Isiolo Urban Economic Plan

ISIOLO URBAN ECONOMIC PLAN January 2020

The development of Isiolo's Urban Economic Plan (UEP) has been made possible by funding from the UK government through UKaid’s Sustainable Urban Economic Development Programme (SUED) that is managed by Coffey, A Tetra Tech Company (“Coffey”).

This report was developed by Atkins.

ABBREVIATIONS & ACRONYMS

ACCF ASAL ASAP CBD CBO CCCF CIDP CIF DfID FCDC FTE GCF GHG IZs KFS KMD KURA KUSP LDCF LHG MSW

Africa Climate Change Fund Arid and Semi Arid area Adaption for Smallholder Agricultural Programme Central Business District Community Based Organisations County Climate Change Fund County Investment Development Plan Climate Investment Funds Department for International Development Frontier Counties Development Council Full Time Equivalent Green Climate Fund Green House Gas Industrial Zones Kenya Forestry Service Kenya Meterological Department Kenyan Urban Roads Authority Kenya Urban Support Programme Least Developed Countries Fund Livestock Holding Ground Muncipal Solid Waste

NAC NAFIS NAP NAPAs NCCAP NDMA NEMA NGO PPCR PWD RECP SACCO SCCF SIDP SIGs SMEs SuDS SWOT UEP VCF WCCPC

National Adaptive Capacity National Farmers Information Service Nationsl Adaptations Plan National Adaptions Programme of Actions National Climate Change Action Plan National Drought Management Authority National Environmental Management Authority Non Governmental Organisation Pilot Programme for Climate Resilience Peopl Living with Disabilities Resource efficient and cleane production Savings and Credit Co-operative Special Climate Change Fund Settled Internally Displaced People Special Interest Groups Small to Medium Enterprises Sustainable Drainage Systems Strengths, Weaknesses, Threats, Opportunitites Urban Economic Plan Variant Call Format Ward County Climate Change Planning Comittees

Executive Summary 1 Introduction

6

1.1. Background

6

1.2.

6

Purpose of the plan

1.3. Approach

CONTENTS

2

6

1.4.

Key principles

1.5.

Structure of this report

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9

2

Isiolo Urban Diagnostics

12

2.1.

Study area

12

2.2.

Economic planning context

14

2.3.

State of Isiolo

16

2.4.

Key challenges / risks

22

3

Economic Development Plan

24

3.1.

Economic Visioning

24

3.2.

Economic Sector Action Plans

25

3.3.

Isiolo UEP

34

3.4.

Development Framework

36

Focus Area 1: Industrial Cluster

41

Focus Area 2: The Gateway (TOD)

52

Focus Area 3: Central Business District (CBD)

60

Focus Area 4: Airport

75

Wider Area Proposals

80

3.5.

Value Chain Projects

90

4

Implementation Plan

104

4.1.

Partners & Institutional Structures

104

4.2.

Implementation costs and potential funding sources

105

4.3.

Recommendations for Capacity Building

118

4.4.

Next Steps

122

EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY The Urban Economic Plan (UEP) is an advisory document that builds on existing work and priorities identified under the County Investment Development Plan (CIDP), the Capital Investment Plan (CIP), as well as aligning and complementing work done by other donors and organisations. In doing so, it will provide a focused urban and economic development strategy for the Municipal Board and Departments to deliver balanced and sustainable growth for Isiolo.

The purpose of the plan is therefore to: › provide an inclusive urban and economic growth strategy that can guide future development towards increasing prosperity in Isiolo; › prioritise economic activities and climate resilient infrastructure that can maximise benefits and support the development of a sustainable economic future of Isiolo;

Stakeholders’ interests and insights have been considered throughout the development of the Isiolo UEP. Section 2 of this document sets out the Diagnostic Assessment of Isiolo, where the social, economic, infrastructure and environmental baseline has provided an understanding of the barriers and drivers to sustainable economic growth.

The Social Inclusion Study was a key part of the diagnostic, providing recommendations for meeting the aims of the SUED programme - to advance inclusion of PWDs, women and youth - as well as other identified groups who are currently excluded. The prioritised projects will embed recommendations for overcoming communication, physical, attitudinal and organisational barriers to inclusion.

The diagnostic identified three Key Sectors that Isiolo should prioritise for infrastructure development and Value Chain opportunities, as:

› bring together stakeholders on deciding the economic future and growth trajectory of Isiolo and implementing it; and;

› Retail and Trade

› identify and prepare value chain projects that can be considered further in terms of their feasibility and bankability before SUED seed financing is committed.

Critical for the development of the economy, through these key sectors, will be the improvement of the infrastructure particularly in regard to water management solutions to reduce flooding and improve water provision. The water management

› Agriculture including Livestock › Tourism

solutions proposed are integrated with the wider sector proposals and value chain opportunities. Isiolo Town has experienced rapid population growth along the A2 and urban sprawl which has placed enormous pressure on natural and environmental resources and urban infrastructure. The poor availability of infrastructure and resources needed for sustenance and economic activities,along with a lack of land rights has resulted in a high level of conflict throughout the culturally diverse county.

This threatens the economic growth, productivity and quality of life in Isiolo.

The cost of electricity is high and unreliable, where the use of more sustainable and efficient energy sources, including solar and bio fuels, can drive industrial opportunities and support population growth.

Environmental and climate change threats exist, which will increase pressure on ecosystems, potentially worsen water scarcity and raise environmental degradation risks for soil, rivers, water supply, air quality and forested land.

Furthermore, increased drought and flooding frequency may greatly impact agricultural yields and town production processes.

Addressing these challenges can enable the Town to establish itself as an effective multifunctioning centre, and lay foundations for sustainable economic growth.

Section 3 presents the Urban Economic Development Plan. This is driven by the economic vision that has been developed for Isiolo:

“Develop Isiolo as a Center of excellence and a major economic hub in Kenya with resilient and inclusive growth through the responsible use of it’s natural resources”.

This vision is underlined with objectives to: › Ensure resilient and resource efficient urban and economic growth; › Create an attractive and vibrant business environment; › Develop an enabling and responsive Municipal organisation; › Promote opportunities for all members of the community.

Action Plans have been developed for each of the key sectors, across: › Best Practice for Value Addition › Market Access and Development › Financial Security and Opportunity › Land Management and Rights › Water Infrastructure › Establish Modern Market

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ISIOLO URBAN ECONOMIC PLAN

› Business Support › Effective Town Planning › Access to Finance with focus on women; › Introduce certification of quality.

These Sector Action Plans will complement and provide an enabling environment for the shortlisted Value Chain opportunities.

Six potential Value Chain projects were identified in the assessment and in consultation with local stakeholders, by performing most strongly against the project’s evaluation criteria and Isiolo’s established priority criteria. All of these opportunities would be suitable for development in Isiolo, however, two particular Value Chain opportunities have been selected to maximise benefits and provide potential ‘quick wins’ for the programme: › Meat processing facility and Waste System to link with the abattoir; › Milk processing facility, focussing on camel milk.

These Value Chain opportunities are presented in Section 3.5 (all six are in the Appendix) with detail on: their key activities and supply chain, the capacity and competitiveness factors, the investment requirements and financials, potential partners, the infrastructure and land requirements, and overall impacts. In summary, the two Value Chains offer the following benefits for Isiolo:

Meat Processing Facility and Waste System Adding value through processing and packing - targeting Nairobi and export markets.

Adding value through the production of processed meat products, e.g. salami, sausages, stocks, jelly, etc.

Direct employment of 50 FTE in the first phase, with increases later as the product range is expanded.

Increasing value added through commercialisation of biproducts / waste products.

Milk processing facility Improved and stable prices for milk, supporting the incomes for over 500 farmers.

Stable prices and off take would support buying in of fodder and increase in yields.

Supports investment in livestock improvements.

Hygienic processing throughout the production and delivery chain.

Reduction in wastage - spoilt and contaminated product.

Direct employment of around 53 FTE in the first phase, with a high potential for employing SIGs, PWDs and other target groups.

Section 3 also presents the Development Framework, organised around four key focus areas: › Industrial Cluster › The Gateway - Transit Orientated Development (TOD) › Central Business District › Airport A set of projects have been identified across urban design, power, transport, waste management and water management.

The proposed projects have been assessed against climate vulnerability and a number of adaptation measures have been identified to ensure resilience.

The four areas have been identified to create focused and concentrated infrastructure development investment and economic growth opportunities which are founded on the key economic sectors and infrastructure needs that have been identified through the diagnostic process. This will optimise climate resilient infrastructure investment and utilisation, enhance social cohesion and job opportunities, and unlock potential privately funded investments.

Furthermore, a range of wider area infrastructure projects and investments have been proposed which respond to the climate risks and environmental management required to support Isiolo’s extensive agricultural base.

The report then provides a programming and sequencing of the various projects along with high level cost estimations and suggestions on the sources of funding to finance them.

Section 4 sets out further considerations for implementation across: partners and institutional structures; funding; capacity building; social inclusion; and climate change resilience. Following the completion of the UEP, during the next phase of the SUED programme, the identified value chain and climate resilient infrastructure projects will be developed further by: › Capacity building specialists to enhance municipal and local capacity to implement the projects and ensure revenue generation; › Investment climate and attraction firms and experts to address policy and regulatory constraints; and to develop feasibility studies, business cases and investment promotion strategies for the projects.

EXECUTIVE SUMMARY

Figure 1 - Overall Development Framework plan showing the three focus areas and individual sector proposals

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INTRODUCTION

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1. INTRODUCTION 1.1. Background WS Atkins International Limited was commissioned to develop the Urban Economic Plan for Isiolo as part of the UK’s Department for International Development Sustainable Urban Economic Development Programme (SUED). The aim of the programme is to support urban and market driven growth in emerging towns and cities in Kenya. Supporting these smaller centres provides an environment to create economic opportunities and job creation in a way that balances growth across the country, develops economic sectors that can contribute towards increasing the national output and provide an incentive for minimising uncontrolled migration.

In order to enable the above, the programme will identify climate resilient infrastructure development that responds to the town’s urbanisation pressures and needs.

Provides an inclusive economic strategy that can guide future development towards increasing prosperity in Isiolo;

Prioritises economic activities and climate resilient infrastructure that can maximise benefits and support the development of a sustainable economic future of Isiolo and introduce international best practice and innovation;

Brings together stakeholders on deciding the economic future of Isiolo and implementing it; and;

1.2. Purpose of the plan Combining local knowledge and international expertise, the Isiolo Urban Economic Plan:

Identifies and prepares value chain projects that can be considered further in terms of their feasibility and bankability before SUED seed financing is committed.

The UEP is an advisory document that builds on existing work and priorities identified under the County Integrated Development Plan (CIDP) and the the Isiolo Investment Plan (IIP), as well as aligning and complementing work done by other donors and development agencies.

In doing so, it will provide a focused infrastructure development and economic strategy for the Municipal Board and Municipal Departments to enable them to deliver sustainable urban and economic development within the Municipality.

1.3. Approach The approach and methodology have been developed in response to the DFID terms of reference and in consultation with the SUED Team and DFID and has been tailored to consider local conditions in Isiolo. The aim was to allow a collaborative approach between different stakeholders and the consultant team to assess Isiolo’s economy in a systematic way, develop an agreed economic vision and prioritise actions that will have maximum impact and are ready to attract donor co-financing.

The preparation of the UEP comprised four main phases:

› Phase 1 - Inception Phase which focused on the Kick off Meeting. The aim was to present the approach of the UEP and capture key opportunities and challenges affecting urban development and economic growth in Isiolo as defined by local stakeholders; › Phase 2 - The Diagnostics Phase was developed to provide a comprehensive and wide-ranging assessment of Isiolo’s economy, demographics, infrastructure, environment and climate change risk profile against a local, national and international context; › Phase 3 - The UEP Technical Briefing Paper identified, assessed and prioritised economic growth opportunities and infrastructure needs and their respective requirements; › Phase 4 - Development of the Final UEP which sets out in detail economic opportunities and actions and prioritises climate resilient infrastructure projects for implementation.

It should be noted that this report is founded on the culmination of the preceding studies and phases which are all appendices to this report.

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ISIOLO URBAN ECONOMIC PLAN

Figure 2 - UEP Development Phases

Inception Phase

Gather initial comments through stakeholder engagement - KOM

Diagnostics Phase

UEP Technical Briefing Paper Phase

Policy Framework International/ National trends

Setting the principles for the development of the UEP

Economic and Demographic

Evaluating and prioritising VC opportunities

Infrastructure and Transportation provision

UEP Phase

Setting Vision & key economic sector actions

Analysis of Strengths, Weaknesses, Opportunities and Threats of key economic sectors

Environmental & Climate change risk profile

Assessing requirements & impact of shortlisted VC opportunities

Evaluating climate resilient green infrastructure opportunities

Identification of short listed VC opportunities and climate resilient infrastructure

Consultation with Municipal Board, Municipality & County officers, Businesses, Special Interest Groups

Development Framework & Climate resilient infrastructure

Anchor projects: Value chain opportunities

INTRODUCTION

The Isiolo UEP has been developed utilising primary and secondary research and analysis, ranging from local and national strategies and international studies to statistical analyses, focus discussions with stakeholders and surveys. A key component has been consultation with local stakeholders.

Stakeholder Engagement The purpose of stakeholder engagement was to ensure that stakeholders’ interests are taken into consideration throughout the development of and reflected in the Isiolo Urban Economic Plan. More specifically, the aims were: › To ensure that the development of the Urban Economic Plan is inclusive and is undertaken in a manner that fits with Isiolo’s business and community culture; › To ensure that all stakeholders are clear on the purpose, scope, recommendations and outcomes of the Urban Economic Plan as well as meeting key stakeholder’s aspirations and gain buy-in from them; › To understand better the interests of specific groups and how the Urban Economic Plan can benefit them, and; › To provide a regular flow of information to and from key stakeholders.

A critical process in developing the UEP report has been stakeholder engagement including:

› Stakeholder workshops; › Formal social consultations and; › Business consultations.

Three separate workshops were undertaken, including the Kick off Meeting (KOM), to gather feedback from stakeholders throughout the project. The first workshop (KOM) presented the project and process and collated information from over 60 stakeholders in terms of key characteristics, strengths and challenges within Isiolo (captured within the Isiolo Inception Report). Stakeholders included Municipal Board, Municipality and County officers, private sector, civil society groups and non-government organisations and representatives from Special Interest Groups. The second workshop focused on gathering feedback from the Isiolo Municipal Head of Departments on the findings of the diagnostics evaluation, including sectoral SWOTs and identification of emerging economic opportunities. The feedback is in the Diagnostic Report and the UEP Technical Briefing Paper Report appended to this document. The third workshop focused on presenting and reaching consensus with stakeholders on economic opportunities that help leverage investment and support sustainable development in Isiolo.

The social inclusion study involved primary research, covering interviews with key project informants and focus group discussions, which together resulted in the identification of socially excluded groups and the development of recommendations.

Business consultation was undertaken to understand how Isiolo’s businesses operate and their views on future growth opportunities and constraints.

This consultation, through a detailed questionnaire, covered a range of respondents, including business and community groups that covered numerous enterprises, across Isiolo’s main sectors.

Policy and Legal Framework Whilst the Urban Economic Plan (UEP) is a non-statutory document that is purposed to provide advisory services to the Isiolo Municipality, it takes cognisance of the existing policy and legal framework. It builds on policies such as Vision 2030 and the Frontier Counties Development Council (FCDC) Regional Economic Bloc which seek to promote economic sectors

and social cohesion with the potential to unlock the economic growth of Isiolo County and Municipality. Further, it enhances the aspirations captured in the National Spatial Plan (NSP), the County Investment Development Plan (CIDP), the Isiolo Municipal Charter (IMC) and the Isiolo Investment Plan (IIP). As Isiolo does not currently have the benefit of an Integrated Spatial Urban Development Plan (ISUDP) it is suggested that the proposals contained within this report our considered for inclusion in such a development plan once it is prepared.

The rationale of the adopted context-based approach is to ensure that the UEP builds on the existing strengths of the town in order to provide a focused and robust plan that will promote the sustainable urban and economic growth of Isiolo Municipality.

Figure 3 - UEP Statutory Context

Policy Framework › Vision 2030

Legal Framework

UEP

Spatial Plans

› Physical and Land Use Act, 2009

› NSP

› Urban Areas and Cities Act, 2012

› ISP

› The Land Act, 2012

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› CIDP › IMC

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ISIOLO URBAN ECONOMIC PLAN

1.4. Key principles It is important that the development of the UEP and evaluation of proposed projects are grounded on key principles that support the Programme’s aim to create market driven growth and build infrastructure resilience. The SUED Team has defined these principles as:

Resilient

Resource Efficient

› Shifts in the economy

› Circular economy and zero waste

› Adaptive infrastructure to climate change

› Water and energy management

Resilience:

Resource efficient:

The prioritised projects will have to be resilient against shifts in the economy both for domestic and international markets as applicable to remain competitive. They will also need to be adaptive to potential climate change impacts, while ensuring technological advancement can be introduced where possible.

The projects will need to be resource efficient promoting minimisation of waste (or zero waste where possible) and optimising the use of water and energy.

Socially inclusive:

Sustainable:

The UEP will need to be socially inclusive through a thorough understanding of who lives and works in Isiolo and how all groups, including women, people living with disabilities and youth, can be engaged moving forward.

The UEP promotes green infrastructure and minimisation of environmental impacts.

› Rural - urban linkages

› Smart Solutions

Resilient

Resource Efficient

Socially Inclusive

Sustainable

Socially Inclusive

Sustainable

› Socio-economic trends

› Low carbon development

› Vulnerable groups

› Green energy

› Immigration/migration

› Green infrastructure

While these principles are closely linked and overlap in their definition, each one of them emphasizes a different aspect that is not fully captured by the others. Thus, it is important that all four principles are embedded in the UEP and its implementation.

In addition to these principles, it is critical to ensure the UEP develops the competitiveness of the Municipality to promote and sustain economic growth.

INTRODUCTION

Focus on the basics:

Improve institutions and regulations:

› Health;

Poor institutions and high levels of corruption are likely to hinder private sector investment and development as these factors create uncertainty about public services delivery, efficiency and costs.

› Basic education; › Infrastructure.

Research from the World Bank shows that statistically, for cities with low levels of industrialisation and productivity, good institutions, social infrastructure (such as education and health) and basic physical infrastructures are the key determinants for success.

Develop a coordinated and comprehensive growth strategy: Achieving competitiveness requires improvements on a range of very different aspects, and there is a risk that decisions are taken individually with little considerations for how they interact.

Instead, decisions should be coordinated around overarching goals (e.g., transport strategy should reflect and respond to strategies relating to poverty, skills and employment) and they should also be comprehensive (e.g., sectoral strategies should examine and target every step of the supply chain, not just the sector itself).

Utilise existing resources and comparative advantages: Successful cities should make the most of the assets and resources they already have, rather than trying to attract new types of industries that are not necessarily adapted.

There is not a silver-bullet policy to improve competitiveness.

1.5. Structure of this report Following this introduction, the report is structured as follows: › Section 2 provides a summary of key findings from the Isiolo Diagnostics Report which forms the basis for the development of the Isiolo UEP. Summaries of the demographic and economic profiles and the infrastructure and environmental assessments are presented. The section details the key challenges and drivers for growth, identifying Isiolo’s key sectors; › Section 3 set outs the Urban Economic Development Plan, which is underlined

by Isiolo’s economic vision. Each of the three key sectors is presented with a summary of its SWOT analysis and a Sector Action Plan. The identified Value Chain projects are then set out in detail.

Section 3 outlines the Development Framework and supporting climate resilient infrastructure projects that have been identified for enabling urban and economic growth within Isiolo; › Section 4 presents a range of implementation considerations to support the next stages of the SUED Programme.

The report is supported by a series of appendices, in which: › Appendix A - Isiolo Diagnostic Report The purpose of the report is to assess the current position of the economy and state of infrastructure, alongside the regional, national and international context, before the consideration of emerging economic growth opportunities and infrastructure needs; › Appendix B - UEP Technical Briefing Paper Provides a Briefing Paper that captures the process followed from identification to assessment of growth opportunities for Isiolo and provides recommendations on those with the greatest potential to maximise benefits and be developed further. The contents of this report will form the backbone of the Isiolo UEP; › Appendix C - Isiolo Social Inclusion Study This study was a key part of the diagnostic process and engaged with special interest groups through interviews and focus group discussions.

The study identified the groups that are excluded in socio-economic activities in Isiolo and explored how and why they are excluded. The Study made a series of recommendations for the SUED programme to ensure inclusion and to address the multiple barriers (communication, physical, attitudinal and organisational) that these groups face;

› Appendix D - Climate Vulnerability Assessment Has been undertaken to outline the climate vulnerability context for the selected infrastructure projects to be developed in Isiolo. The Climate Vulnerability Assessment will complement associated pre-feasibility and feasibility study assessments.

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ISIOLO URBAN DIAGNOSTICS

2. ISIOLO URBAN DIAGNOSTICS Before any proposed interventions are developed it is important to understand the local development context and potential barriers. This has been undertaken with the UEP diagnostic process, as presented in Appendix A. This was a critical process to establish a foundation for identifying solutions that can deliver economic, social and environmental benefits.

This section provides a summary of the diagnostic report’s assessment of: › Isiolo’s socio-economic profile, with urban; › and economic conditions and trends; › The state of Isiolo’s existing infrastructure;

Figure 4 - Isiolo Study Area North-Meru

2.1. Study area The geographical focus is Isiolo Municipality and where applicable Isiolo county. Isiolo is located on a flat low lying plain, in an arid and semi-arid area (ASAL), 285km north of Nairobi. Isiolo Municipality is located in the south of the County and shares a border with Meru county, with Meru town 38km to the south. The study area features the airport, key national roads and the Isiolo central business district.

A2

Kenya

Study Area Wards Isiolo River

B9

Isiolo CBD Wabera

Airport A2 Road B9 Road

› The environmental and climate risks.

Bulla Pesa

Mu

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Is io

rth No

A2

lo

rir

Isiolo International Airport

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ISIOLO URBAN ECONOMIC PLAN

Isiolo is in a strategic location in the centre of Kenya, on the transit corridor from Nairobi to Addis Ababa. Isiolo is popularly known as the “gateway to the north” and ‘’Vision 2030’s epicentre”, where it has a significant role in the LAPSSET corridor developments with the Garissa-Isiolo highway and connection to the interregional Standard Gauge Railway corridor.

Isiolo is situated within the Frontier Counties Development Council (FCDC) regional economic bloc which comprises 10 northern counties as an area that has been economically marginalised for many years. This bloc makes up 61% of total land area in Kenya, but only contributes 5% of total national output, with agriculture including livestock, making up close to half of the bloc’s total output. The region’s arid nature is a challenge to supporting meaningful agricultural production. Low output levels are also attributed to poor climate conditions, including drought, unpredictable rainfall, low value addition and lack of supportive infrastructure and technology use.

Pastoralist activities, mainly livestock farming, drive the economies of the FCDC bloc, contributing the largest share of total output and being the biggest employer across the region.

Figure 5 - Isiolo CIDP (2018-22)

Ethiopia

To Juba

Nakodok

To Addis Ababa

Moyale

Oil Pipeline Highway

Uganda

Railway

Kenya

Isiolo

Nairobi Lamu

300km 150m

Source: UNDP (2016) ‘United Nations’ Technical Assistance to the Frontier Counties of Kenya: A Brief Concept Note’; Frontier Counties Development Council (2018) ‘The Role of FCDC’, available: www.fcdc.or.ke; Isiolo County Government CIDP 2018-22; KNBS Gross County Product (2019)

ISIOLO URBAN DIAGNOSTICS

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2.2. Economic planning context The diagnostic process set the basis and context for the development of the UEP. The Isiolo Diagnostic Report covers the key international and national trends, which are likely to influence Isiolo’s growth trajectory, and the policy framework from national strategies through to Isiolo’s own priorities and ambitions.

Economic planning context

The Isiolo UEP aspires to build on and enhance the work already done

International trends

Urbanisation trends Depletion of resources Climate change Impacts of the 4th Industrial Revolution

National Polices and Strategies

Kenya Constitution 2010 (Chapters 5 & 12) County Governments Act No. 17 of 2012 (revised 2017) Urban Areas and Cities Act (2011) Physical Planning Act No. 6 of 1996 (revised 2012) Kenya Vision 2030 National Spatial Plan (NSP) Kenya Green Growth Strategy

The Kitui UEP aspires to build on and enhance the work already done

Local Plans

Isiolo CIDP 2018-2022 Isiolo Municipal Charter (2018) Isiolo Investment Plan 2018-2022

Isiolo Priorities

Develop as an administrative centre with multifunctional activites Establish modern markets and an effective trade environment Seek to introduce a diversified processing and manufacturing sector with access to wider markets

Improve infrastructure to enhance the business environment and quality of life Develop employment opportunities for the growing young population Leverage the potential tourism opportunities provided by the regional game parks and diverse cultural mix within the County

Isiolo River

A2

Figure 6 - Isiolo Context Plan

Kenya

Isiolo Sewage Works

Isiolo Livestock Market

Isiolo County Referal Hospital

Leparua Forest

B9 Existing Leisure Existing Market

Isiolo Divisional Headquarters

Existing Education Existing Healthcare / Community Existing Government Existing Utilities Forests / Swamps

Isiolo Market Isiolo Sports Ground Isiolo Bus and Coach Station

Wabera Primary School

Protected Land Recreational Land

Isiolo School for Boys and Girls

Land for Transportation Educational Land

Marire Swamp

Land for Public Purpose Land for Markets and Retail Residential Land: High Density Residential Land: Medium Density

Isiolo International Airport

Residential Land: Low Density Isiolo CBD CBD Buffer (2km radius) Airport Buffer (2km radius) Existing Carriageway (A2) Existing Roads (Major and Minor)

Cemetery

Mu

rir

A2

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ISIOLO URBAN DIAGNOSTICS

2.3. State of Isiolo Isiolo Town has experienced rapid population growth along the A2 and urban sprawl which has placed enormous pressure on natural and environmental resources and urban infrastructure. The poor availability of infrastructure and resources needed for sustenance and economic activities, along with a lack of land rights has resulted in a high level of conflict throughout the culturally diverse county. This threatens the economic growth, productivity and quality of life in Isiolo.

Demographic Profile Isiolo County has a relatively small population, though this has grown rapidly from 2009 to reach 80,500 in 2018. This is now estimated to make up around a half of the County’s estimated population of 159,000, growing from a third in 2009.

Isiolo County is ranked as the 7th most urbanely concentrated county with 44% living in urban areas (source note: KNBS, Analytical Report of Urbanisation, 2012), whilst 94% of the Municipality population is located in the urban core (2009 census in section footnote). The rest of the County is predominantly rural with a population density averaging just over 4 people per km². Over the last decade the population of Isiolo Municipality has grown at an average annual growth rate of 6.3%. The Town has experienced a higher population growth rate than Kenya (2.5%), the County (1%) and the eastern region, mainly driven by rural to urban migration due to its strategic location along on the A2 corridor from Nairobi to Addis Ababa. The strong population

Isiolo Municipality estimated to have

Isiolo Municipality

46,500

population in 2009

80,500

16

6.3% Isiolo Municipality 2.5% Nationally

1.1% Isiolo County

inhabitants in 2018 2

Source: Isiolo Investment Development Plan/CIDP

Projections have Isiolo town continuing strong growth, as well as wider county growth due to LAPSSET with an estimated county population by 2030

280,000

Source: CIDP

Population Growth Secondary Education

Tribal diversity

22% 46% Isiolo County Isiolo Municipality 23% Nationally

37% For national urban areas

Source: KNBS Inequality Report 2013

including Borana, Meru, Somali, Turkana, and Samburu Source: Rapid Assessment of the Institutional Architecture for Conflict Migration, 2018

Ranked 7th

highest county for its birth to death rate, with a ratio of over 9

Source: KNBS Statistical Extract 2018

of Isiolo spend High levels Inhabitants times less of poverty 1.1 than the average in Kenya

65% of the county population

live below the poverty line, ranking 39th out of 47th in terms of inequality Source: KNBS, Kenya socio economic atlas, second edition 2016

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ISIOLO URBAN ECONOMIC PLAN

growth in the Town is expected to continue due to it being the location of LAPSSET projects and with a high birth to death rate ratio. The wider county has experienced some emigration, likely driven by instability and the poor environment, where there has been both in and out of county urban migration. Isiolo Town’s status as the County’s main employment area is reflected through a high working age population within Isiolo Municipality (56%).The level of secondary-educated population in Isiolo Municipality is high (46%) compared to Kenya urban areas as a whole (37%), however outside of the Town only 22% of the working age population in the County have completed secondary education or higher.

