Investment News - Baringo County Investor Guide - DEC 2015

Nov-Dec 2015

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OPPORTUNITIES FOR SACCOS AND MSEs IN KENYA

BARINGO GUIDE TO TRADE AND INVESTMENT OPPORTUNITIES

INVESTMENT NEWS 3

INVESTING, TRAVELLING AND LIVING IN KENYA

INSIDE THIS ISSUE

November/December 2015

SPECIAL REPORTS PULL-OUT ON INVESTING IN BARINGO COUNTY

REGULARS Publishers View………… 4 On cooperatives and County development The last word…………… 30 On women leadership Quick News………………. 5 Books and culture..27 Visiting Nzaui , a place that has impressed many

This special pullout focuses on opportunities that can benefit the local investor.

Small investors are being urged to join cooperatives to access funds so that they can take advantage of opportunities Counties have opened up. Start on Page 9 KONZA TECHNOLOGY CITY Read how the new management has brought new zeal to Konza Tech City Start on Page 7 Small Business Growth Plan is our new column to help small businesses grow and expand.

Start on page 25

4 INVESTMENT NEWS Investment News Editor Muli wa Kyendo Associate Editor Emma Muli Contributors Uncle Sandu

Marketing Charles Kavuu Sylvia Njuguna

Investment News is published bi -monthly by Investment News Ltd, P.O. Box 20257-00100, GPO, Nairobi, Kenya, Tel: 0773991820 , 0721302418,

Email: Editor @investmentnews.co.ke

ISSN 1814 –9966 The Editor welcomes contributions but takes no responsibility for loss or damage.

All rights reserved Copyright: Investment News Ltd

PUBLISHER’S VIEW

Cooperatives May be the Best Way to Improve Economies in Counties Moses Chebor, the CEO of the Eldama Ravine-based Boresha Sacco, believes in cooperatives to improve the economies of the newly created counties, to empower rural communities and to fight poverty.

But Counties are full of imitators—sometimes pushed by their people as was the case in Nyeri where Governor Nderitu Gachagua, had to tell the Nyeri people that the situation of Machakos was different from that of Nyeri. That is the key reason why we beAnyone who has been watchlieve that local people — read ing County Governments entrepreneurs— are best suitstruggle to attract the elusive ed to develop their counties.

Foreign Direct Investments (FDIs) doesn’t need much to But these entrepreneurs suffer be persuaded by Mr. from certain limitations—lack Chebor’s logic. of information about the resources available and how to Machakos was the first exploit them in addition to lack county to hold an investor of finance. conference to publicize its investment potential. Many That’s where cooperatives incentives, including offers of come in. Most of the cooperafree land were announced. tives have billions of shillings And many potential investors sitting idle in banks. Many signed up. Some like the Nai- have the capacity to raise robi Hospital even went even much more. And we ahead to put billboards an- have a pool of excellent mannouncing their intention to set agers who have raised saccos up shop in Machakos. from scratch to large enterprises. These are people that Eventually, no one came to can be called upon to expand invest. Those promises have the cooperative movement to become more of an embarundertake large scale investrassment to Dr. Alfred Mutuments to the benefit of their a’s Government than a communities and Kenya at source of pride. large. .

INVESTMENT NEWS 5

Quick News Oil Multis Start to Quit Following Drop In Prices of Crude The discovery of oil in Kenya’s Turkana region in 2012 sparked excitement among the local population and raised hopes of newfound oil wealth. Numerous foreign oil companies began exploration activities; local communities started angling for a piece of the cake demanding more jobs and opportunities; and pundits talked of how crude would transform Kenya’s mainly agrarian economy and even eradicate poverty.

But three years later the hype is dying down. Exploration activities are slowing as budgetconscious oil companies have downsized or shut down operations in Kenya altogether. In 2012, crude oil was trading at over US$100 a barrel, but over the last year prices have declined sharply to below $50. A research note released by Standard Chartered bank last December indicated Kenya can only produce oil at a profit if the price of crude is at a minimum of $70 per barrel.

London-headquartered oil exploration and production company Tullow Oil, which made the Turkana discovery, said it would, as a result, reduce its rig count in Kenya. Tullow cut its global 2015 exploration budget to $200m after spending $1bn the previous year and noted that exploration activity would be concentrated on West Africa.

Kenya is today estimated to have 600 million barrels of crude. But Kenyan oil and gas expert Mary M’Mukindia says the journey has been rocky since the first discovery, despite talk of vast opportunities. Investors have been particularly frustrated by Kenya’s business and regulatory environment.

Oil exploration in Turkana

Global Spending on Scientific Publications Increases The global gross expenditure for research and development increased by more than 30%. from US$1,132 billion in 2007 to US$1,478 billion, United States leads in global expenditure on research and development. Its spending rose from US$359.4 billion in 2007 to US$396.7 billion in 2013, representing a 28.1% share of the world’s overall expenditure on research and development.

