HISTORICAL BACKGROUND

Heritage

Known initially as Chich Onuno, the county was renamed Homa Bay in 1925 by colonialists. It derived its name from the Huma Hills in Karachuonyo. Homa Bay County comprises eight sub-counties: Mbita, Ndhiwa, Homa Bay Town, Rangwe, Karachuonyo, Kabondo, Kasipul, and Suba.

Homa Bay is a treasure trove of cultural heritage, primarily shaped by the Luo community. The Luo people have a vibrant tradition, including music, dance, storytelling, and craftsmanship. Traditional Luo music, characterized by the rhythmic beats of the nyatiti (a stringed instrument) and the melodic tones of the nyangile (a flute-like instrument), reflects the community’s rich cultural identity.

The county is also famous for the annual Luo festival, a celebration of Luo culture that brings together people from different parts of the county and beyond. This colorful event showcases traditional dances, music performances, art exhibitions, and culinary delights, offering visitors a chance to immerse themselves in the vibrant culture of the Luo people.

Physical and Natural Features

The County is divided into two main relief regions, namely the lakeshore lowlands and the upland plateau with a number of rivers, namely Awach Kibuon, Awach Tende, Maugo, Kuja, Rangwe and Riana Rivers, most of which originate from Kisii and Nyamira counties. The climate is inland equatorial, with temperatures ranging from a mean annual minimum of 17.1°C to a mean maximum of 34.8°C, with rainfall amounts of between 250mm and 700mm per annum.

Physical and Topographic Features

Homa Bay County is divided into two main relief regions: the lakeshore lowlands and the upland plateau. The lakeshore low- lands lie between 1,163 – 1,219 meters above sea level and comprise a narrow stretch bordering Lake Victoria, especially in the northern parts of the County. The upland plateau starts at 1,219 meters above sea level and has an undulating surface resulting from an ancient plain’s erosion. It is characterized by residual highlands such as Gwassi and Ngorome hills in Suba, Gembe and Ruri Hills in Mbita, Wire Hills in Kasipul, and Homa hills in Karachuonyo. Kodera forest in Kasipul and the Kanyamwa escarpment that runs along the borders of Ndhiwa and Mbita, also form part of the upland plateau. To the west of the County lies the Lambwe Valley, where Ruma National park is located. The County is dissected by a number of rivers, namely Awach Kibuon, Awach Tende, Maugo, Kuja, Rangwe, and Riana Rivers, most of which originate from Kisii and Nyamira counties. There are also several seasonal rivers and streams that originate from the highlands within the County. The County has 16 islands with unique fauna and flora and an impressive array of physiographic features with great aesthetic value as well as breath-taking scenery and forested landscape, particularly those around the islands and the coast of Lake Victoria and a peninsula like Sikri of Mbita sub-county.

Historical landmarks - Archipelago of Islands in Suba North, Mbita-Rusinga Bridge, Lambwe Valley, Homa Bay Hills, Kendubay/Homabay/Kowuor, Mbita & Mfangano Piers, Sugarcane plantations of Ndiwa, etc

• Places of attraction- Ruma National Park, Simbi Nyaima, sandy beaches along the county’s coastal stretch, Omena City, Tom Mboya Mausoleum

• HOMA BAY malls and markets

Investing In Kenya

Economic Environment

Kenya is the largest and most advanced economy in East and Central Africa. The Country’s GDP accounts for more than 50 percent of the region’s total, and its 2022 GDP stood at 110.35 billion dollars in current market prices.

The Government of Kenya recognizes the critical role investments play in economic development and realizing Vision 2030 objectives. To this end, Kenya has streamlined business licensing regimes and adopted online investment facilitation portals to ensure faster registration and approval of new investment projects. These changes led to an improvement for Kenya in the World Bank Group’s Doing Business Report, 2020, where Kenya’s rank improved from 61 to 56 out of 190 economies in the ease of doing business.

Kenya’s investment environment is fully liberalized. Foreign investors can invest up to 100% ownership, except in securities, insurance, power and lighting and any other identified sectors by the government that may be deemed to pose a security risk to the country. Sustainable growth and development are feasible by promoting local and foreign investments. One of the most significant changes in Kenya’s recent history is the enactment of the Constitution in 2010. Since the new Constitution was passed, over 300 new statutes have been enacted. This flurry of new and modernized legislation has changed the investment regulatory system significantly.

Notably, Kenya’s tech start-up ecosystem is often touted as a success for other nations to emulate. Kenya’s start-ups are consistently among the leaders in attracting investment among the continent’s countries. Kenyans are well-connected to the web, and the internet is the fastest on the continent. Kenya is home to the

Political Overview/Stability perspective

Kenya is a presidential representative democratic republic, in which elected officials represent the people and the president is the head of state and government. Since promulgation of Kenya Constitution 2010, the country has held successive peaceful elections that have smooth power transition, peace and tranquility .