The mean monthly expenditure per person in Isiolo County of KSh 5,848 is below the national mean of KSh 6,620. Nonetheless, this amount is significantly higher than other counties in the FCDC region, such as Turkana (KSh 2,663) and Wajir (KSh 2,548). Isiolo County has high levels in inequality within the County, with only 8 counties in Kenya being more inequitable.

124,200 people live below the poverty line, accounting for over 65% of the County’s population, ranking 39th of the counties.1 Social inclusion The SUED Programme’s focus in terms of inclusion is PWDs, women and youth.

Leaving no one behind is a central theme that underlines both the 17 UN Sustainable Development Goals adopted in 2015.

1 KNBS, Kenya socio economic atlas, second edition (2016)

As such the UEP’s proposed interventions need to be PWDs, gender and ageresponsive.

A key part of the UEP diagnostic process was the Isiolo Social Inclusion Study (Appendix C). This study engaged with special interest groups (SIGs) through interviews and focus group discussions.

The study found that the groups regularly excluded in socio-economic activities in Isiolo are: › Street families - Excluded by the government and society at all levels.

The community views them as dirty and thieves and negatively label them; › Commercial Sex Workers (CSWs) They are discriminated against in access to goods and services, housing and accommodation, and justice, and they are afraid to be known as CSWs due to negative stigma; › PWDs - PWDs are excluded in decision making, information sharing and socioeconomic activities because they cannot participate in pastoralism or related activities due to their immobility or limited abilities; › Women - Excluded in decision making; traditional gender roles prescribe that men make decisions, and women stay at home and take care of the family; › Youth - They are discriminated against in employment. Isiolo youth have been painted as radicalised due to the transit

nature of the Town they live in, and the insecurity reports it has faced in the past.

They too, like many other Kenyan youth face drug abuse.

ISIOLO URBAN DIAGNOSTICS

Economic Profile Economic Profile

Figure 8 - GCP growth 2013-17

IsioloProfile county is the smallest Economic economy in Kenya with respect to

Isiolo county had GCP growth of 4.9% between 2013-2017, which is slower than the national rate although higher than the average for the FCDC region

5.6%

Gross County Product (GCP) at

Isiolo county is the smallest economy in Kenya with respect to Gross County Product (GCP) at

KSh 15.85bn,

4.3%

with the national average of KSh 160.1bn

KSh 15.85bn,

Mandera Turkana

with the its national average of KSh 160.1bn However, when considering relatively small population size, Isiolo ranks 33rd out of 47th for GCP per capita.

Marsabit

Gross county product per capita, 2017 (in KSh)

Wajir West Pokot

Figure 7 - GCP per capita (2017 prices), 2017 400,000 350,000 300,000 400,000 250,000 350,000 200,000 300,000 150,000 250,000 100,000 200,000 50,000 150,000 100,000 0

Bungoma Uasin Gishu

Busia

Siaya

Vihiga

Laikipia

Migori

Kisumu

Kenya average

Kenya average

Source: KNBS, Gross County Product 2019

Tharaka-Nithi

Nyandarua Nakuru

Nyeri

Kirinyaga

Nyamira Kisii

Garissa

Embu Murang'a

Bomet Narok

Kilifi Sajir Turkana West Pokot Mandera

GCP per capita (2017)

GCP per capita (2017)

Meru

Nandi

Kericho Homa Bay

Isiolo

Baringo

Kakamega

Nyandanrua Elgey o Marakwet Nyandanrua Nairobi Elgey o Marakwet Mombasa Nakuru Nairobi Mombasa Lamu Kiambu Nakuru Nyeri Lamu Machakos Kiambu Embu Nyeri Bomet Machakos Tharaka Nithi Embu Kisumu Bomet Kirinyaga Tharaka Nithi Marok Kisumu Muranga Kirinyaga Laikipia Busia Marok MeruMuranga Nyamira Laikipia Kericho Busia Taita Taveta Meru Uasin-GishuNyamira Baringo Kericho Nandi Taita Taveta Kajiado Uasin-Gishu Kisii Baringo Trans Nzoia Nandi Tana River Marsabit Kajiado Makueni Kisii Trans Nzoia Dwale Tana River Isiolo Homa BayMarsabit BungomaMakueni Kakamega Dwale Siaya Isiolo Vihiga Homa Bay Kitui Bungoma Samburu Kakamega Garissa Siaya Migori Vihiga Kilifi Sajir Kitui TurkanaSamburu West Pokot Garissa Mandera Migori

50,000 0

Samburu ElgeyoMarakwet

Trans Nzoia

Gross county product per capita, 2017 (in KSh)

Kiambu

Nairobi

Machakos

Kitui

Tana River

Makueni Kajiado

Lamu

GCP change (%) 2013-17 < 10 10 to 20 20 to 30 30 to 40

Kilifi Taita Taveta

Mombasa Kwale

> 40

18

19

ISIOLO URBAN ECONOMIC PLAN

The economy of Isiolo appears to be fairly diverse and not overly reliant on one single sector. The largest contribution to GCP is the public service sector (29%), followed by the agriculture, forestry and fishing sector (21%) and both retail and other services and construction and logistics contribute 17%. Manufacturing and agriculture are the most underdeveloped sectors in Isiolo when compared to the country, where Isioloâ&#x20AC;&#x2122;s agriculture and livestock sector has a low productivity and output value, despite over 80% of the population of the County relying on livestock for their livelihood.2

Isiolo county has a broadly similar breakdown of the labour force compared to the national economy, with between 65%-70% of the labour force working and 30%-35% not working.

The key differences are a smaller proportion of labour force working for pay in Isiolo county and a higher percentage of people working in family businesses, reflecting the high proportion of informal work within Isiolo county.

Figure 10 - Employment status, 2009 0%

Figure 9 - Economic structure of Isiolo County, 2017

10%

Retail, Hospitality & Other Services

Economic Structure of Isiolo, 2017

Kenya

Mining & Utilities Manufacturing

Technical Services

50%

17% 16%

60%

11%

70%

10% 1%

80%

90%

16%

24%

13%

100%

15% 0%

33%

12%

11%

32%

10% 1%

9%

13%

1%

8% 1%

9% Work for pay

Family Business

Family Agricultural Holding

Intern/Volunteer

Retired/Homemaker

Fulltime student

Incapacitated

No work

Construction & Logistics

Source: KNBS Gross County Product 2019

2 CIDP 2018-2022)

17%

40%

1%

Agriculture Public Services

30%

31%

Isiolo Isiolo County

20%

Source: Isiolo Inequality Report 2013

State of Businesses in Isiolo As part of the diagnostic process, businesses based in Isiolo Town were consulted with. This covered 33 respondents including business and community groups that represented over 350 workers. One of the key questions was around constraints to growth - whilst most reported an aspiration to expand the following were seen as the barriers:

Supply chain problems

Lack of finance

Poor economic conditions

Insecurity

ISIOLO URBAN DIAGNOSTICS

20

Infrastructure Provision

Water Nationally

58.9%

Drainage

Irrigation of the population have access to at least a basic water supply

In Isiolo town, urban water coverage is estimated at and the supply is drawn from three surface sources and a cluster of 14 boreholes, 8 of which are functional

80%

35%

In Isiolo county have access to portable water and to piped water

9%

Sanitation

1,500 ha

Around of land is currently irrigated within the county, with potential for irrigation at more than 2,000 Ha

There are plans to rehabilitate or expand several smaller irrigation schemes which would increase the irrigated cropping area by 1,700 ha

Power

Solid Waste

8%

Only of households in Isiolo county have access to electricity, with a high reliance (85% of households) on firewood as the source of power for cooking

40%

An estimated of the countyâ&#x20AC;&#x2122;s population practise open defecation which poses health risks access to improved 23% have sanitation in the count, compared to 65% as the national average

The drainage system is inadequate for the peak flows experienced in Isiolo town, with flooding and contamination key issues

Transportation Walking is the predominant mode of travel, other modes include bicycles, boda bodas, tuk-tuks, matatus and private cars

14,000

Waste generation in Isiolo town (approx. tonnes per annum) is greater than the capacity for waste storage and collection, which has led to frequent dumping of waste in open areas

10-15%

It is estimated around of the waste is recyclable (paper, card, plastic, metals and glass) in the town

The town has more reliable electricity provision, however there are occasional blackouts and fluctuations as a barrier to investment Significant potential for renewable energy source, especially solar and wind

Isiolo town is a transport hub for vehicle travelling along the A2, with heavy goods vehicles frequently make stopovers in the town Only 3% of the County road network is tarmacked and large parts of the townâ&#x20AC;&#x2122;s roads remain unpaved

21

ISIOLO URBAN ECONOMIC PLAN

Environment and climate change risk profile Isiolo County has a dry tropical savanna climate, with an annual mean temperature of 29°c.

There are three agro-ecological zones: semi-arid (5%), arid (30%) and very arid (65%) and 80% of the land is nonarable.

Most land of Isiolo County is low lying flat plains and there are six perennial rivers in the County. One of the tributaries to Isiolo river is Merire river, which runs through Isiolo Town.

The long rains season occurs between March and May while the short rains season occurs in October and November. Rainfall ranges from 300mm annually (or less) in the northern and eastern parts of the County to 650mm annually in the areas closer to Mount Kenya and Nyambene Hills, such as Isiolo Town.

Isiolo County has abundant wildlife and is home to Buffalo Springs, Shaba, and Bisandi nature reserves, and five community conservancies.

The county has a rich resource of gums and resins including myrrh and frankincense which are obtained from the Acacia, Commiphora and Boswellia species found in Garbatulla.

Nearly 80% of the county land is used for agricultural crops and grazing, despite 65% (very-arid) of land being unsuitable for crop growth. Nomadic pastoralism is the most prominent land use and livelihood source, majority of population in the county depends on livestock and livestock products to survive.

The eastern part of the county is very dry pushing pastoralists to migrate in search of water which increase their vulnerability to droughts.

ISIOLO URBAN DIAGNOSTICS

Climate change effects Isiolo County is one of the most vulnerable counties to climate change in Kenya. The key vulnerabilities in the County include drought, unpredictable rainfall and floods.

Mean temperatures across the country are estimated to increase in the future, with the annual temperature projected to increase by up to 2.9˚c by the 2060s.

Flooding results in soil erosion on pasturelands and the agriculturally productive river valleys, which undermines the environmental integrity, and the sustainability of crop and livestock production on these lands. Isiolo Town has experienced previous floods and half of households are settled within Merire river basin.

These vulnerabilities have led to increased food insecurity and high incidences of poverty in the County, and an increase in unsustainable practices such as charcoal burning to supplement the low agricultural incomes. In particular in Isiolo County, the primary vulnerable sectors reflect those at a national level, agriculture, water, health, infrastructure and ecosystems, and require significant climate change adaptation investment need.

2.4. Key challenges / risks In order to achieve sustainable growth, there are a number of key challenges for Isiolo to overcome.

The infrastructure of Isiolo Municipality is of insufficient capacity and quality and

to meet projected growth and to enable economic development, where existing infrastructure will need to be upgraded.

Water scarcity is a major issue and Isiolo Town’s water supply is drawn from three surface sources and a cluster of 14 boreholes, only 8 of which are functional.

The drainage system is inadequate for the peak flows experienced and heavy rains can flood the central commercial district.

Without an ISUDP for Isiolo town there is a lack of a development framework within which infrastructure projects can be holistically planned for the long-term.

The projected demographic rise in Isiolo Town’s population is expected to trigger increased demand for food products, both from livestock and crops. High demand in turn exerts pressure on the factors of production, such as natural resources, which may result in their degradation.

Isiolo County is experiencing climate change exemplified by increased temperatures and heat stress, recurrent droughts and floods. As a result, crops have become more vulnerable to pest attacks and diseases causing losses in crop yield and harvest quality and sometimes leading to total crop failure. Agricultural production in the County is also challenged by competing demands for and conflict over natural resources use. Cases of livestock invading croplands, especially during dry spells, are very common.

Isiolo’s markets need supporting infrastructure and improvement if they are to be capable of supporting the trade

of value adding agricultural outputs and support the development of a visitor economy. The markets in particular face issues of limited supply chain linkages, limited physical and walking access, poor lighting, poor waste management and risk flooding.

There will be a need to employ sustainable and efficient practices utilising local resources as the economy diversifies and grows. Appropriate economic opportunities should be promoted, and the supporting infrastructure put in place, which minimise the exposure to climate change risks.

Agriculture including Livestock

22

Tourism

In addition to the above sectors, manufacturing is considered a key sector and specific actions are presented within the Development Framework for the establishment of an Industrial Cluster and supporting infrastructure.

The identified Value chain opportunities are also prioritised as those which can act as anchor for further manufacturing activity.

These are presented in sections 3.4 and 3.5 respectively.

Retail and Trade

ECONOMIC DEVELOPMENT PLAN

24

3. ECONOMIC DEVELOPMENT PLAN The model for development for Isiolo is founded on the UEP principles set out in Section 1 and in collaboration with Isiolo stakeholders. It aims to strengthen Isiolo’s economic position based on its competitive and comparative advantages and taking a citizen centred approach to green growth and sustainable investment.

The Isiolo Urban Economic Plan sets out an economic Vision and economic action plan which will support the Municipal Board and the Municipality deliver a more cohesive, holistic and sustainable economic future for

Isiolo. A number of potential value chain projects have been identified which can act as anchor projects while a development framework prioritises key climate resilient infrastructure projects that will be required to support economic growth.

This section is set out as follows:

› 3.3 introduces the shortlist of value chain opportunities › 3.4 presents the Development Framework which brings together all proposed climate resilient infrastructure projects organised in key focus areas

› 3.1 sets out Isiolo’s economic vision and objectives

› 3.5 provides more detail in terms of scope for those value chain projects that present the highest positive impact

› 3.2 describes actions to promote key sectors of the economy

3.1. Economic Visioning

Vision & Objectives

To promote diverse economic development within an attractive investment business environment, Isiolo must focus on its key economic sectors and competitive advantages that can support growth within the Municipality, and throughout the County, and facilitate both sustainable growth and the adoption of latest best practices.

The Vision is supported by a series of objectives to be adopted by the Municipality which will provide direction and clarity in its decision making and future activities. These are:

Objectives Ensure resilient and resource efficient urban and economic growth

Create an attractive and vibrant business environment

Develop an enabling and responsive Municipal organisation

As a result the Economic Vision for Isiolo is as follows: Economic Sector Action Plan & Value Chain Project Opportunities

Development Framework & Priority Infrastructure Projects

To “Develop Isiolo as a Center of excellence and a major economic hub in Kenya with resilient and inclusive growth through the responsible use of it’s natural resources”.

Promote opportunities for all members of the community

25

ISIOLO URBAN ECONOMIC PLAN

3.2. Economic Sector Action Plans Having identified the three key sectors for further assessment (see page 22) the Economic Development Plan has formulated the following Action Plans for each sector. These are premised on the Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis that was part of the Diagnostics Reporting stage (Appendix A). Summaries of the SWOTs are presented below for each sector (with strengths, weaknesses and challenges).

Agriculture and Livestock Sector

Isiolo County also produces some processed agriculture products. The County does not have an optimal climate for growing many agricultural products, with 80% of the land non-arable, however it is well suited to grow the raw materials for

gums, resins and aloe products, which are then further processed within the County and the wider region.

Vision 2030 and the Medium Term Plan (MTP III) both identify increasing

the productivity of livestock with new opportunities for processing and value addition as key goals for the future of Kenya.

SWOT Analysis Summary for Agriculture and Livestock Sector

Strengths Thriving camel milk industry, with distribution to Nairobi.

Existing processing of aloe, gums and resins.

The livestock sector is described as the “backbone of the County’s economy”, with over 80% of the population reliant on the livestock sector for their livelihood.

Only 26% practice agro-pastoralism due to poor environmental conditions, including drought and high temperatures, this increases the reliance of the economy on the livestock sector. The sector is crucial to a large share of the population’s livelihood, though it makes a smaller contribution to the County’s GCP (21%) and represents low value addition and productivity.

Abundant land availability for livestock.

Improving the livestock sector in Isiolo will have wide reaching benefits for the County, and there is strong potential for value chain opportunities such as camel milk and meat processing which utilise local products and natural resources better, as well as the upstream activities in transportation, process and trading.

Challenges to address

Weaknesses Good endowment of livestock, with strong community traditions.

Lack of marketing, packaging and branding of produce.

Farmers lack knowledge on livestock production best practices.

Presence of modern livestock market in Isiolo town centre.

Lack of equipment and facilities, including cold storage and production technologies.

Good road linkages to the north and south of Isiolo (A2).

Uncontrolled livestock diseases and lack of safe water for livestock.

Livestock productivity is poor and output is low value, whilst prices are fluctuate.

Poor marketing and market information, with lacking supply chain infrastructure.

Poor management and lack of holding/fattening pens for livestock.

A local culture of patriarchy, women are neglected from business decisions.

Negative views on PWDs, they are not seen as capable for work in this sector.

Environment of violence and conflict, due to land grabbing and encroachment.

Vulnerability to drought, unpredictable rainfall and floods resulting in soil erosion.

Lack of access to credit, where farmers are unable to expand operations.

Overreliance on livestock sector, due to being in an ASAL region, with limited suitable land for growing crops (as output and feed).

Water scarcity, with drought a critical risk to production capability.

Workforce population may decline further in rural areas.

Continued exclusion of certain groups from employment and business opportunities.

ECONOMIC DEVELOPMENT PLAN

Area

Action

Detail

Best practice for value addition

SR: Better utilisation of the Agricultural Training College (ATC) and regional partners to ensure farmers can adopt best practices.

Support from the ATC can develop skills and knowhow in production and management, whilst the Municipality can promote these training opportunities to help unlock growth in the sector. Areas for focus may include herd and land management, with guidance for farmers’ value development, reflecting resource efficiency with farmers already practising feed conservation and water harvesting.

MR: Support local producers and traders in being active participants in the supply chain for camel’s milk and meat trade.

Market access and development

SR: Support the expansion of exports to Nairobi, using road network and building on current export linkages, especially in the camel milk industry.

LR: Expand exportation to outside of Kenya. Isiolo is one of the few locations in the north of Kenya which has an airport, this should be better utilised to promote the development of the sector toward exports.

SR: Short Range

MR: Medium Range

Local livestock farmers and traders should be supported to be more active participants in the supply chain, to benefit from the value addition activities and remove exploitation and the leakage of these benefits. The abattoir construction is a catalyst here, where farmers can understand the expected quality and values and have clear routes and access to the abattoir for stable prices. Local business should then be central to the meat process, trade and marketing next stages.

Further, common information share such as prices and weather is important. There has been Drought Early Warning Systems in Isiolo County from 2016 National Drought Management Authority (NDMA) and one part of the World Bank’s Climate Smart Agricultural Project in Kenya is weather and market information systems and advisory.

Partners: Experts in the sector should be worked with to support best practice knowledge share, and access funding where possible. This could include the Kenya Agriculture and Livestock Research Organisation (KALRO) and the World Bank’s Climate Smart Agricultural project. It will be important to work closely with USAID’s Feed the Future project, with livestock market systems, to strengthen farmers’ resilience to shocks in Isiolo and ensure increased benefits are realised.

The Municipality should support local businesses through facilitating communications between businesses and public bodies outside the County, providing market access support, and linking up businesses that are transporting goods to similar areas to establish distribution channels.

The Municipality should facilitate/provide training and education to help local businesses become more competitive at a national level and to be active and informed participants in the supply chain. Local businesses should be provided with information on regulations and the extra costs associated with international export.

Partners: National Farmers Information Service (NaFIS) provides ad-hoc support to farmers, whilst the Settled Internally Displaced People (SIDP) has been supporting the position and income of dairy farmers by giving them the possibility of selling to new markets.

LR: Long Range

26

27

ISIOLO URBAN ECONOMIC PLAN

Area

Action

Detail

Financial security and opportunity

SR: Support cooperative savings and borrowing funds.

The Municipal Board can identify and help facilitate collaboration between key players to establish and signpost for potential new members.

There are two aspects to financial support – that which protects farmers under drought and shocks; and the financial support to aid equipment purchases and support engagement in Isiolo’s developing markets and value chain.

MR-LR: Facilitate collaboration between key stakeholders and financial institutions to promote and explore the benefits of suitable mechanisms.

Land management and rights

Water Infrastructure

First, the Municipal Board should consider providing dedicated resources for overseeing business support and protection services to support farmers’ resilience and access to financial support. Farmers in Isiolo are covered by the Kenya Livestock Insurance Program (KLIP), this should be supported with advice to local farmers on how to optimally invest any insurance pay-outs from the scheme.

Second, financial mechanisms should be explored with partners for Isiolo’s livestock and milk producers.

For example, value chain financing where a lead actor will typically be responsible for the distribution and collection of finance and represent small scale farmers in identifying where in the value chain the investment will have maximum benefit. The Board can also play an important role in facilitating the requirements of Sharia finance.

Partners: SIDP and USAid have developed a guarantee programme to increase lending in the agricultural sector with the Kenya Commercial Bank and microfinance institutions to share risk. This is part of the Agricultural Sector Development Support Programme (ASDSP). United States Agency for International Development (USAID), Development Alternatives, Inc. (DAI) and other agencies have supported innovative financial mechanisms such as Variant Call Format (VCF).

SR: To provide land for required water and feeding points for livestock. To secure some land around the abattoir, for fattening grounds.

Authority to determine early land rights for strategic locations where possible, the Municipal Board will need to work with the County government to ensure this land is selected and used in a way that minimises conflict and is fair across Isiolo’s society and farmers. This has been recognised in the CIDP.

LR: More farmers to own land which they can invest in to optimise their produce.

Key challenge: approaching land rights from the principle of not increasing conflict to ensure there is a smooth transition - this must be inclusive.

SR: Strategically located drinking points should be established on key routes, such as to the abattoir and to the livestock market.

Improving water security will involve investing in water harvesting and storage infrastructure, such as ponds, micro dams, wells, hand pumps and drip irrigation.

The Municipal Board could consider using public land ownership to support farmers’ collective needs early on, whilst supporting a revenue stream to re-invest in the sector.

In the longer term, land can be managed and owned by private businesses to encourage investment and growth of incomes.

Partners: It will be important to for the Municipality and County government to ensure funding that is invested in irrigation provides the optimal benefit for the sector. It is important to engage with water providers, utilising their expert advice on effective implementation. Investment in water infrastructure should complement existing and planned infrastructure within the County, including the multiple irrigation schemes currently active in the County.

MR: Irrigation infrastructure provision will provide a reliable water source to farmers, which will give livestock a sustainable drinking source and enable farmers to grow fodder to feed herds.

SR: Short Range

MR: Medium Range

LR: Long Range

ECONOMIC DEVELOPMENT PLAN

Retail and Trade Isiolo Town is the main location for trade and commerce in the County. There is a diverse mix of businesses in the Town centre and a large retail market here selling a variety of items There are several markets in Isiolo County, including 5 retail markets in Isiolo Town, Kinna, Merti, Kipsing and Oldonyiro.

The main traded goods in these markets are livestock, fruit, vegetables, maize, beans, wheat and millet. Isiolo is seen as the gateway to northern Kenya and the construction of more transport links with LAPSSET will benefit the commercial role of Isiolo.

28

SWOT Analysis Summary for Retail and Trade

Strengths

Weaknesses

Centrally positioned in the country, represents main trade and retail centre for the county.

Lacking facilities for processing, packaging and storage of goods - low value trade.

Basic and informal market, with stalls rather than shops.

Market comprises individual sole traders rather than cooperatives, with limited market power.

Sector is considered more inclusive with women, youth and PWDs participants.

Proximity to Nairobi, with key market and export access.

The implementation of LAPSSET corridor projects, including Isiolo airport will provide opportunities for wider trade linkages and an increase in visitors.

Strong existing market in town.

There is wider support to grow this sector by increasing market linkages, expanding export opportunities based on local products, such as camel milk, meat processing, gums and resins.

Challenges to address

Many of the goods sold are imported into Isiolo from other counties.

Poor urban infrastructure, with flooding and waste build up.

Road network and linkages to rural areas are poor.

Examples of successful adoption of e-commerce.

Limited access to credit for entrepreneurial activity.

General insecurity and conflict affect Isiolo's business environment.

Competition from nearby Meru, a more established wholesale and retail centre.

Existence of street children, substance abuse and commercial sex workers in the town - impacting the town's business environment.

Intercounty boundary conflicts that affect intercounty trade.

Cultural and community attitudes which discriminate against women.

29

ISIOLO URBAN ECONOMIC PLAN

Area

Action

Implementation

Establish modern market

MR: Establishment of a market group to facilitate evolution of the market over time.

It will be important that the Municipality engages with key stakeholders in the sector to help shape the market and to ensure the market provides the space which sellers require. In order to support the development of the market, it would be beneficial for a local market group to be set up with the aim to promote the continuous evolvement of the market space.

MR: Creation of a market map to show where stalls are located, this encourages visitors to explore the markets and provides opportunities for stall owners to access new customers.

The plans for Isiolo market (Chapter 4) reflect some key principles, including easing access to the market for customers, through good transport links, pedestrian zones and disabled accessibility; providing stall holders with supporting infrastructure, such as access to electricity, water and gas; and improved opening hours, due to shelter and lighting.

Further, it is also important for the market to be well positioned in respect of the bus station and future traffic and parking flows - ensuring a market flow and quality environment with some separation, as well as convenience and access with appropriate linkages.

Key challenge: It is essential that the sellers are not priced out of utilising a modern market through stall and shop rental prices, therefore the benefits of being located there need to be greater than the rental cost.

MR: Provision of a modern market in a strategically advantageous location in the Town.

Business support

SR: Short Range

SR: Set up business support services to provide information and training on best practice.

The Municipality should set up and facilitate the support services or centre, initially to ensure it is effectively designed and operated to benefit the industry and its business stakeholders.

LR: Support businesses in exporting to other parts of Kenya and internationally, through training to help local businesses become more competitive at a national and international level.

› Market data should be collected and analysed to inform training;

MR: Medium Range

To ensure the centre is effective the following should also be considered: › Industry experts need to be involved to provide training and knowledge to the industry; › Good engagement from traders is needed to monitor how the service / centre is impacting the sector; and › The support should embed key principles such as resource efficiency and inclusion into the best practice provision.

Key Challenge: How to fund the support services and enable them to be self-sufficient. In long term some membership fees, or market related revenue collections could fund these.

LR: Long Range

ECONOMIC DEVELOPMENT PLAN

Area

Action

Implementation

Effective town planning

SR-LR: It is important that the Town is effectively spatially planned throughout the development of the Town to create an attractive and accessible place to enable growth in the sector.

The Municipality should engage with key stakeholders and the County Government’s planning department to ensure that the right plans are approved and integrated in ways that are beneficial to Isiolo’s communities as a whole.

30

The Town’s spatial plans should be implemented in a way that minimises negative impacts and disruption to Isiolo Town.

Place-making will be an important aspect, to make the urban market areas more accessible and empower citizens. Spaces for social gathering, parks and playgrounds, pedestrianised zones and such like may not directly support trade but can improve its appeal for locals and visitors.3 There needs to be specific space identified in the Town for truck parking to limit the amount of trucks parked along the roadside, which reduces access to retail and trade premises.

Key challenge: It will be important to make the Town centre flood resistant, through methods such as effective river flow management, sustainable drainage systems (SuDS), permeable land and runoffs next to roads. Less flooding gives customers greater access to the market space and reduces damage caused by flood to retail and trade premises.

Access to finance, with a focus on women

SR: Support women in accessing finance through a supported Savings and Credit Co-operative (SACCO).

The Municipal should support and promote a SACCO that it is inclusive to all women, regardless of their wealth, status, size of business, etc.

Sharia compliant loans should be made available alongside normal loans, as the majority of the population in Isiolo County are Muslim.

There are examples of financial mechanisms that provide finance to Small and medium-sized enterprises (SMEs) that are owned by women, such as the Gulf African Bank offering Sharia-compliant, women only accounts with dedicated tellers and banking centres.4

MR: Create opportunities for women to be able to own property, which can be used as collateral for loans from financial institutions.

Introduce certification of quality

SR: Short Range

MR: Establish a service that certifies products, informing customers about production and quality.