China came second its budget rising from US$116 billion to US$290.1 billion. As of 2013, China’s share of the global expenditure on research and development stood at about

20% Japan came third, spending US$141.1 billion on research and development in 2013, up from 139.9 billion in 2007.Other countries that invested highly include Germany, with a 5.7% global share, South Korea with 4.4%, France with 3.1%, the United Kingdom with2.5%, Brazil with 2.2% and Russia with 1.7%.

UNESCO Science Report: Towards 2030, says focus on research has changed ―Researchers are investing more than before in basic research into a commercially viable and sustainable product or technology with a potentially beneficial socioeconomic impact,‖ Dr Bhanu Neupane, a UNESCO programme specialist says.

6 INVESTMENT NEWS

Quick News

Kenya Limps in Race for Science Publications Kenya is among African countries with least number of scientific publications, according to a just published UNESCO Science Report: Towards 2030. Its publications were 30 while the eastern African country with least number of publications was Ethiopia with 9.

EACC Audits Lifestyles of Machakos County Staff Machakos Governor Alfred Mutua has taken his fight against corruption in the county a step further by handing over files of the County staff to the Ethics and Anti-corruption Commission in a move that the commission Chief Executive Halakhe Waqo called ―very bold.‖ Governor Alfred Mutua’s wealth information was among them.

Other were as follows: Cameroon 31, Congo 24, Uganda 20 and Rwanda 12.

Generally, number of publications per million inhabitants in Africa increased from 21 to 29 – still very low.

South Africa South Africa is top of Africa in peer-reviewed publications, producing 5,611 in 2008 and 9,309 last year – also a 60% increase. South Africa’s global share of publications rose from 0.5% to 0.7% in the same period, while publications per million inhabitants rose from 112 to 175.

Tanzania is in second position followed by Malawi and Zimbabwe.

However in terms of publications per million inhabitants, Seychelles leads SADC with 364 publications followed by South Africa (175), Botswana (103), Mauritius (71), Namibia (59) and Zimbabwe (21). Probably because of incessant conflict in the Democratic Republic of Congo, the report shows the country had only two papers per million inhabitants.

INVESTMENT NEWS 7

New MD Brings New Hope to Konza Technology City Excitement now returns to Kenya’s multi–billion shillings City

By Muli wa Kyendo Newly employed Konza Tech City CEO, John Tanui and his right hand man, Director of Business and ICT, David Mugambi, are possibly the most enthusiastic and creative managers of the city so far. Asked by a reporter how they would describe the city to their small kids, they were quick with sentences that would be the envy

of even the shrewdest of marketing minds.

Describing Konza City Mugambi described the city as: “the place where dreams will become a reality, a place where Africa’s future will be crafted.”

Kenya, he says, has all the things that are needed to make the city, not only a reality but the leader in technology. The first of the things that Kenya has

is an abundance of qualified human resources and the second are enthusiastic researchers. What the city will do, according to Mugambi, is to bring these two resources in one place so that investors, who form the third ingredient of great developments, would access and use them.

“The city will be the place where the basic resources will

8 INVESTMENT NEWS

be available for use by investors,” says Mugambi.

Role of Konza City The city, being built some 60 kilometers away from Nairobi along Mombasa Road, is the biggest component in the Vision 2030. It is expected to become the most important generator of employment for Kenya’s increasing number of school leavers. It is also expected to become the engine to move into the league of the world’s most developed economies.

Konza Tech City is being built on a 5,000 acre land that was bought by the Kenya Government from a ranching group in 2008. Construction work was initiated with great pomp by the retired President Mwai Kibaki.

But then it went into a limbo and most Kenyans begun to believe that it would soon die off.

Konza Technopolis Development Authority Indeed, passing by the road to Mombasa, you would still be

forgiven to think nothing of importance is happening. From a distance, you can only see an occasional tractor racing in the expansive Kapiti plains. But the Konza Technopolis Development Authority (KoTDA) CEO Eng Tanui has an explanation: Konza City is work of great magnitude. And work of that magnitude requires great care in planning. That is what the Authority has been doing. “Now you are starting to see work being done, “he says.

And the work that is currently going on includes laying fiber optic cables, road construction and development of other infrastructure to enable the City to welcome investors. After laying the infrastructure, the government will issue leases to local and international business. It is through this business partnership that the government hopes to build the city.

Land Leases The city will be built on two phases with the first phase ex-

pected to bring some 20,000 residents.

The first phase will have 24 leases and invitations to business community to take up the leases have already been issued.

“The Authority has started signing leases,” says the CEO. Land will be leased out to investors for a period of 99 years.

Interested companies are expected to have strong financial muscle, a well-defined construction plan with timelines to start development by April 2016 and complete it by end of the year.

Investor Conditions Investors are also expected to adhere to Konza’s green building requirements as well as have an ICT focused development strategy.

