The County Government of Nakuru is actively collaborating with the national government in promoting industrialization within the devolved unit to bolster trade, encourage local innovations, generate employment and reduce poverty.
The devolved unit’s Chief Officer for External Resource Mobilization, Dr Victor Achoka, stated that industrialization is a key pillar of the Bottom-Up Economic Transformation Agenda (BETA) focused on inclusive growth by empowering local communities, creating job opportunities and enhancing value addition across Kenya’s value chain.
He indicated that the County Government had approved a policy document to establish and implement County Aggregation Industrial Parks (CAIPS) and Special Economic Zones (SEZs).
Dr Achoka stated that the devolved unit bets on CAIPS and SEZs to help grow industrialization and middle income to provide quality life to all residents by 2030 in a clean and secure environment.
He made the observations during the Kenya Association of Manufacturers (KAM) South Rift Regional Chapter 21st Annual General Meeting and Dinner held in Nakuru that brought together key industry players, business leaders, and government representatives to chart the way forward for the manufacturing sector in the region.
In a move aimed at boosting the county’s industrial growth, Dr Achoka said, the County administration is working closely with the national government to establish two industrial parks that are expected to completely transform the devolved unit’s fortunes as the preferred investment destination.
The proposed agro-industrial park in Njoro which will be located at Ngongongeri farm owned by Egerton University, which has allocated the project 200 acres of land, will be the second in the region after the establishment of the Naivasha Economic Zone.
Dr Achoka emphasized that Nakuru County is home to over 250 manufacturing and value-addition enterprises, making it the second-largest contributor to Kenya’s GDP.
He affirmed that Governor Susan Kihika’s administration was making deliberate efforts to create an enabling business environment, citing key initiatives such as the Unified Business Permit, which has simplified regulatory processes for investors, and the recently launched Wezesha Biashara Fund, worth Sh 130 million, aimed at supporting Micro, Small, and Medium Enterprises (MSMEs) and cooperatives across the county.
The External Resource Mobilization officer assured the business community that the County Government of Nakuru is supporting policies and legislations that facilitate a stable, predictable and conducive environment for businesses and investments to thrive.
He said they were actively engaged in public-private sector partnerships in shaping practical and responsive legislation towards providing a business-friendly environment to improve infrastructure, streamline regulations, foster innovation, and lower the cost of doing business.
Dr Achoka noted that counties are integral to Kenya’s development and are a focal point in attracting investors hence the need for devolved units to introduce incentives such as tax breaks and streamlined licensing processes for specific industries and enact laws or policies designed to reduce bureaucratic hurdles for businesses.
He also highlighted the County Government’s investment in industrial infrastructure, including the ongoing development of essential infrastructure at Naivasha SEZ, the progress of County Aggregation and Industrial Parks in Njoro and GDC, where 200 hectares have been set aside for manufacturers to establish processing facilities.
“This County Government remains committed to policies that support enterprise development and economic sustainability. For the economy to thrive, there is a need for robust cooperation between the national and county governments to lower the cost of doing business,” stated the Official.
Dr Achoka reiterated the devolved unit’s commitment to receive suggestions and act on stakeholder feedback noting that investors in the agriculture sector have immense opportunities in value addition and processing for maize, oil crops, pyrethrum, potatoes, horticulture, grains, dairy and wool.
“Our doors remain open to the business community. We value their input in building a thriving and inclusive economic environment,” he further said.
Dr Achoka noted that the geothermal power generation at the Menengai Crater could be harnessed for agricultural industries and therefore boost economic empowerment for the l9cal communities.
He indicated that 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 while the Lanet Airport that is under construction targets the direct export of produce to Europe and other global markets.
With its abundant natural resources, good infrastructure, strategic location and reliable supply of skilled labour, he noted that Nakuru County is a huge untapped goldmine and game-changer whose time to mainstream into the national socio-economic fabric cannot wait any longer.
Among those present were representatives from the Kenya National Chamber of Commerce and Industry (KNCCI), Nakuru Business Association, Law Society of Kenya, and several other stakeholders from the business community.
The forum deliberated on Key issues revolving around taxation, licensing, business regulation and opportunities for public-private partnerships to support economic growth in Nakuru County.
Ms Whitney Maina, Regional Chairperson of the Kenya Association of Manufacturers – South Rift Chapter noted that Nakuru offers significant opportunities in vital sectors such as agriculture, manufacturing, transport (logistics) housing, hospitality, tourism and infrastructure development among others.
She underscored the strategic importance of the manufacturing sector to the Kenyan economy, adding that it fueled the country’s Gross Domestic Product growth aided by the resilience and innovation of the industrial sector.
Ms Maina 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.
“It is projected that the county has an economic potential worth Sh200 billion in agricultural value addition, manufacturing, geothermal exploration, tourism, and real estate,” she stated.
Results of a previous 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 mainly to the 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 Maina stated that there were also numerous investment opportunities for both local and international investors in Nakuru in the environment and waste management, renewable energy, agribusiness, infrastructure, real estate and information technology-enabled services sectors.
She emphasized the need for prudent budget utilization to create an enabling environment for investors. She reiterated the importance of aligning investment policies with Nakuru’s development agenda towards attracting sustainable investments and unlocking economic potential across various sectors.
Ms Maina welcomed the County Government’s open-door policy to business operators and potential investors, stating, “We appreciate the opportunity to engage. When policymakers and businesses work together, we create a better environment for investment and innovation.”
She cited the city’s central location, good infrastructure and the upcoming Lanet airport as key to attracting capital to the county.
The Chairperson noted one of the most effective ways to boost the region’s attractiveness to investors was via reforms in the tax regime through harmonization of fees and elimination of non-tariff barriers to trade.
She underscored the importance of reviewing a multiplicity of levies and taxes that are affecting the devolved unit’s intra-county and inter-county trade thereby discouraging investments while raising prices for the end consumer.
Ms Maina observed that traders across Kenya are set to benefit from easier business operations with the implementation of the County Licensing (Uniform Procedures) Act, 2024.
“This crucial legislation aims to standardize licensing procedures across all 47 counties, eliminating the current inconsistencies and bureaucratic hurdles that often hinder business growth. The State Department for Investment Promotion (SDIP), in collaboration with the Council of Governors (COG) and key stakeholders, is developing comprehensive regulations and guidelines for the effective implementation of the Act,” explained the official.
Ms Maina pointed out that attracting and retaining investments entailed businesses partnering with the county government to enhance development through building infrastructure, restoration of natural resources and offering productive jobs in order to raise the living standards for every resident throughout the devolved unit.
She urged the County Government to foster a stable policy framework and invest in infrastructure that will support long-term industrialization.
Such efforts, stated Ms Maina, will help transform the country into a robust manufacturing economy.
“We continue to urge the county government to entrench regulatory frameworks that will spur growth among manufacturers. Provision of tax incentives for startups and small-scale industries for instance, as well as relaxed compliance procedures can make it easier for businesses to scale,” said Ms Maina.