MR: Medium Range

This certification of quality must be closely regulated to ensure standards are upheld, otherwise the certification loses value. As part of the certification process, there should be visits to sites where goods are being produced to check health and safety requirements are being met.

The Municipal Board must be involved in setting up this facility and making regular checks to ensure the process is running optimally.

It would be beneficial if certification meets international standards (Global Codex Alimentarius standards), as this would give businesses in Isiolo Town better opportunities to export products.

LR: Long Range

3 Living Cities, 14 smart ways to create public space: real examples from sub-Saharan Africa (Stockholm: Living Cities, 2018) 4 https://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/news+and+events/news/za_ifc_a2f_islamic_finance

31

ISIOLO URBAN ECONOMIC PLAN

Tourism Tourism is very important to the Kenyan economy. It provides huge employment and foreign exchange earnings. In 2017 the total contribution of travel and tourism to the Kenyan economy was around 10% of the countryâ&#x20AC;&#x2122;s GDP and 9% of total employment. In Vision 2030, tourism is identified as a priority sector.

Within Isiolo County the main tourist attraction is nature and wildlife, with three main game reserves in the County: Shaba, Buffalo Springs, Bisanadi. There is also Samburu and Meru national parks which border the County and attract tourists.

There are limited tourism activities currently taking place in the Town, however there is potential to expand this sector and support the wider activities. A number of projects planned could boost activity in the sector and other related sectors if opportunities are capitalised, including Isiolo resort city, use of Isiolo airport. Isiolo County aims to increase tourist arrivals by 20% year on year and increase tourism income by 10% per annum through tourism promotion, investment in tourism infrastructure and marketing. There is an opportunity to provide services and facility support for the nearby game reserves as well as capturing tourism spend passing through the Town.

SWOT Analysis Summary for Tourism

Strengths

Weaknesses Countyâ&#x20AC;&#x2122;s three game reserves - Shaba, Buffalo Springs, and Bisanadi, which are well known.

Well connected to Nairobi via road, the airport offers another connectivity opportunity.

Strong local history, culture and heritage.

Good pool of young working age population.

Some small-scale tourism activity at present.

Nairobi based tour operators do not stop in the town, as is not seen as a suitable destination.

High illiteracy levels and lack of service skills amongst local workforce.

Poor quality tourism facilities and amenities in the town, lacks a major tourist attraction.

Challenges to address Conflict and insecurity make the town an unattractive tourist centre.

Waste management practices are inadequate.

Lack of appropriately skilled and trained workforce (services and hospitality), with high youth unemployment.

Poor quality of more local roads.

Issues of overcrowding and unattractive activities within its central areas.

Widespread stigmatisation of PWDs by the employers and the community.

ECONOMIC DEVELOPMENT PLAN

Action Area

Time Period

Implementation

Urban Infrastructure

SR: Set up a regular waste removal services for all households and markets within the Municipality.

Implementation

SR: Relocate dumpsite outside of Isiolo Town and introduce measure to prevent locals from scavenging through it.

SR-LR: Protection and maintenance of green spaces

This will require the engagement of the County government, to help plan and finance the upgrade of infrastructure.

It will be important to follow inclusive principles while the for the upgrades is carried out, this will ensure that the most mutually benefit upgrades are done first rather than the upgrades that benefit the rich/powerful.

It is crucial that upgrades in urban infrastructure are resilient to shifts in the economy and to changes in the climate. This will ensure that upgrades can adapt to different environments, making them future-proof and long lasting.

MR-LR: Increase coverage of the sewer network within the Municipality.

MR-LR: Improve access to clean water.

Establish tourist board and strategy

SR: Set up an Isiolo Town tourist board, bringing together key stakeholders.

SR: Support the Board in creating a tourism strategy which will give the sector direction and drive and encourage working towards a collective goal. This strategy will set out how Isiolo Town will build its brand and offer, including how it will attract and capitalise on tourists passing through the Town whole travelling to the Countyâ&#x20AC;&#x2122;s major attractions.

MR: Create a strategy for businesses in Isiolo Town becoming key suppliers for tourist facilities at local game reserves and national parks.

MR: Establish a peaceful solution to the conflict over land between pastoralists and owners of game reserves and national parks, so that tourist attractions are clear which land they can utilise.

SR: Short Range

MR: Medium Range

LR: Long Range

32

Implementation It is crucial that the Municipal Board is involved in the set up and running of the tourist board and the creation of the strategy for the tourism sector. The tourist board and strategy should encourage the key stakeholders in the industry to work together to increase Isiolo Townâ&#x20AC;&#x2122;s brand and offer.

Businesses in Nairobi which organise tourist tours to key attractions in Isiolo County and nearby counties should be incentivised to make stop offs in Isiolo Town to allow tourists to spend some time in the Town and purchase some local goods and souvenirs. This needs to be aligned with the improved offer to visitors e.g. a market and refreshment stop, where people can relax.

The tourist board should engage with major tourist attractions nearby, namely Shaba, Buffalo Springs and Bisandi game reserve and Meru and Samburu national parks, to identify where Isiolo Town can provide supplies and other goods and services to these attractions.

In order to solve to conflict between pastoralists and owners of the local game reserves and national parks the tourist board needs to fully understand the problems each group face and approach this area with consideration, engagement and inclusion before working up an action plan or land use approach here.

Key Challenge: Develop the sector and provide solutions which minimises conflict and ensure benefits are well distributed.

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ISIOLO URBAN ECONOMIC PLAN

Action Area

Time Period

Implementation

Tourist training centre

SR-MR: Establish a tourist sector training group, where key stakeholders in the sector can meet up to share information, advice and skills.

Implementation

LR: Create a tourist training centre for workers to become trained up and employed in the tourism industry. This will provide skills to local workers and give the, employment opportunities to work at local tourist attractions.

Better utilise Isiolo airport

MR-LR: Support the operators of Isiolo airport to become a fully operational airport with commercial flights.

High-end tourist facilities

MR-LR: Support the development of higher quality facilities for visitors, which is appropriate for the local area and communities.

The Municipal Board needs to engage with local experts in tourism to help run advice, training and skills sessions.

People should be trained in hospitality skills, as well as training and education to provide tours in the Town and at local nature and wildlife tourist attractions. It would be beneficial for local tourist businesses to share knowledge and information on visitor schedules, supply chains, useful contacts, effective marketing strategies and future plans.

In Mombasa the Kenya Coast and Tourism Association provided training for local beach sellers in effective sales and customer engagement techniques, which lead to an increase in localsâ&#x20AC;&#x2122; incomes and an improvement in the tourist reputation of Mombasa.5

Implementation The Municipal Board should engage and work closely with the airport owners, Isiolo County and Meru County government officers to discuss how the airport can be better utilised to increase the number of visitors travelling to the area. A re-invigorated and well-structured airport task force can start the process of developing a longerterm plan, recognising the wide benefits potential and understanding the key barriers at present. Other regional airports in Kenya have made positive contributions to local economies, such as Kisumu International Airport, which after expansion promoted growth in tourism, as well as financial services and wholesale and retail. The upsurge of visitors has led to an increase in the number of hotels and car hire businesses.6 Another study in Kakamega county found that if the airport is in a poor state, this adversely affects the tourism industry.7 Implementation This is a longer-term action and requirement for the Town, this will require investment and local stakeholder involvement to ensure that the facilities that are wanted by tourists are built to attract more visitors.

It will be important that these tourist facilities are well spatially planned within the Town to ensure that they are easily accessible by visitors and are located in an attractive location in the Town. New high-end facilities must not have negative impacts on the Town or the local residents and must complement other infrastructure projects.

5 https://profiles.uonbi.ac.ke/ogutum/files/effect_of_airport_expansion_on_business_opportunities_in_kisumu.pdf 6 https://pdfs.semanticscholar.org/2a18/6f8a5b2fa3f7f15c1e6fc6bc5389dc436a9e.pdf 7 https://s3-eu-west-1.amazonaws.com/travelfoundation/wp-content/uploads/2016/11/17103805/Mombasa-Case-Study.pdf

ECONOMIC DEVELOPMENT PLAN

3.3. Isiolo UEP Critical to the successful delivery of the SUED programme is the identification of potential value chain and climate resilient infrastructure projects that can promote economic growth in Isiolo, support sustainable urbanisation and can attract funding including seed financing.

This section provides a summary of value chain projects that have been identified and assessed against a set list of criteria.

These are considered as having the most potential within Isiolo to act as anchor projects for the development of Isiolo’s key economic sectors, focusing on value addition.

The overall approach to identifying the long list of potential value chain projects for Isiolo has been to first develop an extensive list of potential economic opportunities, and then assess these in terms of the economic potential and constraints within the Municipality and in relation to the wider national and regional economic context.

The approach is outlined in Figure 11 while Volume B of the appendices provides a detailed account of the process used to identify and prioritise opportunities including an assessment of those value chain opportunities that can maximise benefits for Isiolo.

Figure 11 - Identifying VC Opportunities: overall approach

Broader economic opportunities

Municipality specific opportunities

Government policies - Four Pillars...

Economic activities

VC Studies - Government, NGOs...

Exports - potential to grow

Natural resources

Potential Activities

SWOT

Market base

Imports - potential substitution

Infrastructure

New products/services

Manpower and skills

Activities that could transfer

Target activities

Trends:

• Economic

Planning policies - CIDP

• Technology • Environment

Long list of Potential Value Chain Opportunities

Evaluation criteria: Municipality

Short list of Opportunities

34

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ISIOLO URBAN ECONOMIC PLAN

Six potential projects were identified as part of the assessment and in consultation with local stakeholders: Processing, packing and distribution centre for camel milk and related products Isiolo is an established centre for milk marketing, supplying both the Isiolo Town and Nairobi markets. However, collection and processing can be erratic, with significant spoilage along the supply chain.

In addition, there is little value added, with limited production of milk products and no consumer packaging. Several cooperatives operate effectively in Isiolo, but their output and product range is limited. This Value Chain project is for the establishment of a commercial-scale processing, packaging and marketing operation in Isiolo, increasing value added and overall production volumes.

Meat processing There are substantial herds of livestock (camel, shoat and cattle) held within and passing through Isiolo County. The Town of Isiolo is a key hub and market livestock in the region. Next to the Town is the Livestock Holding Ground (LHG) which covers 125,000 hectares and currently holds around 5,000 head. The grounds are designed for quarantine for livestock moving from the North and Northeast, as well as potential feedlots for fattening animals before taking to local abattoirs or Nairobi. There is potential for a modern abattoir and meat processing facility in Isiolo to supply meat to the local market, Nairobi and export markets. For accessing

export markets, the abattoir could benefit from the connectivity provided by the LAPSSET project. Isiolo has already been chosen as the most favourable location for a regional abattoir with a medium-sized abattoir. The abattoir is in the process of completion with funding from the World Bank and provides a critical opportunity to leverage on existing investment to develop further activities. This Value Chain project covers the development of a meat processing facility in Isiolo and biogas facility, which would build on the existing infrastructure.

Tannery processing hides from abattoir and other sources in County With the planned abattoir, there could be a stable supply of 120,000 cow, camel and shoat hides per year. This volume is sufficient to support a commercial tannery.

The Government has identified leather industries as one of the key manufacturing sectors, and to support development in this area, export tariffs have been imposed on raw hides (80%) and import duties on finished leather are being considered.

Currently, a substantial proportion of Kenya’s hide production is exported in the semi-processed wet blue stage, rather than finished leather. This Value Chain opportunity is then to take hides from the abattoir in Isiolo and tan them, increasing their value substantially and providing a raw material to the nascent leather industry.

Processing gums and resins Isiolo and the other arid and semi-arid lands (ASALs) of Kenya have substantial

resources of resins and gums. While much of this resource is harvested, there is little processing and the gums and resins are largely just graded, bagged and exported in their raw forms. There is considerable potential to increase valued added from the gums and resins through further processing, and this Value Chain opportunity is for a processing plant to produce sorted and graded gums and resins, granules and spray-dry powders.

Municipal solid waste separation and processing The collection of Municipal solid waste (MSW) in Isiolo is problematic. The council has insufficient funds for an extensive collection operation, and as a result much of the MSW is dumped and/or burned.

Some of the more valuable products (some plastic bottle, metal cans) are collected by pickers, but they sell on to dealers at a very low price due to their inability to consolidate volumes (and compact into condensed blocks), as well as their lack of alternative outlets. As a result, significant value is being lost, and there is potential for an MSW sorting facility that would improve incomes to operators, reduce dumping and make a contribution towards the costs of collection and clean-up operations.

This Value Chain opportunity is for the development of a waste separation and sorting facility in Isiolo.

Honey and associated products Isiolo has a developing apiculture industry, based mainly around the County’s extensive acacia scrublands. Currently local value

added is limited to some bottling and sales of honey and semi-unprocessed wax.

There is no commercial-scale production of other products such as propolis, royal jelly and bee pollen. The sector has been expanding and this is due to continue with plans for increasing the number of beekeepers and hives across the County, as well as improvements in yields through a move from traditional log hives to the more efficient modern hives.The value of local honey production can be raised through improved extraction, processing, bottling, branding and marketing, allowing beekeepers to realise higher prices.

This Value Chain opportunity covers the establishment of a facility to process and market honey and related products.

Following further assessment and consultation with stakeholders the opportunities set out below have the most potential to work as anchor projects for sustainable economic development and growth and form part of the development framework for Isiolo presented in the next section: › Meat processing centre at a location in nearby proximity to the new slaughterhouse including a biogas facility and consideration to expand and accommodate a tannery in the future › Processing centre for camel milk which can be used to co-locate additional uses for processing other local products such as gums and resins in the future (within a processing zone).

ECONOMIC DEVELOPMENT PLAN

A scoping study for these two opportunities was undertaken and is provided in Section 3.5 of this report.

the periphery of the CBD. There is also a significant amount of informal business operations scattered throughout the Town in an unregulated manner.

3.4. Development Framework

This overall interpretation of the urban framework has formed the basis of our Development Framework proposals in Figure 13 which are focused on the critical areas within the Town to unlock and promote economic growth and respond to the Town’s growth pressures.

Based on the diagnostics assessment and report on Isiolo’s socio economic conditions, the Town’s urban typology, character and infrastructure provision, as well as the economic sector priorities that have been set out in this report, this section brings together proposals that will support economic growth, optimise the impacts of climate resilient infrastructure and tackle the most pressing needs of the Town in order to respond to the pressures of urban growth whilst building climate resilience and sustainability.

It is noted that Isiolo does not have the benefit of an ISUDP upon which to base its future development direction, however following reviews of other relevant documentation, meetings with local stakeholders and a series of workshops and site visits the character of the urban fabric of the Town has been identified. It can be seen from the map in Figure 12 that the Town has developed around the A2 highway and subsequently grown along this significant movement corridor to the north and south, whilst expanding with mostly residential areas to the west and east of the corridor along secondary routes. The core, or central business district (CBD), is located on either side of the A2 along an approximate 1.5km stretch. Activity clusters of civic and amenity uses are located along these secondary corridors and on

As a result we have identified four key focus areas which will provide the basis for immediate investment opportunities and the foundation for future urban and economic development across the Town.

The four focus areas are: › Industrial Cluster; › The Gateway - Transit Orientated Development (TOD);

funding and private investment funding.

Certain projects within the public funding realm have been proposed for their potential catalytic impact of unlocking further private investment opportunities, for example The Gateway development at the entrance to the Town will create investment plots for private developers, or the Phase 1 infrastructure roll out in the proposed industrial cluster that will unlock development plots for industrial investment opportunities.

These are described in Section 4.

Subsection 3.4 is structured as follows: › Overall Development Framework (map); › Consideration of water management as a key challenge for Isiolo and how this is captured within the Development Framework;

› Isiolo Boulevard & Bio-Park;

› Description of projects under each focus area;

› Airport City.

› Projects that have a wider town remit.

The proposed projects located within each of the focus areas has been considered in terms of their sequencing and linkages, programming and implementation. This process has also been premised on identifying some ‘quick win’ opportunities which will enable short term infrastructure and economic benefits to the Town.

Furthermore, initial high level cost estimates have been done for the projects and these have been assessed in terms of the likely funding sources required, these being public funding, public/private

36

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ISIOLO URBAN ECONOMIC PLAN

Figure 12 - Urban Framework plan

ECONOMIC DEVELOPMENT PLAN

Figure 13 - Overall Development Framework plan showing the three focus areas and individual sector proposals

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ISIOLO URBAN ECONOMIC PLAN

Flooding

Isiolo is susceptible to extreme weather events. In the rainy season Isiolo often experiences flooding, partly due to the topography of the surrounding area (the Town is in the bottom of a valley and affected by overland runoff from surrounding land) but also due to poor and ill-maintained storm water systems.

Conversely, Isiolo is classified as semi-arid to severely arid and drought is also a major issue. Over the past three decades, drought and flood risk have increased significantly, and climate projections show that the County will continue to be vulnerable to more frequent droughts.8 In October 2019, the Isiolo Governor announced that severe drought has forced the County Government to reduce development funds in order to purchase relief food, animal feeds and drill more boreholes.9 Flooding and droughts are continual problems for Isiolo and need to be addressed to improve the well-being of the residents and facilitate sustainable urban and economic growth and development. This is why we have integrated SuDS and water supply proposals into each focus area of the Development Framework (refer to Figure 13).

During the wet seasons (March-May and Octoberâ&#x20AC;&#x201C;December), daily rainfall in Isiolo can be very high. The Peak annual daily rainfall ranges from 27mm to 97mm.10 The heaviest monthly rainfall recorded in November is 200mm/month and the average annual rainfall in Isiolo is approximately 600mm/year.11 The average rainfall days and monthly precipitation can be seen in Figure 14.

Rainwater drains to the surrounding hillsides and converges in Isiolo Town causing flooding of depths up to 500mm causing damage to livelihoods and property.12 Isiolo Town centre is a dense built up area that currently has limited green infrastructure and surface water management in place. The floods come at a significant cost including loss of life, loss of homes and livelihoods, and disease.

Drought Kenya has a comprehensive national drought monitoring programme, which provides warnings to counties of drought risk, enabling them to take early action.

However, drought in the region still forces people to use unclean water sources, causing disease. The burden on women whom are often responsible for the collection of water is greater in drought

8 Climate Risk Profile Isiolo County, Climate Smart Agricultural Project, World Bank.

9 https://wafugaji.co.ke/isiolo-county-to-use-development-funds-to-mitigate-ongoing-drought/ 10, 11 & 12 Isiolo Flood Management Plan 13 National Drought Management Authority Isiolo County Drought Early Warning Bulletin For September 2019 14 Isiolo County Water and Climate Change Plan

Figure 14 - Isiolo Average Rainfall14 30

600

20

400

10

200

0

Jan

Feb

Mar

Apr

May

Jun

Precipitation (mm)

as they need to walk further to find water.

Drought also impacts food production.

Poor crop yields cause food shortages, higher prices and lower incomes for farmers. The livestock industry is also affected with cattle meat quality deteriorating and milk production reducing which has an impact on market prices and income generation.13 Flooding and drought create significant shortages and economic impacts, as outlined above, which lead to increased tensions amongst various communities and tribes who are dependant on the dwindling resources. For example, impacts on cattle, sheep, goats and camel feeding grounds causes more extensive grazing to be sought thereby initiating encroachment into neighbours traditional grazing and farming areas. Conflict then occurs which impacts both the social and economic cohesion of the area.

Jul

Aug

Sep

Oct

Nov

Dec

Precipitation (mm)

Water Management in Isiolo

Average Rainfall Days

39

10

Average Rainfall Days

Flood and Drought Management A holistic approach to water management is proposed in Isiolo. Local solutions protect people and infrastructure from flooding in the Town but the magnitude of flooding in Isiolo means it is necessary to implement upstream catchment impediment.

Local SuDS solutions are proposed in the CBD and the Gateway areas. SuDS intercept overland flows, convey them safely through the Town to the Marire River and the proposed Isiolo Bio-Park development to the north of the Town where they can be treated in a natural reedbed system. Permeable conveyance systems recharge ground water and water discharged from the reedbed system can be re-used productively eg. for car washing, irrigation and other non-potable water uses, thus building resilience to drought.

ECONOMIC DEVELOPMENT PLAN

SuDS in the Town are generally excellent at managing regular rainfall events, but SuDS alone will not be suitable for managing the large or extreme rainfall events. Therefore, it will also be beneficial to increase the capacity of the Marire River through Isiolo, to increase the safe water conveyance capacity through the Town.

Flooding in Isiolo has also been exacerbated by the construction of the new airport and access road, which is raised on a bund and hence directs water to the west and into Isiolo Town. Based on this anecdotal evidence, addressing this flood mechanism is essential.

Local flood management solutions are proposed in more detail by the proposed Focus Areas within the overall Development Framework, however, to tackle the root cause and to build resilience to both floods and drought, wider regional water management solutions are also important.

The diagram below presents the three levels of interventions required to address the flooding problems. These are: › at the broader regional / hinterland level from where the majority of the flood waters originate › within the Town itself by introducing SuDS and managing storm water as it collects and passing through the urban area › within the Isiolo Bio-Park where the flood waters can be attenuated, collected and reused for other purposes as a response to times of low rainfall

40

Figure 15 - Holistic view of water management proposals

Town Proposals (TOD) › Improved road drainage using SuDS › Increase capacity of Marire River › Revegetation of river banks › Reduce bank erosion

Catchment Management options › Flood water storage › Tree planning › Increasing soil infiltration

› Provide offline storage areas

Town Proposals (CBD) › Attenuation / treatment storage tanks › Buried stormwater storage within Airport grounds to protect the market area from flooding › SuDS features

Isiolo Park › Water storage and attenuation › Natural treatment (reedbeds) › Potential for re-use of water

41

ISIOLO URBAN ECONOMIC PLAN

FOCUS AREA 1: INDUSTRIAL CLUSTER Isioloâ&#x20AC;&#x2122;s growth is premised on its regional location as a trading and commercial hub.

Small scale manufacturing businesses have settled and grown in an organic manner, and in most circumstances missing the opportunity to capitalise on the agglomeration or clustering effect and the benefits that come with it. As a result, such uses (industrial, light industrial, logistic, etc), appear to be sparsely distributed throughout the Municipality, depending upon the circumstances of the time, with little obvious planning forethought.

The proposals in this UEP suggest prioritising the development of a consolidated manufacturing cluster by expanding the industrial land around the site of the existing abattoir into an industrial node or cluster. To facilitate access and make the site attractive, roads upgrade to the north (linking with the existing paved road) and an extension and upgrade of the airport road to the east is proposed.

This strategy will make the required infrastructure and public transport access from the main arterial (A2) and CBD more economically viable and open up the area and corridors for future development opportunities.

Figure 16 - Development Framework plan showing Focus Area 1 - Industrial Cluster

ECONOMIC DEVELOPMENT PLAN

This western Industrial Cluster is to be selfsufficient from an infrastructure perspective and will be developed on land clear of ecologically sensitive zones and areas potentially prone to floods. An indicative cluster structure and high-level plot subdivision will help facilitate investment attraction and the packaging of land for development. The abattoir which is to become operational during 2020 through further World Bank funding will generate considerable waste for a biogas facility to be developed on an adjacent site.

This will provide a core heat and energy source for further industrial processing and development which will further feed the biogas plant.

A significant Value Chain opportunity has been identified for a meat processing and packaging plant to be developed alongside the abattoir (Section 3.5). This could be further complimented with an eco-friendly tannery facility thereby creating a critical mass of clustered meat processing activities all of which will feed the biogas plant which reduces waste and provides cheaper electricity in a circular economy effect. A waste water treatment package plant will also be developed to manage and recycle grey water which can be reused by the abattoir and other processing facilities. The development of the core infrastructure to support these processing facilities will then enable further industrial development which will co-locate within the industrial cluster to enjoy the benefits of good access, provision of utilities and economical power and waste water treatment.

Focus Area 1: Sequencing The projects identified have been numbered based on their preferred sequencing as follows: 1. Waste Processing Facility (Biogas Plant/ Anerobic Digestor) - the development of the biogas plant in conjunction with the abattoir becoming operational will provide on-site heat and power source for the abattoir as well as other future industrial processing activities. These activities will then have a source for their waste products to be disposed of and thereby add to the overall capacity of the plant to provide additional amounts of heat and power.

2. Power Supply - a core utility for the creation of an effective industrial development is the provision of Power.

This will comprise a new medium voltage transformer at the site entrance and Low Voltage distribution around the cluster.

Note: Subsequent item numbers will change.

water and irrigation for the adjacent feed lots.

42

It is anticipated that these plots are associated with the proposed Value Chain opportunities which are decribed in detail in Section 3.5.

5. Industrial processing plots - it is proposed to install some initial infrastructure within the vicinity of the existing abattoir site to enable the development of a range of industrial processing facilities, some of which will be leveraged from the abattoir activity and by-products. The enabling infrastructure of bitumen roads, power, water and sanitation will provide initial industrial plots for development.

6. Upgrading of access road & western ring road - in order to provide optimal access for the industrial cluster it is proposed to continue the paving of the western ring road and the link road to the A2 and airport to the south of Isiolo CBD.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› North Rd Upgrading 6.5 km earth road to bitumen road

› KSh 758,355 for Phase 1 excluding biogas plant described on page 44 and 45

› Easy all-weather access to the industry

› Design, Build, Operate, Maintain

› Good access to Main roads and Airport

› Public infrastructure, private or PPP investments

› External Infrastructure Public authority, IFIs

› Airport Rd Extension and upgrade of 4km earth road to bitumen road › Drainage infrastructure

› KSh 3 million for future phases

› Self-contained ecocluster development › Climate resilient infrastructure

› Industrial Cluster internal facilities and industries Private

› Circular economy › Significant job opportunities

3. Water Supply - a core utility for the abattoir and future industrial development will be the provision of water. The existing water supply will need to be supplemented with treated borehole water and that green climate resilient water management systems will need to be integrated into the industrial processing.

› Cluster land subdivision and infrastructure provision

Challenges

Data Gaps

Time Frame

Phasing Project Priority

Operations & Maintenance

4. Wastewater treatment plant this is proposed to capture the initial waste from the abattoir and then grow to accommodate further industrial development. Water recycling and reuse will be promoted through this facility. For example providing cleaned processing

› May require some land acquisition

› Pre-feasibility and feasibility studies

› Short term

› Urban Development Proposals supporting Economic Growth (must have/priority)

› Management entity industrial Park Association

› Funding › Infrastructure upgrade › Enforcement of orderly, rational development

› Impact of road traffic

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ISIOLO URBAN ECONOMIC PLAN

7. & 8. Bus stops and boda boda - the improved access roads will enable better public transport services to be provided to the vicinity of the site. These improvements will require the inclusion of bus stops and boda boda stations at appropriate locations. This is shown in Figure 16.

9. - Feed lots adjacent to abattoir - it is proposed to develop feed lots for grazing adjacent to the abattoir. These can be irrigated by recycled water from the waste water treatment plant.

10. - Solar street lighting - it is proposed in conjunction with the construction of roads and utilities for the industrial cluster to provide solar street lighting to allow the ease of 24 hour operations and ensure public safety.

Figure 17 - Conceptualised Industrial Cluster

ECONOMIC DEVELOPMENT PLAN

INDUSTRIAL CLUSTER Waste Processing Facility - Anerobic Digestor

1

Development of an on-site Biogas / anaerobic digestion (AD) facility to manage process wastes and convert into a soil conditioner for agricultural use. Ensure necessary PPA in place to sell electricity.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

› Assessment of waste arisings based on final design of abattoir

› USD $1 million

› Increased renewable energy

› Funding: IFI / Donor Finance / private biogas plant developer or operator

› Reduction of waste to landfill

› Collaboration with Isiolo County Government and other public sector bodies

› Development of AD plant

› Reduces methane production in the landfill › Abattoir better alignment to circular economy › Provides employment

› Opportunity for collaboration with private sector › Maintenance to be responsibility of the plant developer / operator

› Supply of soil conditioner to local agricultural market

Challenges

Data Gaps

Time Frame

› Limited number of proven and established developers/ operators

› Abattoir design / operation currently unknown

› Short / medium-term

› Funding › Throughput guarantees and offtake agreements for electricity and soil conditioner › To provide the plant when the abattoir comes on stream

› Waste quantity and composition currently unknown › Limited knowledge of suitable developers/ operators / partners

Case Study: Bioenergy for Sustainable Energy Access in Africa, Technology Country Case Study Report (incorporating Country Scoping Reports) E4tech, 7th August 2017 http://www.e4tech.com/wp-content/uploads/2018/03/Technology-Country-CaseStudy-Report.pdf) The Thecogas Senegal anaerobic digestion plant is located at the abattoir owned by the Société de gestion des abattoirs du Sénégal (SOGAS) on the south side of the capital city Dakar, about 10km east of the airport. It is the largest abattoir in Senegal, slaughtering about 200 cows and 1,300 sheep and

goats daily, and creating 200 tonnes of waste in the process. The plant was commissioned in July 2013 at a cost of around EUR 750,000 (USD $990,000), funded jointly by Thecogas Senegal (40%) and a grant from the Dutch government (60%).