The property, owned by the National Treasury, will be controlled by the KoTDA Bill and partly by the Special Economic Zones Bill. When enacted, the Bills will provide tax incentives TURN TO PAGE 29

Opportunities for cooperatives and the small business

AN INVESTMENT NEWS PUBLICATION

BORESHA SACCO SOCIETY LTD P.O Box 80-20103,Eldama Ravine. | Tel: +254(20)8024881 | Cell: +254720200689/734200004 | Email: info@boreshasacco.co.ke

| Website: www.boreshasacco.co.ke

CS: 2549

Boresha Society Ltd is a Financial Institution licensed for Deposit Taking business by Sacco Societies Regulatory Authority (SASRA). Boresha SACCO is among the top performing SACCOs in the country with a solid capital base of 4 Billion. The Society was registered on 31st August 1976 by 10 Members with initial share Capital of 60,000. Today the growing Membership stands at 63,000 with Members Savings/Deposits of Ksh. 2.2 Billion.

Membership is open to All; SalaBoresha Sacco Kabarnet Branch situated in Mwalimu Plaza ried Members, Business community, Farmers, Organised groups and in Kabarnet Town, Baringo County’s Headquarters organizations.

The economic impact by the SACCO at the local The Society’s area of operation is the Republic of level is unquestionable. Boresha SACCO offers Kenya with a Base in Baringo County in the Rift more than banking services and facilitates ecoValley Region. Head Office is Situated in Teachers nomic change for prosperity by empowering Plaza , Eldama Ravine, Koibatek Sub County. The Members and Community at large. The SACCO Head Office is central in coordinating the Branch exists to improve people’s living standards having network in Baringo County and beyond. Boresha stood the test of time as stable and reliable Sociehas established vibrant Branches in Nakuru, one ty. Members are proud that the SACCO has enaof the fast growing city in Africa to serve the Cen- bled them to built great homes, ventured into tral Rift, Eldoret to serve Uasin-Gishu and Kapsa- business, and educated themselves and their chilbet to serve Members in Nandi County. dren In an effort to conveniently serve our valued cus- The Sacco has continued to collaborate with the tomers, the SACCO has established 12 Performing County Government and other Partners in ecoBranches in Baringo County and Neighbouring nomic empowerment and to alleviate poverty in Counties. They include; Eldama Ravine, Kabarnet, the community.

Marigat, Mogotio, Kabartonjo, Mochongoi, Barewesa, Eldoret, Chemolingot, Nakuru and Kapsabet. Besides the fully fledged branches, the We join the County Government in Welcoming Society also has Satellite Offices in Tenges, Kip- Investors to Baringo County. saraman and Kisanana.

INVESTMENT NEWS 11

Contents INTRODUCTORY MATTER 12 Editor’s note Governor's Foreword 15 County economic indicators

BARINGO 2015 22 Investment opportunities in Baringo County. This section looks at the variety of investment opportunities focusing mainly on opportunities for cooperatives and small businesses.

18.Summary of the natural resources . A look at the natural resources that Baringo County has including those that require large scale investment such as geothermal energy

20 Early trading and civilization of Baringo. There is an analysis of the role of Tugen Hills as a depository of early Man’s history.

Like cattle, bee keeping forms a great part of the economic activities in Baringo County. Here we pay special attention to the industry

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2015 EDITOR’S NOTE Contents: The contents of this guide have been deliberately focused on the local investor - the Kenyan micro, small and medium entrepreneur. Our belief is that individually and in groups such as cooperatives, the local entrepreneur can help counties create wealth. OfOften however, they are unaware of the opportunities available and the contribution they can make as investors. Our purpose is to provide them with the information and encouragement they need. We will continue to encourage cooperative as the best way for the average investor to pull together as well as access funds for their businesses.

Advertisements: Advertisements help to give extra information to readers. In this case, advertisers were to help show the value they had achieved in investing in Baringo County.

We appreciate again with grateful thanks, those who agreed to help to tell the story of Baringo as a viable investment destination for investors.

Finally, the Editor acknowledges with grateful thanks, the help of a very large number of information sources who have cooperated in the compilation of this guide.

The sponsors have helped in facilitating the gathering of the information and publication of the guide. I wish to thank particularly the officials of Baringo County Government who volunteered to cooperate and help in a variety of ways whenever we needed their help. It is due to the constant help that we now have this guide.

Investing: Baringo County 2015 Copyright 2015 Investment News P.O. Box 20257-00100 Nairobi, Kenya. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic photocopying, mechanical recording or otherwise without the prior permission of the copyright owner

INVESTMENT NEWS 13

FOREWORD As the Governor of Baringo County, and on behalf of the Baringo County Government, I am pleased to introduce this Investor’s Guide to Investment Opportunities in Baringo County. Investors in Kenya should look at growing horizons of opportunities that the new political dispensation has created. Investing in large cities and the surrounding areas may provide a simple option, but investors that really want to make money and create social impact must look beyond – far into the countryside where opportunities are not only unexplored but offer much greater margins of returns on capital. Baringo County is one such far off area with plenty of opportunities for both the large and small investors.

