Eldoret Municipality Urban Economic Plan

Eldoret Municipality Urban Economic Plan

Eldoret Municipalit y Sustainable Urban Economic Development Programme Urban Economic Plan

October 2021

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Contents Executive Summary

The development of the Eldoret Municipality 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 Tetra Tech.

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3.

Development Concept 42

6.

Implementation Plan 178

1.

Introduction

10

3.2

UEP Vision 43

6.2

Partners and Institutional Structures 180

1.1

Background

10

3.3

Setting the Framework 44

6.3

Implementation Costs and Delivery 183

1.2

Purpose of the Plan 11

3.4

Economic Development – Sectors and Value Chains 49

6.4

Scheduling 193

1.3

Approach 12

4.

Economic Development 50

6.5

Funding 194

1.4

Key Principles 15

4.1

Economic Sector Action Plans 51

6.6

Recommendations for Capacity Building 197

1.5

Climate Change, Social Exclusion and Poverty 17

4.2

Value Chain Projects 67

6.7

Recommendations for Social Inclusion 198

1.6

Structure of this Report 21

5.

Eldoret Development Framework 96

6.8

Recommendations for Climate Change and Resilience 199

2.

Eldoret Urban Diagnostics 22

5.2

Focus Area 1: Urban Regeneration and Consolidation 100

6.9

Next Steps 200

2.1

Study Area 23

5.3

Eco-Industrial Principles 139

2.2

Planning Context 26

5.4

Focus Area 2: Eldoret Industrial Areas 140

2.3

State of Eldoret 28

5.5

Focus Area 3: AEZ 149

2.4

Infrastructure Overview 39

5.6

Beyond and Cross-Focus Areas 161

2.5

Environment and Climate Change Risk Profile 40

2.6 Diagnostics Conclusion: Drivers and Barriers for Growth 40

This report was developed by Atkins.

E L D O R E T U R B A N EC O N O M I C P L A N ( U E P )

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Tables

Figures Table 1.1 – Eldoret PSG 13

Table 5.7 Project summary information 131

Figure 1.1 Purpose of the Plan 11

Figure 4.7 Process flow for bamboo lumber 82

Figure 5.18 2040 Eldoret CBD 117

Table 1-2 – COVID-19 business impact findings 19

Table 5.8 Project summary information 133

Figure 1.2 UEP Process 12

Figure 4.8 Operating costs 2026 84

Figure 5.19 2040 and beyond Eldoret CBD 118

Table 2.1 Population of Eldoret spatial focuses 26

Table 5.9 Project summary information 135

Figure 1.3 UEP Stakeholders 14

Figure 4.10 Process flow for maize milling 89

Figure 5.20 2050 Eldoret CBD 118

Table 2.2 Business identified growth enablers 38

Table 5.10 Project summary information 138

Figure 1.4 SUED Principles 15

Figure 4.11 Operating Costs 2026 90

Figure 5.21: Typical NMT street section 120

Table 4.1 Agriculture and Agri-processing: SWOT 53

Table 5.11 List of Infrastructure Projects for FA2 145

Figure 1.5 Climate change – inclusion - poverty nexus 17

Figure 4.12 Social Inclusion Considerations – VC3 93

Table 4.2 Agriculture and Agri-processing: Action Plan 54

Table 5.12 Project summary information 146

Figure 2.1 Eldoret Municipality Study Area 24

Table 4.3 Trade and Services: SWOT 59

Table 5.13 Project summary information 148

Figure 2.2 Eldoret Regional Context 25

Figure 5.1 Eldoret Development Framework – Focus Area Proposals 98

Figure 5.22: Organisation of matatus at stages based on route direction 122

Table 4.4 Trade and Retail action plan 60

Table 5.14 AEZ Infrastructure Status – Challenges and Opportunities 153

Figure 2.3 Eldoret Municipality predominant land uses 29

Table 4.5 Services action plan 62

Figure 5.3 Newly established bus station, north of CBD 103

Table 5.15 List of Infrastructure Projects for FA3 156

Figure 2.4 Eldoret Municipality main central land functions and places 30

Table 5.16 Project summary information 157

Figure 2.5 The Three Dimension of Inclusion 32

Table 5.17 Project summary information 158

Figure 2.6 Economic growth context 34

Table 5.18 Project summary information 160

Figure 2.7 GCP per capita (in KES) 35

Table 4-10 Production volumes for bamboo lumber 83

Table 5.19 List of Infrastructure Projects for Beyond the Focus Areas 161

Figure 2.8 – Uasin Gishu County Sector GCP Breakdown 36

Table 4.11 Value added 84

Table 5.20 Project summary information 163

Table 4.12 Process volumes for maize milling 89

Table 5.21 Project summary information 165

Table 4.13 Value added 91

Table 5.22 Project summary information 167

Figure 3.2 Development Concept for Eldoret with three Focus Areas (FA) 48

Table 5.1 List of Projects for Eldoret Development Framework 99

Table 5.23 Project summary information 169

Figure 4.1 Sector Action Plan overview 52

Table 5.2 List of Infrastructure Projects for FA1 119

Table 5.24 Project summary information 171

Figure 4.2 Wider Value Chain Cluster and Linkages 68

Table 5.3 Project summary information 120

Table 5.25 Project summary information 173

Figure 4.3 Process flow for fruit and vegetable canning 72

Figure 5.14 Proposed Muliro Boulevard looking north toward the Railway Station Node 113

Table 5.4 Project summary information 124

Table 5.26 Project summary information 175

Figure 4.4 Process flow for fruit and vegetable canning 73

Figure 5.15 2025 Eldoret CBD 116

Table 5.5 Project summary information 127

Table 6.1 UEP Project Implementation Costs Summary 183

Figure 4 5 Operating costs 2026 76

Figure 5.16 2030 Eldoret CBD

Table 5.6 Project summary information 129

Table 6.2 UEP Project Implementation Costs and Delivery 184

Figure 4.6 Social Inclusion Considerations – VC1 78

Figure 5.17 2035 Eldoret CBD 117

Table 4.6 Industry and manufacturing: SWOT 63 Table 4.7 Industry and manufacturing action plan 64 Table 4.8 Capacity and volumes for fruit and vegetable canning 74 Table 4.9 Value added 76

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Figure 5.2 Focus Area 1 with demonstrated NMT facilities 101

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Figure 2.9 Eldoret economic sector context 36 Figure 2.10 Eldoret employment types 37

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Figure 5.4 High intensity development scenario – Option A Landmark Tower 104 Figure 5.5 Eldoret Piazza, street and aerial view – Option A 105 Figure 5.7 CBD Regeneration Opportunity Uses 108 Figure 5.8 CBD Regeneration Opportunities 109 Figure 5.9 CBD Vision View 110 Figure 5.10 Railway Plaza (TOD – Commercial/Transport) 111 Figure 5.11 Muliro Road/Boulevard Piazza and its shopping district 111 Figure 5.12 Sixty-four Culture Park 112

Figure 5.23: Matatu demand at bus park based on time of day 123 Figure 5.24 A simplified representation of the main potential trip vectors of intra urban public transport demand 126 Figure 5.25: Proposed matatu network in Eldoret 129 Figure 5.26 Accessible Toilet Block – exterior and interior 137 Figure 3.3 Eco-Industrial Park Approach – Principles and Benefits 139 Figure 5.28 Eldoret Identified Industrial Areas 141 Figure 5.29 ICDC Land Use Plan 143 Figure 5.30 AEZ location in Eldoret Context 150 Figure 5.31 AEZ plot areas and Value Chain cluster 151 Figure 5.32 Proposed circumferential ring roads 162 Figure 6.1 UEP Development Framework Schedule 193

Figure 5.13 Kitondo Street Park 112

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Abbreviations and Acronyms

Executive Summary

AD

Anaerobic Digestion

GVA

Gross Value Added

NRW

Non-Revenue Water

AEZ

Africa Economic Zones

IDeP

National Spatial Plan

Agriculture Sector Transformation and Growth Strategy

Eldoret Municipality Integrated Development Plan (2019 – 2024)

NSP

ASTGS

KES

Kenya Shillings

PWD

People Living with Disabilities

CBD

Central Business District

KeBS

Kenya Bureau of Standards

PMT

Tetra Tech Programme Management Team

CBO

Community-based organisation

KeNHA

Kenya National Highways Authority

PSG

Eldoret UEP Project Steering Group

CCCP

County Climate Change Policy

KeRRA

Kenya Rural Roads Authority

PSV

Public Service Vehicle

CIDP

Uasin Gishu County Integrated Development Plan 2018 - 2022

KIHBS

Kenya Integrated Household Budget Survey

PV

Photovoltaic

County Executive Committee Member

Key Informant Interview

Rural Access Index

CECM

KII

RAI

Savings and Credit Cooperative Organizations

Central Government of Kenya

Kenya Informal Settlement Improvement Programme

SACCO

CGoK

KISIP

Strategies for Agro-Pastoralists Development

Council of Governors

Kick-off Meeting

SAPAD

CoG

KOM

Special Economic Zone

(Draft) County Spatial Development Plan 2015 - 2025

Kenya National Bureau of Statistics

SEZ

CSP

KNBS KISIP

Kenya Informal Settlement Improvement Programme

SIG

Special Interest Group

KPLC

Kenya Power and Lighting Company

SME

Small and Medium Enterprises

KURA

Kenya Urban Roads Authority

SPV

Special Purpose Vehicle

KUSP

Kenya Urban Support Programme

SWOT

Strengths, Weaknesses, Opportunities, And Threats

KRC

Kenya Railways Corporation

SuDS

Sustainable Urban Drainage Systems

MB

Municipal Board

SUED

Sustainable Urban Economic Development Programme

MM

Municipal Manager

TOD

Transit-Orientated Development

MRF

Materials Recovery Facilities

UN

United Nations

MSMEs

Micro, small and medium sized enterprises

UNIDO

United Nations Industrial Development Organisation

MSW

Municipal Solid Waste

UNSDG

United Nations Sustainable Development Goals

Mt

Mountain

UEP

Urban Economic Plan

NEMA

National Environment Management Authority

VC

Value Chain

NIA

National Irrigation Authority

WSP

Water Service Provider

NCPWD

National Council for Persons with Disability

WASREB

Water Services Regulatory Board

NGOs

Non-Government Organisations

NMT

Non-motorised transport

ECED

Early Childhood Education

EfW

Energy from Waste

EIA

Environmental Impact Assessment

ELDOWAS

Eldoret Water and Sanitation Company

FA

Focus Area

FCDO

Foreign, Commonwealth and Development Office

FGDs

Focus Group Discussions

FTE

Full-Time Equivalent

GBV

Gender Based Violence

GCP

Gross County Product

GDP

Gross Domestic Product

GDI

Gender Development Index

GEI

Gender Equality Index

GeSI

Gender and Social Inclusion

GTFS

General Transit Feed Specification

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E L D O R E T U R B A N EC O N O M I C P L A N ( U E P )

WS Atkins International Limited was commissioned to develop the Urban Economic Plan for Eldoret Municipality as part of the UK’s Foreign and Commonwealth Development Office (FCDO) Sustainable Urban Economic Development Programme (SUED). The aim of the programme is to support market driven growth in emerging towns and cities in Kenya.

The Urban Economic Plan (UEP) is an advisory document that builds on existing work and priorities identified under the County Integrated Development Plan (CIDP) alongside the Municipality’s Integrated Development Plan (IDeP) and Local Physical Development Plan (LPDP), as well as aligning and complementing work by other donors.

In doing so, it will provide a focused economic strategy for the Municipal Board and Municipal Departments to deliver economic development within Eldoret Municipality. Further the UEP will support the Municipality in driving forward its role as regional industrial hub and responding to its promoted attainment of City status.

The UEP prioritises Value Chain projects, sectoral actions and climate resilient and inclusive urban development and infrastructure projects that can support Eldoret’s economic sectors with the greatest potential for inclusive employment generation and promotes sustainable urban development.

Drawing on international best practice, it introduces an integrated multidiscipline approach to planning for economic growth and supports capacity building from an early stage.

The purpose of the plan is to: > Provide an inclusive economic strategy that can guide future development towards increasing prosperity in Eldoret as it moves toward City status; > Prioritise economic activities and climate resilient and inclusive infrastructure that can maximise benefits and support the development of a sustainable economic future for Eldoret, whilst providing a driver for wider economic uplifts across the County and region; > Introduce international best practice and innovation; > Bring together stakeholders in shaping and deciding the economic future of Eldoret and implementing it; and > Identify and prepare projects that can be considered further in terms of their feasibility and bankability before SUED seed financing is committed.

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

Eldoret is a largely successful, appealing, and dynamic urban centre, with significant opportunities for growth where effective adaptations and development can realise these for the Municipality, County, and wider region. It already plays important administrative and economic roles in the larger North Rift region, and is one of the largest and fastest growing towns in Kenya.

There has been rapid growth within the Municipality, which has resulted in some barriers to growth including traffic congestion, incongruent land uses and a lack of green space, thereby requiring the adaptation and densification of land uses and their linkages based on a coordinated vision to drive forward effective city functions and investment, The Gender and Social Inclusion (GeSI) 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. The prioritised UEP projects have been developed in a way to address the economic, social and spatial dimensions of exclusion for Eldoret’s identified groups, with recommendations across all projects’ implementation alongside the full GeSI Study (Appendix C).

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The diagnostic stage identified key sectors that Eldoret should prioritise for development, as: > Agriculture and agri-processing > Trade and services

Section 3 presents the Development Concept for Eldoret Municipality, overarching the Economic Development Plan and the Development Framework of climate resilient and inclusive infrastructure projects. This is driven by the economic vision that has been developed with key stakeholders:

> Industry and Manufacturing The County is a major contributor of manufacturing, construction, logistics, technical services and retail and hospitality output in NOREB, accounting for over a third of the region’s economic activities in each of these sectors, especially manufacturing accounting for 87% of the region.

Overall, Eldoret has a strong provision of infrastructure and will need to make some upgrades to existing infrastructure and commit to key new projects to support economic growth and development. This includes capitalising on macro-level drivers of growth and outlying development initiatives, including the AEZ. Improved road and transport infrastructure, including NMT facilities, will be critical as a basis for this growth. Solid waste management improvements are necessary to move toward circular economy processes within a connected and sustainable system. The water network and energy provision will also be tested in its resilience in response to industrial development and the growing population.

With regards to climate change, the main risks are rainfall variability, extreme rainfall and flooding, and extreme temperatures. These have been assessed to have critical interactions with Eldoret’s economic sectors of agriculture and trade in particularly and with Eldoret’s SIGs. The proposed Value Chain (VC) projects have been assessed for climate vulnerability and recommendations are provided alongside a full Climate Resilience Vulnerability Assessment (Appendix D).