44

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ISIOLO URBAN ECONOMIC PLAN

INDUSTRIAL CLUSTER Waste Processing Facility - Biogas Plant

1

Development of an on-site Biogas / anaerobic digestion (AD) facility to manage process wastes and convert into renewable energy as well as conditioner.

Challenges

Data Gaps

Time Frame

› Finding a suitable developer / operator

› Knowledge of suitable operators keen to work in region

› Short to mid-term

› Funding

› Diversion of waste stream to create useful heat and power › Appoint private contractors to develop the facility

Case Study:

Sub-Components

Estimated Costs

Impacts (Benefits)

Delivery Mechanisms

› Detailed study of abattoir to determine initial waste volumes and potential energy outputs

› Approx. USD $2-3 million total based on projected output

› Reduced carbon emissions

› Coordination with Isiolo County Government and other interested parties

› Financial modelling › Initial technical design, economic, social and environmental analysis › Development of procurement and deployment / implementation plan › Operation plan (including revenue collection, maintenance etc.)

› Funding: From independent biogas plant developer / operator (refer to Section 3.5 for projected output figures)

› Reduced waste disposal › More grid power available for other uses

The St Martin/Innkrels slaughter facility is located in the north-east of Austria. The facility processes approximately 2,000 pigs per day. It has an adjacent biogas plant that operates using only animal by-products from the facility. The initial cost of the plant was 1.8million Euros.

The use of the biogas plant allows the facility to cover most of its heat demand and some of its electricity demand, and also to reduce the disposal costs of the animal waste.

The plant produces 5,000m3 of biogas per day. Provided the biogas plant is fed continuously, methane is produced at a constant rate therefore the produced

› Partnering with local / regional solution providers to determine appropriate technical and commercial solutions › Maintenance - capacity building programme to ensure continued operation of systems › Maintenance responsibility of plant developer / operator

15 Biogas from slaughterhouse waste: Towards an energy self-sufficient industry, accessed 16th Sept 2019 http://www.iea-biogas.net/files/daten-redaktion/download/Success%20Stories/st_martin.pdf

electricity may be delivered, in this case, to the power grid, at a constant rate. The heat initially couldn’t be used for two-thirds of the day due to lack of demand, however a 200m3 hot water store was added, which uncoupled heat demand from supply, and allowed hot water to be better utilised across the day.

Currently the plant produces 525kW of electricity and 525kW of heat. It sells 3.6 million kWh of electricity to the grid and earn a feed-in tariff of 11cents/ kWh meaning the plant is economically viable.15

ECONOMIC DEVELOPMENT PLAN

INDUSTRIAL CLUSTER Power supply

2

On Site Distribution Power distribution on site will comprise a new Medium Voltage (11/0.4kV) 630kVA transformer at a main site entrance. This only needs to be a pole mounted transformer.

New Low Voltage (0.4kV) distribution around the industrial cluster will follow the access roads with individual connections into each unit. This will only cover Phase 1, with no capacity for the future expansion of site.

Off site connection The existing abattoir is already served by a 315kVA transformer. The capacity of the MV (11kV) distribution to the site is not known. Based on this, there are three options to get power to site: 1. Connect from the existing local MV supply. The transformer is too small to serve the entire cluster, but additional transformers can be installed to serve other cluster sites served from the same supply. The issue is the capacity of the 11kV distribution infrastructure to the site is likely to be too small, and until tested it should be assumed that it lacks suitable capacity; 2. Upgrade of existing MV distribution from main alignment on A2 road with new spur to site; 3. New MV distribution from Primary 33/11kV substation to site.

MV distribution for both options 2 and 3 should be sized for future demands beyond phase 1, estimated at around 6-8MVA. At this stage, Option 3 has been selected as a worst case, but the technical solution will need to be confirmed with KPLC at the appropriate time.

Challenges

Data Gaps

Time Frame

› Engagement with KPLC

› Final technical solution to be determined with KPLC

› Short term

› Funding

Sub-Components

Estimated Cost

Impacts

Delivery Mechanisms

› Establishment of power demand for first stage of cluster

› Benchmark: KSh 4,500k per kilometre plus KSh 1,500k for substation works

› Consistent service provision for businesses in the cluster

› Engage with KPLC to help design, procure and deploy system

› Design of system from suitable connection point to site › Development of procurement and deployment plan › Maintenance plan

› Actual: KSh 24,000k based on 5km distance from primary substation to site › Funding (eqpt, installation): IFI / donor finance

Figure 18 - Substation power supply to Industrial Cluster

› Maintenance responsibility of KPLC

46

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ISIOLO URBAN ECONOMIC PLAN

INDUSTRIAL CLUSTER Water and Waste Water Treatment 4 By creating a sustainable industrial zone for Isiolo emissions will be lowered and resources managed more efficiently, creating an overall healthier working environment, lowering costs and increasing the competitiveness of the businesses.

In a sustainable industrial zone, careful planning means businesses can make cost efficiencies through shared facilities

Source: http://eipvn.org/ Eco-industrial Park, Vietnam

such as water and wastewater. These type of resource efficiencies also reduce the impact on the environment. In Isiolo the water supply is not reliable and of sufficient quantity and quality to meet the needs of new industry, particularly for meat and other processing, which requires drinking water quality water for cleaning to prevent contamination. Boreholes in the Isiolo areas are shown to yield between 5 - 18m3/hr and should be able to supply the requirements of a cluster of processing and packaging units but additional treatment with chlorination would be

needed as a minimum. Water quality must be monitored closely to ensure quality is maintained. By sharing water quality and treatment facilities companies can make efficiencies and save resources. Wastewater will come from different processing plants to a central treatment centre. The wastewater conveyance system should be designed to be gravity fed where possible to reduce pumping costs and save energy. The right package plant for effluent treatment needs to be selected based on the discharges from all the plants in the cluster. This can be difficult

to negotiate if some industries on the site have high effluent loads and need more expensive treatment. However, effluents can be diluted and mixed from different processes to reduce the treatment needed.

The effluent treatment plant can be run as a business in itself, charging users in the industrial cluster. The cluster should have storage for treated wastewater so that this can be recycle/reuse in process plants where possible or used for irrigation of feed lots in the local vicinity.

ECONOMIC DEVELOPMENT PLAN

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Understanding resource requirements of businesses

› Dependant on number and types of business in the industrial zone

› Lower costs for businesses

› Involving Government / banks / international donor and private investors for funding

› Develop an integrated water supply, wastewater and stormwater management plan including reuse

› See below for initial estimates

› Reduced environmental impact › Improved workers’ health and safety › Better access to technologies and finance

› Design and construction of water systems

› Partnering with business owners and planners › Partnering with water treatment (clean and waste water) companies and operators

Challenges

Data Gaps

Time Frame

› Integrated planning and phasing between businesses

› Water and wastewater requirement of business in zone

› Medium to long term

› High investment costs

› Water resources availability › Potential funds availability › Market availability

Estimated Wastewater Treatment Costs Estimated cost

Case Study: In the past 10 years, Vietnam has experienced rapid economic growth driven mainly by the processing and manufacturing sectors. The government created industrial zones (IZs), which account for 40% of the national industrial output and 49% of the total export value of the country. However, industrial activities have also caused negative impacts on the environment and on human health. In-efficient management of resources has increased greenhouse gas (GHG) emissions and has caused water and soil pollution. To try to remedy this, a project has been undertaken to transform existing IZs into eco-industrial parks (EIP), in which companies cooperate with each other and with the local community to reduce environmental impacts and production

costs. In addition, clean and low-carbon technologies and practices will be demonstrated within the industries to minimize GHG emissions, the release of persistent organic pollutants (POPs) and land-based water pollution. The project worked with 72 companies in five pilot industrial parks to adopt resource efficient and cleaner production (RECP) practises and technologies. These looked at opportunities to optimise inputs of raw material, energy, water as well as common chemical safety and waste management systems. 547 RECP options were identified and it is estimated that they saved 19,274 MWh/ year of electricity, 142 TJ/year of fossil fuels, reduced 30.2 Kt / CO2 eq/year, 606,816m3 water/year and 4,225t/year of raw chemicals.

KSh

Assuming 355m3/day wastewater treatment plant 1

Preliminaries mobilisation, permits and approvals, EIA etc

4,000,000.00

2

Supply test and commission a 355m3 WWTP

25,000,000.00

3

Minor Civil Works Costs within WWTP plant vicinity excluding any demolitions or excavations in hard rock and assuming electric power interface on site

15,000,000.00

4

Estimated Total Cost

44,000,000.00

Khanh Phu Industrial Zone, Nimh Binh. Source: http://eipvn.org/khanh-phu-industrial-zone/

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ISIOLO URBAN ECONOMIC PLAN

INDUSTRIAL CLUSTER Upgrading of Access Road to the Industrial Cluster

6

The proposed location of the industrial cluster is at the south-west edge of the Town. The location would help to keep the industrial activities away from the Town centre. The current access to the site is poor. The road that connects the site with the main road network of the Town is partially paved. The proposal is to upgrade and rehabilitate, as appropriate, the access road to create a partial ring road around the Isiolo Town. The 10.6km ring road would connect the main corridor going through the Town, the A2, in the northern and southern side of the Town. Further to that, the industrial cluster is 0.5km away from the proposed ring road. The proposal includes an access road from the ring road to the industrial cluster. The project would consist of the following components. › Upgrading 6.54km of unpaved road to bitumen standard; › Rehabilitate 4.05km of the paved road by resurfacing; › Upgrading 0.5km direct access road to the industrial cluster; › Create a cycle-friendly route along the road, by allowing additional space and safety features; and › Appropriate provisions for stormwater drainage.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Upgrading 6.54km road to bitumen standard

› CAPEX of resurfacing 4.05km KSh 40m

› Easy all-weather access to industrial cluster

› Potentially Kenya Urban Roads Authority (KURA)

› CAPEX of upgrading 7.0km KSh 420m

› Better nonmotorised access facilities

› OPEX of 11.1km bitumen road KSh 56m

› Potential for diverting heavy goods vehicles away from the city centre

› Public funding - potentially from National government or international development partners

› Resurfacing of 4.05km of paved road › Covered storm water drainage › Use the covered drain to provide pedestrian and cycle facilities

› CAPEX of covered stormwater drainage of 11.1km KSh 56m › OPEX of 11.1km of covered drain KSh 6m

› Improved land value along the road

Challenges

Data Gaps

Time Frame

› May require some land acquisition

› Pre-feasibility and feasibility studies

Immediate term

› Would increase noise and air pollution due to increased motorised vehicles

› Impact of road traffic due to this rehabilitated road including traffic calming measures

› Funding

› Public consultation

› Traffic flow at the junction with the A2

Figure 19 - Road Upgrade

ECONOMIC DEVELOPMENT PLAN

INDUSTRIAL CLUSTER Better Public Transport: Bus and Boda Boda Stops

7

8

The proposed western ring road is not only an important access route for heavy goods vehicles, but it will also provide valuable public transport access to the industrial cluster and the settlements along the road. While the northern part of the proposed ring road has a higher density of settlements, the southern part is quite sparse at present. As seen elsewhere in Kenya, an upgraded road would attract more settlements and activity along the road in the future. Hence, the whole ring road would need better public transport facilities. It is recommended to install at least ten bus stops at five locations (one in each direction) along the road at the initial stage. It is in reflection of the current landuse along the road and the budget limitation. Figure 20 presents the initial recommendation in light of the existing settlements and the proposed location of the industrial cluster. As the settlement grows along the ring road, more bus stops would be needed in the future.

The purpose of the bus stops is to create a designated boarding / alighting space that provides a sheltered and secure facility for the passengers. The image left is an example of a cost-effective bus shelter.

It is also proposed that a series of boda boda stations be positioned along the ring road to service the public transport needs.

Their locations are to be determined.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› 10 sheltered bus stops along the road

› CAPEX of installing bus stops KSh 10m

› Better access to the industrial cluster by bus

› Isiolo Municipality

› Annual OPEX maintaining bus stops KSh 2m

› Expansion of the Town due to better public

› Public funding - potentially from National government or international development partners › Advertisement at the bus shelter could potentially generate partial fund for OPEX

Challenges

Data Gaps

Time Frame

› Local stakeholder buy-in

› Pre-feasibility and feasibility studies

Immediate term

› Ensuring safety and security at the bus stops › Funding › Attract bus/matatu services on the new upgraded road

Figure 20 - Bus Stops

› Bus route rationalisation

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ISIOLO URBAN ECONOMIC PLAN

INDUSTRIAL CLUSTER Solar LED Street Lighting

Case Study:

10

› For along roads and pathways within the cluster › Increased safety for improved business activities in lit areas

Sub-components

Estimated cost (range)

Impacts (benefits)

Delivery mechanisms

› Study to determine extent of proposed lighting system picks up all key areas

› Benchmark: £1,250 per pole16, £30-40k per km depending on spacing

› Increased safety and security for all businesses in newly lit areas

› Partner with Isiolo Municipal government to coordinate activities

› Equipment selection

› Actual: £90-120k

› Allows street side businesses to stay open longer

› Funding (eqpt, installation, maintenance):

› Avoided carbon emissions associated with urban street lighting

› Partnering with equipment specialists to determine appropriate technology solutions

› Part IFI, part public funded

› More grid power available for other uses

› Maintenance - capacity building programme to ensure continued operation of systems

› More revenue available for other Municipal activities

› Maintenance responsibility of Municipal govt

› Development of procurement and deployment / implementation plan › Maintenance plan

Challenges

Data Gaps

Time Frame

› Long-term operability of standalone systems (i.e. maintenance requirements)

› Current products on market and installation / maintenance workforce

› Short-term

› Funding

16 Africa and solar powered street lights, accessed 29th July 2019 https://www.engoplanet.com/single-post/2019/07/22/Africa-and-Solar-powered-Street-lights 17 ibid

Jinja is the main city in the district of Jinja, Uganda, with a population of 76,000 and a daily additional working population of 300,000. The Municipal Council has limited revenue generation from taxes and central government transfers, and ran up a significant debt with its electricity provider, so much so, that the provider cut off the street lights. Subsequently crime rates rose, and economic activity was limited to daylight hours. Jinja then became part of national level programmes designed to upgrade informal settlements and urban infrastructure and received over £0.5m to spend on improvement projects. Municipal decision makers indicated a preference for installing

solar street lighting over conventional.

So far 92 solar street lights have been installed, including 70 along a 2.5km stretch of main road through the Town.

The average cost per street light pole US$1,600 compared to US$2,350.

This is a saving of roughly US$50,000.

Additionally, operating costs are zero compared to traditional streetlights, as they do not consume electricity, and maintenance costs are low, comprising cleaning of the panel, routine checks and servicing of components. The outcome has been that the Municipal Government has drastically reduced its monthly bill, allowing it to reduce its debt and finance other projects, including further streetlighting.17

ECONOMIC DEVELOPMENT PLAN

FOCUS AREA 2: THE GATEWAY - TRANSIT ORIENTATED DEVELOPMENT (TOD) â&#x20AC;&#x153;The Gatewayâ&#x20AC;? is a mixed-use project formally marking and celebrating the arrival to Isiolo.

Set in a strategic location of town, it sits beside the new Market building (under construction) and opposite the new Stadia, which is also under development. This zone is known for its exposure to seasonal and repeated floods. The Municipality has allocated, and is keen to retain the site, for a new bus station albeit this being exposed to flood risks.

As such, a robust flood management strategy is necessary to mitigate and contain the risks associated with the area, whilst releasing enhanced development potential across the site.

Figure 21 - Development Framework plan showing Focus Area 2 - The Gateway (TOD)

52

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ISIOLO URBAN ECONOMIC PLAN

Focus Area 2: Sequencing The projects have been numbered in order of their preferred and optimal sequencing as follows: 1. Market stalls relocation - as noted in the introduction this area is subject to seasonal flooding due to its low-lying location and adjacency to the Marire River channel. It is proposed that these areas be cleared of market stall structures to permit a comprehensive earthworks and storm water drainage intervention to be undertaken to create protective berms and river embankments. This will protect existing properties and create additional land areas that will become available for the proposed mixed use (TOD) and public realm improvements.

2. Marire River Park - the de-cluttering of the riverâ&#x20AC;&#x2122;s riparian areas from informal structures and dumping will enhance the storm water carrying capacity of the river channel and permit public realm facilities to be developed such as pathways, seating areas and tree planting. This will form the southern start of the Marire River Park.

3. Bus station and real estate development - following site clearing, earthworks and stormwater management infrastructure the site is ready for development of the extended bus station and associated plot preparation for private investment initiatives. This will include the development of public plazas and concourses linking the various uses within the site and to the new market building.

4. Development of River Park Infrastructure - the proposed public realm improvements will be extended to the north along the river bank to create a green corridor along the river which will eventually link to the proposed Isiolo Bio-Park to the north of the CBD area.

5. Solar street lighting - will be installed in all public areas including along the proposed river park footpaths and seating areas.

6. Marire River Park flood risk management - the proposed storm water infrastructure will be continued northwards along the river channel to improve water flow and provide remediation measures as appropriate. This will include removing all structures that are currently encroaching the riparian area of the river.

ECONOMIC DEVELOPMENT PLAN

THE GATEWAY (TOD) The Gateway

1

2

3

4

“The Gateway” is composed of a variety of uses and stems from the need to transform the current bus station. The components of the project are: Transport (Bus Terminus) a functional, semi-covered and clean bus terminus; Real Estate (RE) mixed use buildings accommodating potentially retail at ground floor and commercial/residential/hospitality uses above*; Public Realm (PR) a series of small and varied plazas linked up by pedestrian paths that interface with both the Marire River Park, the real estate components and the newly built market.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

› Masterplan to be developed for the TOD outlining low and high-cost options and providing solutions to existing problems in the area (includes transport, public realm & real estate)

› TOD CAPEX KSh 2.4 million

› Dedicated, functional, open and clean bus terminus

› Kenya Urban Roads Authority (KURA) for road improvements

› Enhances the local economy with modern amenities

› Private investment

› Provides a positive image of the Town and adds value to sense of place

› Stakeholder and community engagement

› Landscape regeneration KSh 95,200k

› Design of Marire River Park

› Opportunity to enhance green links and pedestrian access

A possible scenario includes the real estate component articulated in two buildings growing from 7 to 13 storeys southward sitting on a raised podium (retail and parking). In this scenario, “The Gateway” acts as a “pinnacle”, a landmark, visible when arriving in town.

Good quality public realm acts as glue between the new market building, the bus station zone, the river embankment/linear park (part of other proposals) and the new buildings.

› Enables potential private investment initiatives › CBD storm water and flood management

The exposure to flood is addressed by the decluttering of the encroachments into the riparian zone and expansion of the natural space this is to be part of a future “Marire River Park” that acts both as public space and natural storm water container when the river swells.

The overall proposal (Bus + RE + PR) is to be sitting on a man-made plateau that will protect the scheme from projected flood levels and would be used as a below grade parking area.

A part embankment / part berm-like natural barrier completes the series of elements that are to protect the new market building to the north of the site.

The increase in space for the river to flow freely and, potentially, be contained during intense rainfall is part of a series of nature-based, climate resilient solutions that are aimed at reducing/containing the flooding of the CBD area and the threat to life.

The scheme will revitalise this area of the Town and offer significant private sector investment opportunities along with an enhanced experience to bus and market users.

At the same time, it seeks to address localised flood issues and maximise the ecological value of the Marire River.

› Following completion: › Revenue from provision of services, business licencing › Revenue from leasing / rentals › Revenue from additional Boda boda stations

Data Gaps

Time Frame

Phasing Project Priority

Operations & Maintenance

› May require some land acquisition

› Pre-feasibility and feasibility studies

› Medium to long term

› Phase 1 Infrastructure for bus terminus, including flood management

› Bus Terminus by operating authority, public roads by Municipality

› Relocation of market stalls › Construction likely to interrupt current functioning of market and bus station › Funding

* Preferred components are to be confirmed following surveys and technical, market and financial / economic viability studies.

› Public realm & utilities

by Municipality

Challenges

› Existing buildings and public realm will need to be altered

› Site topocadastral survey is needed › Land ownership register

› Phase 2 - Real estate and public realm, along with river park development

54

› Private areas by operator / leaseholder › Public areas by Municipality (ie. cleaning, policing)

55

ISIOLO URBAN ECONOMIC PLAN

As existing plan view of the proposed market under construction and existing market stalls

As proposed plan view showing the new bus terminus and mixed use structure

As existing high level view showing the Marire river bed and market stalls in the flood plain

As proposed high level view showing the new bus terminus and TOD away from the flood plain and enhanced public realm on Marire River Park bank

ECONOMIC DEVELOPMENT PLAN

Sequence of images showing the rising flood levels in the Marire river that could cause catastrophic damage to buildings nearby the flood plain if appropriate measure are not undertaken

1

2

3

4

56

57

ISIOLO URBAN ECONOMIC PLAN

THE GATEWAY (TOD) Solar Canopies for Market and Bus Station 5

Challenges

Data Gaps

Time Frame

› Perceived high cost of solar canopies

› Detailed information on market activities

› Short to mid-term

› Funding

Outcome › Provision of solar PV canopies over the new market area and bus station

Case Study:

› Improved life for market traders, customers and bus travellers due to improved ability to undertake more advanced economic activity, and improved safety Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

› Detailed study of target recipients to determine current/ potential demand and ability to pay

› Benchmark: US$ 1,600 per kW

› Increase in business activities › Reduced carbon emissions

› Financial modelling

› Actual: Bus station (265kW) US$370,000

› Coordination with Isiolo County Government and other interested parties

› Community/ stakeholder engagement plan

› Market (100kW) US$160,000

› Initial technical design, economic, social and environmental analysis

› Funding (eqpt, installation, maintenance):

› Development of procurement and deployment/ implementation plan

› Part IFI, part public funded

› Operation plan (including revenue collection, maintenance etc.)

› More grid power available for other uses › Improved health, safety and security (through provision of under canopy lighting)

› Partnering with local / regional solution providers and equipment specialists such to determine appropriate design and technology solutions › Maintenance - capacity building programme to ensure continued operation of systems › Maintenance responsibility of Municipal govt

SolarAfrica is a solar energy solutions provider that offers tailored solutions for businesses, residential energy users and large commercial and industrial sites in Africa. They are based in South Africa, Kenya and Mauritius. They fund and own the solar system, but commit to provide the users with reliable energy that is cheaper than the utility supply, and take care of maintenance. The user doesn’t expend any capital, but enters into a long term contract with SolarAfrica utilising one of two options; paying

only for the energy they use, or paying a fixed monthly fee where they can use all of the energy that the facility generates.

SolarAfrica completed the installation of an 858kW solar PV system at Garden City Mall in Nairobi, Kenya. The system covers 32 acres of the mall car park, and provides electricity to the nearby mall and additionally provides shading to cars during the daytime, as well as lighting (underneath the canopy) during the evening/ night.

ECONOMIC DEVELOPMENT PLAN

THE GATEWAY (TOD) Marire River Park (Flood Risk Management)

6

Poor storm drainage system in Isiolo Town. Drainage system such as drainage channels, culverts and side ditches along roads have not been developed to function as a network in Isiolo Town.18 Therefore, after rainfall event, the rain water stays on the surface causing the downtown to flood. The depth of flood water can reach up to 500mm.19 Existing drainage features needs to be maintained (example: litter picking) to ensure the system is providing full capacity to convey water.

SuDS features are required to manage rainwater runoff coming from the east of Forest Road affecting the market area to west of the road. Every time there is a heavy rainfall, the associated overland flows flood the market stalls impacting on the income of the sellers.20 The following proposals can improve the surface water drainage system: › The existing road currently has only one channel. It is proposed to provide two larger channels on both side of the road to intercept flows and to create a continuous conveyance of rain water along the road. Outfalls are to be located at the Isiolo Park and (if feasible) storage tanks located at the Sewage treatment works to the north of the park.

The water can be treated and recycled/reused in process plants or for the irrigation of green spaces on site or crops in the local vicinity;

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Swales and conveyance channels

1,341,000 - 2,139,000 KSh. Costs varies depending on dimensions of swale TBC following detailed design.

Manage Surface Water runoff by enhancing the drainage network and providing multiple mechanisms for the water to dissipate (e.g. infiltration, evapotranspiration).

It is likely that this initiative will require both public and private interventions to enable changes to be undertaken.

Process to be led by the Municipality with coordination through local business groups, property owners and vendors.

Provides a positive image of the Town, creates a Centrepoint and sense of place for the Town, encouraging more visitors.

Bioretention areas planted with drought resistant plants

TBC - following concept and detailed design process.

Tree pits

35,360 KSh based on a tree (every 6m) along 2 No. swale. Prices do not include: surface treatment (permeable surface and non compacted material) example: Organic mulch, loose aggregate, Sand -based substrates (used in clay soils and high water table areas to add capcity for water and nutrient retention).

› To integrate SuDS features in the new market area and new stadium, for example: local vegetated bioretention areas planted with drought resistant plants and trees. These features are visually attractive and may include seating, and efficient to manage local ponding of water.

Opportunity to enhance green links and pedestrian access.

Has the potential to regenerate the surrounding area and increase value of the local economy.

Opportunity for the Municipality to source funds through the World Bank KUSP programme.

Reduce pollutant concentrations in stormwater by acting as a buffer and as a result, enhance the quality of the receiving water body.

Provides habitats for wildlife in urban area and opportunities for biodiversity enhancement.

It encourages the natural groundwater recharge (where appropriate) to minimise the impacts on aquifers and river baseflows in the receiving catchment.

Challenges

Data Gaps

Time Frame

› Retrofitting SuDS elements require appropriate planning collaboration between residents and councils to implement and maintain the system.

› No knowledge of current drainage system

Short term

› Long-term operability (i.e. maintenance requirements) › Funding 18, 19 & 20 Isiolo Flood Management Plan

58

› Data of runoff volumes and flow capacity requirements › Site investigation such as infiltration testing and drainage network and topographical survey will be required

59

ISIOLO URBAN ECONOMIC PLAN

Case Studies: Zhenjiang City, China21

Additional Case Studies: Swales

Swale used as a conveyance channel in the center of the road

Continuous swale along the side of the road, Source: EPA Office of Water

The results were successful, it was noticed that the new system provided 72% reduction of surface water runoff for the 1 year 2 hour event. And 47.5% runoff volume reduction for the 30 year 24 hour event.

Swale with stone check dams to protect erosion

Swale with rocky check dams - Northgate Seattle

21 https://www.wasla.org/assets/Session_4_Redrawing_Grey_Cities_to_Climate_Resilient_Sponge_Cities.pdf

Source for Swales: https://wiki.sustainabletechnologies.ca/wiki/Check_dams

This project implemented stormwater management retrofits for 22km2 of watersheds within the City of Zhenjiang. City of Zhenjiang is an old-high density urban residential and business area. The city suffered from extreme flooding every year and water quality deterioration of the receiving water bodies caused by combined sewers overflow and storm water runoff. The “Sponge Cities” concept was implemented in the city and aimed to provide urban areas that is ready to meet climate change challenges such as flooding, water pollution and droughts by integrating grey and green infrastructure to reduce surface water runoff, and reduce pollution by providing water treatment at the source. Discussions between the different stakeholders and community engagements workshops was part of the design process. The design aimed at: › Convey 30-year storm event; › Improve Water Quality of Receiving Water; › Treat 75% of annual runoff volume; › Reduce annual Total Suspended Solids (TSS) load by 60%.

ECONOMIC DEVELOPMENT PLAN

FOCUS AREA 3: CENTRAL BUSINESS DISTRICT (CBD) Urbanism - Masterplanning / Urban Design The perception of a place is mostly given by the images that visitors and residents alike retain when using and visiting it. The arrival experience, the ease of movement and security, cleanliness, quality space of the public realm and good quality architecture are all elements concurring to deliver a good urban environment that stimulates repeat visits and creates an engaging â&#x20AC;&#x153;economic and social milieuâ&#x20AC;? for investment,business and users. Urbanism projects are multidisciplinary and integrate a wide range of diverse inputs into a strong, coordinated vision that underpins development. The following proposals work collaboratively, aiming at enhancing the urban environment and being catalysts for the development and growth of Isiolo.