Located in the former Rift Valley Province of Kenya, Baringo County lies about 270km north-west of Kenya’s capital, Nairobi and covers an area of 11,015.32 sq km. Within that area, you find plenty and diverse opportunities.

As a County, we recognize that these opportunities must be made known to potential investors. We have, in deed, embraced the UN advice to States and Counties to professionally package and disseminate relevant, useful and targeted information to put their counties on the map of local and international investors. The guide starts that crucial journey for our County. It explains the opportunities available to the investor as well as the requirements and the environment – cultural and political – that surrounds the investor.

I believe that information provides the key to sound and intelligent investing. I believe this guide will provide that key.

Welcome to Baringo County.

Benjamin Cheboi, CBS, EBS, OGW Governor, Baringo County.

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EARLY TRADING AND CIVILIZATION Welcome to the home of the original man in Tugen Hills THE culture and history of the people of Baringo County cannot be found in the general folk tales of the Kalenjin community of the Rift valley. It is best sought in the stories and traditions built around their own fact of existence in an area that is unique in many ways.

The uniqueness lies in its semi-arid conditions, in its locations, fauna and flora which have for years attracted travellers and tradOne of the Tugen Hills one of the most important areas of study of early Man

ers from distant countries and who have in turn influenced and enriched the culture and history of Baringo. This uniqueness must have inspired the imagination and creativity of the early Man of Baringo and entranced the visitors and traders who have in turn enriched the culture of Baringo.

THE journey of Baringo starts in earnest probably more than six million years ago with an early man known by scientists as Orrorin tugenensis. His remains were discovered

INVESTMENT NEWS 15 around the Tugen Hills in 2001.

Orrorin tugenensis, scientists believe, makes Tugen Hills the origin of Mankind and therefore a repository of world culture.

And instinctively human beings have been drawn to the hills since time immemorial.

Among them were early traders.

These early traders were Indians who brought along with them the famous tamarind trees of Tugen Hills. Then there were Arab slave dealers whose presence was immortalized by naming the trees brought by the Indians as tamarid tree.

Early trade also involved ivory, cowries shells , gold brass and hides.

The connection with traders from the coast of Kenya is something treasured by the Tugens of Baringo. In deed, a recent cultural festival

held at the site of Koroto— a slave and trading center - featured ‘Lamu eyes’ traditionally nailed to the front of a dhow to keep away the evil eye.

Following hot on the heels of the Arabs were the Europeans led by the famous explorer Joseph Thomson in 1883. But it was colonialism that brought in a flood of Europeans especially administrators, educationists and Christians whose influence was much farreaching. Many places in Baringo—including the capital town of Kabarnet—were named for some of these influential Europeans.

Other unique things are the great lakes— lakes Baringo and Bogoria. They are not just lakes in the great valley, they are unique in their own ways, making them a pivotal point for a variety of activities in Baringo County and beyond.

BARINGO COUNTY INDICATORS AND FACTS AT A GLANCE Demographics

Land and land use

Population Total Population

555,561

Male

279,081

Female

276,480

No. of households

103,734

Education No of primary schools

656

No. of secondary schools

134

Pop with secondary school education

16%

Pop. with primary school education

48 %

Class Built up land Forest cover Water bodies Agricultural land Title deed holders Urban leasehold holders Customary land rights

Sq.km 5,985.32 (55%) 1,481.11 (14%) 196.69 (1%) 3,250.37 (30%) 25% 5% 70%

Employment Total labour force Unemployed Wage employment Literacy level (labour force)

190,349 66% 34% 46 %

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NATURAL RESOURCES Baringo County has a variety of natural resources that can be exploited by large and small business enterprises. And although some of these are already being exploited, their full potential has yet to be realized. In addition, there are businesses that can be constructed as a result of the exploitation of the natural resources.

Below are some of these natural resources.

Geothermal energy Baringo County has more than 3,000 megawatts (MW) of geothermal generated power already being exploited.

Silale, Paka, Korossi/Chepchuk and areas around lakes Baringo and Bogoria have been identified as sites which have potential for geothermal development. In addition, the block is capable of yielding up to 576,000 tonnes of water per day which can irrigate 57,000 hectares of land Solar, Wind, Bio fuel and Biogas are also available in commercially exploitable quantities.

Biomass power generation from Prosopis Juliflora trees of at much above the 12MW currently generated.

Forests Although generally classified as semiarid area, Baringo County has one of the largest forest cover with rare and valuable tree species.

Gazetted forests in the County are mainly populated with indigenous trees and plantations of exotic trees like eucalyptus, pine and gravelia.

Areas with geothermal energy in

These include; Tarambas, and Kabarnet forests in Baringo Central Sub-County; Tulwonin, Saimo, Ketnwan forest and Katimok forests in Baringo North, Lembus Mogotio and Perkerra in Mogotio sub-County, Maji Mazuri Londiani Forests, Kibunja forest and Koibatek forest in Eldama Ravine SubCounty, and Ol Arabel forest in Baringo South subCounty.