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“ Eldoret is a liveable, smart city providing high-quality and resilient services and inclusive economic opportunities for the region, whilst expanding its role as a leading centre for agri-processing, industry and innovation.”

This vision is addressed with two key elements – the development of a Regional City and Regional Eco-Industrial Hub.

To realise this vision, the UEP developed three Focus Areas to drive forward development and prioritise the identified economic opportunities and infrastructure projects, as: > Focus Area 1: Central Business District (CBD) Regeneration and Consolidation – for the better functioning of the urban centre as Eldoret moves to City status, with a focus on transit-orientated development (TOD) around the CBD and railway station. The area includes the provision of landmark destination developments and linkages to a multi-modal transport network and green corridor. This will catalyse densification and investment to provide a range of city services for the region. > Focus Area 2: Eldoret Industrial Area – as the designated ICDC site to the South of the CBD, where this will provide affordable and well-serviced light industrial space for Eldoret’s enterprises and decongest the CBD. This will be supported with business incubation and the site is proposed to serve as a logistical hub to support the wider industrial ecosystem. Focus Area 2 is recommended to be developed according to eco-industrial principles.

In the future, further identified sites will become part of this ecosystem, with industrial areas that are well integrated with transport assets and satellite centres.

Section 4 sets out the Economic Development Plan in response to the economic vision and the sectoral SWOT assessment undertaken at diagnostic stage. Sector action plans have been developed for each of the key sectors to: develop a resilient agriculture system; grow the agri- industrial sector; and develop the urban services sector. Interventions are proposed covering stakeholder collaboration, institutional capacity, best practice and training, information and digital sharing, and infrastructure and planning enhancements.

Six potential VC projects were shortlisted and further assessed for inclusion in the UEP. Their assessment included consideration of target market, costs and revenues, competitiveness, land and infrastructure requirements, and climate vulnerability and GeSI assessment. All of these opportunities would be suitable for development in Eldoret.

However, three primary VC projects have been selected to maximise benefits with their ability to catalyse the industrial sector through their AEZ location, utilising existing strengths and assets and the opportunity to implement a circular economy. These are: > Fruits and vegetable canning > Bamboo Lumber, and later fibres > Maize Milling

> Focus Area 3: Africa Economic Zone (AEZ) – this nationally significant site is proposed to host the VC projects as part of its light Industrial and food sub-zone. The AEZ is a long-term development that is supported with the Plateau railway station and strategic road network, for an efficient input collection and produce distribution network. Focus Area 3 is recommended to be developed according to eco-industrial principles.

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Section 5 sets out the Development Framework, which structures, prioritises, and phases urban development in a coherent and coordinated manner with respect to the three proposed Focus Areas.

Projects have been identified across urban design, transport, waste management, water and sanitation and energy. The proposed projects have been assessed against climate vulnerability, with adaptation measures identified to ensure resilience, and include recommendations for social inclusion to ensure access and acceptability for all.

Section 6 provides the Implementation Plan, which presents relevant considerations across partnerships, funding and scheduling for the proposed VC and climate resilient and inclusive infrastructure projects, including estimated delivery costs. The section also presents recommendations for capacity building, social inclusion and climate resilience, as crucial elements for implementing the UEP. Following the completion of the UEP, during the next phase of the SUED programme, the identified 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 experts to address policy and regulatory constraints; and > Investment experts to develop feasibility studies, business cases and investment promotion strategies for the projects.

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1. Introduction

1.1

1.2

Background

Purpose of the Plan

Combining local knowledge and international expertise, the Eldoret Urban Economic Plan is an advisory document that builds on existing work and priorities identified under the County and Municipality Integrated Development Plans, Draft Local Physical and Land Use Development Plan and the Draft County Spatial Plan as well as aligning and complementing work done by other donors. In doing so, it will provide a focused economic strategy for the Municipal Board (MB) and Municipal Departments to enable them to deliver economic development within the municipality. Figure 1.1 below sets out the purpose.

WS Atkins International Limited was commissioned to develop the Urban Economic Plan for Eldoret as part of the Foreign and Commonwealth Development Office Sustainable Urban Economic Development Programme (SUED). The aim of the programme is to support 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.

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

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

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

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

Figure 1.1 Purpose of the Plan Source: Atkins

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E L D O R E T U R B A N EC O N O M I C P L A N ( U E P )

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1.3

Approach

The approach and methodology have been developed in response to the FCDO terms of reference and in consultation with the SUED Team and FCDO and have been tailored to consider local conditions in Eldoret. The aim was to enable a collaborative approach between different local stakeholders and the consultant team to assess Eldoret’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:

Stakeholder Engagement The purpose of stakeholder engagement was to ensure that stakeholders’ interests are taken into consideration throughout development and reflected in the Eldoret Urban Economic Plan. More specifically, the aims were:

Figure 1.2 UEP Process

> To ensure that the development of the Urban Economic Plan is inclusive and is undertaken in a manner that fits with Eldoret’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 gaining buy-in from them;

> 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 economic growth in Eldoret as defined by local stakeholders.

> 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.

> Phase 2 – The Diagnostics Phase was developed to provide a comprehensive and wide-ranging assessment of Eldoret’s economy, demographics, infrastructure, environment and climate change risk profile against national and international context.

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

> Phase 3 – The Technical Briefing Paper set out a development framework for Eldoret and identified, assessed and prioritised economic growth opportunities and their requirements.

> Stakeholder workshops;

> Phase 4 – Development of the Final UEP which sets out in detail economic opportunities and actions and prioritises climate resilient infrastructure projects for implementation.

A Project Steering Group (PSG) was formed to enable the exchange of ideas and information between the MB and the SUED technical team. The PSG was formed of the following members:

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

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> Project Steering Group meetings (through both face to face and virtual engagements); > Formal social inclusion consultations; and > Business consultations.

SUED Atkins Team

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Table 1.1 – Eldoret PSG Name

Role

Tito Koiyet

Municipal Manager, PSG Member

Julius K.Kitur

Board Chairman, PSG Member

Beatrice Kemboi

Vice Chair, Board, PSG Member

Joyce Kebenei

Deputy County Secretary, PSG Member

Nelson Maritim

CECM Lands, Housing, Physical Planning, PSG Member

Emily Kogos

CECM Trade, ICT and Industrialization, PSG Member

Julius Rutto

CECM Finance and Economic Planning, PSG Member

Willy Kenei

Chairman, KNCCI , PSG Member

Nelly Jerotich,

Ag. Director Lands, PSG Member

Prof. Charles Lagat,

Moi University, PSG Member

Bethwel Kipletting

Climate Change Champion, PSG Member

Geoffrey Kirui

Social Inclusion Champion, PSG Member

The aim is to ensure the PSG is representative of the needs and challenges associated with the Municipality whilst being aligned and familiar with existing County and Municipal policies and regulations.

The PSG was also tasked with arranging meetings and workshops as and when required by the SUED team as part of the overall Programme roll out. The PSG was updated on a weekly basis on progress in the UEP process and the following meetings between the PSG and the SUED team took place.

The PSG under an elected representative also facilitated the dissemination of information on the various components and progress of the UEP and the broader SUED Programme, including liaison with the County Government, the Municipality and the MB. It includes champions on SUED’s key themes of climate change and social inclusion.

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The wider set of stakeholders consulted included the following.

Three separate stakeholder workshops were undertaken.

Figure 1.3 UEP Stakeholders

In the Kick-off Meeting (KOM), the SUED project and process was presented, initial feedback from stakeholders gathered and key informants identified to lay the foundation for the diagnostics phase. From the KOM on 30th November 2020, the team collated information from over 90 stakeholders in terms of key characteristics, strengths and challenges within Eldoret (captured within the Eldoret Inception Report).

Stakeholders included MB members, Municipality and County Government officers, private sector, civil society groups and non-government organisations and representatives from Special Interest Groups.

Municipal Board Members

Business Groups – Kenya National Chambers of Commerce and Industries (KNCCI), Kenya Association of Manufacturers, North Rift Regional Coordinator, Uasin Gishu County Juakali Associations, Moisot Farmers’ Cooperative Union

County Government – Chief Officers, Executive Members, Department Leads and Members, Planners

Developer partners – Africa Economic Zone (AEZ), Kenya Railway Corporation (KRC), Industrial & Commercial Development Corporation (ICDC)

Civil Society – Local Urban Forum, Civil Society Organization network

Special Interest Groups (SIGs) – People living with Disability Community, Association of Physically Disabled of Kenya, Hope Disabilities Association, Youth Representative, National Youth Council, Maendeleo ya Wanawake, Uasin Gishu Women Council

Economic Sectors including – School of Business and Economics and UNESCO Chair, Moi University, Eldoret University, The Eldoret National Polytechnic, Eldoret National Polytechnic, Rift Valley TTI, Wholesale Market manager, Hawkers Market, Main Municipal Market, Fish Market, West, Kahoya, Kimumu Markets, Farmers Dairies, Ramm Millers, New KCC Ltd, Unga Ltd, Kemknit, Tarakwa Dairy, Paul’s Bakery, Kerio Valley Natural Honey, Lesere Animal feeds, Mace foods Ltd, Bio-corn, County Hospital, Hotels

Infrastructure representatives – Uasin Gishu Boda SACCO, Matatu Sacco Union, Uasin Gishu Renewable Energy Centre

Eldoret KOM Meeting – break-out discussions

After completion of the Diagnostics Report, a second workshop on 23rd February 2021 presented key findings on the status of the local economy, environmental and climate change conditions, infrastructure provision as well as economic sector SWOT analysis.

A third workshop was undertaken between the drafting and finalisation of the Technical Briefing Paper on 4th May 2021 and followed-up with key stakeholder meetings including AEZ, KRC and ICDC. The emerging Municipality-wide development concept including value chain projects and resilient

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E L D O R E T U R B A N EC O N O M I C P L A N ( U E P )

infrastructure proposals were presented and discussed. A visioning exercise was conducted to gain consensus across the stakeholder group on the overall vision for the UEP and to make top priority selections for the relevant Value Chain (VC) projects and potential investment areas (as he focus areas).

This identified consensus for two VC projects, confirmed the status for the potential avocado project, and added a further VC of maize milling giving its critical importance to local farmers and the economy. All three focus areas score highly, reflecting their respective roles as part of the wider industrial and economic ecosystem for Eldoret’s development.

Figure 1.4 SUED Principles

Resilient

Resource Efficient

› Shifts in the economy

› Circular economy and zero waste

› Adaptive infrastructure to climate change

› Water and energy management

› Smart Solutions

› Rural - urban linkages

The Gender and Social Inclusion (GeSI) Study was guided by the Programme’s need for age, gender, (dis) ability and refugee inclusion and the Consultant’s choice of a multi-dimensional approach to inclusion that covered social, economic, and spatial dimensions. The study applied both primary and secondary data collection methods, including related literature review, key informant interviews, focus group discussions and observation. Seven key informant interviews and two focus group discussions were conducted, which, together with a thorough literature review, resulted in the identification of socially excluded groups and the development of inclusion interventions for the UEP. A comprehensive business consultation was undertaken to understand how Eldoret’s businesses operate and their views on future growth opportunities and constraints. Thirty six businesses in and around Eldoret, including those owned

by SIGs were consulted by means of qualitative interviews supported by a detailed questionnaire.

1.4

Key Principles

The development of the UEP and identification and prioritisation of proposed projects are grounded on key principles that support the Programme’s aim to create market-driven growth and build resilience. The Atkins SUED Team has defined these principles as:

E L D O R E T U R B A N EC O N O M I C P L A N ( U E P )

Resilient

Resource Efficient

Socially Inclusive

Sustainable

Socially Inclusive

Sustainable

› Socio-economic trends

› Low carbon development

› Vulnerable groups

› Green energy

› Immigration/migration

› Green infrastructure

Source: Atkins

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While these principles are closely linked and overlap in their definition, each one of them emphasises a different aspect that is not fully captured by the others. Thus, it is important that all four principles are embedded and balanced in the UEP and its implementation. In addition to these principles, it is critical to ensure the UEP develops the competitiveness of the Municipality.

At its core the UEP seeks to create employment opportunities accessible to all and set out economic measures and supporting actions and projects that can help directly or indirectly lift the local population out of poverty whilst supporting crucial livelihoods such as the informal sector. All proposed projects (VCs, urban development and infrastructure) contained within the UEP have been screened and refined for their contribution to improving livelihoods by considering: availability; accessibility; affordability; acceptability; and adaptability, across special interest groups as well as the low-income groups, the urban poor and informal sector. The aim is to minimize inequalities and improve access to jobs opportunities for optimum benefits to the community.

1.5

Climate Change, Social Exclusion and Poverty

Climate change and social inclusion are cross-cutting issues that have affected the built environment, all economic sectors, livelihoods and communities in the Municipality and the County. It is therefore imperative that climate change and social inclusion considerations are taken into account in the development and implementation of climate resilient projects and VC opportunities to ensure poverty reduction.

Climate change poses a serious risk to livelihoods and poverty reduction efforts, and adaptation measures could exacerbate existing inequalities if they do not consider the needs of poor and marginalised groups.

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Climate hazards and the depletion of natural resources disproportionally affect women, PWDs, the elderly, and people with chronic illnesses. Low-income households that rely on weather-sensitive subsistence livelihoods such as agriculture are especially vulnerable. Lack of access to capital/assets to manage the impacts of climate change and other similar shocks exacerbates existing vulnerabilities. Harmful social norms pose additional challenges, limiting the participation of these groups in formal risk reduction and climate adaptation programmes.

Figure 1.5 Climate change – inclusion - poverty nexus

Social exclusion makes it difficult to achieve social objectives, such as reducing poverty, due to often hidden barriers in reaching those who are socially marginalised. Exclusion also causes conflict, and it is almost impossible to achieve economic gains in conflict environments.

PWDs and youth in Eldoret face challenges that are either caused by or lead to exclusion, and recommendations for their inclusion are fully integrated in the UEP. People who are excluded are not ‘just like’ the rest of the poor, only poorer.

They are also disadvantaged by who they are or where they live, and as a result are locked out of the benefits of development.

The County Climate Change Policy (CCCP) is explicit in recognising this as a key principle in the mainstreaming of climate change in Uasin Gishu.

Climate Change

Disruption of livelihoods and economic activities

Economic poverty, weak social protection, powerlessness

Vulnerability to disease outbreaks

Social exclusion, discrimination

Food insecurity

Vulnerability to urban disasters

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Increased inequality Spatial segregation, informality

Poverty

Youth, women and PWDs are often excluded in socio-economic activities in Eldoret and will be disproportionately impacted by climate change and the degradation of natural resources.