Figure 22 - Development Framework plan showing Focus Area 3 - Central Business Distrcit (CBD)

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ISIOLO URBAN ECONOMIC PLAN

Focus Area 3: Sequencing 1. Sustainable Urban Drainage systems (SuDS) - before any improvements can be effected within the CBD and particularly along the A2 Boulevard it will be necessary to install the SuDS infrastructure which will protect the adjoining road, parking and building assets.

2. Isiolo Boulevard - public realm upgrade - following the installation of the SuDS it will be possible to implement a range of public realm enhancements as part of an overall business improvement area. This will optimise traffic and pedestrian circulation, parking availability, access to the business frontages whilst creating additional areas for temporary market stalls and other civic activities.

3. Isiolo Boulevard - public transport and bus stops - bus and taxi bays along with parking areas will be integrated into the overall urban design initiatives 4. Isiolo Bio-Park - the proposals for the Isiolo Bio-Park will be a continuation of the Marire River Park. It will provide significant water attenuation and retention during times of flooding which can be captured and reused in times of drought including the irrigation of adjacent agricultural plots.

ECONOMIC DEVELOPMENT PLAN

CENTRAL BUSINESS DISTRICT Sustainable Urban Drainage Systems (SuDS)

1

Retrofitting SuDS components along the A2 road to create “boulevard” (Isiolo Boulevard Urban Greenway 2). A combination between swales and drought resistant planting can be integrated along each side of the road which will capture, store and create a continuous conveyance of rain water. A central swale is ideal for locations where free movement of pedestrians and/or vehicles is required alongside the road but would require an overall widening of the road footprint to accommodate the swale width which can be expensive and require to change the road alignment.

Outfalls are to be located at the park to the North of Isiolo. The park can provide additional water storage in extreme events. The water can be reused for the irrigation of green spaces.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Swales and conveyance channels

KSh 4,734,000 7,548,000. Costs varies depending on dimensions of swale TBC following concept and detailed design.

Manage Surface Water runoff by enhancing the drainage network and providing multiple mechanisms for the water to dissipate (e.g. infiltration, evapotranspiration).

It is likely that this initiative will require both public and private interventions to enable changes to be undertaken. Process to be led by the Municipality with coordination through local business groups, property owners and vendors.

Detention basin / ponds

KSh 27,000,000 29,640,000

Opportunity to enhance green links and pedestrian access.

Opportunity for the Municipality to source funds through the World Bank KUSP programme.

Marire Linear Park The Marire River flows in urban area of Isiolo. The topographical gradient of the area is steep (1/50 and river bed gradient is 1/100)22 therefore, flood arrival time is short and surface and inundated water have high velocity. Clay soil23 means the water doesn’t seep underground and rapid surface run-off occurs combined with a lack of flow capacity in the Marire River means frequent inundation in town area.

Tree pits

Marire River is approximatley 5m wide with 0.5m banks giving a in channel flow capacity of approximately 4m3/s which is not adequate.24 Sediment and illegally disposed garbage accumulates in the box-culvert located at the downstream end of the Town area adding to flood issues and causing inundating of homes, damage to homes from by the debris carried by the flooding river, errosion of roads and in server cases inury and loss of human life.

Potential solutions › Revegetation of the banks and the provision of rock rolls or Geo Cell systems to reduce bank erosion problem which reduces the height of the river banks › River management techniques such as meander restoration, bank regrading and widening the river channel to to increase channel capacity › Provide offline storage areas

KSh 12,480 Based on a tree every 6m along 2 No. swale Prices do not inculde: surface treatment (permeable surface and non compacted material) example: Organic mulch, loose aggregate, Sand -Based substrates (used in clay soils and high water table areas to add capacity for water and nutrient retention).

Provides a positive image of the Town, creates a Centrepoint and sense of place for the Town, encouraging more visitors.

Has the potential to regenerate the surrounding area and increase value of the local economy.

Reduce pollutant concentrations in stormwater by acting as a buffer and as a result, enhance the quality of the receiving water body.

Provides habitats for wildlife in urban area and opportunities for biodiversity enhancement.

It encourages the natural groundwater recharge (where appropriate) to minimise the impacts on aquifers and river baseflows in the receiving catchment.

Challenges

Data Gaps

Time Frame

› Houses are built in the riparian land illegally. Options such as widen the river channel might be difficult

› No information of existing culverts and their status

Long term

› Long-term operability (i.e. maintenance requirements) › Funding 22, 23 & 24 Isiolo Flood Management Plan

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Case Studies: The City of Milwaukee The MVIC Stormwater Park manages stormwater runoff while providing a new public space with pedestrian and bicycle trails.25 Greening Streets, Retrofit Linear Bioretention Areas - Nottingham, UK The linear bioretention areas (total of 148m2) were retrofitted within the grass verge.

The bioretention areas were constructed using a combination of clean stone aggregate and proprietary units to create void space beneath a planted topsoil layer. They were designed to manage surface water runoff by intercepting and treating the surface water.27

Floating Pocket Park - London, UK28 700m2 floating park in Paddington to provide public open space and creates an oasis to attract wildlife. The green space and the shade provided by the plants attracts visitors and offer space for all year round events.

Klang River Waterfront - Kuala Lumpur Revitalising the Klang River Waterfront into resilient sustainable pedestrian areas26

25 https://www.epa.gov/sites/production/files/2016-06/documents/city_green_0.pdf 26 Atkins 27 https://www.susdrain.org/case-studies/case_studies/greening_streets_retrofit_rain_gardens_nottingham.html 28 https://merchantsquare.co.uk/floating-park/

ECONOMIC DEVELOPMENT PLAN

CENTRAL BUSINESS DISTRICT Isiolo Boulevard

2

3

The A2 highway runs through Isiolo splitting the Town in two halves, this is common to many other towns in Kenya. The road carries traffic, footfall and business opportunities with it. Businesses, therefore, tend to concentrate around this corridor making typically this stretch of the Town centre a very vibrant area. In Isiolo many of the key urban functions locate around this thoroughfare, namely the new stadium, school quarter, main market and existing bus station, Mosque and the CDB which stretches over a length of approximately 500m. Close-by, the Marire river runs parallel to the CBD and sets further apart the Town centre. The natural topography gently slopes toward the A2, converging particularly around the market and bus station area of the CBD. This is one of the main causes for concern as, during the rainy season, the river overflows and the CBD along with the adjacent properties regularly flood causing disruption, damage and loss of income, along with a threat to people’s lives.

The proposal aims to deliver a new, more effective high street, which addresses multiple issues. The Isiolo Boulevard transforms the experience of interfacing with the high street introducing a series of solutions and benefits to local businesses. Isiolo Boulevard is a new high street for Isiolo that puts people at the core of its activities and helps addressing the main concerns by: mitigating localised flash flooding, managing the growing vehicular traffic by introducing traffic calming measures, supporting pedestrian movement and footfall which in turn makes businesses more resilient and profitable and introduces new spaces for kiosks to be temporarily accommodated.

The vision of the Isiolo Boulevard is for a high quality, pleasant, climate resilient urban street that acts as a sponge by absorbing and draining the seasonal stormwater and flooding that negatively impacts the CBD. The overall flooding issues are related to the hydrogeological basin in the area. Isiolo sits in this basin. A series of regional scale measures are also being proposed (refer to the Upstream Catchment Management proposals in the Wider Area Proposals) to complement these localised solutions. In the Boulevard along the CBD, an urban greenway is proposed. It offers enhanced permeable surfaces, with open natural drains or an option of purpose designed planted Sustainable Urban Drainage System (SuDS) on both sides of the road. This will improve water management along the boulevard and within the CBD. It also integrates a mix of new spaces for people to run their businesses, socialise and spend time. It stretches from the proposed Isiolo Park in the north of the Town centre to the airport road junction with the A2 to the south.

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The new Isiolo Boulevard will be the new interface of the Town and contribute to attract and retain visitors and businesses alike. The regenerated urban space will make the boulevard an investment corridor and a destination of choice which will serve as a desirable ‘shop front’ to the Town’s trading and commercial traditions. To maintain the high quality and reduce vehicular congestion car parking will be limited and truck parking will be relocated to appropriate alternative locations. Loading will be time restricted.

Sub-Components

Estimated Cost

Impacts (Benefits)

› Reconfiguring current access road / slip road to suit the new layout

› Isiolo Boulevard town centre only KSh 392,139,000

› Enhanced image of the street will attract more businesses

› Integration of SuDS to reduce surface water run-off › Roadside parking to be replaced with expanded footpaths, planting, SuDS and spaces for multi-use activities such as deliveries and market stalls

› Larger footpaths and crossings will encourage more pedestrians › Higher revenue from increased footfall › Versatility of space offers opportunities for regular and seasonal activities encouraging more people to visit

› Adding street trees and planting to support SuDS implementation and add aesthetic appeal › New bus Stop

Delivery Mechanisms › Typically, Public funded projects › Potentially: In partnership with local business › Private sector funding for development (ie.: Business Improvement Districts)

› Safer environment for pedestrians by limiting vehicular access

› Upgrade street lamps, use solar / wind powered lamps › Permeable paving on most parking surfaces and footpaths

› Improved drainage for surface water run-off

› Segregated cycle lanes on both sides

› Improved land value along the road

Challenges

Data Gaps

Time Frame

Phasing Project Priority

Operations & Maintenance

› Existing trees and public realm may need to be removed

› Pre-feasibility and feasibility studies

› Short to medium term

› Initially test on non-centre narrower section of street.

Access pros-cons and then implement to the full length of the road

› Temporary road closures, arrangements cleaning and general maintenance

by Municipality Potential for additional revenue from stalls rents

› Installation likely to interrupt traffic flows › Funding

› Impact on access to local businesses due to upgrades › Site survey is required

› Urban Development Proposals supporting Economic Growth

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Cross section across the as existing street arrangement.

Cross section across option 1 proposal showing wider swale arrangement.

Cross section across option 2 proposal showing simple open drain arrangement.

ECONOMIC DEVELOPMENT PLAN

Figure 23 - As existing arrangement of a section of the A2 (60m RoW)

Figure 24 - Option 1 Proposal showing simple open drain channel and widened footway space in front of the shops, dedicated loading and parking bays and new bus stops

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Figure 25 - As existing arrangement of a section of the A2 (60m RoW)

Figure 26 - Option 2 Proposal showing wider swales and dedicated parking and loading bays widened footways in front of shops and new bus stops.

ECONOMIC DEVELOPMENT PLAN

Case Study:

Grey to Green Project, UK’s largest retrofit SuDS Scheme Transforming 1.3km redundant roads into attractive new linear public spaces. The planted areas will also provide an innovative ‘sustainable urban drainage system’ (SuDS)

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Case Study:

Case Studies:

Box Park - London, UK Retail units, modular, low-cost, completed

NYC increase in rain garden across town centre Completed rain gardens include a notch in the curb to allow stormwater to flow in and plants to beautify the garden as well as aid in evapotranspiration of the collected water

Contianer City - London, UK Modular system using shipping containers to create affordable accommodation, completed

ECONOMIC DEVELOPMENT PLAN

CENTRAL BUSINESS DISTRICT Isiolo Bio-Park & Visitor Centre

4

Isiolo is quickly growing north with urbanisation taking over all the most attractive, developable and available land along the main A2 road corridor. The Town also lacks a public, open destination where visitors can sample and enjoy what the Town has to offer.

One of the main concerns of stakeholders is that tourists do not have attractive destinations to visit within the Town itself. Further to that, the Town needs a space to celebrate nature and make room for people to congregate and relax in a green setting. The area north of the CBD is prone to regular flooding. This issue has been recently addressed by the upgrade of the road branching off the A2 to the west in proximity to the Trojan/Hass petrol station. Whilst the localised flooding issue might have been resolved, the downstream part of town (to the north) will continue to be exposed to the same flooding issues caused by storm water not freely flowing through the CBD along the Marire river - which is heavily encroached.

An ecosystem services approach in Isiolo will not only help address the issues mentioned above but would also deliver cultural benefits to residents and visitors and support economic growth through conservation, regulation and use of surface water. It is estimated that the conservation of water catchment areas of two rivers systems within the Mount Kenya area can save more than US$ 20million a year through regular supply of water (Secretariat of the Convention on Biological Diversity(2012) Cities and Biodiversity Outlook) Isiolo Bio-Park seeks to address the issues above. The proposal suggests the establishment of a wide semi-natural park to the North of the CBD, in the large undeveloped and natural open piece of land. The park can serve multiple purposes. It acts as the Town park (which Isiolo is in need of) where a visionary, innovative but low-key Visitor Centre can be located.

Light and potentially floating wooden, dome shaped structures are proposed in this park.

They can become a new destination in Isiolo for both visitors and locals alike, giving opportunity to the tourists to spend more time in town. The agricultural plots are retained and expanded, fully becoming part of the visitor experience. These areas will continue to be used as productive landscapes where urban farming can take place and biodiversity thrive.

The natural areas are re-shaped and take the form of larger, below grade bowls that can work as large retention ponds in case of extreme storm events, namely increased rainfall, impeding and containing run-off water. When water level is low the natural bowls will be green open spaces where people could walk, picnic and relax. When the water level is high, the bowls naturally fill up becoming small ponds or even lakes where the wooden platforms can float.

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Strategically, storm water can be managed, retained and later released to avoid downstream flood or even reused within the Town for other purposes. Currently this land is privately owned therefore land acquisition maybe required. If that is not an option a type of proposals can be put forward which will consider a fully temporary response to the need of the land owner which could adapt to different operational scenarios; the light, wooden structures could also be relocated should the leasing conditions change.

This approach could also represent a further source of revenue should the spaces be leased for events and temporary uses (ie.: small farmers/artisans markets, etc).

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Land grading

› Isiolo Park KSh 1.6 million

› Heighten the CBD environment

› Design Build Operate Maintain by public bodies

› Local, Authority, County, Government bodies, IFIs

› Low key, small decking and compacted ground paths

› Establish a new destination for citizens and visitors alike

› Small, modular floating decks

› Following completion:

› Opportunity for additional revenue from leases and water distribution

› Visitor Centre and attractions › Indigenous, drought resistant planting

› revenue from agricultural allotments and lease of areas for temporary events

› Managed storm water events and reduced risk of flood

› Drop-off points and on-street parking › Agricultural plots › Small landmarks

Challenges

Data Gaps

Time Frame

Phasing Project Priority

Operations & Maintenance

› Land Ownership

› Topo-cadastral Surveys

› Short term

› Single Phase

› Land Owner supported by specialist

› Funding

› Pre-feasibility and feasibility studies

› Urban Development Proposals supporting quality of life, tackling Climate impacts and Economic growth

or › Establish a Municipal Park Authority

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Figure 27 - Isiolo Park as seen with low flooding

ECONOMIC DEVELOPMENT PLAN

Figure 28 - Isiolo Park as seen with medium flooding

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Figure 29 - Isiolo Park as seen with high flooding

ECONOMIC DEVELOPMENT PLAN

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Case Studies:

Olympic Park - London, UK Various Surface Water Drainage systems are designed and installed within the north park of the Queen Elizabeth Olympic Park. These include swales, filter strips / drains and small volume balancing ponds. Porous asphalt strips are extensively employed throughout the pedestrian concourse area of the Park. Within the highways of the Park, traditional road gullies and combined kerb drainage collection systems are used. These protected the Park against fluvial flooding and it actively manages flooding generated by a 100 year return period rainfall event plus Climate Change allowance.

Mill River Park and Greenway, Stamford Mill River Park is 12-acre urban park located in Stamford, Connecticut. The project included amending the width of the river, which would expand the park’s area and provide space for more amenities. The master plan provides for a carousel, fountain, ice rink and network of trails connecting a greenway with the Kosciuszko, Southfield and Scalzi parks. Removing the dam also allows fish to swim up from Long Island Sound.

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ISIOLO URBAN ECONOMIC PLAN

FOCUS AREA 4: AIRPORT Isiolo Airport aspires to become the international gateway to the wider region, however its operations are affected by seasonal flooding. It is furthermore understood that most of the downstream developments (in the immediate proximity and further downstream) such as in the CBD, are also affected by flooding, potentially caused by the increase in impervious surface within the airport perimeter. The Airport has plans for expansion, the runway is due to be extended and there is a vision which will include additional commercial and light industrial activities within the airport land holding. The consequential reduction in permeable surface is likely to further add to the pressure on storm water drainage in the adjacent lower lying areas. All the above suggests that a broader, coordinated and more holistic vision for the SouthEast sector of Isiolo (outside the airport boundary) could be beneficial to the whole town. The â&#x20AC;&#x153;Airport Cityâ&#x20AC;? approach could be adopted where mitigation of issues such as storm water drainage are dealt at both site level (within airport ownership) and in the surrounding areas in a coordinated manner. New developments in the future could adhere to a range of coordinated guidelines that improve the drainage and retention performance of plots and buildings whilst an integrated economic vision for the airport neighbourhood could complement the airport expansion plans.

Figure 30 - Development Framework plan showing Focus Area 4 - Airport

ECONOMIC DEVELOPMENT PLAN

Focus Area 4: Sequencing

AIRPORT

1. Sustainable Urban Drainage systems (SuDS) - in order to manage storm water run-off events that occur from the airport area of the Town it is proposed to introduce SuDS infrastructure along the roads leading into the Town. This will alleviate potential flash flooding through reducing peak water flow by means of attenuation and retention.

SuDS (Muriri Miciimikuru Road)

2. Storm water management within airport grounds - by managing the water flow from the airport. This will be done through a combination of providing on site retention, then releasing it slowly into the SuDS infrastructure provided within the existing roads rights of way.

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1

The proposals include a coordinated approach to storm water drainage, namely underground tank storage within the airport perimeter and introduction of SuDS, such asswales, raingardens, retention ponds etc) along the streets between the airport and the CBD. The potential re-use of the retained stormwater is an important opportunity in such a water starved region and an important resource to be capitalised upon from both the airport and Isiolo Town.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

› Airport onsite storm water management with underground water retention tanks

› £292/m3 an indicative cost based on prices from the UK for standard geocellular attenuation cells. The drainage system for the airport will include other elements. This will be confirmed following concept and detailed design process

› Improved storm water management both at source and downstream

› Typically, Public funded projects

› Integration of SuDS to reduce and mitigate surface water run-off in streets between Airport and CBD area › Permeable paving and surfaces within the airport and along the Town streets where appropriate

› Improved drainage for surface water run-off › Reduced flooding events within the Town / CBD

› Potentially: multilateral partnership among Kenya Airport Authority, Water authority, and Municipality

› Improved land value around the airport

› Upgrade of drainage › Adding street trees and planting to support SuDS implementation and add aesthetic appeal

Challenges

Data Gaps

Time Frame

Phasing Project Priority

Operations & Maintenance

› Coordination and buy-in from variable stakeholders

› Pre-feasibility and feasibility studies

› Short to medium term

› Urban Development Proposals supporting Economic Growth (infrastructure)

› Airport Authority within their boundary

› Funding › Land ownership

› Site survey is required

› Municipality in all public Right of Ways

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ISIOLO URBAN ECONOMIC PLAN

Figure 31 - Airport flood alleviation and water treatment; concept proposal

ECONOMIC DEVELOPMENT PLAN

AIRPORT Storm Water Management Within Airport Grounds

Figure 32 - Direction of rain water from airport area

2

It is well recognised by the local government that the inland water from the airport is one of the biggest factors of flood in Isiolo Town.29 The hard surfaces and the paved areas at Isiolo international airport reduce the amount of infiltration and this has been exacerbated by the development of the construction of a new airport access road, which is raised on a bund and hence directs water to the west and into Isiolo Town.

Sponge City concept can be applied in the airport area. The sponge city concept is about integrating urban water management into the urban planning policies and designs. The infrastructure systems will collect, convey and store stormwater. In addition, it will provide a water treatment element that can provide a new water source that can be reused for irrigation or other activities. › Solutions to include bunds and detention basins to slow down and store water on the surface. › Covered underground attenuation storage tanks such as geocellular storage systems or oversized pipes that can be installed with pollutant separators that removes attached pollutants and highly contaminated substance such as free-floating oil, hydrocarbons and heavy metals. › Buried stormwater storage within Airport grounds to store water from roofs areas to be reused in airports activities such as air conditioning, landscape irrigation, washing paved areas, toilet flushing. Industrial area planned as part of airport expansion - potential for water re-use. › Proposed Road along southern airport perimeter to include space for storm water storage within road design. › Existing drainage culvert has limited capacity this should be rehabilitated to incude additional storage in shallow bunded areas. › Retrofit SuDS features along Muriri Miciimikuru road to intercept runoff and convey it away from the Isiolo Town.

29 Isiolo Flood Management Plan

Challenges

Data Gaps

Time Frame

› The implementation of sponge city concept requires appropriate planning and legal frameworks in place to implement and maintain the system.

› Feasibility study for rainwater harvesting: how would water be used, what is the cost benefit, minimum storage volumes

Long term

› The airport challenges in implementing Green Infrastructure strategies mainly include those related to wildlife attraction, climate change, antiicing/deicing compounds, and land use limitations. › Long-term operability (i.e. maintenance requirements) › Funding

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Case Studies:

Transitioning to Sponge Cities: Challenges and Opportunities to address Urban Water Problems in China Qingdao has developed the concept of a sponge city into an implemented process of urban planning and construction management. The implementation of the sponge city should be an integrated system of grey and green infrastructures that reduce the runoff and pollution from the source, control the runoff and pollution inline and treat the runoff at the end of the pipe. Rivers and lakes can also be used as water quality channel for pollution removal and establish aquatic habitats. The sponge city concept in Qingdao, China comprises 5 components for the terminal area. It includes swales, greenland, water storage, bioretention pond and wetland.

Bioretention ponds and wetlands have been used to provide water purification space.

Plant species have been selected to provide effective particles removal. Plants are essential for facilitating the effective removal of pollutants in wetlands and bioretention systems, particularly nitrogen. The vegetation also maintains the soil structure of the root zone.

The plants roots loosen the soil and creates macropores, which maintain the long-term infiltration capacity of bioretention systems. Pollutant removal equipment has been added to 3 bodies of water to ensure clean water. The “gas-floating-biochemical-filtration” integrated equipment is used to assist wetland purification, physical removal of N, P, organic matter and solid suspensions, and to provide an additional level of water treatment.

30 http://www.sdslimited.com/wp-content/uploads/2019/05/Edinburgh-Airport-Case-Study.pdf 31 http://www.wateractive.co.uk/case_studies/below_the_surface_edinburgh_airports_calm_despite_the_storms 32 http://www.sdslimited.com/wp-content/uploads/2016/04/Geolight-Brochure-2016.pdf

Edinburgh Airport - Edinburgh, UK30 Scotland’s Largest underground surface water drainage system has been installed as part of Edinburgh Airport expansion. It is designed to store 7,000m3 of surface water during heavy storms. The water is collected visa gravity network of slot drains and 660m long 1500mm diameter pipes before reaching to the SDS GEOlight attenuation system.31 A number of oil interceptors are used along the gravity network to clean the water before it enters the GEOlight tank to reduce maintenance requirements. The water stored within the GEOlight attenuation system can be pumped as required to a network of standpipes for irrigation or can be discharged to the drainage system at a controlled manner.32

Schiphol Airport - Amsterdam Just past the edge of the runway, there’s a series of hedges and ditches laid out like interlocking diamonds.

Falls PnP - Roodepoort, South Africa A detention pond reduces stormwater peak flows while supplying a sump with stormwater used for irrigation

ECONOMIC DEVELOPMENT PLAN

WIDER AREA PROPOSALS The previous sections have considered and proposed climate resilient infrastructure projects which support the Town in its immediate needs whilst also supporting the proposed value chain and catalytic development opportunities that have been identified. This has been done through the development of an industrial cluster to introduce diversified manufacturing and processing capabilities to the Townâ&#x20AC;&#x2122;s economy, improvements in the Townâ&#x20AC;&#x2122;s entrance (gateway) and CBD, roads and storm water drainage infrastructure and the provision of enhanced public realm and pedestrian linkages.

The following section outlines other broader based infrastructure projects which will assist with issues that are located in the wider hinterland of the Town or that impact the Town in some other way.

Issues such as uncontrolled truck parking within the Town and CBD area, the unmanaged waste disposal and dumping to the north of the Town, the broader catchment management issues responding to both flooding and drought impacts, along with the provision of solar powered irrigation and water sourcing.

Figure 33 - Development Framework plan showing Wider Area Proposals

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WIDER AREA PROPOSAL Truck Parking with Driver Facilities (Site Options)

1

There is a high-volume heavy goods vehicle that passes through the Town centre. Due to the lack of dedicated truck parking facilities, most of the service roads along the main corridor through the Town centre are being used by trucks for long-term parking. The urban development proposal for Isiolo is to develop the central spine of the Town centre, creating a vibrant pedestrian-friendly area. It proposes to remove long-term truck parking facilities from the service roads and provide sufficient short-term loading and unloading bays to support the local businesses. It is, therefore, essential to provide a dedicated long-term truck parking facility. The facility will need to provide appropriate amenities for the truck drivers and operators, including vehicle maintenance facilities, toilets, and shops. The map right presents the proposed location of the truck parking facility. The rationales for proposing the location are:

Challenges

Data Gaps

Time Frame

› May require land acquisition

› Pre-feasibility and feasibility studies

› Short to medium term

› Funding › Buy-in from the local stakeholders

› Public consultation

› Buy-in from the truck operators

Figure 34 - Truck Parking (potential site locations)

N

A2

› The location is no longer than 2km away from the city centre. A round trip from the parking area to the city centre would not cause major additional veh-km; › The location is less than 2km away from the airport;

Isiolo Town

› The location is roughly 1km away from the proposed ring road. It would allow easy access for the goods vehicles entering Isiolo Town for the proposed industrial cluster; and › It has direct access to the A2 road that connects Isiolo with Nairobi on the south-western side.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Potential Funding

› Develop a truck terminal

› (Cost of land acquisition not included)

› Easy access to the industrial cluster

› Isiolo Municipal Council

› CAPEX of developing truck terminal + amenities KSh 150k 200k per sqm

› Ease road congestion at the Town centre

› Public funding potentially from National government or international development partners

› Terminal amenities such as toilets, shops, vehicle maintenance facilities

› Annual OPEX of truck terminal 15k per sqm

› Improved road safety

› Alternatively, it has the potential for PPP investment. The private sector would have the opportunity to recover their cost by charging parking fee to the truck operators

Road Upgrade

Op�on sites for truck parking

A2

ECONOMIC DEVELOPMENT PLAN

WIDER AREA PROPOSAL Remediation of Existing Landfill

2

Remediation and engineering into a sanitary landfill of the existing dumpsite. › Determine level of investment and secure funding (IFI, grant, PPP or direct by government) › Appoint private contractors to remediate and clean the site › Engage with informal sector and CBOs Construct and install two barrier lining and leachate and landfill gas collection and treatment systems within the new engineered landfill cells.

Sub-Components

Estimated Cost

Impacts

Delivery Mechanisms

› Construction of engineered landfill and excavation and haulage of existing dumped material into new cells

› USD $1 million to USD $4 million

› Improved ground and water quality

› Opportunity for collaboration with private sector

› Funding: IFI / Donor Finance

› Improves local air quality

› Reduces methane production in the landfill › Provides employment › Provision of a sanitary and engineered landfill for future management of residual waste

Challenges

Data Gaps

Time Frame

› Isiolo has waste being dumped on the road verges, uncontrolled fires and pollution of surrounding water bodies.

› Obtain funding for remediation infrastructure

› Construction of new engineered landfill cells: Short-term

› Obtain funding for construction of new engineered landfill cells

› Removal of historical ‘dumped’ waste into new landfill cells: Short-term

› No formal means of treating and disposing of waste. › Need to be mindful of employment and social impacts on informal sector that live and work on the existing dumpsite

Case Study: Remediation of open dumpsites in South Asia (What a Waste 2.0, World Bank Group, 2018) Open dumping is common in South Asia with most open dumpsites lacking any form of leachate collection and treatment, landfill gas collection and many also lack any form of liner.

However, the remediation of existing dumpsites and the construction of new engineered landfills is underway with the newer official and well operated landfills generally being privately operated.