INVESTMENT NEWS 17 Mineral Resources Mineral potential of baringo County has not been fully explored. Further exploration of these minerals needs to be undertaken to establish the viability of commercial exploitation. Some important mineral deposits that

Barsemoi to the west of Lake Baringo. Rubies and pink sapphires were first reported in the Baringo/Bogoria area in 2001.

The current prospective site is East of Lake Bogoria around Mbechot area and West of Baringo South where John Saul mines and Corby Company Ltd are the only companies which have mined Rubies in commercial quantities. In order to exploit this valuable resource, the security situation in that region is being addressed.

Soda Ash

are believed to exist in the County include Rubies, Diatomite, Flourite deposits around Tiaty Hills, Vermiculite, Trona at Lake Bogoria and Carbon Dioxide at Esageri in Mogotio sub -County.

Ruby deposits are found in the rocky terrain of Kwirintoi close to Waseges River to the east of Lake Bogoria, and at Kapleng’noi and Wildlife Baringo County is home to a wide range of wildlife. The main wildlife reserves and sanctuaries are: Lake Bogoria, Lake Baringo, Lake 94 and Lake Kamnarok, Nasolot, Saiwa swamp and Rimon. Lake Bogoria National Reserve was recently declared by United Nations Environmental, Science and Cultural Organization (UNESCO) as the World Heritage Site with spectacular hills suitable for bird watching. It also has a range of wild ani-

Soda Ash (Trona) deposits on the shores of Lake Bogoria are mined in small quantities by the pastoralist community and used as salt licks for their livestock. Oil is currently under exploration in Barwessa region of Baringo North sub-County while geothermal energy is under exploration in Silale in Tiaty sub-County.

mals including Greater Kudu, Leopards, Lions, Buffalos, Zebras, Hyenas, and Gazelles, baboon, Dik-dik and Klipspringer, the latter at the rocky slopes south and east of the lake.

Besides flamingoes, there are more than 500 bird species in the County as well as several scattered birds on cliffs and shrubs in the County. Baringo remains one of the world’s largest bird watching destinations.

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INVESTMENT AND TRADE OPPORTUNITIES Investment and trade opportunities are very much dependent on the natural resources. Baringo County is well endowed with natural resources. This

section looks at some of these opportunities that are particularly suitable for the Micro, Small and Medium investor

Livestock-based industries The county supports a wide range of livestock related enterprises which constitute 70% of the county economic activity. This sub sector plays an important economic and socio – cultural role among the community members. It contributes to the food and cash needs of the pastoralist and provide employment to 90% of the population. It provides raw materials for industries and the sector directly influencing the growth of the county’s economy.

Apart from rearing animals, an investor has plenty of derivative investment opportunities.

Meat and milk processing are some of these industries. Hides and skins also offer great opportunities. Diseases and drought affect animals in Baringo county, thus creating a chance for an investor in hay and medicines –and even water supply for the animals as well as human beings.

Quality of products, distance to the markets, insufficient market information, lack of value addition initiatives, are other areas where investors can benefit. These offer the inves-

Annual income from selected livestock tor opportunities that include abattoirs, sale yards, vaccination, holding grounds and dips which are currently inadequate.

The Baringo Government is targeting to position livestock as a major economic driver delivering at least 10% of growth.

Other trade opportunities are offered by fish trade and farming as well as bee keeping.

With the great lakes of Baringo and Bogoria, fish is an important occupation in Baringo County. We will look at bee keeping in a sub-

INVESTMENT NEWS 19 Bee Keeping, Honey Processing and Cooperatives The fact that Baringo County could use bees to promote its investor conference clearly indicates the amount of bees and honey in the county. In fact, currently, the county has more than 135,000 beehives which produce only 579 tonnes annually earning the county Sh144 million.

Benefits of Unity Beekeepers in Kapkuikui area of Baringo South Sub-County formed a group and are now enjoying the benefits. They have increased and improved their behives. Their earnings in a season can exceed Sh.1.8 million which they distribute to members according to the amount of honey delivered.

And, according to Governor Benjamin Cheboi, the County government hopes to increase production to Shs 5billion every year.

Group members can earn in excess of Shs 200,000 a season which has made their lives comfortable.

Urging farmers to use modern behives, Cheboi said local log bee hives currently being used in the county produce a maximum of 18 kilogrammes each season while the commercial hives can produce up to 70 kilogrammes in a season.

“We are now able to cater for our families’ needs, including taking our children to school. Local youth have also ventured into the enterprise and some of them own between 20 and 40 hives, which have kept them from vices like drug abuse,” said Mr Simon Chesang.

Honey production statistics Baringo North Sub-County is leading in honey production with 46,000 bee hives followed

by Mogotio with 32,000 bee hives while Tiaty has 16,000 bee hives Koibatek Sub-County has 2,000 hives while Baringo South has 15,000 bee hives Kenya’s potential for apiculture development is estimated at over 100,000 tonnes of honey and 10,000 tonnes of beeswax per annum. At the moment only about one fifth of this potential is being exploited.