Livelihoods, most often in the informal sector, that are reliant on being able to trade every day are more vulnerable to disruption, be it a pandemic, or an environmental disaster.

Access to basic services including water availability and provision can be disrupted negatively, disproportionally affecting poorer and excluded groups, and posing a risk to food security and public health.

Statistically, PWDs are more likely to have lower levels of education, be illiterate or unemployed. Due to discrimination, they usually lack access to support networks and social capital compared with their able-bodied counterparts. These social networks are recognised as a key factor that enables groups to prepare for, respond to, and recover from, climate variability and shocks, and this lack of access increases the vulnerability of PWDs to climate change. In Eldoret, PWDs often operate small-scale businesses, yet they lack access to finance to develop their economic activities and to invest in measures that would better prepare them for extreme events and climate hazards. PWDs also face limitations in their access to infrastructure and mobility, and climate events such as flooding can severely affect their economic activities and daily routines.

While young men and women are heavily engaged in agricultural livelihoods, their work is often invisible and unpaid, considered to be family farm labour. Youths are not involved in decision-making processes and lack access to agricultural information, which often excludes them from opportunities such as climate-smart technologies. Limited access to credit and financial resources, particularly for urban youths, and reduced social safety nets, critically affect their ability to recover from disasters such as floods or droughts. Youth who engage in transportation services or who are self-employed see their access to markets and their income/sales disrupted when there are extreme weather events.

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In Eldoret, women normally engage in farming, businesses, and casual labour. Despite their active participation in these economic activities, they usually lack control over resources or assets which in turn limits their access to finance. Due to social norms and cultural traditions, women often experience limited mobility; competing community and domestic responsibilities; exclusion from decision-making processes; and restricted rights, which leave them extremely vulnerable to the impacts of climate change.

Rapid, unplanned urbanisation also increases the vulnerability to climate hazards for the urban poor. Informal settlements are often located in hazard-prone areas and are excluded from formal risk reduction and climate adaptation programmes.

Informal settlements are on marginal land and have limited drainage and sanitation infrastructure. Focus group interviews noted that flooding is a significant issue in informal settlements, which leads to the contamination of water sources, and associated health impacts, during and following flooding.

Consequently, it is imperative to understand exposure, vulnerabilities and build resilience into future projects through appropriate adaptation measures. In particular it is important to ensure that adaptation measures do not act to reinforce or deepen existing inequalities, and need to be accessible to groups that are already marginalised. For example, climate-resilient technologies need to be affordable, accessible to all, and culturally appropriate. Their implementation needs to be accompanied by capacity-building and technical support.

As well as considering inclusion and poverty elements of all adaptation and climate risk management measures, excluded groups may require targeted interventions designed to help build their resilience to climate change.

Increasing the resilience of current and future livelihoods and infrastructure is key to poverty reduction and has been addressed systematically throughout the UEP to avoid creating polarisation and further exclusion. Similarly, ensuring that infrastructure projects, VC opportunities and development policies are climate resilient will not only help the built

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environment to better respond to future climate risk but also communities and excluded groups to be less affected by climate change events.

1.5.1

COVID-19 Impacts in Kenya

In Kenya, the impact of COVID-19 has been real and devastating. The pandemic has significantly impacted all aspects of life such as health, institutional revenues and livelihoods. COVID-19 has hit the most vulnerable the hardest, particularly the densely populated informal settlements and slums, as well as other people lacking access to adequate housing and basic services.

The informal economy employing about 70% of Kenyans has been drastically affected as lockdowns and curfews were introduced to curb the transmission of the virus. Low wage earners have been hit the hardest because they rely on the informal sector and daily wages. Mostly they lack the option to work from home as they are mostly in the service industries and more exposed to the virus. Despite the low wages, some have also received pay cuts, and some have lost their jobs altogether. There has been loss of revenue due to reduced activities in other sectors too, like industry, commerce and hospitality with the effects felt throughout their supply chains.

Travel restrictions have led to a sharp and substantial fall in demand for movement and subsequent impacts on supply chains: > Road freight and logistics have been interrupted as long-distance truck drivers are suspected to be a major source of imported infections and transmission.

This has had implications for trade and cross-border activities. Goods take longer to reach destinations. For perishable agricultural commodities, post-harvest losses become rampant. > Kenya is the world’s number 2 exporter of tea and world’s number 4 exporter of flowers and both these critical industries have experienced a negative impact from COVID-19 related restrictions. For instance, tea prices E L D O R E T U R B A N EC O N O M I C P L A N ( U E P )

declined by 18% year-over-year in May, reaching the lowest point since 2014 and fresh cut flower sales declined by about 40% in March versus the previous month. > Disruptions in global supply chains have also led to shortages or delays for critical inputs for agriculture ultimately disrupting production and food supply and manufacturing, leading to price increases. > Increased awareness of hygiene signifies increased demand for limited resources like water as well as increased demand for disinfectant used for hand cleaning and sanitization with additional costs to society, particularly where access is not straightforward.

The COVID 19 outbreak has affected people differently based on their age, gender, (dis) ability, sexual orientation, health status, migrant status, and ethnicity among other aspects.

Naturally, crises exacerbate existing gender inequalities, exclusion and discriminative practices, and vulnerable groups are highly likely to be more adversely affected by the outbreak and the consequences of the response. Emerging evidence on the impact of COVID-19 suggests that women’s economic and productive lives has been affected disproportionately by comparison with men. This is because women earn less, save less, and are more likely to be employed in the informal sector.

Their capacity to absorb economic shocks is therefore less than that of men. Women are also the majority of front-line health workforce and caregivers and therefore at higher risk.

Cultural factors may restrict women’s access to information and services, and some women may be particularly affected e.g., older women living alone, and isolation may lead to an increased risk of violence in the home.

Young people are already among the most affected by the socio-economic impacts of COVID-19. In addition to losing employment, closure of businesses, and keeping away from schools and universities, the youth are also at high risk of increased anxiety and mental health problems. Additionally, the youth make up more than 30% of the migrants and refugees’ population who are likely to be disproportionately affected due to limited movement and fewer employment

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opportunities occasioned by the pandemic. Young women and girls are also at high risk of many forms of domestic and gender-based violence during the pandemic.

PWDs have been left without vital support and advocacy due to social distancing. The majority of PWDs in SUED Municipalities operate small businesses in market centres, which have been adversely affected, and have therefore experienced livelihood loss. For PWDs that rely on their hands for walking and are sole bread winners, the question of not touching surfaces is not applicable and they therefore are at high risk of being infected with COVID-19. Street families are also highly exposed to the danger of the virus because they lack shelter. Many of them rely on market centres where they ferry goods for a wage, and with the closure of markets they have lost livelihoods.

1.5.2 Eldoret COVID-19 Insights A study was undertaken in April 2020 by the County’s Chapter of the Kenya National Chamber of Commerce (KNCCI) and Moi University on the COVID-19 impact on businesses1. The ICounty set up a COVID -19 Response Committee following the first reported case in Kenya (on 12th March) led by the County Governor.

The study was undertaken online and targeted 400 business owners as contactable members of KNCCI, of which 145 responded. The key findings of the study are summarised below.

Table 1-2 – COVID-19 business impact findings Key finding

Study evidence

Businesses operated significantly below their capacity

29% of businesses reported closure; 45% were operating below a quarter of their usual operations; a further 19% below half and 7% above half and below three quarters of usual operating capacity.

Businesses had to make significant adjustments to their operation

41% moved business online; 23% made deliveries directly to households; 34% took other new measures; though just 1% moved into night shifts.

Employees had to be laid off

60% reported employees were laid off; and 26% reported this would maybe happen.

From 80% of the respondents, 1,400 employees had already been sent on leave, most without pay.

Businesses supported COVID-19 measures

There was preference for businesses to be allowed to stay open if they complied with regulations (to about 50% operation). Businesses indicated support for education and awareness as a top priority, as well as the [provision of protective equipment.

Businesses needed action for financial impact

Over half of respondents suggested businesses should be given unsecured loans to help boost activity post-pandemic, and support given to cushion businesses during especially as the majority relied on sales revenue and loans for their operation.

Source: Uasin Gishu COVID-19 Impact on Business Study (April 2020)

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The sector that was most impacted was hospitality, with all operations below 25% and several businesses closing. There was a mixed picture in ICT, manufacturing, and construction with some maintaining higher level levels of capacity.

Transport was generally operating below 50% as a result of travel restrictions and curfews and this notably impacted matatus in halting their operations. The retail and trade sector had a mixed picture, where some fruit and vegetable traders for example were doing well with deliveries though this was dependent on continued supply from farmers. Inputs and supplies as well as market access challenges were however impacting those in agri-processing.

The COVID-19 questions included in the SUED business consultation provide a sample view of impacts 8 months on from this study. On the whole the SUED consultation indicated a reasonable level of recovery in some sectors but with persistent issues in places. These include reduced customer numbers and sales, particularly in the retail, hospitality and tourism sectors, due to travel restrictions, curfews and lockdowns; adapting to new working procedures which comply with new COVID-19 regulations e.g., social distancing and increased costs due the need for employees to have personal protective equipment.

The study determined the key challenges for businesses as:

1.5.3 Lessons from COVID-19

> Costs - finance and liquidity; taxes and levies; rent payment difficulties; compliance and sanitation costs. > Human resource impacts – on staff and employees and the supply chain. > Operational challenges and changes - market access; restrictions on operating time and curfew, stock and material supplies. > Marketing and promotion difficulty.

The study authors set out that mechanisms would be needed between County and National Government through relevant agencies to coordinate a response and enable best practices to be adopted by businesses. Alongside this, it was recognised an ecosystem of support is required for: > Resilience and adaptation for vulnerable enterprises and for value chains, smoothing the import process but also building local supply chain resilience. > The urgent capacity building for businesses, with support through training and research institutions. > Local capacity building that supports enterprises’ ability to meet local demand that may previously have relied on imports and to undertake effective risk management.

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It will be important to draw lessons from the current crisis to inform long term planning and ensure resilience is imbedded in the proposed projects under this UEP. This is an opportunity to get insights into a future fully fledged climate change crisis and Municipalities have a critical role to play in addressing these challenges. Some initial key lessons include: Emphasising the need for adaptive, urban integrated plans to ensure sustainable urban development and infrastructure provision including appropriate housing for all that can help minimise impact from high risks.

Targeting women and girls in all efforts. It will be vital to apply gender lenses intentionally to the design of social assistance programmes and economic stimulus programmes to achieve greater opportunities, social protection and meaningful impact.

Ensuring resilient supply chains for agricultural and manufacturing sectors focusing on local inputs to ensure food security and safeguard export-oriented products.

Improving marketing efficiency through adoption of innovative processes that connect buyers and sellers. This may include adoption of technology to promote marketing and information sharing, formalizing product delivery services etc.

Leveraging information technology (IT) systems to better match the required transport demand with excess supply in real time and provide travel pattern visibility, helping passenger and logistics operations become nimbler considering a quickly evolving context.

Making sure public awareness campaigns are consistently available to all in a format and language understandable to all.

1.6

Structure of this Report

Following this introduction, the report is structured as follows: > Section 2 provides a summary of key findings from the Diagnostics Report which forms the basis for the development of the 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 Eldoret’s key sectors. > Section 3 introduces Eldoret’s development concept and how it aligns to exiting plans. It is supported by the economic vision developed by the local stakeholders. > Section 4 set outs the Urban Economic Development Plan.

Each of the 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 5 outlines the Development Framework and supporting climate resilient infrastructure projects that have been identified for enabling urban and economic growth within Eldoret. > Section 6 presents a range of implementation considerations to support the next stages of the SUED Programme.

Redefining green spaces and the way city centres are designed for business.

Appendix B – Technical Briefing Paper This captures the process followed from identification to assessment of growth opportunities for Eldoret 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 UEP. Appendix C – Eldoret Gender and Social Inclusion Study This study was a key part of the diagnostics 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 Eldoret 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 - A Climate Change Vulnerability Assessment A Climate Change Vulnerability Assessment has been undertaken to outline the climate vulnerability context for the selected infrastructure projects to be developed in Eldoret.

The Climate Vulnerability Assessment will complement associated pre-feasibility and feasibility study.

The report is supported by a series of appendices, in which:

Strengthening preparedness and emergency response capacity is critical. This means better preparedness in terms of financing, service delivery and business continuity including budgeting for future crises, emergency operations centres, capacity building, drills, and human resources redeployment plans.

Appendix A – Eldoret Diagnostics 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.

Prioritising policies to confront spatial, social and economic exclusion with the aim of cushioning the vulnerable in the face of another shock.

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2. Eldoret Urban Diagnostics 2.1

Before any proposed interventions are developed it is important to understand the local development context and potential opportunities and barriers to growth. The Municipality’s assessment has been undertaken in the UEP diagnostics process, as presented in Appendix A.

Eldoret is the fastest-growing Municipality in Kenya and is the headquarters of North Rift Economic Bloc (NOREB). It is also the administrative and largest town in Uasin Gishu County.

The diagnostics phase was a critical process to establish a solid foundation for identifying solutions that can deliver economic, social and environmental benefits. This section provides a summary of the Diagnostics Report’s assessment of:

It is geographically located in the west of Kenya, approximately 320km north of Nairobi via the Northern Corridor (A8), 114km to the north east of Kisumu and 140km2 from the Uganda border at Malaba. The current demarcated Municipal boundary reflects an area of 147.9km2, which is less than 5% of the County’s total land area, as demonstrated in Figure 2.1.

> Eldoret’s planning and regional context, its socio-economic profile, with urban and economic conditions and trends;

The LPDP itself sets out a wider ‘planning boundary’ for Eldoret covering 724km2, which makes up 25% of the Uasin Gishu County area3. This wider proposed boundary had been associated with potential City status designation, though this is not currently accepted, and is shown on Figure 2.1 with surrounding satellite towns. Towns within the immediate vicinity of Eldoret include Baharini, Burnt Forest, Moi’s Bridge, Sogomo, Marura/ Chepkenga, Kapseret and Kipkorgot. These towns and centres are located along main transportation routes and have important links into Eldoret as well as the adjoining counties and other large regional towns such as Kisumu, Kitale, Iten and Nakuru.

The importance of plan making beyond the Municipal boundary is well recognised due to the role Eldoret plays in the County and region as the primary urban centre, with an advantageous location and a strategic role that could expand particularly with its focus in key statutory documents including the National Spatial Plan. Further, important assets and developments are located outside the Municipal boundary including Eldoret International Airport and the AEZ Special Economic Zone.