The Maldives is currently mitigating dumping of its waste by improving waste collection systems and constructing new engineered disposal sites that can serve a number of islands (World Bank 2017a).33 33 Waste Pickers Alliance, Uganda

› Construction of new concrete slab: Short-term

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WIDER AREA PROPOSAL

Figure 35 - Attenuation Pond

Upstream Catchment Management Catchment based initiatives use both land and water management to reduce the risk of flooding while aiming to balance environmental, economic and social demands to bring long-term improvements to the catchment.34 There are a number of catchment management options which would be appropriate for application in the upstream catchment in Meru county. These interventions have benefits for both Isiolo (downstream) and Meru and therefore promote collaboration between counties: › Storing more water: using the topographic characteristic of the land to position dams and irrigation areas creates more capacity to store water (key-line principle); › Planting trees and shrubs to reduce soil erosion and increases resistance to water flow; › Increasing soil infiltration: enhancing the soil structure to increase the levels of water that can be absorbed into the soil. This reduces the effects of drought as a result as healthy soils retain water for longer in dry periods; and › Intercepting rainfall: tree leaves intercept rainfall which then evaporates and reduces the amount of water that reaches the ground depending on the tree type.

To the west of Isiolo Town centre natural flood management techniques and storage areas downstream of the hill could be used to intercept stormwater runoff and slowing the speed of water coming off the hill (see Figure 35).

Case Study:35

Drought management Photo of applied keyline Design at Nevallen Farm, Australia.

By cultivating trees in parallel and upwards from any contour the project distributes water within the landscape reducing flooding downstream.

To complement Kenya’s drought monitoring programme, a three-pronged approach to drought risk mitigation is suggested: 1. Increasing supply (develop more water sources including reuse); 2. Reduce demand (reduce the amount of wasted water and water use - education); 3. Minimise the impact of drought (build resilience).

Increase supply The development of new urban drinking water source in Isiolo is likely through new boreholes. A water resource and drought planning study would ensure that the most 34 http://www.fwr.org/WQreg/Appendices/The-Guide.pdf 35 http://permaculturenews.org/resources_files/KeylineArticle.pdf

ECONOMIC DEVELOPMENT PLAN

economic sources are developed that provide water in drought periods. Supply could also be increased by repairing or replacing old leaking pipes as non-revenue water is estimated to be around 34% in Isiolo.36 In addition, we recommend that the County government drill boreholes in pastoral locations to support cattle rearing and milk production during drought.

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Case Study39:

Reducing demand Isiolo Water And Sewerage Company (IWASCO) already meter customers as a way to manage demand. People use less water if they pay per volume used, they can complement this by using drought restrictions on car washing and other heavy water use activities could be implemented in times of drought. The promotion of water saving technologies in households and for commercial and industrial use can save between 5 -10% of water consumption.37 Public education programmes on the responsible use and management of water has proven very effective in many similar drought impacted regions and countries.

Given the extremes of weather in Isiolo a detailed study would be needed for rainwater harvesting and retention and reuse of storm water might be appropriate in some instances in Isiolo and would reduce demand on public water supply. For instance, permeable pavement and bioretention cells can be used in areas of extensive paving such as parking and pedestrian areas. Rain water could be stored and used for watering gardens, car washing, domestic animals and for toilet flushing.

Irrigation is also a large user of water. Drip irrigation can be used as an adaption to climate change as it uses significantly less water than more common spray irrigation methods.

A programme promoting drip irrigation, providing training and offering loans to farms to purchase equipment would help build resilience to drought and reduce water demand.

Minimising the impact of drought (build resilience).

Options for building resilience to drought in Isiolo include planting drought resistant crops such as sorghum, millets, pigeon pea, cowpea and green gram.38 Farming more drought resistant herds such as camels also builds resilience to drought. A programme of promotion, training and loans to make changes would need to be implemented.

36 WASREB impact 10 report for IWASCO 37 https://sswm.info/water-nutrient-cycle/water-use/hardwares/optimisation-water-use-industries/reduce-water-consumption-in-industry 38 https://knowledge.unccd.int/drought-toolbox/solutions/risk-mitigation/2346 39 Morton, J et al. Comparing drought mitigation interventions I the pastoral livestock sector 2002 https://www.livestock-emergency.net/ userfiles/file/general/Morton-Barton-Collinson-Heath-2002.pdf

An emergency borehole drilled by Oxfam at Harakhothot in Wajir enabled 50 families to water their animals locally rather than use a borehole 70km away. The reduction in mortality from water stress was estimated at US$64,300 compared with the cost of drilling of US$38,000. In addition, there are additional benefits of reduced animal mortality in later years and a reduction in womenâ&#x20AC;&#x2122;s time spent fetching domestic water.

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ISIOLO URBAN ECONOMIC PLAN

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Challenges

Data Gaps

Time Frame

Trees and seedling planting

200 KSh per tree.

Number of trees dependant on land and funding available.trees to be crowd funded with potential labour from community/farmers.

Project management by Forestry commission.

Storing and manage rainwater close to where it falls (at the source).

Reduce soil erosion.

Increasing soil infiltration, that reduce the effects of drought as a result as healthy soils retain water for longer in dry periods. Increase evapo transpiration: Tree leaves intercept rainfall which then evaporates that reduces the amount of water that reaches the ground.

It is likely that this initiative will require both public and private interventions to enable changes to be undertaken.

Process to be led by the Municipality with coordination through local business groups, property owners and vendors.

Upstream catchments are within Meru province

Including studies required to implement the project

Immediate or medium term (if growth dependent on this then immediate consideration)

Opportunity for the Municipality to source funds through the World Bank KUSP programme.

Detention basin / ponds

13,000,000 - 15,000,000 KSh. This cost only covers the detention pond for the Hill west of Isiolo centre. This cost doesn’t cover the bund cost. This will need to be assessed in concept and detailed design stage.

Has the potential to regenerate the surrounding area and increase value of the local economy.

Swales (from Airport Junction to Market area)

11,000,000 - 17,650,000 KSh. Costs varies depending on dimensions of swale TBC following detailed design.

Manage Surface Water runoff by enhancing the drainage network and providing multiple mechanisms for the water to dissipate (e.g.infiltration, evapotranspiration).

Drill boreholes in pasture areas

40,000 USD$40

Improved cattle health and milk and meat quality and quantity.

Unifying approach across all agencies for implementation and catchment management Funding - possibility for crowd funding

› Flood mechanism and design rainfall data

› Medium to long term

› Feasibility study › Topographical survey required › Information about the existing drainage system and condition surveys › Information about land use

County government.

Increased food security.

Water

Drip irrigation: Approximately USD$ 6-7,000 per ha

Increased production or profit per unit of water.

Increased food security and surplus income for the farmers. Reduced economic losses for the farmers.

Involving Government / banks / international donor for funding.

Partnering with drip and sprinkler companies for continuous O&M support. Maintenance / capacity building programme to ensure continued system operation.

40 Morton, J et al. Comparing drought mitigation interventions I the pastoral livestock sector 2002 https://www.livestock-emergency.net/ userfiles/file/general/Morton-Barton-Collinson-Heath-2002.pdf

ECONOMIC DEVELOPMENT PLAN

WIDER AREA PROPOSAL Solar irrigation and boreholes › Improved provision and ability to irrigate crops and provide drinking water to livestock in rural areas currently not served by the electricity grid or by the domestic water supply system;

Estimated Costs

Impacts (Benefits)

Delivery Mechanisms

› Mapping of ownership of all agricultural and livestock holdings and current status of their irrigation facilities

› Benchmark: US$3,000 per system41

› Lower costs for farmers where current system is on grid

› Partner with regional / county government to coordinate activities

› Establishment of needs for solar irrigation and borehole systems › Preparation of design brief for boreholes / irrigation systems

› Funding (eqpt, installation): › IFI/ donor finance

Time Frame

› Effort needed to obtain comprehensive data on current situation

› Knowledge of current situation

› Short to mid-term

Case Study:

Sub-Components

› Actual: US$90,000 based on max 30 systems

Data Gaps

› Funding

› Reduced carbon emissions through replacement of diesel generators.

› Review of abstraction volumes from each borehole

Challenges

› Consistent service provision for farmers with no powered irrigation › Reduced carbon emissions associated with farming sector

› Partnering with local equipment specialists to determine solutions › Maintenance - capacity building programme to ensure continued operation of systems › Maintenance responsibility of individual farmers

Grid Alternatives International Program has been helping farmers in Nicaragua with sustainable irrigation solutions for the last five years. One such solution helped the Valle family of Matagalpa.

They grew squash, passion fruit and tomatoes on two acres of land to sell at the local market but had trouble making a profit due to high irrigation costs. The monthly electricity bill to run their pump was US$33, but their income was only US$103. Also, the supply quality was poor, meaning they could only irrigate on three days instead of every day. Other expenditure reduced their earnings to US$25 a month.

Working with Grid Alternatives and

local company Suni Solar, they installed a solar irrigation system. The total cost was US$10,000, but Valle family was only asked to pay US$2,000 which they financed via UNAG, their national agricultural organisation. Two solar panels power a pump that abstracts water from a nearby river into a cement tank and to a gravity fed pole mount system that drips onto the plants. With adequate water supply to the plants, they can now irrigate other crops, including onions, pipian and pasturage, and also raise tilapia. Their monthly electricity bill is now US$3, and their monthly earnings have now increased to US$546.42

› Development of procurement and deployment plan › Maintenance plan

41 FAO The benefits and risks of solar-powered irrigation - a global overview (2018), accessed 30th July 2019 http://www.fao.org/3/I9047EN/i9047en.pdf

42 Solar Drip Irrigation Case Study - The Valle Family, accessed 29th July 2019 https://gridalternatives.org/sites/default/files/International%20Valle%20irrigation%20case%20study.pdf

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ISIOLO URBAN ECONOMIC PLAN

WIDER AREA PROPOSAL Formalise Waste Collection and Segregation Formalising and integrating the role of the informal sector into Isiolo Town’s waste management system.

Introducing source segregation in households and commercial establishments.

Encouraging community based organisations to form operational partnerships with private or public waste collectors:

Challenges

Data Gaps

Time Frame

› Non-biodegradable waste is left on the streets as litter

› Provide adequate training and support systems

Short-term / Ongoing

› No formal recycling in place

› Convert existing infrastructure

› Lack of health and safety systems in place for collecting and sorting waste by informal sector (waste pickers)

› Launch public awareness campaign › Develop smart app system

› Not all residents have smart phones

› Identifying roles in waste management;

Case Study: Developing an Integrated Waste Management System - Kampala, Uganda

› Maintain dialogue and interaction; › Maintaining employment.

Develop and implement a smart app / text message system to facilitate town-wide waste collection and segregation.

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

Formalising the Informal Waste Collection Services

~USD $50 100k annually

› Reduced wild dumping of waste and improved sanitation

› Introduction of Private Public Partnership (PPP) into waste collection effort

~USD $50k to develop and implement smart app for town-wide waste collection Funding: IFI / Donor Finance

› Provides an increased level of service and engages community and private sector › Improves sanitation and flood and surface water management ability. › Formal employment for waste pickers with adequate wages and health and safety training › Involvement of waste picker organisations to provide support and supervision › Better working conditions for waste sorters › More efficient segregation of recyclables › Higher quality materials which can be sold to recycling brokers › Improved understanding of waste collection and collection days, etc

› Support from NGOs, community groups, waste pickers › Employment and training by Isiolo Municipality or private entity / CBOs › Funding for PPE, collection carts, training and wages for the CBOs, etc › Maintenance responsibility of Municipal Government

In Kampala, Uganda, the development of an integrated waste system was prompted by the lack of formalisation in the waste sector. Much of the waste was disposed informally by dumping, burning or burying. Only 55% of the city’s solid waste was officially collected and transported to the city’s landfill by the Kampala Capital City Authority (KCCA). Several standalone Community Based Organisations (CBO) existed offering financial incentives to informal settlements for the collection of recyclable materials, however, the KCCA were not aware of many of these organisations. The KCCA developed a new Kampala City Integrated Waste Management System to improve the collection, transportation and treatment of the city’s waste and incorporate the informal sector (predominately the landfill pickers and CBOs) as part of an integrated approach across the waste management value chain. As a result of the Integrated Waste Management

System, a strategy was developed to identify, inform and consult stakeholders; clear objectives and measurable targets for education and knowledge sharing were created; activities were undertaken to educate waste pickers; a new contract was developed to ensure that new landfill operators would formally integrate registered waste pickers; and CBOs were encouraged to form partnerships with the KCCA in order make the System more integrated.

ECONOMIC DEVELOPMENT PLAN

WIDER AREA PROPOSAL Solid waste infrastructure improvements - development of recycling and treatment infrastructure Developing basic recycling infrastructure. Construction of a simple material recycling facility (MRF) at the landfill to enable informal sector to recycle safely and increase waste awareness and education. › Determine level of investment and secure funding (IFI, grant, PPP or direct by government); › Engage with informal sector and CBOs (existing Kalundu dumpsite pickers, Isiolo Taka Youth Group, etc).

Development of composting facility for managing organic waste › Develop mechanism for implementing source segregation of organic waste (through waste collection and simple MRF); › Develop mechanism for developing in-vessel composting facility (PPP, funding, grants or direct by government) and identify opportunities / impacts of CDM.

Challenges

Data Gaps

Time Frame

› Isiolo has waste being dumped on the road, uncontrolled fires and pollution of surrounding water bodies.

› Secure markets for recyclates and land / area for the treatment facilities

› Construct concrete slab: short-term

› No formal means of treating and disposing of waste. › Limited formal collection mechanisms

› Obtain funding for treatment infrastructures › Formalise collection process so that waste is sorted and transported to the appropriate facility

› Material Recovery Facility (MRF): Short / medium-term › In-vessel composting Facility: Short / medium-term

Sub-Components

Estimated Cost

Impacts (Benefits)

Delivery Mechanisms

› Construction of concrete slab on remediated area

› USD $250k to USD $1 million

› Reduced ground and water pollution

› Opportunity for collaboration with private sector

› Material Recovery Facility (MRF)

› USD $250k to $750k

Develop the facility and secure / ensure end-markets are available - for recyclate and for compost on agricultural land Develop mechanisms for payment / fees between collectors, Municipality, pickers and recyclate sales.

› Provides area for formalised recycling and waste composting to take place › Creating employment

› Funding: IFI/ Donor Finance

› Improve community waste awareness › Provides an increased level of service and engages community and private sector › Formalises the sorting process › Employs informal waste pickers › Secures markets to sell the recovered outputs › Provide a safe and regulated environment for waste sorting › Recover and sell recyclable material (e.g. plastics, paper, glass, metals) and receive revenue from sales

› In-vessel composting facility

88

› USD $250k to $500k

› Reduced wild dumping of waste and improved sanitation

› Funding: IFI/ Donor Finance

› Can produce usable fertilizer for agriculture › Reduces methane production in the landfill › Diverts organic waste from landfill › Improves local air quality › Provides a sustainable treatment method for fish processing waste

› Opportunity for private or public sector to collaborate with informal sector › Would enable wide spread source segregation to be implemented across the Town › Collaboration with recycling facilities to secure markets: locally in Isiolo – paper/ card and possibly plastics; nationally in Nairobi or Mombasa - metals and plastics › Opportunity for private or public sector to collaborate with informal sector › Would enable wide spread source segregation to be implemented › Collaboration with farmers to secure local end markets › Collaboration with fish processors to provide treatment for wastes

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ISIOLO URBAN ECONOMIC PLAN

Case Study: CEMPRE, Brazil - www.cempre.org.br In Brazil, 800,000 waste pickers collect and sort 18% of the recycled waste in the country. In 1992, a group of companies created the Compromissa Empresarial para Reciclagem (CEMPRE) translated to Brazilian Recycling Commitment, which is a non-profit organisation funded by consumer goods corporations, who have partnered to promote recycling and provide safe conditions for waste pickers in Brazil.

CEMPRE trains waste pickers, also known as â&#x20AC;&#x2DC;catadoresâ&#x20AC;&#x2122;, through pictures and videos on how to build a business in waste picking and recycling while following health and safety guidelines.

The organisation also removes the middle man from the selling transaction in order to allow waste pickers to deal directly with reprocessors and brokers and keep the entire value of the material they collect and sell.

Heron In-vessel Composting The Heron IVC is a containerised South African composting technology that takes unwanted food waste and turns it into a soil conditioner. The technology shreds waste to increase its surface area before being mixed and fed into the composting vessel. The temperature of the material in the composting vessel reaches 60 degrees plus. The process reduces the net weight of the incoming feedstock by around 30%.

A 24 cubic meter Heron IVC machine costs around Rand1.2 million and can process two tonnes of food waste a day.

The plant is currently being effectively utilised in South Africa.

ECONOMIC DEVELOPMENT PLAN

3.5. Proposed Value Chain Projects Milk processing, focussing on camel milk This Value Chain project is for a camel milk processing facility that would include the production of value-added products (e.g. yoghurt, kefir, cheese), consumer packaging, marketing and distribution.

The key outcomes would include:

Base assessment

Sector supply chain

Isiolo is an established centre for milk marketing, supplying both the Isiolo Town and Nairobi markets. However, collection and processing can be erratic, with significant spoilage along the supply chain.

In addition, there is little value added, with limited production of milk products and no consumer packaging. Several cooperatives operate effectively in Isiolo, but their throughput and product range is limited.

Currently the operating cooperatives in Isiolo obtain their milk supplies from up to 50km away. The milk is transported in small volumes (20 to 100 litres), and usually by boda boda. Farmers take their milk to roadside collection points, and wait there for the pick-up (see Figure 36).

› Improved and stable prices for milk, supporting the incomes for over 500 farmers;

There is potential to develop commercialscale processing, packaging and marketing operations in Isiolo, increasing value added and overall production volumes.

› Stable prices and offtake would support buying in of fodder and increase in yields;

Development of the milk value chain is support by:

› Supports investment in livestock improvements; › Hygienic processing throughout the production and delivery chain; › Reduction in wastage - spoilt and contaminated product; › Direct employment of around 53 fulltime employees (FTE) in the first phase, with a high potential for employing special interest groups (SIGs), people living with disabilities (PWDs) and other target groups.

› Isiolo CIDP: Camel milk production has been identified as an area for growth in Isiolo’s CIDP, with an ambitious plan to increase production by 35% between 2018 and 2022; › Big Four Agenda: prioritises enhancing manufacturing which includes all areas of agroprocessing including the dairy sector; › Vision 2030 strategic plan: the Ministry of Agriculture, Livestock and Fisheries identify the potential for growth in the dairy sector and target a doubling total milk production by 2030, overall increase value added and reduction in losses.

Collection is sometimes erratic, and payments to some farmers can be squeezed by traders (middlemen) collecting for delivery to retailers or processors.

The milk is unrefrigerated until processed in Isiolo Town, where there are two mid-scale processors: › Anolei Women Camel Milk Cooperative: process up to 4,500 to 5,000 litres / day; › Isiolo Tawakal Farmers Marketing: process around 2,000 litres / day.

Both of these processors ship milk in bulk to Nairobi and do not produce other milkbased products.

To reduce delivery costs, farmers prefer to locate their lactating camels near to Isiolo, along the main roads and at the Livestock Holding Ground. This leads to increased pressure on grazing in these areas.

After processing at the small cooperatives in Isiolo Town, the milk is transported in bulk refrigerated tankers to Nairobi.

Case Study: Successful development of Gulf Camel milk sector The camel milk and milk products sector is well developed in the Arabia Gulf. A leading supplier is Al Ain Farms of Dubai which has one of the largest milking herds in the region. As well as producing a range of milk and yoghurt products under their Camelait brand, they have recently expanded into producing powdered camel milk and camel milk ice cream. Al Ain Farms supply the local UAE market and export across the region.

Wanting to mirror this success, in early 2019 Oman’s Ministry of Agriculture and Fisheries announced plans for investing in camel milk processing and packaging facilities to produce pasteurised milk, cream, yoghurt and cheese. In addition, the Ministry are looking at developing camel fattening, slaughtering and meat processing facilities close to the milk processing.

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91

ISIOLO URBAN ECONOMIC PLAN

Figure 36 - Existing supply chain

Farmers

Isiolo Town Processors (Small cooperatives)

Up to 50km from Isiolo

Processor

Market

Milk

Boda Boda Refrigerated Trucks Unrefrigerated

Processor

Concentrated around Isiolo Town / LHG

Milk

Nairobi

ECONOMIC DEVELOPMENT PLAN

Competitiveness Isiolo is an established centre for suppling milk to Nairobi, the main market in Kenya.

Farmers are selling their milk for KSh 60 to KSh 70 per litre to middlemen, with the processors in Isiolo Town buying at KSh 80 to KSh 90 per litre. Bulk milk is sold in Nairobi for around KSh 180 to KSh 200 per litre. Transport is a significant cost factor for Isiolo milk supplies. However, camel farming is located in the arid and semi-arid lands (ASALs), and as such Isiolo is best placed for connectivity to the main market of Nairobi, with other regions having similar or higher production and transport costs.There is significant potential for raising production in and around the County, and the demand outlook is good.

Production potential Total camel milk production has been estimated at 340 million litres per year, but only around 12% is marketed43, around 40 million litres, leaving substantial scope to raise the market volumes.

The latest estimate of marketed milk production in Isiolo County is just over 6 million litres in 2014 (see Table 1), an average of 16,400 litres per day. This is slightly below cow milk production. Since 2014 there are reports that there has been a switch from cow to camel milk production, driven by the drier climate, and camel milk production volumes have increased.

Table 1 - Milk Production 2014 Million litres

Share

120,000

12,000

Cattle (dairy)

960

180

Camel

96

10

13.4

100%

Cattle (indigenous)

Total

The highest concentrations of camel and camel milk production in the County are in the Central District, with reasonable access to Isiolo Town.44 A key factor limiting camel milk (indeed all milk) production in Isiolo is the availability of fodder during the dry seasons. Camels can produce 12 litres or more per day during lactation when fed and watered well. However, without adequate fodder, production can drop to 4 litres or less per day. By offering a stable price to farmers, and unlimited offtake, it is expected that the project could support farmers using more fodder (through direct purchase, and/ or supporting investment in irrigation-fed fodder production).

Demand outlook Demand for camel milk in Kenya has been estimated at between 50,000 to 150,000 litres per day, with Nairobi being the

dominant market. The Somali population represent the largest consumer segment, and the Eastleigh market is the key destination for camel milk going to the capital.

45 FAOSTAT 2014

m2 50

Demand for camel milk has been growing, in Kenya and internationally. Total production in Kenya was estimated at 0.366 million litres in 2006, and this has risen nearly threefold to 0.937 million litres in 2014.45

Milk processing

150

Stores

100

Loading / unloading

400

Other

50

There is increasing acceptance of the benefits of camel milk over cow milk (low in fat, rich in iron, and high in vitamins B and C). In European and North American markets camel milk is viewed as the new â&#x20AC;&#x153;African Superfoodsâ&#x20AC;? alongside teff, fonio, baobab, tamarind, and dried hibiscus.

Total

900

Location specific analysis The total land requirement for the milk processing is estimated at around 900 m2 which should allow room for future expansion in volumes and product range (see Table 2).

43 THE CAMEL MILK INDUSTRY IN KENYA: Results of a study commissioned by SNV to explore the potential of Camel Milk from Isiolo District to access sustainable formal markets. SNV 2008 44 RMC/SNV Camel Milk value Chain study, Sept/Oct, 2008

Table 2 - Land Requirement

Reception

Nairobi receives an estimated 8,000 litres of camel milk per day from Isiolo (based on the Netherlands Development Organisation (SNV) study and interviews), and demand is constrained by supplies.

92

It is expected that 50% of the milk supplies to the plant would be delivered by refrigerated trucks (with a 1 ton capacity), while the rest would be delivered by farmers/traders, with an estimated 125 deliveries per day averaging 40 litres each.

The location then requires good road access. A centre of town location is not necessary, and would add to road congestion. The site proposed for the industrial cluster (to the SE of the Town) would be appropriate.

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ISIOLO URBAN ECONOMIC PLAN

Value chain opportunity Key activities The key activities for the facility comprise: › Collection of milk: › Small refrigerated vans for farmgate / kerbside collection › Taking deliveries of milk at the plant; › Testing; › Pasteurisation; › Chilling and storage; › Further processing (alternative products); › Bottling or other packaging; › Storage; › Distribution.

It is assumed that during the first phase the plant would focus on pasteurised milk and some fermentation products (e.g. yoghurt, cheese, kefir), and later a wider range of products (e.g. deserts, beauty products, etc.) would be considered.

Collection To reduce the concentrations of lactating camels at the LHG and around the Town, it is proposed to have a number of consolidated collection points. These collection points will be spread out and located well outside of Town, in order to reduce the pressure on grazing. The collection points would be serviced by vans with refrigerated storage, working to a regular schedule.

A flat rate price would be paid for milk across all locations to remove any incentive to move camels closer to the LHG/Town.

The development of consolidated collection points will assist in increasing supply volumes and expanding the network of farmers supported by the VC (see Figure 27 on the following page).

Processing The primary processing for camel milk is to test (for impurities, freshness, etc.), filter out any debris, and then pasteurise and chill.

Flash pasteurisation is usually undertaken in commercial processing plants, raising the temperature of the milk to 72oc for 15 seconds. There is also potential for ultra-high temperature sterilisation (UHT), whereby the milk is heated to 135oc for 1-2 seconds. Pasteurised milk needs to be kept refrigerated and has a life of 10 days, while UHT is shelf-stable with a life of 60 to 90 days.

In addition to pasteurized milk, there are a number of products that can be produced from camel milk, including: › Naturally fermented milk (susa / sour milk); › Yoghurt and kefir; › Cheese; › Butter (produced through spinning for separation, and camel milk is natural homogenised); › Ice cream and other sweets and deserts;

› Powdered milk; › Beauty products (anti-wrinkle creams, skin cleansing soap bars).

Distribution and marketing The primary market for the milk and milk products will be Nairobi, which is expected to take 90% of output, with the remainder being for other towns in Kenya and potential exports. Products will be trucked to Nairobi.

Central to the success of the Value Chain will be the development of a quality brand for Isiolo camel milk and milk products.

Direct collection of milk, and control of all aspects of processing and delivery, will be pivotal to ensuring the quality of the products.

ECONOMIC DEVELOPMENT PLAN

94

Capacity

Figure 37 - Future supply chain

Farmers

Consolidated VC processor Consolidated Collection Points

Refo Trucks

Markets

It is assumed that the plant would operate 7 days per week.

Milk

Existing processor

Yoghurt Kefir Cheese

Nairobi

Local Collections

Existing processor

During the first phase it is expected that some 80% of production would be pasteurised milk, with the rest being basic milk products (e.g. kefir and yoghurt).

Additional, higher value-added products (e.g. cheeses, ice cream, milk powder, cosmetics), would be developed during the next phase.

The plant would require chilled storage for around 40 tonnes of milk and products, divided roughly 50:50 between bulk milk and packaged (for retail) milk and milk products.

Desserts Boda Boda

The plant will have an initial capacity of around 10,000 litres per day (based on a single 8-hour shift, and pasteurisation capacity of 3,000 litres per hour).

Other Export markets

The processing equipment in the facility will include: › Filtering and pasteurisation (3,000 litres per hour); › Cold storage for 40 tonnes of milk and products; › Packaging line for milk (into 0.5 and 1 litre plastic bottles or similar); › Fermentation vessels (unpressurised) for yoghurt, kefir, etc.

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ISIOLO URBAN ECONOMIC PLAN

Supply

Operating costs

The key cost assumptions are:

Revenues

To support the plant, milk from around 2,500 camels is needed. Taking into account juvenile and male camels, the total combined herd required to support the Value Chain project is estimated at around 5,000. To put this into perspective, the number of camels in Isiolo County is estimated at around 50,000.

Total annual operating costs are estimated at just under KSh 450 million by 2025 (see Figure 38 below), with some 67% of costs being for raw milk purchases.

Manpower:

Total annual revenues are estimated at KSh 600 million, which is based on an averaged sales price across all products equivalent to KSh 200 per litre of milk.

› Provide a commercial incentive for cattle herders to switch to camel; › Provide an incentive to invest in improved stock / yields.

Indicative costs and revenues Investment The total investment required is estimated at KSh 310 to KSh 340 million.

Around 35% of this will be for equipment and machinery, some 11% for the buildings and site development, and the remainder for marketing, training and working capital.