Various challenges have made it difficult for farmers to fully harness the opportunities in beekeeping. Among these challenges are the inadequate training in beekeeping technolo-

gies for farmers and staff, insufficient research on apiculture, inaccessibility of credit for farmers as well as lack of development of quality standards. Beekeeping provides an excellent business to small-scale farmers.

Cooperatives and groups Many of these challenges can be solved if farmers join up in groups and cooperatives.

Governor Cheboi advices farmers to join cooperatives in order to develop the honey value chain and to avoid being exploited by unscrupulous middlemen.

An example of a group that has benefitted

20 INVESTMENT NEWS from unity is that of Kapkuikui farmers.

Working with the group has made marketing easier and thus improved their incomes The county government was able to assist the farmers of Kapkuikui with Sh2 million to

CROP FARMING Main Crops The main crops produced in Baringo County can be grouped into: Food Crops (Maize, beans etc.)

Cash Crops (Coffee, Sisal, pyrethrum, cotcotton) Nuts (Groundnuts, macadamia Horticultural crops (Fruits and Vegetables) Flowers

Resource Flour

Cotton

ginning & spinning

Suggested location Marigat, Eldama Ravine

Pawpaw

winery

Cabbages

cold storage facilities

Coffee

These crops are grown using rainfall and irrigation. Baringo County depends mainly on rain fed agriculture for production of food and Irrigation is mainly for production of cash crops. The potential for irrigation in the county is above 10,000 hectares. The County Government of Baringo has embarked on establishing new irrigation schemes across the county and so far eight have been completed or are nearing completion. Many crops can grown under irrigation for instance in 2011 Perkerra and Eldume irrigation schemes started growing seed sunflower and rice on contract to help diversify crops and reduce overreliance on maize. Both crops have shown the

Products

Maize

Potatoes

the farmers of Kapkuikui with Sh2 million to set up a honey processing plant. This, according to the chairman, has enabled the group to do value addition for their honey.

Salawa (old ginnery rehab) Marigat (rehab)

cold storage, crisps Coffee roasting

Timboroa. Maj mazuri, Mumberes Timboroa Kabartonjo, Tenges

Nuts

Nut roasting and packaging

Kabartonjo, Tenges

Rice

milling & packaging

Marigat

Aloe Vera cosmetics &medicine

Koriema (rehab )

Summary of resource, opportunities and location

INVESTMENT NEWS 21 potential to improve farmers’ incomes and soils.

FRUIT PROCESSING Production capacity/annum – 18,000 MT The county government through the ministries of Environment and Agriculture, Livestock and fisheries has embarked on a promotion drive for fruit trees by supplying assorted fruit tree seedlings to farmers. The target is to have 10,000 Hectares to be under fruits in three years. The County Government is looking for an investor in the fruits industry to start processing of the fruits at the same time reviving stalled winery factory at Marigat. The main fruits being promoted include: Mangoes, Bananas, passion fruit, pawpaws and avocadoes.

A juicy passion fruit

ly involved in developing high yielding varieties like Brazil and CF4 that are also tolerant to diseases and bugs, while training farmers in orchard management and fruit harvesting.

The ultimate result has been the increase in fruit supply and farmer participation through the collection centers over the seasons which has changed the supply mode.

Passion Fruit

Aloe Vera

Passion fruit is a very common fruit in Baringo and can grow across the County. It is simple to cultivate as it is even inter-cropped and as a creeper, it can thrive even on fences and hedges. Kenya Agriculture, Livestock Research Organization (KALRO) has been active-

Aloe Vera is a cash crop that grows well in the dry areas. Efforts have been made to encourage farmers to cultivate the crop due to its minimal maintenance and good returns for its gel. However, this has not been taken up due to poor payment to the farmers.

Baringo Aloe Bio-enterprise, a factory put up in Koriema trading centre, to process the crop is currently stalled. Poor pricing played a major role in the collapse of the factory because it discouraged many farmers from investing in the crop that has little production expenses.

This resulted into a shortage of raw material supplies to sustain the factory. The capacity of the factory is at least 10,000 tonnes of aloe vera sap from farmers annually.

A mango plantation in Baringo

22 INVESTMENT NEWS Tourism The tourism industry is fairly developed in the County, with Lake Bogoria National Reserve, Lake Baringo, Ruko Conservancy, Kabarnet Museum and Snake Park and being the major tourist attractions.

The rich wildlife diversity and hot springs found in the County are major attractions that lure tourists to the County. The diverse cultures and heritage among the communities living in Baringo are another form of tourist attraction.

The County government seeks for partners to help develop Ruko Conservancy in Baringo South measuring Cable car about 19,000 hectares. It is also reclaiming Lake Kamnarok where crocodiles thrive. Development of Lodges at the lake Baringo and Cheploch Gorge is a great opportunity to allow tourists take a view of the panoramic scenery of the lake and Kerio River.