Economic Perspectives

The IMF and World Bank in 2019-2022 reported Kenya as one of the fastest-growing economies within Sub-Saharan Africa. The country’s economic growth averaged 5.7 percent due to factors including strong macroeconomic environment, investor confidence, and a stable service sector. The Kenyan government is currently pursuing the Vision 2030, the country’s development blueprint covering the years 2008 to 2030. The Vision 2030 aims at turning Kenya into a “Middle income economy in providing high quality life for all its citizens by the year 2030”

Ease of Doing Business

Improving the ease of doing business has been a priority for the Kenyan government. The World Bank Group’s doing Business Report, 2020 ranked Kenya 56th (previously 61st) out of 190 economies in the ease of doing business. The country ranked 1st in protecting minority investors (previously 11th), 4th in credit (access previously 8th), and 50th in resolving insolvency (previously 57th).

Capital Markets

Kenya has one of the most vibrant capital markets in Africa. As of July 2021, the Nairobi Securities Exchange (NSE) had 62 listed companies classified into 8 sectors. The Capital Market Authority (CMA), the regulator of the Kenya capital markets, has developed and is implementing the Capital Markets Master plan (2013-2023), which aims at turning Kenya into the heart of capital markets.

Regional Body Membership

Kenya is part of the East African Community, together with Tanzania, Uganda, Rwanda, Democratic Republic of Congo, Burundi, and South Sudan. The members of the EAC entered into a Common Market Protocol (the Protocol), with effect from July 2010 and steps are being undertaken to realize its full implementation. Kenya is also among the 21 members of the Common Market for East and Southern Africa (COMESA), which opens up the way for trade across Eastern and Southern Africa for nearly 583 million people, or about half of Africa’s total population. These memberships enable investors to access much broader markets.

(g) Investment Incentives

Kenya provides investment incentives under EPZ, SEZ where business-enabling policies are implemented with sector-appropriate on-site and off-site infrastructure and being provided by the Kenyan Government. Further, Kenya provides an array of tax incentives

Investing In Homa Bay County

Unique Location

HBC is centrally and strategically located within the Great Lakes of Africa and the Lakes Region County Economic Block that makes it a natural commercial hub for the region. The county is advantaged by its proximity and coverage of the largest part of the Lake Victoria shores, largest fresh water lake in Africa and a position that allows potential investors to tap into the larger population availed by the East African Community and COMESA.

Is an attractive investment destination, with competitive costs of doing business on account of connectivity and readily available and accessible markets in neighboring counties and East and Central Africa.

It has access to adequate high potential land tenure system that is Government, trust and privately owned. The land is available to buy, lease or depending on the sectorial selection and position.

The county has rapidly growing urban centres and towns. The upgrade of these towns to municipal status has facilitated development, enabling various sectorial opportunities.

The conducive weather and climatic conditions in addition to supportive socio-cultural diversities in the county provides opportunities in agriculture, horticulture, tourism, mining, power production, ICTs, Industrialization and Infrastructure upgrading. Availability of educated population and skilled personnel to support production, trade and financial sectors in the county.

Strategic geographical location of the county provides an easy access to the western Kenya Tourism circuit that despites limited exploitation avails several breath taking scenic sites and cultural spots in the region. There is a need to develop this tourism circuit to be included in other parts of the country in providing global-standard tourism products. Similar to other parts of Kenya, HBC offers a fully liberalized economy devoid of exchange or price controls. Moreover, residents and none residents enjoy unlimited access to both domestic and foreign borrowing. Being part of a liberalized economy, in addition to the 2010 constitution on separation of powers between the National Government and County Government that provides broad based political stability. These developments support a conducive investor relationship building environment for Government, private sector, civil society and development partners.

Gross County Product (GCP)

Gross County Product (GCP) is defined as a geographic breakdown of Kenya’s Gross Domestic Product (GDP) that gives an estimate of the size and structure of the 47 county economies. It also provides a benchmark for evaluating the growth of county economies over time. Homabay county GCP at 2021 is Kes122Billion: compared to surrounding counties’ GCP. Kisumu Kes 249B, Siaya Kes. 106B, Kisii Kes 199B, Nyamira Kes. 118B and Migori Kes. 121B

Availability of factors of production

The County is endowed with fertile land, skilled and semi-skilled manpower coupled with access to credit from reputable financial institutions resident in the county.

National Government Intervention in Homa Bay County

The county has access to funding from the National government in addition to legal support for expedited business registration and access to Support Mechanisms by the National Government for Public Private Partnerships (PPPs) projects. These include viability gap funding, fiscal commitment, and contingent liability.

Homa Bay County Government Ease of Doing Business Intervention.

To support investments, the county has in place: enabling Legal and Regulatory Services, County Government Levies incentives, County Government Ease of doing business-turnaround time for acquisition of various business licenses and availability of information on Business Opportunities in the County.

Business enabling Environment and Investment promotion activities (HBCIDB)

Among enabling business incentives include; business cooperation and business start-up services; provision of information about the domestic investment within the institutional framework, provision of information about the domestic laws and cultural customs; assistance in securing permits and licenses from County and national authorities; ease of access to information; providing assistance in the location of Greenfield and site options according to specific requirements; maintaining an investment database and excellent investor relations; providing assistance in obtaining investment incentives; promoting business linkages and facilitating business-friendly synergies through initiatives that encourage relations between domestic supplier companies and other local partners. The County also has Investment Enablers which include transport and communication networks, enabling legislation and policies, access to land, adequacy and stability in power supply, good financial governance, security & safety.