500

› Monthly salaries of KSh 12,500 to KSh 20,000 depending on skills; › Additional employment costs of 25% of salary.

Raw materials:

450

› Raw milk purchase price of KSh 100 per litre;

400

› Containers (Tetrapak style) averaging KSh 36 per litre, including boxes.

350 300 KSh million

This VC project should not cause additional pressure in rangelands. It is expected that providing a stable off-take price with regular collections should support purchases of fodder which in turn will support investment in sustainable irrigated year-round fodder production. Spreading out milk collection points will also reduce overgrazing in the specific vulnerable areas around the Town and at the LHG. Providing a stable price and off-take will also:

Figure 38 - Operating Costs 2025

› Head count of 53 in total;

Other opex:

Value added The average value added margin (sales price less milk cost and packaging) is estimated at around KSh 64 per litre, during the first phase, and this is expected to increase as higher value products are produced (e.g. cheese and ice cream). The product values in terms of sales price per litre of milk input is provided in Figure 39 below.

› Covers utilities, transport costs, vehicle maintenance, marketing, etc.

250 200 150

Figure 39 - Camel Milk Product Values

100

KSh per litre of milk input

600

50

500

0 Utilities

25

Manpower

13

Packaging

108

Milk purchase

300

400 300 200 100 0 Milk purchase price

Milk sale local

Milk sale Nairobi

Yoghurt / kefir

Cheese

Ice Cream

100

150

200

210

300

500

ECONOMIC DEVELOPMENT PLAN

Recommendations for enabling business environment and/or other catalysts The key elements to the success of this Value Chain project are: › Stable milk purchase prices, with stable demand;

Potential partners

Local distribution partner

The key partners for the Value Chain project are:

A local distribution partner capable of marketing and distributing the products to markets and retailers in Nairobi and beyond would be of benefit. This partner would not need to be a dairy products specialist, rather a company with chilled products handling capability and a strong network.

› Existing processors; › Local distribution partner; › Technical partner.

› Quality control.

Existing processors

By offering stable prices, the project will support investment in supply as well as providing more stable supplies of milk and milk products to the market.

In establishing the processing facility, the intention is to consolidate the existing operations, if possible, rather than compete with them for milk supplies and market share.

Quality control is limited at present, and with no branded consumer packaging there is limited incentive for quality assurance.

Providing scheduled collections by refrigerated trucks will support improved quality control and reduced losses.

Impact This Value Chain opportunity would have an impact beyond the direct employment of 53 people at the facility. The milk processing facility would provide stable offtake prices and incomes for over 500 farmers. In turn this would support purchases of fodder by farmers (a key constraint to yields and overall production in the County).

With increased and stable demand for fodder, there is then potential for investment in irrigated fodder production (either hydroponic or open field).

The current processors have limited capacity, and no potential to either expand their output beyond bulk milk supply or increase their production volumes.

Their centre of town locations are also problematic. The larger of the two existing processors, Anolei Women Camel Milk Cooperative, have expressed a desire to expand their production volumes and range beyond bulk pasteurised milk. For this they would need a new location as their current site is not suitable Developing in partnership with one or both of the processors would be of benefit to all involved.

Technical partner While equipment suppliers could provide the key technical training requirements, there will be some benefit in having a technical partner, especially for the more specialist and higher value products.

The key requirement during the first phase would be for a partner with experience in camel milk fermentation. This partner could also supply the masterbatch for yoghurts, kefir, etc.

Inclusion issues Many of the milk processing activities are well suited for PWDs, and as such the processing facility should be designed for full disability access with ramps, swing doors, ow-level switches, open worktops for wheelchair access, etc.

96

97

ISIOLO URBAN ECONOMIC PLAN

Project: Meat processing facility and waste system linking in with the abattoir This Value Chain opportunity is for the development and commercialisation of an integrated slaughterhouse and meat processing facility and waste management system. A slaughterhouse was built in Isiolo several years ago but never completed.

A project is underway to complete construction and equip the slaughterhouse (funded by the World Bank). This then gives the potential for an adjacent meat processing facility and anaerobic digestor for monetarising the waste.

The key outcomes from this project are then: › Adding value through processing and packing - targeting Nairobi and export markets; › Adding value through the production of processed meat products, e.g. salami, sausages, stocks, jelly, etc;

Base assessment Abattoir capacity in the pastoral lands is generally inadequate: there are relatively few facilities covering a large area, effective capacity is limited, and several facilities are in need of serious overhaul. This situation has resulted in large flows of livestock to the south.

The economy of Isiolo is based around livestock. There are substantial herds of livestock (camel, shoat and cattle) held within and passing through Isiolo County.

The Town of Isiolo is a key hub and market livestock in the region.

Next to the Town is the Livestock Holding Ground (LHG) which covers 125,000 ha, and currently holds around 5,000 head.

The grounds are designed for quarantine for livestock moving from the North and Northeast, as well as potential feedlots for fattening animals before taking to local abattoirs or Nairobi.

› Direct employment of 50 FTE in the first phase, with increases later as the product range is expanded;

There is no commercial-scale abattoir and meat processing facility in Isiolo, while there is substantial potential to supply meat to the local market, as well as Nairobi and export markets.

› Increasing value added through commercialisation of biproducts / waste products.

Furthermore, the project would benefit from LAPSSET providing good access to export markets.

In addition, the meat processing facility and waste system will improve the overall economics of the slaughterhouse, which in turn will support the development of a tannery.

Development of the meat processing sector is supported by:

46 Status report Isiolo slaughterhouse, November 2018

› Isiolo CIDP: completion of the abattoir is targeted in the 2018-2022 CIDP as

a project that will increase local value added and support development of food processing and use of livestock bi-products; › Big Four Agenda: this prioritises enhancing manufacturing which includes meat processing and packaging; › Vision 2030 strategic plan: the Ministry of Agriculture, Livestock and Fisheries identify the potential for increasing value added in meat processing, specifically supporting the development of “infrastructure to raise the quality, quantity and value of processed meat animals that Kenya can export”.

Sector supply chain While Isiolo is a County known for its livestock, there is no commercial-scale abattoir or meat processing facility. There have been two initiatives to develop a commercial-scale abattoir in Isiolo: › Regional abattoir plan: A joint intercounty initiative involving Baringo, Laikipia, Samburu and Isiolo, planned for a large-scale abattoir and processing.

The project had a target capacity of 270,000 animals per year, but nothing came of this initiative and the Counties looked at developing their own capacity; › Isiolo slaughterhouse: a slaughterhouse has been built in Isiolo. However, due to lack of funds, the buildings have been mothballed, and no equipment has been installed. The facility had a planned capacity of 200 shoats (sheep

and goat) and 20-40 camel/cattle per day, but a review funded by the World Bank46 indicates that the facility could handle 1,000 shoat, 200 cattle and 50 to 100 camel per day. The World Bank are looking at funding the completion of the slaughterhouse, and the proposed meat processing and waste management project would be built alongside.

At present there is some informal, smallscale slaughter of animals for the local market, while most animals are trucked to Nairobi for slaughter and processing (see Figure 40 on the following page). This leads to a loss of conditioning in the animals, and limits the potential for commercial fattening lots in Isiolo and the associated value added.

There are eight existing/planned abattoirs of significance that serve the northern pastoral lands. These are listed below in order of proximity to Isiolo. › Meru Town, Meru: Meru town abattoir closed for a decade due to mismanagement. Status of the planned rehabilitation of the facility is unclear (announced in 2017 but no progress reported); › Nanyuki, Laikipia: Throughput has dropped in recent years with equipment failures. County Government have plans for upgrade in 2019/2020. Targets local market; › Rumuruti, Laikipia: Well established private abattoir, targeting Nairobi market;

ECONOMIC DEVELOPMENT PLAN

› Nomoto, Samburu: Plan for an EU-funded abattoir to serve the local market;

Figure 40 - Existing supply chain

Herders

Abattoirs and Meat Processing

› Marsabit Town, Marsabit: Abattoir targets local demand. County-level plans for upgrade to export facility; › Garissa Town, Garissa: WB have a plan for redesign and completion of the facilities in 2020 to target local and export markets;

Isiolo

Camel

Local Slaughter (Small Scale)

› Nasukuta, West Pokot: Abattoir targeting the local market is under construction; › Wajir Town, Wajir: WB plan for redesign and completion of the facilities in 2020/21 to target local market initially, with potential for expansion.

Markets

Nairobi Cattle

Sheep

Goat

Nairobi Abattoirs

Other Kenya

Export markets

98

99

ISIOLO URBAN ECONOMIC PLAN

It has been estimated that in 2008 Isiolo County’s livestock population comprised around 200,000 heads of cattle, 400,000 goats, 360,000 sheep and 40,000 camels.47 Since then the numbers of cattle have declined, with herders and smallholders switching to more goat and camel.

The total livestock herd for the County in 2019 is estimated at just over 1 million head, with some 475,000 sent for slaughter each year (see Table 3), though this is subject to some variation between years (World Bank review estimated the herd at 1.6 million, with most of the difference being in the estimated number of shoat).

Table 3 - Isiolo County Livestock Estimates Total Herd No.

Slaughtered per year

Cattle

160,000

55,000

Camel

60,000

20,000

Shoats

800,000

400,000

Competitiveness Isiolo Town occupies a central location along the livestock herding routes going from the pastures in the north of Kenya through to the main meat market in Nairobi.

The Isiolo livestock market serves the northnorthwest region, and is second only in importance to Garissa.

47 National livestock policy. Session Paper No. 2 of 2008

This then gives the abattoir and meat processing facility potential access to a large number of animals, not just those at the LHG or in Isiolo County.

The cost-base for an abattoir and meat processing facility in Isiolo is similar to those elsewhere in the region. The Isiolo facility would then have the advantage of reduced transport costs: › The weight of the finished carcasses and meat from the processing facility will be around half of the liveweight of the animals. Even taking into account the need for using refrigeration trucks for taking the finished products to Nairobi, the haulage costs will be reduced substantially; › A significant “cost” in transporting livestock is the loss of conditioning, and animals can take up to a week to recover from long-distance haulage.

Location specific analysis The meat processing facility requires around 500m2 for the building and a further 250m2 for loading/unloading, while the waste processing will need at least 400m2.

The existing abattoir structure is located to the southwest of Isiolo Town and this location is suitable for the abattoir, as well as the meat processing facility and waste management system. Siting these facilities in close proximity minimise transport costs and allows for the sharing of some assets (parking, offices, power generation, etc.).

Value chain opportunity Key activities The project combines a meat processing facility with a system to monetarise waste from the meat processing and abattoir. The meat processing activities would include: › Jointing, cutting and trimming carcasses; › Packaging of basic cuts: steaks, chops, rolls, etc; › Processing for sausages and other products: grinding, blending, stuffing; › Preserving/flavouring: smoking, curing; › Processing blood products: blending, stuffing, boiling; › Packaging processed products; › Chilling and freezing; › Dispatch; › Marketing and sales.

The waste processing would comprise several elements: › Separation of key components from the abattoir: hides, bones, horns and hooves; › Primary cleaning of these products, prior to dispatch/sale; › Anaerobic digestor to process other waste materials from the abattoir (guts, wastewater, etc.) together with trimmings from the meat processing.

The biproducts and waste materials processed in the anaerobic digester would be converted into biogas and dry biofertiliser. The gas would be used to power the meat processing facility (and possibly the abattoir), while the fertiliser would be sold or provided on a free-to-collect basis to farmers. The digestor could also process waste (e.g. trimmings, splits, hair, grease, and sludge) from any future tannery.

With a commercial-scale abattoir and meat processing facility in Isiolo, the supply chain would switch over to primarily chilled and frozen processed and packages meats being trucked into the Nairobi market, rather than live animals at present (see Figure 41).

ECONOMIC DEVELOPMENT PLAN 100

Capacity

Figure 41 - Future supply chain

Herders

Abattoirs and Meat Processing

Local Slaughter (Small scale)

Markets

Isiolo

The processing capacity of the meat processing and waste facility would be matched to that of the abattoir’s.

The expected capacity for the abattoir is: › 100 cattle per day; › 60 camel per day; › 320 shoats per day.

Nairobi

Camel

Isiolo Abattoir Other Kenya

Cattle

Sheep

Meat Processing Facility

This is based on the abattoir operating for 250 per year, and gives a total throughput of 120,000 days per year.

The meat processing capacity would then be around 6,400 tonnes per year of carcasses.

It would take around 40 tonnes of waste materials per day. Assuming the processing facility operates for 250 days per year, each tonne of waste can produce around: › 53m3 of biogas;

Export markets

Goat

Nairobi Abattoirs

48 Source: Biogas and Bio-fertiliser Production Potential in Abattoir Waste as Means of Sustainable Waste Management Option in Hawassa City, Southern Ethiopia. Sindibu, Solomon & Ermias, JASEM 2018.

› 490kg of dry bio-fertiliser.

Each cubic metre of biogas has a potential energy content of 6.1 kWh and can be used to generate 2.14 kWh of electricity.48 The total annual output from the facility is then estimated at just over 0.5 million m3 of biogas which could generate 1.1 MWh of electricity, and around 5,000 tonnes of dry bio-fertiliser (see Table 4).

101 ISIOLO URBAN ECONOMIC PLAN

Output

Unit

Per day

Per Year

Biogas

m3

2,138

534,558

generating: Electricity

kWh

4,576

1,143,954

kWh

6,629

1,657,130

The key cost assumptions are: Manpower:

Indicative costs and revenues At this stage the level of assistance from the World Bank for completion of the abattoir is unclear, specifically, whether it would extend beyond completion of the abattoir building and installation of equipment, towards full commercial operation of the abattoir. In addition, it is too early to specify the future commercial relationship between the abattoir and meat processing facility, covering livestock - carcass ownership and charges, charges for waste management and power supplies, charges for common facilities, etc. As a result, the financial assessment for the meat processing, waste management and abattoir has been combined.

Investment The investment for the meat processing facility (excluding working capital) is estimated at KSh 300 million. This is based on the volume of carcasses provided by the abattoir (WB planned investment of KSh 200 million) and waste to be managed by the

Figure 42 - Operating Costs 2025 2,400

Operating costs Total operating costs are estimated to reach KSh 2,164 million per year by 2025 (see Figure 42), with the bulk of these costs being for livestock-carcass purchases.

or Heat

separate anearobic digestor and biogas facility (detailed provided within the industrial cluster).

› Head count of 100 divided equally between the abattoir and the meat processing/waste facilities;

2,000 1,800 1,600

› Additional employment costs of 25% of salary.

Livestock costs: › Costs based on market average prices and weights: › Camel KSh 48,000 per head; › Cattle KSh 42,000 per head; › Shoat KSh 3,600 per head.

Other opex: › Covers utilities, packaging materials, other meat processing inputs, transport costs, vehicle maintenance, marketing, etc.

It is expected that the collocated facilities could involve three separate companies.

The commercial arrangements between them should provide strong financial incentives for cooperation, with revenueprofit sharing.

1,400 1,200 1,000

› Monthly salaries of KSh 12,500 to KSh 20,000 depending on skills;

Other

10

Utilities

83

Manpower

24

Livestock - carcasses 2,048

Revenues Total revenues for the combined abattoir and meat processing is estimated at KSh 2,058 million per year by 2025.

Value added The estimated value added (calculated as sales revenues less livestock costs and other inputs) is around 18% of costs (see table below).

KSh million per year Purchase price

2,058

Other inputs

107

Value added

398

Revenues

Recommendations for enabling business environment and / or other catalysts The key to this Value Chain opportunity lies in the meat processing, waste processing and abattoir being well integrated, in order to maximise the benefits of colocation and shared assets and services.

2,200 KSh million

Table 4 - Power and Fertiliser Output

2,563

Impact The development of the meat processing and waste management will support the economics of the abattoir, and in general improve the economics of the livestock sector in Isiolo.

The proposed projects will also encourage development of a circular economy (see Figure 33), with waste from one activity providing an input in others. A future tannery could be integrated into this system, taking hides from the abattoir, with waste materials being processed in the digestor.

ECONOMIC DEVELOPMENT PLAN 102

Potential partners

Figure 43 - Circular economy

To maximise synergies between the abattoir and the meat processing facility, a partner to cover both operations would be beneficial.

Feed Lots

Electricity

Abattoir

Forage Production Waste

Electricity

Gas-Fired Generator

Meat Processing

Bio-gas

Anaerobic Digestor

Bio-Fertiliser

In the absence of a partner that could cover slaughter and processing, there are a number of well-established Kenyan meat processing companies. Farmerâ&#x20AC;&#x2122;s Choice is a leading meat processor, supplying around 17,000 tonnes per year of meat products to local and export markets. Among the smaller-scale processors is Alpha Fine Foods which is well-established as a processor and supplier in Nairobi and is looking to expand their product range and market.

A separate technical partner would be of benefit for the waste facility as anaerobic digestors require continuous monitoring and adjustments to maximise outputs.

However, this could be managed through a training program and service agreement with the equipment supplier.

Inclusion issues Many elements of the meat processing are suitable for PWDs, and as such the processing facility should be designed for full disability access with ramps, swing doors, ow-level switches, open worktops for wheelchair access, etc.

IMPLEMENTATION PLAN 104

4. IMPLEMENTATION PLAN Effective urban and economic planning by strong, empowered city governments is critical to the success of cities in responding to current and future challenges given city governments’ central role in the coordination of actors that shape urban development and economic growth.

Planning plays a direct role in directing and controlling land use, urban form, infrastructure and service delivery.

A number of other factors also impact on the ability of cities to respond to risks and development needs. These include the skills available in the workforce and within the municipal authorities, an effective and transparent governance structure, issues shaped by national and regional economic policies and dynamics, as well as access to global financial markets and the global governance of environmental issues.

It will be critical to identify potential risks to implementation and how positive impact can be maximised. This will need to be a continuous process reviewing identified delivery risks starting from planning to implementation stages. The proposed Isiolo UEP and projects within the Development Framework have considered the existing economic and urban context including institutional and financial capacity of the county and municipality. Key mitigation measures that will ensure successful implementation include:

› Sequencing: it is very important to initiate infrastructure development carefully and strategically to lead and signal the optimum development direction for Isiolo such as designation of industrial cluster or redevelopment of the TOD area; › Integrated approach: there is inherent disconnect between spatial planning, economic planning, infrastructure plans and investment planning decisions which risks high impact development and is exacerbated by silo thinking and lack of capacity at the local level. Better vertical and horizontal governance will ensure that all issues are considered, and appropriate decisions are taken.

Establishment of working groups or zonal authority (examples of Business Improvement Districts) could facilitate integrative thinking and improved coordination as well as providing a platform for stakeholder engagement in the process.

The following sections discuss some of the relevant considerations in further detail.

4.1. Partners & Institutional Structures The strength of urban governance is one of the biggest issues affecting the ability of cities to respond to major economic and environmental challenges.

There are two different aspects of multilevel governance:

Horizontal governance recommendations

1. Vertical governance which refers to the strength of coordination across multiple levels of government at national, regional and city levels, and;

Involvement of stakeholders in steering committees & working groups: The Isiolo Municipal Board should involve a broad range of stakeholders throughout the lifecycle of any SUED value chain and infrastructure project

2. Horizontal governance referring to the coordination of activities across different sectors of society from local governments to the private sector, civil society and grassroots organisations.

›

Thematic project teams and working groups: Isiolo Municipality should establish working groups & project teams drawn from representatives from government and community stakeholders to develop particular actions and projects and track implementation. These working groups and project teams would then report back to Isiolo Municipality on a quarterly basis;

›

A mapping exercise should also be undertaken to identify the existing relationships and partnerships that exist at both a municipality and county level. Existing relationships with multilateral institutions, bilateral institutions, NGOs and think tanks can all be leveraged to support SUED projects. The mapping exercise will also be conducive to building greater coordination between the existing partnerships as well as identification of opportunities for partnerships with new and emerging entities.

Vertical governance recommendations Isiolo Municipality and the various departments of the municipality maintain good relations with the county government and various, frictionless communication channels exist vertically. Nonetheless, the municipality should implement a plan of regular communication (eg. periodic meetings and/or reporting) to keep the county government appraised of progress and developments on SUED projects and to ensure that efforts are coordinated across the county. Failure to put such structures and processes in place will cause significant delays in project formulation and implementation along with direct impacts on the future role out of supporting climate resilient infrastructure and their associated costs.

105 ISIOLO URBAN ECONOMIC PLAN

Business Improvement Districts A popular concept for the establishment of zonal authority / organisation is the formation of a Business Improvement District (BID).

A BID is a business-led partnership (non-profit organisation) run by and for its members in a defined geographical area with a remit to invest collectively to improve their environment. These organisations are funded by a mandatory levy agreed between members and set priorities for local investment such as cleaning, safety, improvement of the local area and promotion and building local networks supporting local supply chains. In the context of Isiolo the nature of partnership can be enhanced with the inclusion of public sector involvement which could help attract additional funding for public realm and infrastructure improvements. Key benefits of this approach are an accountable, proactive and flexible approach while bringing wider regeneration benefits.

Typical examples of BIDs have a commercial focus including retail which could be applicable in a Central Business District however there a number of BIDs that have focused on industrial estates, tourism and property owners.

4.2. Implementation costs and potential funding sources The investment experts as part of the SUED programme will develop feasibility studies for the projects which will include estimated capital expenditure and operating expenditure requirements.

It will likely be necessary to blend and combine a range of different sources of financial and non-financial support to meet the projects’ expenditure requirements.

Careful consideration will have to be given to the differing eligibility criteria of the various sources in order to successfully structure blended finance arrangements.

The following tables provide a summary of high level cost estimates for the identified projects including indication of type of funding that would be required for implementation.

Key points: › Over 75% of the proposed projects could attract private investment; › Proposed infrastructure projects include 30% uplift to account for planning, design, engineering costs and inflation; › Potential costs for adaptation measures are excluded. This can range from 0%-20% (0% where a defined projects is targeting climate change impacts such as SuDS).

IMPLEMENTATION PLAN 106

Isiolo Focus Area Guide Focus Area Sequence

Asset Type

Asset Name

Overall Cost (KSh) Allowed 30% Contigency

Delivery Sector

Notes

Focus Area 1: Industrial Cluster Roads, Paving and Stomwater Water Supply (including treatment) Power Industrial Units (Type 1: 1000 sqm per unit) 1, 2, 3, 8

Industrial Cluster (Phase 1)

Anaerobic Digestion and Biogas Plant (Waste to Energy) Wastewater Treatment Plant Green Space Reed Beds Feeding Lots

1,278,355,000.00

Public Private Initiative

107 ISIOLO URBAN ECONOMIC PLAN

Focus Area Sequence

Asset Type

Asset Name

 Overall Cost (KSh) Allowed 30% Contigency

Delivery Sector

Notes

Roads, Paving and Stomwater Water Supply (including treatment) Wastewater Treatment Plant Power Industrial Units (Type 1: 1000 sqm per unit) 1

Industrial Cluster (Future Developments)

Industrial Units (Type 2: 600 sqm per unit)

3,012,750,000.00

Public Private Initiative

Â

Publicly Funded

Improved surface quality to accommodate proposed industrial cluster.

Industrial Units (Type 3: 1500 sqm per unit) Industrial Units (Type 4: 2500 sqm per unit) Industrial Units (Type 5: 3000 sqm per unit) Green Space 5

Transportation

Road Upgrade

851,500,000.00

IMPLEMENTATION PLAN 108

Focus Area Sequence

Asset Type

Asset Name

Overall Cost (KSh) Allowed 30% Contigency

Delivery Sector

Notes Improved access for public transport including: 3 No. Bus Stops: Off-shelf design which includes seating, PV solar lighting and shade canopy;

6, 7

Transportation

Public Transport Upgrade

1,569,555,000.00

Publicly Funded

3 No. Boda Boda Stops: Off-shelf design which includes seating, Solar PV lighting and shade canopy; Bicycle Lane: (W) 3m, 2-Lane bicycle lane with barrier for user safety (lane can be at road level or level with adjacent footpath). Located on one-side of the road; Footpath: (W) 2m, permeable surface. Located on both sides of the road.

9

Power

Street Lighting

4

Value Chain Project

Camel Milk Processing

4

Value Chain Project

Meat Processing Facility

Total

35,100,000.00

Publicly Funded

PV solar street lamps; nominal spacing every 15m.

Located on both sides of the road.

340,000,000.00

Privately Funded

Around 35% of this will be for equipment and machinery, some 11% for the buildings and site development, and the remainder for marketing, training and working capital.

300,000,000.00

Privately Funded

The total investment (excluding working capital) for the meat processing facility assuming abattoir costs covered by WB investment.

7,387,260,000.00

109 ISIOLO URBAN ECONOMIC PLAN

Focus Area Sequence

Asset Type

Asset Name

Overall Cost (KSh) Allowed 30% Contigency

Delivery Sector

Notes

Focus Area 2: Gateway (TOD) Mixed-Use space for transport, hospitality and commercial purposes including: Bus Terminal: Open-plan structure housing retail units, seating, amenities such bathrooms, lighting, digital display information; wayfinding. Structure roof to be cladded with PV solar panels.

Mixed-Use Towers: 2 No. towers with retail / F&B on the ground floor, 1-2 floors for commercial use (office use, for example) and the remaining floors for hospitality.

3

Transportation and Mixed-Use Development

Gateway TOD: Bus Station + Real Estate Development

2,399,800,000.00

Public Private Initiative

Tower details: Tower 1: No. Floors = GF+12; GFA = 5,850m² (450m² Floor Area) Tower 2: No. Floors = GF+6; GFA = 3,150m² (450m² Floor Area) Basement Structure: Bus station and towers placed on raised structure level with the adjacent A2. Estimated structure (H) 2.5m to allow for basement car parking.

Located beneath the bus station. Area approximately 0.38 Ha Public Realm Surface Ratio: 70/30 (paving/planting) Public Realm Components: Off-shelf seating, bollards, street trees, lighting, permeable surfaces; litter/recycling bins

IMPLEMENTATION PLAN 110

Focus Area Sequence

Asset Type

Asset Name

Swales (Excavation)

3

SuDS

Swales (Grassing)

 Overall Cost (KSh) Allowed 30% Contigency

Delivery Sector

884,000.00

Publicly Funded

457,366.00

Publicly Funded

Notes

Assumptions: Swale Side slopes 1 in 4 swale cross sectional area is= 1.25m2 2 No. swales on both sides of the road from Airport junction to TOD = 2,245m *Dimensions varies to suit space and ease of maintenance

Based on Kitui tree spacing (every 6m) along 2 No. swale. Prices do not include: Trees

1

4

Landscape Regeneration

Landscape Regeneration

Gateway TOD: Isiolo Market Landscape Regeneration

Gateway TOD: Marire River Park Infrastructure

35,334.00

12,350,000.00

4,654,000.00

Publicly Funded

Surface treatment (permeable surface and non compacted material) example: Organic mulch, loose aggregate, Sand -Based substrates (used in clay soils and high water table areas to add capcity for water and nutrient retention)

Public Private Initiative

(H) 1.5m grass mounds installed along the edge of the market facing the Marire river to alleviate flooding. Grass earthworks along the remaining edges to integrate with the bus station (which is installed at a higher level) and surrounds. (W) 5m steps and footpath to be installed opposite entrances that face the bus station and Marire river for access.

Public Private Initiative

Reworked terrain into terraces to alleviate flooding in the urban area. (W) 1-2m informal, permeable footpaths to run along both sides of the river. 5m² native plant beds scattered along the river every 5m. 3 No.native trees located every 10m.

111 ISIOLO URBAN ECONOMIC PLAN

Focus Area Sequence

Asset Type

Asset Name

2, 5, 6

Landscape Regeneration

Marire River Park Regenration

Total

Overall Cost (KSh) Allowed 30% Contigency

Delivery Sector

78,208,000.00

Publicly Funded

2,496,388,700.00

Notes Reworked terrain into terraces to alleviate flooding in the urban area. (W) 1-2m informal, permeable footpaths to run along both sides of the river. 5m² native plant beds scattered along the river every 5m. 3 No. native trees located every 10m.

IMPLEMENTATION PLAN 112

Focus Area Sequence

Asset Type

Asset Name

 Overall Cost (KSh) Allowed 30% Contigency

Delivery Sector

235,632,904.00

Publicly Funded

Notes

Focus Area 3: Central Business District (CBD) Reconfigured access/slip road to accommodate the new layout Upgrade high street drainage Street trees New bus stops Upgraded street lamps along parking (PV solar powered)

1, 2, 3

Isiolo Boulevard - Town Centre (60m ROW)

Upgraded street lamps (PV solar/wind powered) Permeable paving on parking surfaces Permeable paving on footpaths Permeable paving on slip road Planting Swale Excavation Swale grassing Segregated cycle lanes on both sides

Calculations based on figures applied to both sides of the road.