With the rich diversity of tourism attractions, there exist opportunities to provide tour facilities like tour vans and tour guides. Young graduates who major in tourism will find excellent opportunities to showcase their talent in the industry. Other tourism activities that

can be promoted are: clubs, recreational and amusement parks; boat rides at Chemususu Dam, rock climbing on the cliffs of Morop and Tugen hills, cultural showcases and dances.

Special Interest and Activity Products The capacity within Baringo to further develop a range of special interest products around wildlife and nature is exceptional. Baringo has a unique resource base on which to establish a distinct competitive advantage over other counties. In addition, Baringo has a remarkable range of tourist attractions that provide the basis of many other quality special interest products, which include: water resources for marine based interest, the mountains for climbing, hiking, mountain biking and walking and a range of possibilities for those seeking to pursue aspects of cultural interest.

Resort and Cable Car Products The natural resource attractions exist in Baringo that are ideal for construction of resorts on the lakes and on the islands as well as in the mountains.

However the development must of a scale that is in keeping with the environment, but large enough to be economically viable to provide the services and facilities associated with a cable car and quality resort.

INVESTMENT NEWS 23

INVESTMENT NEWS 25

The Small Business Growth Plan The Column that gives you every thing you need to move your business to the next level

Helping Your Company to Grow and Prosper Small businesses are powering economies around the world as they are doing in Kenya. They are creating jobs, exporting to new markets, opening up far flung areas of Kenya and developing innovative new products. And above all they are growing into large enterprises with capacity to spread to other countries as multinationals.

Small enterprises make up 99 per cent of all companies in Kenya creating jobs for millions of Kenyans.

We’ve kick-started a range of information and promotional support services which have joined up with other like minded organizations to promote the growth

of small businesses. This way we believe we will help more people to build a business, hire more employees and work with us to build a better Kenya We are on the side of the hard working heroes of our economy. I hope you will join us to make Kenya a land of plenty for all.

—Editor

Let’s Start With a Dream— Yes, a BIG Dream of Your Business The beginning is the realization of the vast opportunities that modern technology has offered all of us. Technology is the big equalizer. Think of it, today a toddler can start world shattering business. In deed, brilliant school kids sitting in a dorm are inventing the future. Heedless of boundaries, possessed of new technology and youthful enthusi-

asm, they build a new company from scratch. Their early success allows them to raise money and bring an amazing new product to market. They hire their friends, assemble a superstar team, and dare the world to stop them.

That is the future. And that future is today. The new technique is to dare to dream—to dream of an overwhelming

size of your business.

The average Kenyan is limited by their upbringing. Culture tells them never to boast, never to set out on a journey that moves you further than your neighborhood. Words such as ―ka‖ that occur in most Kenyan languages are great indicators of this small thing. You should never tell your friends of your business.

26 INVESTMENT NEWS It must be a ―Ka-business.‖ The sad thing is that local languages such as Kiswahili that lacked this destructive thinking have been invaded by this minimalist thinking and introduced the destructive ―ka‖.

Other destructive words that Kenyan business people should strike out include ―jua kali‖ Because of lack of build up garages, most mechanics repaired cars, as they do today, out in the bright sun.

That is not bad. It is healthy to work out in the fields and breath fresh air. But the sun becomes hot - and some-

times very hot. And this is the negative aspect that has characterized people in entrepreneurship. A ―jua kali‖ entrepreneur is regarded as a struggling man or woman who will stay poor unless God comes down to help him. That is not the man or woman to build the next Equity Bank.

bank.

Once you clean yourself of these negative words—and there are many more that you can add, then you are ready to dream big in the modern business context— ready to build a business as big and vibrant as Equity

In the next issue we will look at the 5 principles that guide an entrepreneur. In the meantime feel free to join in the Small Business enthusiasm by writing to us with your comments.

Now start thinking of yourself as an entrepreneur. These are people who take extreme risks to bring out new ideas, products, services and everything that the world has that makes life easier for human beings.

INVESTMENT NEWS 27

BOOKS AND CULTURE Peter Scott’s Church in Nzaui

Visiting the Setting of Your Books

The Reality May Amaze, Even Shock You

By MULI WA KYENDO Recently I visited a place that I have written about for years, but which I had never visited.

That place is called Nzaui in Makueni County. Just to show you have important this place has been in my life I have based more than two books in it. One is a play named The Woman of

Nzaui. That play talks about the life of a woman – some would say – the most significant woman among the Akamba community. It was performed at the Kenya National Theatre in 1994.

setting of my books? Well, I like the name. It is - at least to me – an ancient, quaint name that evokes in me images of a beautiful Africa that is no more. The idea was put into my mind by the names of places where my Another book that is set at the parents grew and which they place is a children’s book, Kioko frequent mentioned. and The Legend of the Plains.

The Akamba – those who lived So what is interesting about the long ago – were also apparently place? Why have I made it the

28 INVESTMENT NEWS

Inside Scotts church (Left) and above my companions, Mary Syombua (left) and Leonard Wambua. impressed by the Nzaui because they based the Akamba creation myth at the same place.