> The state of existing infrastructure; and > Environmental and climate risks.

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Study Area

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Figure 2.1 Eldoret Municipality Study Area

C51

Eldoret is well connected to the rest of the country, being located on the national-trunk road (A104), the metre-gauge railway from Mombasa/Naivasha (SGR) to the Uganda border and Eldoret International Airport providing connections both nationally and internationally. Inter-county and intra-county linkages are also supported through its existing road networks including: Northern Corridor or Trans-Africa Highway (A8), Eldoret – Iten (B8) and Eldoret – Kisumu (B16), Eldoret – Kitale (B14).

D328

KUINET

BAHARINI

2.1.1 So ni

sia r ve Ri

ELDORET

D296

D288

KIPKORGOT pk

Ki en

ar r ve

County Boundary

KAPSERET

LPDP Planning Boundary Municipality Boundary Adjoining Counties Key Roads Rivers Railway

E325

Ri

Satellite Towns

The NOREB region is within the Kenya Rift Valley and is made up 8 counties: Uasin Gishu, Baringo, Elgeyo Marakwet, Nandi, Samburu, Trans-Nzoia, Turkana and West Pokot. The Bloc reflects 21% of Kenya’s land area and its total population of 6,019,000 makes up 12% of the national population.

The NOREB region serves as a gateway to both East and Central Africa as it falls within a major transport corridor, the Mombasa – Nairobi – Malaba – Kampala road, also known as the Northern Corridor. This corridor links the region to the Port of Mombasa, the East and Central Africa economies of Uganda, Burundi and Democratic Republic of Congo. Eldoret’s position in the NOREB region, and its strategic transport links, is demonstrated in below.

C54 A104

Plateau Station

CHEPLASKEI C39

NGERIA

Regional Role

The economy of NOREB is predominantly driven by the agriculture, forestry and fishing sector, which contributes over half of the total GDP produced in the region. In the national context, NOREB contributes 9.1% to Kenya’s GDP, with Uasin-Gishu County representing the biggest economy in the regional bloc – predominantly as a result of the region’s main economic hub of Eldoret.

CHEPKOILEL

Eldoret (CBD) Station

Nakodok

Key

AEZ Special Economic Zone

Eldoret International Airport

CHEPTIRET

Lapsset Highway Oil Pipeline Proposed Highway

Turkana

Proposed Railway Northern Corridor - Road Northern Corridor - Rail Counties

Marsabit

Uganda

Trans Nzoia Bungoma

Siaya

Commercial Nodes

Eldoret

Isiolo

Vihiga

Homa Bay Nyamira Kisii Bomet

Source: SUED Atkins Team

Samburu

Uasin Gishu

Kericho

A104

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Ethiopia

Eldoret

CHEPKANGA

A104

Sudan

Figure 2.2 Eldoret Regional Context

Laikipia Nyandarua

Tharaka-Nithi Nyeri Kathwana Kirinyaga Murang'a

Source: SUED Atkins Team E L D O R E T U R B A N EC O N O M I C P L A N ( U E P )

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The main objective of the economic bloc is to enhance trade and investment opportunities through collaboration.1 The bloc aims to enhance the competitiveness of the individual county economies through leveraging their comparative advantages and promoting inter-county collaboration in implementation of cross-border projects to ensure optimal allocation of resources.2 Notable industrial investments across the Region include the AEZ and the Alten Solar Project, which are both initiatives within Uasin Gishu and Eldoret.3 The UEP development is also cognisant of the aspirations and focus of the Lake Region Economic Bloc (LREB) given it sits to the west of Uasin Gishu and includes Kisumu city, Lake Victoria and Basin, the Western tourist circuit and with border access points. The LREB has a larger population than NOREB with 13.8 million residents and entrance to Uganda, Tanzania and Rwanda is coordinated through LREB into the COMESA region. There is an ambition to build dry ports in the counties bordering Lake Victoria (Siaya, Kisumu, Homabay and Migori) and connecting these ports with the road network through Eldoret; with a new and upgraded railway system for international cargo export and import there would be potentially significant economic uplift.

Among the counties in the region, Uasin Gishu County is the most urbanized, yet it has one of the region’s lowest shares of urban land (2.5%), emphasising its higher levels of population density. The County is known as ‘Kenya’s bread basket’ due to its large scale production in maize and wheat which produces the bulk of Kenya’s total harvest. In terms of land uses, agriculture is the most predominant at 81%. Besides maize and wheat, the County produces beans and horticultural crops such as tomatoes, avocados and passion fruits. Maize is grown at large scale in Kesses, Kapseret, Turbo and Ainabkoi whilst wheat is grown in Moiben and Ziwa areas.

Within the County and NOREB, Eldoret is the regional trading hub and draws on its catchment from strong connectivity within the County, NOREB and wider regional and national trading routes. It is currently home to several large industries including Rivatex, Unga Limited, Kenya Cooperative Creameries (KCC) and Kenya Pipeline Corporation. Eldoret also hosts other service industries relying on the hinterland for production inputs and providing secondary employment opportunities for residents in the satellite urban centres. It is the centre of commerce, education and public health facilities for NOREB. Eldoret experiences high natural and inter-city immigration from across the region, whilst rural-urban migration remains a very important phenomenon to its growth. Eldoret is a mature, largely successful, dynamic and attractive urban centre due to its business opportunities, strategic and highly accessible location, range of civic amenities, prominent health facilities and high-quality educational institutions that produce thousands of graduates every year. It has economic diversification and sector strengths and has generally strong infrastructure provision.

It is also widely known as the ‘City of Champions’ due to the number of world class athletes that have grown up and developed in the area. Eldoret is a base for international runners due to its altitude and conducive climatic conditions for medium and long distance running.

With Eldoret’s national designation as a critical growth node and major regional hub, alongside its range of services and infrastructure of regional and national importance, it will play an increasingly important role for the region’s economic uplifts, income and quality of life improvements. The AEZ will be a significant hub for the region’s produce and a consolidation point for import substitution and exports, with regional trade facilitation and inter-county collaboration being key enablers for the region’s economic growth.

In summary, the following spatial focuses are used throughout the SUED project for Eldoret Municipality: > The Municipality, as the main geographical focus and with focal points beyond the current boundary. > The CBD is considered as it has relevant for elements of the diagnostic assessment. > The County, with the Municipality as its major centre. > The region as NOREB, the North Rift Economic Bloc, with Eldoret the strategic centre.

The population of these geographical areas are presented below.

Table 2.1 Population of Eldoret spatial focuses Area

Population (year)

Eldoret Municipality

475,700 (2019, Census 2019)

The County

1,163,000 (2019, Census 2019)

NOREB

6,019,000 (2019, Census 2019)

Source: Census (2019)

2.2 Planning Context The planning context sets the basis for the development of the UEP. The Diagnostics Report (Appendix A) covers: key international and national trends likely to influence the sustainable growth trajectory of Eldoret; national strategies and policies, and; Eldoret’s own priorities and ambitions.

The National Spatial Plan (NSP) has identified Eldoret as a critical development and growth node and as a major regional hub within the national context. The Municipality provides a wide range of services and infrastructure of regional and national importance including an oil transportation

pipeline, Eldoret International Airport, the railway line to Uganda and Central Africa and the ‘gateway’ along the A8 northern corridor.

The Uasin Gishu County Spatial Development Plan (CSP) 2015 - 2025, currently in draft form, provides the County wide spatial development framework. The plan provides the basis for local physical development plans and sectoral policies to ensure land and natural resources are sustainably developed with equitable distribution of infrastructure to improve living standards.

The Uasin Gishu County Integrated Development Plan (CIDP) 2018 – 2022 is the second CIDP since the establishment of the County Government and has been developed to identify county level projects and programmes, it recognises the regional role of the County within NOREB and emphasises the importance of inter-county collaboration for the implementation of projects to ensure efficient allocation of resources and benefits distribution.

The CIDP prioritises investments in water services, agricultural production and food security, roads infrastructure, social services and cooperatives development and management.

There is also a focus on ensuring participation in development from youth, women and PWDs. The Eldoret LPDP 2015 - 2040, provides strategic direction for the development of the City Municipality over the next 20 years. The focus is on land use planning to provide guidance on managing competing demand for space within the Municipality.

The aims are: > To establish a conceptual and policy basis upon which to plan, develop and fund the future development and operations of physical development within Eldoret;

> To set out specific initiatives in the development of key Land Use Zones by establishing a Structure Plan for the period 2015-2040; and > To ensure implementation by addressing operational standards, delivery strategies, action areas that require detailed planning, and guidelines that will support Eldoret’s development and operations.

Key objectives include identifying a system of quality spaces and streetscape elements, and promoting sustainable growth without compromising agricultural productivity. It provides development and urban design guidelines to manage investments and development and identifies catalytic public sector led projects to kick-start development. The plan is in draft form before full adoption.

The first Urban Integrated Development Plan (IDeP) was recently developed to guide the Municipality’s planning and budgeting purposes for the period 2019-2024. Currently in draft form, the Plan provides a broad framework along with key objectives, goals and timeframe to help the MB deliver on its Vision to become ‘one of Kenya’s model cities for good urbanism, strong communities and greater liveability’. The development focus covers all aspects of the urban context including buildings and social infrastructure, key economic sectors, urban resilience and resources, municipal services, governance and social cohesion. A Municipality assessment and identification of priority areas for interventions is accompanied by goals, required strategies and proposed projects. The Plan highlights the need to prepare a comprehensive Municipal Local Economic Development Resilience Plan.

Other planning instruments and policies upon which UEP is developed includes Kenya Vision 2030 which is the country’s economic blueprint, National Land Policy that provides a broad guidance on sustainable use of land, and NOREB’s strategy of creating and naturing a conducive business environment.

Planning aspirations Both the Eldoret IDeP (2019-2024) and the LPDP (2015-2040) have acknowledged that rapid urbanisation has impacted Eldoret and its urban core and caused it to expand in an uncontrolled manner beyond its urban borders and into the surrounding high value, fertile agricultural lands.

The future spatial development strategy for Eldoret is one of urban consolidation through the more optimal use of existing land within the current urban boundary whilst acknowledging and managing outlying development initiatives which will have a significant impact on the role and socio-economic development of Eldoret over the 25 year planning horizon.

These developments include the existing Eldoret International Airport, the rehabilitation of the metre-gauge railway, the Africa Economic Zone (AEZ) and Olympia City complex, along with the solar power plants, the Eldoret Ring Road, and other key development corridors such as the A8 and C39. Outlying centres such as Kipkorgot, Kipkenyo, Baharini, Cheptiret and Kesses, Eldoret and Moi Universities, and various natural features such as the Sosiani River have development potential.

Of equal importance has been the protection of existing agricultural land which will now be brought under land use management within the overall regulatory system of the Physical Development Plan. For example, peri-urban agricultural land along the edge of the Municipal boundary has been designated for future low density residential development, or it will remain as deferred agricultural areas for the time being. This will mitigate the future uncontrolled encroachment of informal settlements and other forms of development which have been a significant problem in the past.

The proposed land use plan of the LPDP is supported by a series of sub-regional land use plans which focus in on the future expansion and growth areas of the Municipality in order to ensure orderly, controlled growth both within the urban core (CBD densification) and the agricultural hinterlands.

1. Kenya Council Of Governors, ‘Regional Economic Blocs’ (2018) (available online: http://www.cog.go.ke/regional-economic-blocs 2. Uasin Gishu County Integrated Development Plan 2018-2022 3. Uasin Gishu County Integrated Development Plan 2018-2022

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Achieving City Status In 2018, the County Assembly of Uasin Gishu received an application from the MB to initiate the process of conferring Eldoret with City status. It then developed a bill which is currently being debated and thereafter will be submitted to the Senate to request the President for conferment of a city. It is expected that the process will be concluded in 2022.

In order to meet the target date, the Municipality has initiated development projects through various programmes.

For instance: street widening, accessibility improvements and drainage improvements are ongoing under the Kenya Urban Support Programme (KUSP). There is installation of street furniture and improved waste management through the County government. Slum improvement projects are also ongoing and funded by Kenya Informal Settlement Improvement Programme (KISIP). The County is partnering with various funding agencies to build a museum and an amusement park along River Sosiani. Further, the essential policy frameworks of the CSP, the LPDP and the IDeP are expected to be complete by end of 2021.

The rationale of Eldoret City is based on the successful administrative and economic roles Eldoret is playing in the region, as one of Kenya’s largest towns. The quest for City status forms a strategy to attract more investment into the Municipality through the Central Government of Kenya (CGoK) and the private sector.

2.3

State of Eldoret

Urban Centre Character

2.3.1 Municipality Character Natural Features and Environmental Constraints Located south of the Cherengani Hills and west of the Great Rift Valley, Eldoret sits on an elevation ranging from 2,090m above sea level around Eldoret Municipality and 2,100m above sea level at Eldoret International Airport. The Sosiani River flows through Eldoret, a sub-catchment of the larger Nzoia River Basin and is a major source of water for the population living upstream and downstream.4 Encroachment into riparian reserve of River Sosiani

Land use and growth The Municipality has been plagued with incongruent land uses due to lack of a comprehensive land use plan. The challenge of rampant incompatible land use and development has been aggravated by the high rate of population growth within the Municipality (4.3% per annum), surpassing both the national and Nairobi urbanization rates (4%).5 The rapid increase in population has had significant negative consequences to the overall urban context, built form and social development. This includes the mushrooming of informal settlements, significant unemployment and a burden on public amenities including housing and infrastructure.

Agricultural land is being sub-divided and lost to production, with the sprawling settlements encroaching into the rich agricultural hinterland, and land prices have rapidly increased as competition for urban space has exacerbated.

Figure 2.3 Eldoret Municipality predominant land uses

Within the urban core there remains a range of land uses and facilities, which are typically found within a large urban area, which have been developed in a relatively organic fashion and now represent a mature and relatively successful centre. These land uses range from national, regional and local transportation infrastructure, commercial, institutional and civic uses, industrial areas of varying types and uses, health and educational facilities, and various pockets of residential development. Many of these developments and structures, especially those associated with railway and industrial development are now old, unused and/or dilapidated and hinder future development potential. Figure 2.3 below demonstrates Eldoret’s main existing land use structure, whilst Figure 2.4 indicates the key use areas and places within the urban core and on its fringes.

Langas informal settlement Source: SUED Team Eldoret Site Visit

The County and Municipality authorities are proactively addressing this through the developing land use framework as a temporary measure as they complete various timely planning instruments (Section 2.2).

Source: SUED Atkins Team, LPDP land use plan (2019)

4. Ouma, Y and Kipyego, S. (2018) Analysis of Nonpoint Source Pollution Loading on Water Quality in an Urban-Rural River Catchment Using GIS-PLOAD Model: Case Study of Sosiani River Watershed. Civil and Environmental Research, Vol.10, No3.