The total length of 60m ROW is (L) 500m Calculations for the swale is based on length 960m (to ensure continuity along the A2) swale side slopes assumed to be 1 in 5 (wide area).

113 ISIOLO URBAN ECONOMIC PLAN

Focus Area Sequence

Asset Type

Asset Name

 Overall Cost (KSh) Allowed 30% Contigency

Delivery Sector

156,496,340.00

Publicly Funded

Notes

Upgrade high street drainage Upgraded street lamps (PV solar/wind powered)

1, 2, 3

Isiolo Boulevard - Town Centre (30m ROW)

Permeable paving on parking surfaces Permeable paving on footpaths Planting Swale Excavation Swale grassing Segregated cycle lanes on both sides

Calculations based on figures applied to both sides of the road. The total length of 30m ROW is (L) 1.3km Calculations for the swale is based on length 960m (to ensure continuity along the A2) swale side slopes assumed to be 1 in 4.

IMPLEMENTATION PLAN 114

Focus Area Sequence

Asset Type

Asset Name

Overall Cost (KSh) Allowed 30% Contigency

Delivery Sector

Notes Regenerated landscape to include: Farmland: 8.33Ha of the total area allocated for farmland. Includes 2 No. Storage Structures (single floor, 500m² each) Public Realm: 19.31Ha for public use. Estimated surface ratio: 20/80 (hard/soft).

30% of the soft surfaces to be allocated to native planting SuDS Attenuation Ponds: 8.73Ha of space allocated for seasonal flooding (figure to be subtracted from the ratio of soft surfaces). Space to sit at the same height as the Marire river. SuDS attenuation Pond are based on a surface area of 77,500m2 and a depth of 1.5 (this is a high level estimate and assuming the cross section of the pond is trapezoidal with side slopes 1:3 to 1:4 for saftey) Earthworks: Reworked terrain into terraces along Marire river, attenuation ponds and footpaths to alleviate flooding in the urban area

Isiolo Park 4

Isiolo Park

1,647,798,750.00

Public Private Initiative

Footpaths: (L) 4.5km x (W) 5m, permeable surface. Distributed across the park linking various access points and to sit at the same level as the adjacent roads/ access points. PV Solar lighting installed along one side of the footpath, spaced every 6m. 2 no. off-shelf bench and 1 No. litter bin installed every 100m Feature Pontoons: Hexagonal timber platforms used for a variety of purposes.

Below is a proposed mixture of floating and fixed structures located in the areas allocated for attenuation ponds: 1 No. Pontoon Type 1: 1000m² fixed platform with 450m² visitor centre (timber structure; 1No. floors; amenities such as bathroom, F&B kiosks, Wi-Fi access point, seating, litter bins) 1 No. Pontoon Type 2: 500m² fixed platform. To include additional 200m² timber structure for seating and events 7 No. Pontoon Type 3: 500m² floating platform. 4 of the platforms to include additional 200m² timber structure for seating and events 5 No. Pontoon Type 4: 250m² floating platform. 3 of the platforms to include additional 100m² timber structure for seating and events

Attenuation Pond Total

5 No. Pontoon Type 5: 100m² floating platform 2,039,927,994.00

115 ISIOLO URBAN ECONOMIC PLAN

Focus Area Sequence

Asset Type

Asset Name

Overall Cost (KSh) Allowed 30% Contigency

Delivery Sector

Notes

Focus Area 4: Airport

1

Water Management

SuDS

N/A

Public Private Initiative

£292/m3 an indicative cost based on prices from the UK for standard geocellular attenuation cells. The drainage system for the airport will include other elements. This will be confirmed following concept and detailed design process.

2

Water Management

Underground water storage (attenuation tanks)

N/A

Public Private Initiative

TBC - following concept and detailed design process

Public Private Initiative

Publicly Funded

Based on enrichment planting budget provided by mount kenya trust and assuming that the number of trees is 20k.

Public Private Initiative

Assumed area to be remediated c.2 Ha at a cost rate of KSh 10m per Ha. Removal of waste and installation of engineered landfill cell.

Wider Area Proposals

1

Transportation

Truck Parking Facility

*

Water Mangement

Catchment Management

3

Waste Mangement

Dumpsite remediation

38,740,000.00

5,200,000.00

390,000,000.00

IMPLEMENTATION PLAN 116

Potential sources of funding Grant funding can help improve the financial viability of projects which have significant, upfront capital expenditures, improving the overall investment appeal of a project and attracting additional private investment as a result. The proportion of grant finance of the total project finance amount should be carefully justified, as simply seeking a maximised grant finance proportion can seed doubts in the private sector about the long-term financial sustainability of the project.

Grant funding is also available to less, commercially viable projects with significant socio-economic or environmental benefits, particularly relating to climate change and resilience. They may also be focused on certain activities such as technical assistance in project preparation or capacity development. Philanthropic and NGO grant funding could also be leveraged through initiatives such as businesses dedicating 1% of profits to corporate social responsibility initiatives. Examples of projects could include tree planting, provision of or access to recreational facilities.

Private sector finance for a range of sectors is available in East Africa from both local and international sources. Existing investors in the region include impact investors, venture capitalists and private equity funds who are able to provide relevant

instruments for the value chain projects such as equity, quasi-equity (mezzanine finance) or concessionary debt. Access to private finance will be contingent on the concrete demonstration of viable business models and strong governance structures. Projects will also benefit by blending in non-financial support in the form of social capital, such as volunteer efforts from the community. Actions to build social capital include mobilising community organisations and volunteers to be involved with the development and implementation of projects. The most successful mobilisation of human and social capital resources occurs for projects where there is a demonstrated, direct and visible relationship between the project and the future benefits for community and volunteer stakeholders. Examples of projects could include raising awareness campaigns for more efficient use of water and solid waste collection and management.

Mobilising the scale of resources to address the identified climate change adaptation measures to be implemented and ensure that the selected value chain and infrastructure projects are climate resilient, the counties need to consider the full spectrum of potential funding sources available. Presented below is a snapshot of the available climate change funds that cover climate adaptation and mitigation including the country Focal Points for

these. The identified value chain and infrastructure projects could potentially apply to these funds for access to resources for implementing climate adaptation and mitigation activities. It is important to note the following:

Furthermore, it is vital to realise that especially for adaptation, each project activity is location and context specific.

Existing guidance presents the following principles that need to be generally adhered to. The project activity must:

›

›

Include a statement of purpose or intent to address or improve climate resilience in order to differentiate between adaptation to current and future climate change and good development;

›

Set out a context of climate vulnerability (climate data, exposure and sensitivity), considering both the impacts from climate change as well as climate variability related risks;

›

Link project activities to the context of climate vulnerability (e.g., socioeconomic conditions and geographical location), reflecting only direct contributions to climate resilience.

›

Some of the value chain and infrastructure projects are climate action projects in themselves i.e. they directly address and contribute to climate mitigation and/or adaptation (e.g. solar powered street lighting and sustainable urban drainage systems respectively), while all of these projects could have specific activities introduced in their design and implementation to help address identified climate risks, and these would be the basis on which an application would be made to the relevant fund; To gain access to these funds, investments will need to demonstrate a significant contribution to climate action. Successfully accessing resources from these funds depends on a good understanding of the funder’s perspective and procedures.

A comprehensive grasp of funding criteria as well as the different financial mechanisms and the extent to which they can be combined is important.

Potential global funds include: ›

Green Climate Fund (GCF): The GCF seeks to promote a paradigm shift to low-emission and climate-resilient development, taking into account the needs of nations that are particularly vulnerable to climate change impacts including Africa and Small Island Developing States.

117 ISIOLO URBAN ECONOMIC PLAN

The GCF aims to deliver equal amounts of funding to mitigation and adaptation and its activities are aligned with the priorities of developing countries through the principle of country ownership. The financial instrument / delivery mechanism for the GCF is grants, loans, equity or guarantees. The National Treasury is the Kenyan National Designated Authority for the GCF and the National Environment Management Authority of Kenya (NEMA) is a direct access Accredited Entity.49 In 2017, the National Treasury developed the Kenya National GCF Strategy50 which has a vision to increase financial flow from the GCF for a climate-resilient society and low-carbon economy. The Strategy identifies County governments as critical co-financiers who can take the role of Executing Entities and/ or Implementing Entities of climateresilient and low-carbon initiatives.

The Strategy provides a roadmap for stakeholders in harnessing resources from the GCF; ›

mechanism used by the Adaptation Fund is grants. NEMA is the is the National Implementing Entity for Adaptation Fund in Kenya;51 ›

›

The Adaptation Fund: The (AF) finances projects and programmes that help vulnerable communities in developing countries adapt to climate change. Initiatives are based on country needs, views and priorities.

The financial instrument / delivery

The Least Developed Countries Fund (LDCF): The LDCF was established to meet the adaptation needs of least developed countries. Specifically, the LDCF has financed the preparation and implementation of National Adaptation Programs of Action (NAPAs) to identify priority adaptation actions for a country, based on existing information.

The financial instrument / delivery mechanism used by the LDCF is grants. The Global Environment Facility administers the LDCF and Operational Focal Points are responsible for coordination in country. The Ministry of Environment and Forestry is Kenya’s GEF Operational Focal Point;52 The Special Climate Change Fund (SCCF): The SCCF was established to address the specific needs of developing countries under the United Nations Framework Convention on Climate Change (UNFCCC) with respect to covering incremental costs of interventions to address climate change relative to a development baseline. Adaptation to climate change is the top priority of the SCCF and in addition to this, it finances projects

relating to technology transfer and capacity building in the energy, transport, industry, agriculture, forestry and waste management sectors.

The Small Charities Challenge Fund (SCCF) is administered by the GEF and its financial instrument / delivery mechanism is grants. The Ministry of Environment and Forestry is Kenya’s GEF Operational Focal Point; ›

The Pilot Program for Climate Resilience (PPCR): The PPCR provides funding for climate change adaptation and resilience building. It aims to pilot and demonstrate ways in which climate risk and resilience may be integrated into core development planning and implementation by providing incentives for scaled-up action and initiating transformational change. It is a targeted program of the Strategic Climate Fund, which is one of two funds within the Climate Investment Funds (CIF) framework. The financial instrument /delivery mechanism for the PPCR is grants and loans. The CIF Secretariat is housed at the World Bank. The PPCR Sub-committee selects countries;

›

The Adaptation for Smallholder Agriculture Programme (ASAP): ASAP channels climate finance to smallholder farmers so they can access the

49 Kenya GCF Country Profile https://www.greenclimate.fund/countries/kenya 50 The Kenya National Green Climate Fund (GCF) Strategy https://www.gcfreadinessprogramme.org/sites/default/files/GCF%20Coordination%20Strategy%20Report.pdf 51 http://www.nema.go.ke/index.php?option=com_content&view=article&id=118&Itemid=357 52 https://www.thegef.org/country/kenya

information, tools and technologies that help build their resilience to climate change. ASAP is contributing to the drive of scaling-up successful ‘multiple-benefit’ approaches to increase agricultural output while simultaneously reducing vulnerability to climate-related risks and diversifying livelihoods. ASAP is the world’s largest climate change adaptation programme for smallholder farmers and it is run by the International Fund for Agricultural Development.

IMPLEMENTATION PLAN 118

Regional Fund The Africa Climate Change Fund (ACCF): the ACCF aims to support African countries transition to climate resilient and lowcarbon mode of development, as well as scale-up their access to climate finance.

The ACCF serves as a catalyst with a scope broad enough to cover a wide range of climate-resilient and low-carbon activities across all sectors. Priority for funding is given to the following themes; supporting small-scale or pilot adaptation initiatives to build resilience of vulnerable communities; and supporting direct access to climate finance.

change policies while delivering on local adaptation priorities.

All five pilot counties have fully institutionalised CCCF within their planning and budgeting processes, committing 1-2% of their development budgets to supporting the implementation of CCCF investments and operationalising structures to govern the fund. This ensures the mechanism is sustainable, with CCCF funding coming from the government exchequer. Post-CCCF, communities demand accountability and strongly influence the choice of investments financed by county development budgets.53

The ACCF gives grants and launches calls for proposals periodically. The Secretariat is housed at the African Development Bank.

The expansion of the CCCF is one of the priorities in the Kenya National Climate Change Action Plan, 2018-2022.

National / County Mechanism

The Isiolo CCCF covered 44 community adaptation investments from the period 2013 to 2016. The projects costed KSh 145 million in total and all together benefited 175,519 people both resident and nonresident of Isiolo and include:

The Kenya County Climate Change Fund (CCCF) Mechanism: Five county governments; Garissa, Isiolo, Kitui, Makueni and Wajir have established County (CCCF) that identify, prioritise and finance investments to reduce climate risk and achieve adaptation priorities. This improves counties’ readiness to access and disburse national and global climate finance to support community-prioritised investments to build climate resilience. The CCCFs are aligned with national priorities set out in Kenya’s National Adaptation Plan (NAP) and enable these county governments to strengthen and reinforce national climate

›

Development of water infrastructure and training in water governance in support of the multiple customary resource access rules and livestock mobility;

›

Construction of a radio station to disseminate weather and development information;

›

resource management institutions - Dedha for improved governance of the rangelands through reviewed rules of access and control including by pastoral groups who regularly visit Isiolo County; ›

Improved disease control through the rehabilitation of a decentralized livestock laboratory for disease surveillance and county-wide vaccination programme;

›

Development of county livestock strategy and resource map with a strong emphasis on building community resilience to climate change.54

4.3. Recommendations for Capacity Building The Municipal managers and other municipality staff will be responsible for the overall management and delivery of the SUED value chain and infrastructure projects. Ensuring that these staff have sufficient capacity and skills will thus be of critical importance to the success of the SUED project. The following recommendations have been made based on interactions with municipality staff to date. ›

Strengthening customary natural

53 https://adaconsortium.org/index.php/component/content/article/95-blogs/320-supporting-adaptation-through-local-level-climate-finance-lessons-from-kenya?Itemid=437 54 https://www.adaconsortium.org/images/downloads/isiolo-ICCFinventory%2017_11_2017.pdf

›

Municipal managers could benefit from capacity building on project management and delivery of large projects (as relevant to the UEP) and the community engagement required;

›

Aside from capacity building of the municipal managers, developing a consolidated project preparation, delivery and monitoring office within the municipality would be beneficial.

Municipality staff could be trained to work in this office and the office would function as a “horizontal” capability, providing specialised project management assistance to projects across all sectors. There are potential capacity building synergies to be realised in conjunction with the World Bank’s (KUSP) which is also considering related capacity building activities;

›

As the SUED value chain and climate resilient infrastructure projects involve diverse stakeholder backgrounds and representations, strong governance and strong institutions will be required to effectively manage all stakeholders.

Technical assistance and capacity building to support governance and institutional strengthening is thus also recommended;

119 ISIOLO URBAN ECONOMIC PLAN

›

In order to progress the SUED value chain and climate resilient infrastructure projects, additional investment will need to be secured from a range of public and private sources. Currently, the investment sourcing and investment coordination capacities of the municipality is limited.

Some amount of capacity building efforts should focus on this issue as well as revenue generation and collection activities.

The municipality could also benefit from general commercial development capacity building. The training does not need to be sector specific, and should cover: ›

Engaging with business;

›

Developing business linkages;

›

Developing commercial prospectus;

›

Building and testing business cases.

Strategic recommendations on how inclusion will be achieved in the implementation of the Isiolo UEP Developing Isiolo into a sustainable Municipality will require Urban Economic Planners and Social Inclusion Experts to make decisions that promote nondiscrimination.

Part of that in Isiolo Municipality will involve inclusion of Special Interest Groups (SIGs) strategically categorised under the umbrella of all gender, all adult-age persons and PWDs; but specifically identified at Municipal level as PWDs, Street families, Commercial Sex Workers, women and

youth.

To fully harness the potential of sustainable urban development in Isiolo, social inclusion is a basic prerequisite that will be achieved by: a. Stakeholder engagement - Commitment to always engage SIGs throughout the Programme’s life in Isiolo to give them a chance to be informed, to contribute to decision making, and actively give views on and participate in matters that affect them; b. Age, gender and PWDs-responsive planning - Commitment to promote age, gender and PWDs-responsive planning and implementation by enabling full and meaningful participation of all the identified special interest groups in planning for and implementation of the VC and supportive infrastructure projects; c. Addressing potential sources of conflict e.g. ethnopolitical barriers. The Programme should ensure engagement, involvement and addressing of the needs of all the social groups in the Municipality; especially the different ethnic communities to avoid triggering ethnopolitical conflict over the pastoralists feeling left out or over the farmers feeling excluded; d. Capacity building and job creation - Commitment to ensure that for all emerging capacity building and/or employment opportunities available, special interest groups in Isiolo are given equal and fair opportunities to be engaged in training and employment.

The capacity building trainings offered should be related to the town’s value chain and/or infrastructure projects.

This will ensure the trained groups can access employment opportunities when available; e. Equal access to urban infrastructure by all - Commitment to facilitate access especially for PWDs and women on an equal basis with others to basic physical and social infrastructure without any form of discrimination; f. Safe, green urban infrastructure - Commitment to develop safe, accessible, green infrastructure projects that promote all people living safely together; g. Social Inclusion Awareness Creation - Commitment to build the Social Inclusion capacity of all the Programme/ UEP players/stakeholders right from DFID, Coffey, Atkins, Municipal and County Staff in Isiolo so that nondiscrimination becomes part of their DNA; This will be achieved by Coffey creating awareness about Social Inclusion amongst the larger pool of the Programme’s stakeholders, as they cannot implement a concept, they are not familiar with; h. Social Inclusion monitoring and evaluation - The Programme should develop a Monitoring and Evaluation framework to measure social inclusion progress throughout the project cycle.

Some of the aspects to be checked include and are not limited to: › Number of SIGs invited to the

Programme’s workshops; › Number of SIGs recruited into the Programme’s capacity building initiative; Number of SIGs employed by the Programme and; › Attitudinal changes (if any) in the Programme Stakeholders’ perspectives after Social Inclusion workshops etc; i. Programme’s focus should be on Gender (both male and female), Age (all adult age groups including the elderly and youth) and PWDs. These 3 categories provide an intersectionality that will ensure involvement of the special interest groups identified for Isiolo Municipality and; j. Overall, the Programme should be guided by the principles of inclusive growth and inclusive infrastructure development.

Institutional capacity for enhancing resilience to climate change Climate change is a policy priority for Kenya. Key climate change policies and strategies include Kenya’s Climate Change Act 2016 and National Climate Change Framework Policy, NAP 2015-2030, National Climate Change Action Plan (NCCAP) 2018-2022 and Vision 2030.

Climate change has also been embedded in both national and county level policies and strategies. Kenya’s NAP presents the country’s vision on adaptation, key climate vulnerabilities, priority adaptation actions and outlines national and county level

IMPLEMENTATION PLAN 120

responsibilities. Implementation efforts encompass all sectors of the economy and provide mechanisms for mainstreaming climate action. The implementation of the NAP is focused on both national and county level action (Figure 34 on the following page). While national level actors provide the overarching co-ordination of implementation mechanism, County Governments are responsible for the mainstreaming and implementation of climate action at a county level.

Under the policy and regulatory framework of the NCCAP, the priority enabling action of â&#x20AC;&#x2DC;support alignment of county legislation to the Climate Change Actâ&#x20AC;&#x2122; is being delivered by; assisting county governments to develop CCCFs regulations which are linked to the national Climate Change Fund. This activity is building on the experience of the five counties that have developed their climate change fund regulations - Isiolo, Makueni, Wajir, Garissa and Kitui.

The operationalisation of the national Climate Change Fund - a priority enabling action for national climate finance and resource mobilisation, has identified funding windows for disbursement including the CCCFs. In addition, the Kenya National Green Climate Fund Strategy recognises County Governments as critical co-financiers who can take the role of executing entities / implementing entities of climate-resilient and low-carbon initiatives.

Isiolo County has drafted its Climate Change Fund and Act55 in 2018 as a specific response to the existing national climate change policies, strategies and plans. The objective of the Act is to create a fund in the County for the purpose of facilitating the establishment of a mechanism to finance climate change activities, programs and projects. The County Climate Change Fund strengthens public participation in managing and spending climate finance and in making decisions about adaptation priorities to build their resilience.

Actors and Functions Isiolo County has several governmental actors, NGOs, CBOs faith-based and private organisations engaged directly or indirectly in building resilience to climate risks. The county-level government institutions include the local offices of the Ministry of Agriculture, Livestock and Fisheries, Ministry of Lands, the Ministry of Water and Irrigation, Kenya Meteorological Department (KMD), Kenya Forestry Service (KFS), NEMA, Kenya Wildlife Service (KWS), and the NDMA. The NDMA deals directly with climate change risks by providing early warning information to farmers in collaboration with KMD. Most of the environmental initiatives in the County are coordinated by NEMA, while KWS is responsible for the regulation of livestock movement. Tree planting and controlled bush clearing is coordinated by KFS. The development partners working on climate resilience in the County

55 http://assembly.isiolo.go.ke/wp-content/uploads/2017/08/The-Isiolo-County-Climate-Change-Fund-Act-2018.pdf

provide technical advisory services as well as training and include Action Aid, Care Kenya, the UN Adesso Food and Agriculture Organisation, Kenya Red Cross and the World Food Programme among others. The faith-based organisations focus primarily on emergency response including climate disaster management.

They also have a development component and link farmers to markets. They include the Anglican Development Service, the Catholic Relief Service and Caritas.

The climate change skills and performance of Isiolo County staff and community members both individually and collectively need to be enhanced to ensure the delivery of the CCCF and that climate change is effectively embedded into County development processes and plans, while at the same time providing support for the interdependent functions necessary for efficient implementation. The availability of sufficient, well equipped and motivated personnel as well as community members is important for translating the climate change adaptation objectives of the CCCF into action. A sufficient headcount of qualified staff for the task at hand will help ensure those appointed are not thinly spread across too many issues.

121 ISIOLO URBAN ECONOMIC PLAN

The Isiolo County Climate Change Planning Committees are elected at the ward and county level. The Ward County Climate Change Planning Committees (WCCPC) are composed of 11 locally elected community members with equal voting rights.

Government technical staff are co-opted to provide advice as needed but do not have decision making rights. The county level County Climate Change Planning Committee is made up of representatives from WCCPCs, technical officers from the county government and other stakeholders to strengthen and approve WCCPC proposals for funding.

Figure 44 - Climate change institutional coordination structures (Kenya National Adaptation Plan, 2016)

NCCC (Chair=President) To provide overaching national climate change coordination mechanism

Parliament Enabling legislation

Ministry (Climate Change Affairs) CS=Secretary to NCCC

Climate Change Directorate 1. Principle Government agency on national climate change actions 2. To serve as the Secretariat to the NCCC

NEMA Monitor and enforce compliance

Mainstreaming of Climate Change Council of Governors National Government Sectoral Agencies (MDAs) Mainstreaming at national level

County Governments

County Assemblies

Activities and capabilities to build the capacity of key staff and actors across Isiolo County will underpin its climate resilience objectives. The activities will be centred around the core functions of institutions including authorising, resourcing and delivering climate action56; while the capabilities will be centred around climate-specific capacity needs (human resources and skills, policy integration and participation) and climate-relevant capacity needs (across sectors, policy and market instruments, political economy) within the local context of the County.57

Adaptive Capacity County Government Sectorial Agencies Mainstreaming at national level

56 https://www.cpgd2019.org/wp-content/uploads/2019/03/Learning-Paper-Strengthening-Institutional-Capacity.pdf 57 http://www.oecd.org/env/cc/21018790.pdf

Enhancing the adaptive capacity of Isiolo County will be crucial for its successful climate resilience building overall. This will complement the identification of climate change adaptation measures and the assessment of their costs and benefits. It is recognised that a gradual and phased approach over time will be required to

IMPLEMENTATION PLAN 122

The NAC framework provides a practical approach for understanding the institutional aspects of adaptive capacity. It enables its users to systematically assess institutional strengths and weaknesses that may help or hinder adaptation. Adaptation plans can then be better designed to make the greatest use of strengths and remedy weaknesses. The NAC framework evaluates the performance of institutions against five key functions critical to adaptation: assessment, prioritization, coordination, information management, and climate risk management. The NAC treats performance of these functions as an indication of a country’s overall adaptive capacity.

Helpful

59 The pilot applications of the framework in Bolivia, Ireland, and Nepal suggest that the NAC framework is useful across a range of countries and that it can be tailored to specific country contexts.

60 Strengths, Weaknesses, Opportunities and Threats with the following factors in consideration - human, socio-economic, natural, physical and financial.

61 https://www.adaconsortium.org/images/downloads/ isiolo-ICCFinventory%2017_11_2017.pdf

Weaknesses, that limit adaptive capacity:

› Strong political will for addressing climate change at the national level right through to the county level;

› The full scale of adaptation measures required may need significant investments. The lack of timely and sufficient funding to cover operation costs. Staff salaries and equipment constitutes a major hindrance for successful implementation, coordination and monitoring of interventions. The establishment of the Isiolo CCCF helps address this issue;

› Successful resource mobilisation (both internal and from donors) and implementation of climate adaptation measures (44 community adaptation investments over 2013 - 2016 captured in the Isiolo CCCF Inventory of Adaptation Investments);61 › Through its county assembly, Isiolo enacted a law committing 1-2% from its development budget to support the implementation of priority climate change interventions on a more sustainable basis;

› Availability of high-quality resources / Retention of highly trained staff (i.e limited number of technical staff capable of delivering climate programmes and projects);

› Effective mobilisation and an all-inclusive coordination mechanism of key actors for the development and deployment of climate adaptation strategies and frameworks;

› Limited supporting networks, including information and communications technology (ICT) systems and infrastructure e.g. in Isiolo, there is an absence of an integrated data bank on crops, livestock and livestock products, feed and water availability hence the efforts of the government and other service providers to identify and support vulnerable groups are limited;

› Development of simple and low-cost technologies suitable for the local context.

› Inadequate monitoring, evaluation, learning and reporting systems and structures.

Opportunities, to develop adaptive capacity:

Threats, that prevent development of adaptive capacity:

› Increasing awareness raising of climate change impacts and opportunities;

› Planned installations of weather forecasting equipments for extreme events and windstorms;

External Focus

Hinder

Strengths, that build adaptive capacity:

› Development of key climate change policies, strategies and plans e.g. Isiolo County Climate Change Fund Act (2018);

Table 5 provides an overview of an Adaptive Capacity Building SWOT60 analysis for Isiolo County based on literature review.

58 https://wriorg.s3.amazonaws.com/s3fs-public/pdf/ ready_or_not.pdf

4.4. Next Steps

Table 5 - Adaptive Capacity Building SWOT analysis for Isiolo County

Internal Focus

bridge the gap (through investments and action) from the existing capacity to the required level. To support this process, Isiolo County could apply the National Adaptive Capacity (NAC) Framework58 at their county level.59

› Integration of climate change considerations into County Integrated Development Plans (2013-2017 and 2018-2022) and other county plans;

› Regulatory - inconsistency in policy and institutional arrangements; › Governance - change in priorities with change in governance;

› Improvement of Isiolo County’s climate finance resource mobilisation including from global funds such as the Green Climate Fund (GCF) and the private sector;

› County plans not containing a strong reference to climate change;

› Strengthening the awareness of County policy and decision-makers on adaptation measures for better mainstreaming of adaptation measures in County plans;

› Cultural beliefs;

› Population growth putting pressure on existing resources; › Inter-county resource-based conflicts; › Lack of synergy among development partners.

› Collaboration on strong and applicable climate change research and development.

Adapted from European Commission Non-paper Guidelines for Project Managers

Following the completion of the UEP, during the next phase of the SUED Programme the identified value chain and climate resilient infrastructure projects will be developed further forward by:

Capacity building specialists to help: › enhance municipal and local capacity to implement the identified projects, and › enable revenue generation to ensure financial sustainability beyond the programme

Investment climate advisers: › will help remove or amend policy and regulatory constraints to private sector led urban development and growth

Investment experts to help: › develop feasibility studies and business cases for specific projects to establish their bankability, and › develop investment promotion strategies to draw in investment (including seed financing through the programme)