And that’s not all. In 1883, a young White man – Scottish American Peter Cameron Scott wandered into Nzaui – about 500 kilometres into the interiorand was overwhelmed by an idea of “establishing a network of mission stations that would stretch from the southeast coast of Africa to Lake Chad.”

The result was the pioneering AIM (Africa Inland Mission).

With the support of American churches, on August 17, 1895, AIM's first mission party set off, consisting of Scott, his sister Margaret, and six others to start the church in Nzaui. His church – a small building that can hold only about 50 people - still

stands strong and neat – thanks to the fact that it is built on a rock (the Akamba wouldn’t allow him anything better!) where ants and termites cannot reach.

Scott died only a year later and was buried at the church compound. When I visited the place, the faithful– descendants of his early converts were busy building up a strong enclosure to the grave –which also holds his wife and child.

How then does it feel to stand in a place which has for years held your imagination? One you are surprised how close to the imagination the real places are. First, I was surprised by a long mountain that dominates the place. Prof. Kivuto Ndeti

described it as a mound –how wrong he was! He had apparently never been to Nzaui!).

The truth is that it is a long big mountain with the side facing Mombasa road rising up higher and sticking out as if to warn invaders.

Here on this mountain, God, Mulungu dropped the first man (Mundu) and his wife (Kiveti) and all their wealth and the Kikamba language. The story is long and interesting and I pick it up another time.

So what else did I find in Nzaui? I didn’t know whether it was wooded or grassy plains. I now realized that after having grown up in the steep and heavily wooded Iveti hills above Machakos town, I trans-

INVESTMENT NEWS 29 ported the Nzaui of my mind to the Iveti hills. I was amazed how different the real place was from the imagination.

A view of modern day Nzaui near the mountain

Otherwise I found simple folk, living simple life between what i imagine was traditional and modern. At a small town called Kalamba that stands at the foot of the mountain and nearest to Peter Scott’s church, I was told people come from Nairobi to eat roast meat. “It tastes like nothing else,” my guide told me.

And for sure, it tasted like nothing else, so I cannot tell what it tastes like. It is among the things you must taste to appreciate.

And that also happens to be an appropriate metaphor to answer the question posed. It is among the things you must experience to appreciate.

Konza City FROM PAGE 9

for investors developing the parcels of land.

Konza city is the key to transform Kenya’s economy from agricultural to modern, knowledge-based economy, according to Eng Tanui. It will become the hub of innovation where centers of excellence will be put up. This will attract multinational companies and

through the partnerships, Kenya will be enabled to have its own multinationals going out to other countries, says Engineer Tanui.

Dr. Matiangi said the government will assist local investors wanting to invest in the city

The KoTDA recently held a progress briefing meeting with naKenya Technology University? tional and international business community where it announced Great project planned for the that it was now ready to welnear future includes a universicome investors to the city. ty specializing on technology, possibly to be known as Kenya “We already have many local Technology University, accord- and international inquiries but ing to Cabinet Secretary for we have been telling them to information Dr Fred Matiangi wait as we prepare. Now we are ready,” says Eng. Tanui.

30 INVESTMENT NEWS

Do these women leaders make any difference?

Let me stand corrected but when was it that you heard our women leaders—MPs, MCAs or any other– say something that only a woman could say? If you are like me, you haven’t.

Women leaders are vocal in the same issues that men leaders are—their salaries, their parties and what not. Yet the constitution that we now have regard women as special group, needing an affirmative action to be included in leadership.

I have heard women talk with passion about the girl child - and wondered. Sure the girl child has special problems that require special treatment. But many of these things are of such nature that they don’t require passion.

They require simple, straightforward explanations.

A man—a normal person in their own normal senses—does not require so much persuasion to see that his daughter requires certain things that his son doesn’t. After all, the daughter is as much his child as the son is.

That’s why it beats the sense out of me when I see a mature woman—one that we elected to represent us—using all her efforts to “fight” for girls as if the sons were not hers.

Would you rather give your daughter food and starve your son or share the food equal-

ly?

Sure there are cultural issues –and both men and women are victims. Boys stay in the home and bring girls as wives—often to be taken care of. It was normal that parents would try to equip the son to fit his roles—to bring up a home that could be respected. Today, women are working—as they were before. The difference is that women have difdifferent jobs in our modern society. This is a new dimension to which families are adjusting, faster if you are in urban areas, slowly if you are in the rural areas.

Beliefs change with time—so are some of our cultural beliefs. They will change faster for those in urban areas, slowly for those in rural areas. There is no hero or heroine in fighting these beliefs. If we want all the people to change at once, we should bring education to them at the same time. Education will rethe needs that necessitated these cultural practices.

What I would like to see is a woman leader who stands for something that truly benefits women—and has nothing to do with boys.

Let’s see true women leaders who make a difference, not pugilists, thieves, boy-child haters.