5. KNBS Census (2019)

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Some of the key places shown below include the Eldoret CBD and railway station area, hospitals which serve the wider County and region, Eldoret University complex, centres of civic administration and some of the key trading markets within the Municipality. The Sosiani River Green Belt is also a key asset traversing the urban core.

2.3.2 Socio-Economic and Demographic Profile

The following are key socio-economic statistics for Uasin Gishu and Eldoret.

Demographic Profile Uasin Gishu County is the 11th most populous county in Kenya, with 1.16 million people and is the most populated in the NOREB bloc, accounting for 23% of the bloc’s total population.

Eldoret is the region’s largest urban centre with an estimated population of over 475,700 in 2019, making it the 5th largest urban centre in the country, behind Nairobi, Mombasa, Nakuru and Ruiru. As a key urban centre, Eldoret will have a significantly higher day population, due to people traveling to the Municipality to access facilities and jobs.

Eldoret’s population density is relatively high, due to its role as a major urban centre, with a population density in the Municipality of approximately 2,500 residents per hectare.

In the regional context this is a moderately high population density, with neighbouring county Elgeyo Marakwet’s main urban centre, Iten, having a population density of approximately 300 residents per hectare, however it is lower than other major urban centres in Kenya, such as Kisumu with a population density of 4,700.

The population in Uasin Gishu County is relatively well educated compared with the rest of the country, with 74.9% of the population either currently attending or having graduated from a school or learning institute, compared to the national average of 67.1%.

Women’s and PWD’s lower rates of education and paid employment render them more vulnerable to poverty. Youth unemployment levels remain high in Uasin Gishu County, alongside a large student population who then lack job opportunities. These vulnerabilities can be exacerbated at times of economic disruption or crisis as shown by the current COVID-19 pandemic.

Figure 2.4 Eldoret Municipality main central land functions and places Source: SUED Atkins Team 30

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Social Inclusion The approach to GeSI was guided by the SUED Programme’s need for age, gender, PWDs and refugees’ inclusion, and the Consultant’s use of a three-dimensional approach covering social, economic and spatial dimensions of inclusion as illustrated in Figure 26.

Figure 2.5 The Three Dimension of Inclusion

The Study sought to understand Eldoret’s special interest groups (SIGs) through a GeSI - related literature review, key informant interviews, focus group discussions and observation.

Further, SIGs’ representatives have attended all the UEP development workshops and participated in the business survey; and youth, women and PWDs have a representative, an Inclusion Champion on the PSG. According to the County’s Integrated Development Plan (2018 - 2022), the County Government’s focus on inclusion has been:

Multi-Dimensional Approach to Inclusive Cities

Spatial Inclusion Improving access to infrastructure, affordable land housing

> Development of a PWDs and Gender Mainstreaming policy by the Devolution, Administration and Public Service Management Sub-Sector.

Economic Inclusion Ensuring opportunities for all and sharing of benefits

Social Inclusion Improving the terms for individuals and groups to take part in society

Source: SUED Atkins Team 32

> Establishment of a revolving fund for vulnerable groups, youth and women empowerment programs and revival and financing of cooperative societies to reduce poverty and increase incomes.

Despite the County’s plans and successful implementation of some, KIIs and FGDs conducted at the Municipality level established that PWDs, youth, women and informal settlements dwellers still feel excluded as presented below.

PWDs exclusion in Eldoret Municipality takes the following forms:

Youth

Women

Lack of involvement in decision making: Often PWDs are hardly involved in planning for projects or in matters that involve them. They are even left out of decision making on matters that concern them.

Lack of involvement in decision making: This creates a gap between the youth and the government and/or projects because the youth do not get opportunities to express their views about projects or matters that concern them.

In Eldoret, KIIs and FGDs conducted with women established that women in the Municipality are mostly engaged in farming, business, and casual labour.

Information barriers: Both the county and national governments, and projects and programmes do not develop communication plans with PWDs in mind. It was reported to be even a major challenge in hospitals where the deaf and dumb are unable to communicate to doctors as they are not trained in sign language.

Limited access to capital: Youth in business and farming find it difficult to do large scale trade or farming due to lack of finances.

> Empowerment of women in the County financially and improvement of nutritional needs of their families by supporting 1,474 women groups with 218,000 chicks through the Inua Mama na Kuku programme.

Discrimination in employment and other income generating opportunities as people judge PWDs as ‘unable’ to work.

> Training 3,000 out of the targeted 3,500 SMEs in courses related to the management of SMEs. The effect of the training has lowered the business closure rate by over 20% due to enhanced management capability of businesses amongst the 25 traders. In addition, over 5,000 traders were provided with reliable business information through the County website. To support Business Support services, a business incubation centre was adopted in Eldoret.

Challenged accessing vital spaces and buildings: lack of inclusive infrastructure makes accessing public transport, government offices and other spaces like markets a challenge as most are not designed with their needs in mind. Many buildings lack PWDs-friendly facilities.

> Refurbishment of social amenities e.g. Rescue Centres and a Social Hall.

Observing COVID 19 protocols on social distancing for PWDs who require an aide is a challenge as they need constant assistance from them.

> Implementation of social safety nets programmes targeting PWDs and OVCs (orphans and vulnerable children) through the establishment of a PWD fund benefiting 2,200 families.

Additionally, the County organises inter-community cultural festivals annually to promote peaceful co-existence among communities in the county, while empowering the youth through the Kijana na Acre programme, and training and development of Vocational Training Centres infrastructure.

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High unemployment rates: challenges finding jobs have left the youth idle and predisposed to substance abuse. For employment, requirement for too many years of experience for youth who have just graduated.

Tribalism in sharing of employment opportunities.

Harassment of hawkers by law enforcers yet they do not have designated areas to operate from.

Lack of youth participation in identification and design of youth programmes e.g. the Kijana na acre County government programme only benefits rural youth as urban youths do not have land to give as collateral to access financing.

Stigma and high poverty levels.

Limited access to capital: Most of the PWDs are poor and do not have regular sources of income or assets that they can use as collateral to access loans.

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PWD youths face difficulties accessing buildings and infrastructure.

Lack of representation - women reported being left out of decision making, Discrimination - female youth reported being discriminated against in employment.

Threats - girls from poor families have been at risk of being trafficked to foreign countries, or circumstances forcing them into early marriages and substance abuse.

Limited access to capital – due to the low incidence of women owning property in the County, women reported that it is challenging for them to access capital.

Despite the challenges however, women perceive themselves as industrious and willing to work.

Opportunities for inclusion in the SUED Programme include involvement of all in decision making and in the development of safe, climate resilient and inclusive infrastructure. This will enable better access to capacity building initiatives, seed capital and employment opportunities – especially through participation in the VC projects.

Special attention will need to be given to the informal settlements within the Municipality.

As raised in Section 1.5, there are interlinkages between climate change and poverty, as climate change will impact income security and quality of life. It is important to understand where the burden of climate change impacts may fall and how societal groups can be included in proposed mitigation measures.

Social inclusion is cognisant of this nexus. The Programme has reviewed how the UEP can adopt climate adaptation approaches, as well as inclusivity in all forms, to avoid exclusion of certain groups and reduce inequality. Similarly, it has sought to understand how urban development, infrastructure and VCs can be made more resilient to climate shocks, where climate impacts hit vulnerable groups hardest.

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Economic Profile Uasin Gishu is a large-sized economy (the 9th largest economy in the country) and the biggest in the NOREB region, contributing 27% of the Bloc’s GDP in 2019.6 Much of the County’s economic activity stems from Eldoret, which is the administrative capital of the County and the biggest urban centre in the NOREB region.7 Despite this, the economy is experiencing some concerning trends – lower than average GCP growth, productivity and productivity growth.

Figure 2.6 Economic growth context Source: Gross County Product (GCP) Report (2019), KNBS

Uasin Gishu County also shows recently low productivity levels, with a GCP per capita below the national average. The County has experienced slow growth in GCP per capita at 1.3% per annum, less than half the national average rate. Within the NOREB region, Elgeyo Marakwet is out-performing Uasin Gishu with the second highest GCP per capita in Kenya (2017), and the third fastest growth rate.

Figure 2.7 GCP per capita (in KES)

Uasin Gishu’s economy grew at 4.9% per annum between 2012 and 2017, which was below the national average (5.6%) and the NOREB average (5.7%). The County’s GCP growth rate performed particularly poorly in comparison to neighbouring county Elgeyo Marakwet, with the fastest growing GCP in the country (10%).

Mandera

Turkana Marsabit

Kenya Wajir West Pokot Trans Nzoia

ElgeyoMarakwet

Samburu Isiolo

Bungoma Baringo Busia Uasin Gishu Kakamega Laikipia Meru Nandi Vihiga Siaya Tharaka-Nithi Kisumu Nyandarua Kirinyaga Kericho Nakuru Nyeri Homa Bay Nyamira Embu Murang'a Bomet Kisii Migori Kiambu Narok Nairobi Kitui Machakos

Garissa

Tana River

Source: Gross County Product (GCP) Report (2019), KNBS

Makueni Kajiado

Lamu

GCP change 2013-17 < 10% Kilifi

10 to 20% 20 to 30%

Taita Taveta

30 to 40% Kwale

> 40% 6. KNBS, GCP Report (2019) 7. KNBS, Census Volume II (2019)

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Sectors: Eldoret’s three key economic sectors have been identified as: > Agriculture and Agri-processing > Trade and Services > Industry and Manufacturing Uasin Gishu has a relatively diverse economy, especially compared with the region which is more heavily dependent on agriculture (at 53% of regional GDP). Agriculture still accounts for the largest share of Uasin Gishu’s economy at 37% of total output and is followed by technical services (ICT, finance and insurance, and professional services, 19%), retail and hospitality (16%), logistics (10%) and public services (10%).

The County is a major contributor of manufacturing, construction, logistics, technical services and retail and hospitality output in NOREB, accounting for over a third of the region’s economic activities in each of these sectors, especially manufacturing with Uasin Gishu accounting for 87% of the region.

The region’s tertiary sector activities are concentrated in Uasin Gishu, especially retail and hospitality. Eldoret has been identified as a major regional hub, with trade an essential part of the economy, which is reflected by Uasin Gishu accounting for 42% of the region’s retail and wholesale outputs. It is also home to nationally important education and medical facilities, Moi University, the University of Eldoret, Eldoret National Polytechnic and Moi Teaching and Referral Hospital.

Figure 2.9 Eldoret economic sector context

The growing number of businesses has led to an increasing number of business services activities, such as financial institutions. There are approximately 40 bank branches in the Municipality, 19 major micro-finance institute and SACCOs, and a branch of the Central Bank of Kenya.

37%

14%

Figure 2.11 shows the breakdown of employment types for Eldoret and the County compared to the national level. A high proportion of residents in the Municipality work for pay (40%) compared to the County (28%). This does not capture the informal economy, which is a relatively high proportion of working people, at 51% for Uasin Gishu, which was above the national average of 44.3%. The formal sector accounted for 32.4% of working population, the 6th highest in Kenya.

19%

2%

4%

5% Agriculture

Construction

Mining & utilities

Logistics

Manufacturing

Technical services

There were 36,254 registered businesses in Uasin Gishu County in 2014, with almost half (49%) being licensed retail traders (excluding supermarkets). The vast majority of businesses within the Municipality are small and employ fewer than 10 workers, however a number of large manufacturing and processing plants have established themselves, with the largest having 1,100 employees.

There is a large and growing population of micro, small and medium sized enterprises (MSMEs) operating out of the CBD. These businesses are involved in a range of products and services including metal work, furniture, automobile repairs, building implements and electrical appliances.

Figure 2.8 – Uasin Gishu County Sector GCP Breakdown

10%

Figure 2.10 Eldoret employment types

The Municipality is home to 6 main markets and numerous smaller markets, which host more than 2,000 traders selling a variety of products from fresh fruit and vegetables to second-hand clothing.

The broad sectoral split is as follows: 37% in the primary sector; 21% in the secondary sector; 42% in tertiary sector.

10%

The State of Business in Eldoret

Source: Gross County Product (GCP) Report (2019), KNBS

Source: Census (2019), KNBS

Source: Gross County Product (GCP) Report (2019), KNBS

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SUED Business Consultation

Thirty six businesses, reflecting key sectors, were interviewed on their business type, operations, barriers and growth potential. Results found that Eldoret businesses reflect a variety of sizes and linkages, with other businesses upstream and downstream in the production chain being relatively extensive: > Producers to consumers: producers sell directly at the local market. > Producers to processers: producers sell directly to local processing plants.

A consensus on the key challenges enablers to growth for businesses were identified: Table 2.2 Business identified growth enablers Type

Enabling growth

Access to finance

Access to finance was identified as a fundamental enabler for growth, though many people remain reluctant to taking out a loan unless interest rates or the collateral amount was lowered.

The possibility to develop grants in order to help businesses buy capital equipment was raised.

Addressing market competition distortions

Price wars, competition from illegal street traders and business permits, rent and taxes reduced profit levels.

Agriculture businesses stated that there was excess supply after harvest, some businesses had to close as farmers sell directly to traders. In the retail and trade sector, there is excess demand especially when schools start.

> Producers – retailers/traders: producers sell their products to retailers who operate in the markets within Eldoret.

These producers come from a large catchment area, including Uasin Gishu and neighbouring counties and further afield from Uganda and Tanzania.

Market-related Infrastructure

> Producers – retailer/traders - small retailers/distributors: retailers who operate in Eldoret’s major markets sell produce to other traders/distributors who sell in smaller, local markets within and outside the County.

Transport infrastructure

2.4 Infrastructure Overview The Municipality’s infrastructure has been assessed and evaluated in its current provision and state and planned projects to identify strengths and critical gaps. Overall, Eldoret has a strong provision of infrastructure and will need to make some upgrades to existing infrastructure and commit to key new projects to support economic growth and development.

This includes capitalising on macro-level drivers of growth and

Water Nationally

58%

Markets need to be more accessible so that the flow of people and goods is improved. There is also demand for lighting, better waste disposal and electricity.

Network connectivity needs to be improved – with few roads outside the CBD tarmacked and high levels of congestion about the CBD. Skills and technology

Wastewater and Sanitation Water supply deficit is approx.

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

8,000m3

per day neither meet the quality standards.

Source: SUED Atkins Team

Septic tanks and pit latrines are used widely in households and institutions.

Main natural hazard is flooding during heavy rains, as well as associated landslides.

There is no centralised sewerage system.

Poor agricultural practices contribute to water pollution.

