, and Nandi are between 10-25 percent.
The Cabinet Secretary affirmed that the manufacturing sector is crucial for economic development, employment creation, and the production of new value-added products that generate foreign exchange. Despite Kenya’s status as an agricultural-led economy,
the manufacturing sector’s contribution to GDP has stagnated at about 7 percent over the past few years. Additionally, the export value-added of agricultural and livestock products has remained around 16 percent.
CS Miano expressed optimism that CAIPs will not only propel the growth of the manufacturing sector through agro-processing industries but also create significant employment opportunities for the youth. These parks are expected to enhance forward and backward linkages in both the manufacturing and agriculture sectors, thereby exploiting their full potential. By increasing the volume of value-added products, farmers can expect better income, and the country can anticipate an increase in foreign exchange earnings as well as a reduction in post-harvest losses.
CAIPs serve as a model for integrated industrial development, offering infrastructure services and a conducive business environment aimed at attracting investors and fostering the growth of local industries. This initiative aligns with the Bottom-Up Economic Transformation Agenda (BETA), which focuses on the transformation of agriculture and Micro, Small, and Medium Enterprises (MSMEs).
The consultative forum marked a significant step towards realizing the potential of CAIPs, demonstrating the government’s commitment to industrial development and economic growth. The collaborative efforts between national and county governments are expected to drive sustainable growth, create employment, and ensure a competitive and innovative market environment for Kenya’s future.