Diarrhoea and cholera outbreaks are common.

Small sludge treatment facility, located outside Kutus town, can only handle 3-4 sewage exhauster trucks per day.

Drainage Drainage infrastructure does not form a drainage network.

There has been limited uptake of modern technology, locals are not trained in how to operate and service technology and equipment.

Agri-processing and manufacturing businesses mentioned that they required more modern machinery and storage space.

Improved road and transport infrastructure, beyond the significant road investment in recent years, and the promoted adoption of green energy will provide a critical basis for future sustainable development. There is unprecedented road traffic volumes and congestion in the CBD that will likely require

Non-revenue water is estimated at 60%. Losses are high due to leakage from the aging pipe network, illegal connections and a lack of consumer meters.

Some propositions include unloading space, additional cold storage space and general storage for keeping goods in the market over-night.

The condition of the road networks and related parking space leads to access difficulties for remote areas and generates congestion, especially on market days.

its outlying development initiatives, including the AEZ, which will have a significant impact on its role and development over the long-term.

Increasing urban river pollution, mainly due to runoff of pollutants from urban areas and combined sewer overflows caused by incapacities in the combined sewer network.

Solid Waste Only a small percentage of all total waste is collected and transferred to designated dumpsites.

Dumpsites typically do not have NEMA licences and waste is often burned.

Transportation

bypasses to address, whilst there are some challenges in connectivity with impassable rural roads, areas of poor drainage, lacking streetlights, and bus bays. The over-demands and stress on the water infrastructure and impacts of climate change threaten agricultural production and industry alongside long-term energy supply and affordability.

The key infrastructure gaps identified include the following, and threaten the quality and functioning of Eldoret’s existing urban environment and as its moves toward City status.

The infrastructure assessment also identified opportunities which complement or are in advance of the County’s short to medium-term plans set out in the CIDP, LPDP and IDeP. These infrastructure opportunities support Eldoret’s key sectors and include a new approach to solid waste management, providing significant business and employment generating potential; and improving the quality of feeder roads and decongesting the centre with suitable NMT provision and an effective multi-modal public transport network, as per Eldoret’s 2020 Transport Masterplan.

A future challenge for the Municipality is ensuring that the increasing demand for power doesn’t outstrip the available supply. The introduction of Value Chain opportunities in industry, to position Eldoret for sustainable and climate-resilient growth, will significantly increase demand in core development areas for renewable energy, waste and water re-use.

It is acknowledged that current practices cause air and water pollution and pose risk to public health and the environment.

Poor road surface conditions within KC. Most access/feeder roads are earth surfaced and do not provide for all-weather access, including lack of storm water drainage.

Energy Lack of NMT facilities in urban areas that pose safety concerns to road users and makes urban areas inaccessible by PWDs. Inadequate parking spaces in town and within bus parks, which is inadequate for the matatus operating in the area.

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Cost of electricity is very high. Most people continue to use firewood and charcoal for cooking as LPG and paraffin are too expensive.

Significant lack of cold storage and available machinery to boost the economy and add value.

Current level of energy infrastructure in more rural areas is fairly sparse. Areas needed to support agri-processing are mainly remote and likely to be unserved by the grid.

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2.5 Environment and Climate Change Risk Profile There are present environmental challenges in Eldoret and Uasin Gishu County that impact quality of life, and economic resilience and that may exacerbate climate change risks.

These include wetlands and forested areas being under threat from agricultural activity and wood burning; soil and land degradation as a result of dependency on chemical fertilizers; changes in the River Sosiani catchment, with flooding events; and poor solid and liquid waste management.

There are also strengths and opportunities presented by the existing environmental conditions, with climatic conditions in the ecological zones providing a conducive environment for a variety of crops and products and production of livestock; opportunities for aquaculture with the River Sosiani; and initiatives for greening the County and Municipality.

With regards to climate change, the main climate change risks are rainfall variability, extreme rainfall and flooding, and extreme temperatures. These have been assessed to have critical interactions with Eldoret’s economic sectors of agriculture and trade in particularly and with Eldoret’s SIGs. These interactions form an important nexus between climate change, poverty and inclusion, providing threats to livelihoods and the urban environment.

Eldoret already suffers from the effects of climate variability and climate change, and flood or drought events, specifically through impacts on agricultural commodities such as potatoes and avocado, and these impacts are likely to increase in future.

Climate change is recognised as a threat in the CIDP, and the SUED programme provides an opportunity to:

> Increase the capacity across the public sector, industry, and community groups to deal with drought, rainfall variability, and flooding. > Develop more climate resilient value-chains will help farmers adapt to changing conditions and preserve Eldoret’s competitive advantage. > Ensure that infrastructure is more climate-resilient, thus reducing damage and disruption from extreme events such as flooding.

Additionally, there is growing financial interest in sustainable and climate resilient investments, both from national and international climate funds, as well as private sector investments with a focus on positive social and environmental impacts. The integration of climate resilience into the UEP proposals, and the explicit linkages made between climate change, poverty and inclusion, will provide a strong foundation for attracting sustainable finance, and will complement the County Strategy on Climate Finance.

Eldoret Municipality represents a vibrant economy, driven by agriculture, trade and services covering transportation, education, health and hospitality, light industrial activity and agri-processing, as an economy that has a highly important role in the region. The UEP identifies activities and actions with the highest economic growth potential and added value in order to promote diverse economic development and to increase prosperity within the Municipality, the County and wider region. This will support greater economic output and GCP per capita growth going forward, where this has been sluggish in recent years. Eldoret will need to focus on key economic sectors with competitive advantages that can support economic growth and provide jobs for the local community.

Appropriate adaptation measures to support both the VC and infrastructure projects are proposed (Section 5). These link to key ongoing initiatives such as the Kenya Climate Smart Agriculture Project, which focusses on building resilience to climate risks through sustainable land management, enhanced water management, and livelihood diversification, among others. The CIDP and LPDP also note the importance of developing climate resilient infrastructure, in particular in the face of floods and extreme rainfall, adaptations include:

The diagnostic assessment has enabled key challenges and drivers to growth to be established:

> The design of climate resilient infrastructure to reduce the impacts of extreme rainfall events, for example better drainage and increased permeability of surfaces;

> Climate threats to agricultural production, alongside land loss, and climate threats to urban activity.

> Retrofitting existing development with climate and disaster risk reduction technology; > Conserving and enhancing green spaces in order to reduce urban heat island effect; and > Incorporating rainwater harvesting requirement for new buildings to control runoff.

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2.6 Diagnostics Conclusion: Drivers and Barriers for Growth

Barriers to Growth > An urban area that continues to be highly congested and poorly planned with ineffective land use. > Infrastructure provision gaps that provide current issues to the urban realm and limit industrial development and inward investment.

> Continued exclusion of SIGs and the proliferation of informal settlement areas. > Poor availability of labour with the required skillset and a lack of jobs for skilled youth. > Crowding out of local enterprise activity, employment and supply chain opportunities with significant private investment, driven through the AEZ.

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These identified barriers, alongside the insights of consultation, have been considered in the UEP’s development and inform the vision and Development Concept (Section 3).

Long-term developments:

The diagnostic assessment has identified key drivers for growth:

> Macro-level developments of Eldoret International Airport and rehabilitation of the Nairobi-Malaba railway corridor, to be utilised for regional agri-industrial and city role.

Drivers for Growth Eldoret’s drivers for growth can be summarised into three key categories – near-term developments, long-term development and enablers for sector growth. These are set out below and expanded on in the Diagnostics Report (Appendix A).

Near term developments: > Enhanced collection systems and cold storage provision at the right locations for agriculture across production areas, markets and transport hubs. > Urban environment improvements, with decongesting measures, urban greening and leisure space for residents, businesses, students and visitors. > The provision of affordable housing for residents, students and graduates.

Enablers for economic sector growth and improved livelihoods: > Capacity building in agri-processing, with an inclusive approach. > Improved access to finance and affordable light industrial and incubation space for MSME activity and growth.

> Eldoret’s further developed regional agri-industrial hub role and emerging City status.

> Development of the designated AEZ and Olympia City.

Eldoret can leverage its existing, and developing, aviation and rail assets to play a stronger role as a gateway into NOREB and the inland neighbouring countries such as South Sudan, Rwanda, Burundi and Uganda. This function can only be realised through an integrated network. A well-run railway can offer an economical solution to transporting general freight that is not time sensitive. This requires investment in rehabilitating and renewing infrastructure and rolling stock where the bulk commodities supporting it are available.

Eldoret International Airport could be a very valuable resource in the multimodal transport network serving the region.

However, while infrastructure interventions are needed to improve the airport’s runway so it is able to handle long haul planes, more important will be efforts to coordinate exporters to redirect their logistics routes to the airport. Furthermore, the building on the current connections Eldoret has to a network of urban centres, as growing regional towns, and North Rift natural resource and agricultural production areas, will support regional market access and the arrival of inputs and products into Eldoret for value addition and distribution.

The AEZ provides a significant scale of economic uplift over the medium to long-term, with opportunities across production and processing. It will be important for the development of the AEZ to recognise the complementing and competitive offer provided at other regional hubs, including Kisumu SEZ with its own manufacturing focus, whilst the nearby centre of Bungoma provides a further entry point into Uganda and the Lake Region Economic Bloc has aspirations for Lake Victoria and the Port. Furthermore, effective partnerships and collaboration in the planning and delivery of the AEZ should ensure there is a wide pool of beneficiaries with access to opportunities to utilise its land and services. This will require support and capacity building to ensure the local, county and regional population and businesses can effectively take up the opportunities on site as well as the wider supply chain that may continue to be located at production areas outside the AEZ. Olympia City would provide a new residential centre, providing demands for urban services, retail and leisure supporting economic uplift. It would itself offer leisure and retail, with consideration of an Athletics Development Centre supported

by Moi University, as a draw card for visitors and business.

> Improved access to required skills by industry with capacity building and education provider partnerships. > Local and regional facilitation to enable the utilisation of International Trade Agreements and trade corridors. > Coordination of marketing, distribution and export of products, with inter-county collaboration.

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3. Development Concept 3.1

Introducing the Development Concept

3.2

UEP Vision

The team have analysed the responses to identify common themes and key phrases:

The UEP vision that best represents the MB, PSG and wider stakeholder’s aspirations is stated below:

> A modern city

The UEP Development Concept is the broad framework that helps to integrate climate resilient, sustainable and inclusive urban development, infrastructure proposals and Value Chain (VC) projects for Eldoret and thereby; structure, prioritise, and phase urban development coherently with respect to the three focus areas for development and investment.

The UEP sets out an economic vision to guide the economic and urban development of the Municipality. A visioning exercise was undertaken at the TBP workshop where PSG members, MB members and wider stakeholders were asked to consider the key elements of the UEP vision, whereby proposed vision statements were submitted by the PSG and MB members and a further 28 stakeholders attending the workshop.

The Development Concept is informed by and will be an accompaniment to Eldoret’s land use plans and spatial planning framework. Eldoret Municipality has recently developed its first draft IDeP to 2025 and its 2015-2040 LPDP, which are well-thought-out and set the basis for Eldoret’s continued regional and emerging city role. The LPDP guides future uses within the Municipal boundary and importantly extends the land use plan to cover a wider planning area which incorporates the agricultural hinterland and satellite settlements (or growth nodes), as well as key assets such as the Eldoret International Airport and the plateau area site for the AEZ and Olympia City developments. Master planning documents of the industrial site developers, such as ICDC, are also recognised and complemented.

> Smart city > Green city > National/ Regional agri-processing centre > National/ Regional industrial hub > Regional business hub > Technological and innovation hub > Investment destination > Inclusive > Liveable > Healthy > Prosperous > Vibrant

“ Eldoret is a liveable, smart city providing high-quality and resilient services and inclusive economic opportunities for the region, whilst expanding its role as a leading centre for agri-processing, industry and innovation.”

> Decongested > Well-planned > Affordable > Accessible > Revenue generating > Self-sufficient

These new planning documents for Eldoret, along with the UEP, will set the basis to realise these and other transformative developments for Eldoret and the region, which will have significant economic and quality of life uplifts for its resident communities.

> Efficient > Excellent infrastructure > Entrepreneurship

This Section presents the Development Concept and provides an overview of its key components.

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3.3

Setting the Framework

The Eldoret Development Concept has a purpose to realise significant socio-economic and place making benefits for all of Eldoret’s residents and businesses through infrastructure upgrades and interventions, effective and well-located functions and service provision, and improved liveability as Eldoret moves towards becoming a city that serves the wider region.

Informed by the Diagnostics Report and engagement with the Eldoret PSG and stakeholders, the UEP: > Promotes effective urban regeneration, centred on transport facilities in the CBD as transit-orientated development (TOD) to support the realisation of centre densification and city services provision for the North Rift region. > Delivers a liveable and decongested city environment through infrastructure upgrades and place/public realm improvements. This considers safe and inclusive access to public transport travel, green infrastructure corridors, effective solid waste management, flood management, street lighting and street features and universal access for all citizens. > Proposes feasible VC projects for Eldoret to support sustainable economic growth, with their suitable location and infrastructure requirements proposed alongside their economic benefits and viability.

> Integrates climate resilience and social inclusion throughout the proposed urban development interventions, infrastructure proposals, VC projects, and sector action plans.

Figure 3.1 UEP Development Concept

Vision and Objectives:

Eldoret is a Liveable City and Regional Eco-Industrial Hub

The UEP urban development and infrastructure projects for the three identified focus areas, and the wider Municipality area, together form an integrated system between:

Development Concept

> a functional and green city centre, providing the right mix of city services and urban development opportunities;

Regional city development: liveable, green functional city centre CBD Regeneration as catalyst and focus area High quality infrastructure services for wider Municipality

> local affordable industrial space, allowing for smaller scale light industry development; > supporting transport hubs, distribution centres and logistics corridors (across road, rail and air); and, > the significant AEZ for agri-processing and industrial investment, and its adjacent future Olympia City development.

The overall framework to deliver on this purpose is presented below in Figure 3-1.

The vision for Eldoret is based upon the development of Eldoret as 1) an effective city for the region, on the basis of liveable, green and smart principles; and 2) a regional eco-industrial hub, as a strategic national centre for agri-processing and industry centred on the AEZ development as well as more local serving affordable industrial space.

> Utilises Eldoret’s economic drivers and transport hubs, alongside the AEZ development, to deliver a trade and manufacturing centre for the region and as investment opportunities for Eldoret’s agri-processing and industrial sectors.

Regional eco-industrial hub An ecosystem across AEZ Local Industrial Space Logistics Network Effective access for inputs and to markets

Economic Sector Action Plans and Value Chain Projects Trade and Services Sector Plan Services provision for the City, trade enablers for Regional Eco-Industrial Hub

Industry and Manufacturing Sector Plan Bamboo Lumber VC Affordable Industrial Space and business support actions

Agriculture and agri-processing Sector Plan Fruit and Vegetable Canning VC, Maize Milling VC Actions to support farmers

Focus Areas as UEP Investment and Project Areas CITY: FA1 CBD Regeneration and Consolidation Projects: Transit-Orientated Development, Wider Municipality Infrastructure Upgrades

> Supports effective linkages between Eldoret’s education institutions, its city role and business sectors, supporting students and MSMEs with value addition opportunities in well-served affordable spaces, alongside accommodation and services provision for students and investors.

Regional Eco-industrial hub: FA2 Eldoret Indsutrial Area(s) Projects: ICDC Site and Logistics Infrastructure

Regional Eco-Industrial Hub: FA3 AEZ Projects: VCs, Enabling Infrastructure and Collection Networks

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Regional City Development The aim of the UEP is to support Eldoret Municipality and its stakeholders in their vision for Eldoret, and to guide the move toward City status in a manner which is green, sustainable, liveable and smart – ensuring its population and businesses are well-served to prosper and benefit from a higher quality of life, sustainable economic growth, and an improved living environment.

Delivering the vision for an Eldoret City is dependent on the wider city functions working in a connected and integrated manner. This means that industry can develop and grow to realise Eldoret’s role as a regional hub, without damaging the city centre’s development prospects and functionality; where the city serving role of the centre supports the regional hub through skills development, innovation, and access to markets; and where the transport and logistics corridors work effectively between the different focus areas and other growth nodes.

The rationale for Eldoret City is based on the administrative and economic roles it already plays in the larger North Rift region, and as one of the largest and fastest growing towns in Kenya. Eldoret is a largely successful, appealing, and dynamic urban centre, with significant opportunities for growth where effective adaptations and development around the city vision can realise these for the Municipality, County, and wider region.

At present the centre provides an all-purpose function, with a myriad of uses adjacent to and often conflicted with one another across industrial and logistics uses, open market areas, commercial and retail developments, residential buildings, health and education facilities, public sector offices and so on. This constrains the ability of the centre to expand and develop its core services offer for the region’s residents, businesses and visitors, as an appealing destination that would in turn attract investments and drive income flows to Eldoret’s local businesses and generate revenue to ensure economic sustainability.

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The attainment of City status requires certain elements.

The Urban Areas and Cities (Amendment) Act of 2019 provides for conditions under which a town can be classified as a city it must meet the following, where these are rated as green (met), amber (partly met or planned to be met) or red (a notable gap) for Eldoret at present: ave a population threshold of at least 250,000 H people - Eldoret meets this given its current population of over 470,000, and position as Kenya’s 5th largest urban centre.

D emonstrate the capacity to generate sufficient revenue to sustain its operation – This was also selected by the Eldoret PSG and stakeholders as a key evaluation criterion for the UEP proposals. Revenue generation will be supported through provision of services and business rates of new development.

D emonstrate the capacity to effectively and efficiently deliver essential services to its residents - This is an overarching aspiration for the Municipality in its planning strategies and for the UEP proposals. As such, Eldoret needs to make provisions for these in its centre with more effective use of available land.

H ave institutionalised active participation by its residents in the management of its affairs - This should also be socially inclusive and the PSG will play a key role in taking forward the UEP proposals where key stakeholders and community groups continue to be engaged.

H ave statutory development plans - Essential policy frameworks such as the CSP, the LPDP and the IDeP are ongoing and expected to be complete by end of 2021. These have been well thought out and developed in respect of Eldoret’s city aspiration and regional role.

Have fairly well developed infrastructure – Overall Eldoret has good infrastructure provision.

The Municipality has initiated development through various programmes including street widening and accessibility improvements with the KUSP and slum improvement with the Kenya Informal Settlement Improvement Programme. The UEP infrastructure proposals include upgrades to support the continued refinement of Eldoret’s regional role from a city and industrial perspective.

Have key government institutions among others – Eldoret hosts Municipality and County Government offices and a Central Bank branch. By consolidating the CBD uses further institutions can be hosted and clustered as is appropriate.

Beyond meeting these City status requirements, Eldoret has a need to address its documented challenges (Section 2.2 - 2.3) and more so to realise significant opportunities through an effective city offer.

Focus Area 1 (explained further below) provides a focal point for regeneration and is a critical driver for the city and catalysing development. It sets out a phased and flexible approach to its land use - to expand and link its current functions and to adapt these functions into the future within a regional destination for people, commerce, services and transport.

Regional Eco-Industrial Hub Development Eldoret already has a notable industrial sector, it has a significant regional role as the key economic driver, and it is a centre for manufacturing in the NOREB (Section 2.1.1).

There is political momentum and national agenda alignment for Eldoret’s increasing regional hub role and with the wider enabling macro-level developments and private sector investment including the AEZ and railway (Section 2.6).

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Catalysing and delivering an effective regional hub approach requires a supporting supply chain and logistics sector, in the right locations and with the right scale, as a sustainable distribution network for inputs, processing, storage and outputs to utilise the Northern Corridor and developments related to the railway and Eldoret International Airport. There is an opportunity to enable an economic ecosystem that is greater than the sum of parts, where local enterprises can access opportunities within the growth sub-sectors and their supply chains, regional production areas are integrated within an inputs and distribution network, and there is inter-county collaboration in trade facilitation and exportation.

Figure 3.2 below maps out the focus areas as investment nodes for the Development Concept.

The three areas for investment to realise a liveable, green city for the region and a Regional Eco-Industrial Hub are:

This reflects sites already identified in the LPDP, with the ICDC site to the South of the CBD the primary focus in the short to medium term. The ‘Leseru site’, to the north-west towards the County boundary and adjacent to the southern bypass and rail line; and the ‘Kapseret site’, adjacent to the C39 and close to the international airport, are considered for their longer-term role in supporting Eldoret city and its regional hub status.

This Focus Area is supported by the industry and manufacturing sector action plan.

Focus Area 3: the Plateau site of the AEZ, Olympia Park and Plateau rail station, as the significant long-term development driver for Eldoret’s role as a regional industrial hub. The AEZ will be a significant hub for the region’s produce and inputs across a range of sector value addition activity.

Focus Area 1: is a critical area and investment node in driving forward Eldoret’s development as an attractive, effective and investable city centre. A CBD focus for urban regeneration and consolidation, including land around and adjacent to the CBD rail station for development and managed densification. There should be a consolidation of city services in a decongested centre, driven by TOD development and the removal of obsolete and decaying industrial uses. This reflects a key UEP urban development project (Section 5) to drive forward aspirations for Eldoret as a city.

The AEZ provides an important consolidation point for import substitution as well as in export-orientated activity, with its interaction with the SGR railway developments, linkages to Mombasa Port and the Eldoret International Airport and its future development. It will be prudent for Uasin Gishu and nearby counties to include AEZ facilitation in their economic development plans, supporting business access to procurement opportunities for AEZ construction and operation, with the range of investor activity; and for workforce access to the site with relevant training schemes to facilitate the ready skills for accessing sustainable employment opportunities.

This is recognised in the sector action plans (Section 4.1)

This Focus Area is detailed in Sections 5.2 and 5.5 with its green infrastructure projects and is supported by the trade and services sector action plan.

The AEZ presents an ideal location for the identified VC projects and wider VC clusters given its existing Masterplan with investment and infrastructure proposals.

Focus Area 2: Eldoret Industrial Areas, for the development of well-serviced space for Eldoret’s enterprises to take forward light industrial activity and access relevant markets, as well as the provision of logistics hubs to support the wider economy.

The UEP introduces some further development recommendations for the AEZ that meet with SUED principles and support the development of a Regional Eco-Industrial Hub. This focus area is supported by the agriculture and agri-processing, and industry and manufacturing sector action plans.

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Focus Area 2 and Focus Area 3 form the development of a Regional Eco-Industrial Hub, detailed with its green infrastructure intervention projects set out in Section 5.3 and 5.4. Together these Focus Areas facilitate both significant, international investors (AEZ) and local industrial development opportunities (Focus Area 2), which require effective, integrated logistics as extensions to the existing distribution networks.

The UEP also considers the wider Municipality and County area for further infrastructure upgrades that support the city development beyond Focus Area 1 and those that support key centres of agricultural production, enabling access to agri-processing opportunities.

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Figure 3.2 Development Concept for Eldoret with three Focus Areas (FA)

The relationship between these areas is critical to the overall success of Eldoret’s developing economic ecosystem as the region’s city and industrial centre. These relationships have been factored into considerations for their respective roles; their development and infrastructure requirements; and key linkages that can drive socio-economic benefits that are more than the sum of their parts.

These linkages include the Eldoret Industrial Cluster (FA2) and AEZ (FA3) to the International Airport and strategic road network; the Plateau railway station for the AEZ; an effective and well-planned logistics network for agriculture and production inputs; transport hubs access and regional and cross-border trade facilitation; last mile access to Eldoret’s various markets, including storage and distribution; and an effective multi-modal transport network within a decongested centre, connected to Focus Area 1.

Section 5 sets out the Development Framework with the proposed urban development and infrastructure projects in detail for this Development Concept.

3.4

Economic Development – Sectors and Value Chains

The approach to city and industrial development for Eldoret within the region has been well considered in the Municipality’s statutory planning basis including its LPDP and IDeP. The UEP in parallel aims to strengthen the Municipality’s economic role, based on its competitive and comparative advantages, while taking a citizen-centred approach to green city growth and sustainable investment to realise Eldoret’s potential as a regional hub.

The Economic Development Plan for Eldoret is based on the economic vision presented above, and the sector action plans set out in Section 4.1. These action plans respond to the diagnostics phase, where the Municipality’s key economic sectors – agriculture and agri-processing; trade and services; and industry and manufacturing – were assessed according to a SWOT framework that utilised data gathering, stakeholder engagement and business consultation to identify the opportunities and threats for each sector.

Value Chain projects have been assessed to select three primary VCs for Eldoret, as part of a wider value addition cluster that can be developed thereafter and utilise the opportunity of the AEZ development. These VCs are canning of fruits and vegetables, bamboo lumber and later fibres, and maize milling.

These primary VCs, and wider VC clustering and industrial opportunities, sit within the wider Economic Development Plan for Eldoret (as set out in Section 4.2). A number of key outcomes are identified to establish VCs which drive an economic ecosystem that can grow and ensure opportunities for Eldoret’s residents, in particular its women, youth and PWDs, who have previously been excluded from more formal employment.

These action plans build on this to ensure the realisation of Eldoret’s significant economic opportunities and the mitigation of threats in an inclusive and resilient way. The UEP will support the Municipality in delivering a cohesive, holistic, sustainable and resilient economic future for Eldoret as a city and industrial hub within the region.

Source: SUED Atkins Team

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4. Economic Development 4.1 This section sets out the economic development plan for Eldoret by setting out specific development recommendations for Eldoret’s key sectors of agriculture and agri-processing, trade and services and industry and manufacturing.

Economic Sector Action Plans

4.1.1 Overview Eldoret is the largest urban centre in the NOREB region, which is reflected in its role as a regional economic hub.

While the primary and secondary sectors, predominately agriculture and agri-processing as well as construction and manufacturing, are the current key economic drivers in the Municipality, there is also a large and growing urban economy.

Eldoret is already recognised as a major trading, logistics and distribution hub, and is quickly developing a strong tertiary sector, including finance, education and health services.

The section then presents the prioritised VCs of fruits and vegetable canning, bamboo lumber and maize milling in detail.

The sectoral plan for Eldoret Municipality must be integrated and reflect co-dependent interventions. As for every growing economy, sectors are strongly interrelated, and development cannot be thought of in silos. In the case of Eldoret in particular, its relatively large size means that there is scope to push towards developing secondary and tertiary sector activities, where demand and supply for more advanced goods and services could be met in the future. Strong linkages between sectors are essential to achieve this – for instance, the development of agri-processing, whether that is processing per se, packaging, branding, marketing or export, can only succeed if supported by a reliable agriculture sector and developed service activities. If well planned, sectoral growth could trigger ‘spill-over effects’, whereby skills and sectoral development can foster entrepreneurship and new ideas generation.

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The larger size of Eldoret Municipality and its regional significance also provides the opportunity to utilise existing assets and institutions to support this development plan.

These are the County and Municipal governments, the universities and health facilities, the large trading and distribution community, and the developing supporting sectors such as banking. Fostering strong and serious linkages between these institutions and identified sectors will also be crucial for their development.

Three key sectors have been identified for further assessment, and the Economic Development Plan has formulated Action Plans for each sector. These are premised on the SWOT analysis that was part of the Diagnostics Reporting stage (Appendix A). Summaries of the SWOTs are presented below for each sector. These Action Plans have been informed through the SUED business consultation exercise (Section 1.3), local workshops with stakeholders and data analysis.

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Figure 4.1 Sector Action Plan overview

4.1.2 Agriculture and agri-processing

INDUSTRY AND MANUFACTURING

TRADE AND SERVICES

AGRICULTURE AND AGRI-PROCESSING

ECONOMIC AMBITIONS

Agriculture is a sector of fundamental importance to Kenya’s economy. It accounts for approximately 25% of annual GDP with a further 25% through the sector’s supply chain and related spending. Agriculture represents 65% of Kenya’s exports and accounts for 70% of informal employment in rural areas. As such, developing the sector has been identified as a central component of the country’s growth strategy, as clearly reflected in Vision 2030.

ACTIONS

A modern and efficient agricultural sector

Increased availability of training

Improved access to equipment and machinery

A more resilient agricultural and livestock sector

Increased availability of training

Establish reliable water sources for farmers

Promotion and exportation

Better utilisation of transport

Establishing an Eldoret Agricultural board

Develop the agri-processing sector

Establish an agri-processing cluster

Improve access to finance and business support

Improve conditions at local markets

Develop a well-functioning unloading zone

Provide facilities and infrastructure at the market

Establish Eldoretas a logistics hub

Better utilisation of transportatim offering

Promote exports

Developing a strong transportation sector

A more liveable municipality

Improve connectivity around the CBD

Ensuring leisure and commercial offering

Increase supply of affordable housing

Develop services sector

Promote education and medical facilities

Business incubation training hub

Business and training tourism

Provide built infrastructure to support the industrial sector

Develop industrial clusters

Well-established Jua Kali space in the CBD

Develop local industries

Promote textiles

Local supply chain

Establish a skilled workforce

Partnership with local education institutions

Create inclusive employment targets

Deliver high-quality products to an international market

Promotion of exports

Promotion of exports

Ensuring sustainability and protecting the environment

Eco-industrial cluster

Eco-industrial cluster

Creating a stable market

Support farming to become organic certified

A well-organised and integrated

market offering

Integration of hawkers in legal trading activities

Improve urban infrastructure

Help SMEs access financial and business support

Agriculture is the largest contributor to the County’s economy, contributing 80% of total rural household income. Uasin Gishu is known as one of the ‘bread-baskets’ of Kenya due to its high production of crops, especially wheat and maize. The County is home to a variety of agricultural practices, from small scale farming to high mechanised large-scale farming. Other key products grown in Uasin Gishu include beans, Irish potatoes, sunflowers, passion fruit, coffee, macadamia and avocados.

For agriculture, favourable climate and soil conditions allow for diverse crops to grow, however, various challenges have been noted, such as land use competition, limited uptake of modern farming methods and climate variability.

Source: SUED Atkins Team 52

Specific policies being targeted include improving the branding of Kenyan agricultural products to increase their value in global markets and improving the management of land registries for land use to help increase productivity.

The national government aims to support and develop agri-processing, in an effort to develop the industrial sector locally, make local communities more resilient, and develop new products that can be competitive on international markets. The national government recently developed the Agricultural Sector Transformation and Growth Strategy (ASTGS), with the aim of creating 200,000 new jobs and increasing the contribution of agri-processing to GDP by 50%.

Manufacturing activities more broadly are also part of the government’s strategy which is giving momentum for new activities to develop.

Skills development, crop diversification and building resilience are key areas of action. Agri-processing is a growing and promising sector in the County, with several major processing plants having established themselves in and around the Municipality. Eldoret is identified as a regional growth hub in the National Agricultural Strategy8 with close proximity to an identified national growth area near Lake Victoria with port and border points to Uganda.

Strengths, Weaknesses, Threats and Opportunities From the Diagnostics Report analysis, the following key strengths, weaknesses, opportunities and threats were established. These were used to determine the actions proposed in the following section.

Table 4.1 Agriculture and Agri-processing: SWOT Strengths

Weaknesses

› Conducive climate of County and North Rift › Uasin Gishu the ‘bread basket’ of Kenya produces extensive volumes of maize and wheat › Horticulture production is a major export product from the Municipality, with around 15 flower farms › Good road links to neighbouring and regional markets for transfer of goods › Eldoret University Outreach Centre delivers short courses in agricultural training

› The County experienced some movement away from wheat and maize production › Encroachment into the rich agricultural hinterland › There has been a mixed experience with agricultural initiatives › Lack of cold storage points around Eldoret’s trade centres › Wet season flooding frequently damage crops, blocks transport routes and damages infrastructure › Soil and land degradation, due to dependency on chemical fertilizers

Opportunities

Threats

› Well located in a high-agri potential area and noted as a regional growth area › Increasing the production of crops with value chain potential (e.g., avocados, passion fruit and macadamia). › Animal feeds and anaerobic digestion facilities to improve resource efficiency › Opportunities to utilise road, rail and air linkages to distribute products to wider markets › Value addition activities to offer new activity for local enterprises, MSMEs and graduates › County support in developing of fish farming › The AEZ provides an opportunity to drive Eldoret’s role as an agri-processing hub

› Climate change risks, extreme temperatures and unpredictable rainfall › Competition from neighbouring Elgeyo Marakwet and LREB › New value addition activity can be limited with an increasing lack of land availability › Limited sustainable water resource availability › The continued exclusion of PWDs in agri-processing opportunities and barriers to youth and women accessing business opportunities

Source: Eldoret Diagnostics Report (2021)

8. National Agricultural Strategy, CGoK (2018)

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Table 4.2 Agriculture and Agri-processing: Action Plan

Aim

Aim

Action

Description

Develop a modern and efficient agriculture sector

Create training programmes for farmers

A1: Farmers within the County use traditional farming techniques, which are now out-dated and inefficient and prevent them from maximising their yield and therefore income. The Municipality should capitalise and build upon the various existing initiatives related to agricultural training and education delivered by the Universities and other local institutions, such as agricultural trade fairs/exhibitions, the Outreach Centre and training and research centres. The Municipality should bring the institutions offering training together to establish an integrated and well-planned training programme for farmers. Training and education should be based around the following topics: 1. Provide farmers with information on how to maximise yield and improve resource efficiency: The Municipality should encourage farmers to carry out soil testing to identify the optimal fertiliser to use. Seed sellers should provide information to farmers on agricultural best practice, specific to the seed being sold to the farmer.

Farmers would also benefit from being trained on the effective implementation of crop management, to ensure yields are maximised. It is also important for farmers to understand the benefits and costs associated with agricultural inputs and how to optimise them. KEPHIS provide a service which verifies the quality of inputs by sending an SMS with the input dealer’s license number.

2. Climate-smart agricultural techniques, that will allow farmers to be prepared for more variable rainfall, and extreme events: Working with the Kenya Climate Smart Programme on approaches such as agro-forestry, water harvesting (explored further in action A6), and low or no till agricultural practices to improve water availability and increase resilience to climate change. Training on how to access, interpret and apply weather and climate information, such as seasonal forecasts provided by KMZ, will help farmers adapt to climate change.

3. Increased understanding around which crop varieties have the optimal output and are the most resilient: During the harvest period cereals flood the market, which lowers the price and income of farmers. Farmers should be educated on the benefits of growing cash crops to diversify their produce and increase their incomes. A cultural change in behaviour is needed as currently food crops are seen as safer to grow due to their edible nature. In order to change behaviours, there needs to be a stable market for cash crops, with contracts between suppliers and farmers which ensures quality and quantity of produce.

4. Methods for protecting crops against pests (locusts and termites) and disease: Pesticide sellers should educate farmers on the benefits and negatives of using pesticides and best practice.

Due to social norms, discrimination, or reduced participation in farmers groups or cooperatives, SIGs usually lack access to information about trainings or extension services. Ensure SIGs are communicated about this training programme and similar opportunities.

Action

Description

Develop solutions to increase access to modern equipment and machinery

A2: Many farmers, especially small-scale farmers, do not have optimal access to machinery, relying on using manual techniques or borrowing/hiring equipment and vehicles from neighbouring farmers. This leads to harvesting and other agricultural processes not being carried out at the optimum time, due to waiting for machinery to be available, or using other techniques which are very time consuming and labour intensive. A viable solution for improving access to machinery is the availability of communal machinery, which farmers can book to use. This would increase farming efficiency, maximise yield and boost incomes for farmers.

Farmers should also be educated and trained on alternative techniques that do not use expensive machinery but is more efficient than manual methods. A number of inexpensive, hand-held equipment options are available for ploughing and other laborious processes. These could be produced by the local Jua Kali sector and showcased at local trade fairs. Increased uptake of these machines would improve efficiencies in the sector.

Another solution to this challenge would be to group local small-scale farmers to jointly invest in machinery. This reduces the upfront capital cost for farmers and encourages collaboration among farmers. These groups of farmers would also benefit from economies of scale with respect to the transportation of goods to market.

It is recommended to promote the creation of SIGs groups and their participation in existing associations to support their access to these opportunities.

Investing in greenhouse infrastructure is another method of increasing productivity in the agricultural sector. Growing crops in greenhouses helps to control pests and disease, as well as water management. Farmers generally have limited incentives to develop personal greenhouses due to the high upfront cost, however the Municipality could establish greenhouse facilities across the County with farmers renting out space for growing produce. This is particularly beneficial for growing crops with a high level of seasonality, such as tomatoes, as it would be possible to grow these crops all year round. These facilities would need to be financially and physically accessible to all farmers, so that small-scale farmers and SIGs are not excluded.

Establishing cold storage facilities benefits farmers through greater bargaining power with their customers, stabilising prices and safeguard incomes, in particular given increases in both average and maximum temperatures. Cold storage facilities are explored further in Section 5.5.2.2, Project 4.2.

It is recommended to develop a digital communication strategy to inform farmers, and particularly target SIGs, about storage availability. This strategy should be in an accessible format and could be used to divulge training opportunities, market information, weather issues, etc. Accompanied with measures to close the digital gap, this initiative could particularly benefit those groups who face challenges to access agricultural information.

Given that some farmers, remote communities, and SIGs can have difficulties accessing training centres because of limited mobility, transport costs, or time availability, training centres should also consider going out to local communities to give day or half-day sessions. The location, timing, and length of trainings should be compatible to women’s care and community responsibilities. Ensure training formats and materials are gender-sensitive, accessible to all and consider people with different literacy levels.

Case Study Mace Foods: Mace Foods is a vegetable packager, processor and exporter based in Eldoret Municipality. It has developed a well-functioning business model in Eldoret, which supports local farmers in providing fresh produce to their processing and packaging centre. Mace Foods are supporting local farmers through the following methods: › provision of seeds at cost › facilitating farmer field days where they can learn about best practice › delivering exhibitions at local and international trade fairs › setting up collection points across the geographical area where their farmers are located Mace Foods are ensuring the quality of produce by carrying out a series of sample assessments certified by both Kenyan and European laboratories and are Fair Trade certified.

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Aim

Action

Description

Aim

Action

Description

Create an online marketplace for farmers

A3: As cashless transactions are increasingly important and with regards to physical restrictions related to the COVID-19 pandemic, there is a need to support farmers selling their products online. A digital platform that would act as an online marketplace, could be developed. It would be managed by a cooperative and would play the intermediary role of collecting products, receiving orders, delivering to clients and paying back farmers.

More resilient agriculture and livestock sector

Adopt circular economy practices for agricultural waste

A5: The agricultural sector generates a large amount of waste products, either through harvesting and processing activities or through produce spoiling due to not being sold in a timely manner. The waste generated should be utilised to produce animal feeds, which can be sold to livestock farms. This will benefit both agriculture and livestock farmers, through creating an alternative income stream for agriculture farmers and by offering a cheaper alternative input for livestock farmers. Any waste not appropriate for animal feed should be considered for compost or AD which still benefits famers as it can produce a soil improver, which is explored further in section 5.4.4.4 as Project 3.3.

There are several businesses within the Municipality and County that require agriculture and livestock products on a regular basis, such as agri-processors, shops, restaurants, hotels, etc. It would be beneficial to both the businesses and farmers if partnerships could be established. This would provide businesses with a reliable supply of produce, control over products and price and provides farmers with a guaranteed customer for produce and therefore a guaranteed income.

Farmers should also aim to reduce post-harvest loses through improved crop handling, transportation and storage.

There could be issues of traceability, with the buyers of agricultural produce not knowing the quality of product. Buyers often want to understand how crops have been grown, whether pesticides have been used and how they have been treated post-harvest.

Case Study Ramm Millers:

This action has the potential to increase SIGs’ access to markets and enhance their livelihoods if their voices are represented in the cooperative and they participate in decision-making processes. To maximise benefits for SIGs, this action should be accompanied with measures to close the digital gap (i.e.: digital skills development, increased access to technology and internet), particularly for women9. A gender-sensitive approach is required to understand different needs, access, and control of ICTs. These types of initiatives should integrate both men and women to generate awareness, at the household and community levels, about the importance of including women in these initiatives. Doing this will lead to greater social inclusion, SIGs’ empowerment, and increased agricultural productivity.

Ramm Millers is a maize processor in based in Eldoret Municipality, which gets supplies from local farms for production of maize flour and other maize products for human consumption. The business sells its products to local households, retail shops, supermarkets, hotel and restaurants.

Ramm Millers offers an extensive range of training sessions to farmers and the wider local community with a particular focus on encouraging the involvement of women in the maize processing industry.

Case Study

Ramm Millers have incorporated resource efficiency principles into their business model, through utilising the by-products of sifted maize to produce cattle feed which is supplied to local dairy farms.

Farmsquare: Farmsquare, https://farmsquare.ng is an online agricultural store and marketplace based in Nigeria for farm produce, agricultural products, agricultural equipment, etc.

It offers an online platform for farmers to digitally market their produce and customers to conveniently and securely shop for agricultural commodities, with orders being delivered to the customer’s location. The platform allows customers book farm products ahead of time, to get freshly harvested products straight from the farm, save costs and increase security for both farmers and customers. Farmsquare partner directly with local farmers to offload their harvests quickly to buyers, which helps to reduce postharvest farm produce wastage by 70% and the costs from buying from middlemen.

Establish reliable water sources for farmers

Farmsquare supply and deliver organic produce/products, conventional fresh farm produce, processed agro products, livestock, fruits, vegetables, chemicals, fertilizers, seeds, livestock feeds, machineries and equipment to customers.

Farmsquare also promote certified organic products and offer farmers information, education and training on modern farming techniques and resource efficiency/ optimisation through their Agro News and Blog page.

Develop a business support platform for the agricultural sector

A4: Financial access was identified as a common limitation among businesses surveyed, and is also a common barrier to the adoption of more climate-resilient farming practices, as small-scale farmers in particular tend to lack access to the finance needed to purchase improved crop varieties, insurance, or new machinery and equipment. There is scope to develop a business support platform which focuses on access to finance, accounting, marketing, stock management, with the support of local banks. The development of a business support platform would provide the linkages to education, finance, and agricultural training, and could also look to support businesses providing products and services for climate change adaptation.

In line with the social inclusion recommendations for the previous actions, it would be important to make sure this opportunity is also available and accessible to SIGs engaging in businesses and those who would like to start one.

A6: The rains in Uasin Gishu have become increasingly unpredictable, and ‘false starts’ to the rains often lead to losses as farmers plant crops for which there is then insufficient rainfall for successful growth. Improving water management could provide more consistent sources of water, and would help farmers adapt to variable rainfall. Rainwater harvesting and storage is a simple method of improving the availability of water which is cost effective (costing as little as US$ 500) and easy for small scale farmers to carry out, in particular if coupled with increased awareness of water-conserving agricultural practices. This has been noted as part of the principles for Eldoret’s Eco-Industrial development.

Irrigation is another option to improve access to water, however it will only be viable for large-scale or high value farming due to high initial and ongoing costs. Solar irrigation is explored further in Section 5.5.2.3, as Project 4.3.

Promotion of local exports

Utilise transportation to reach wider markets

A7: There are significant plans to rehabilitate the railway, which will increase the viability of utilising it for cargo transportation. An improved railway would provide the opportunity to efficiently transport more of Eldoret’s production and inputs, such as cereals, fruit and vegetables, and produce of the wider region to key destinations (Nairobi and Mombasa) for selling or exporting.

Eldoret International Airport provides the potential to increase exports on a global scale. It is envisaged that Eldoret International Airport will develop into a key cargo hub for the region, enabling agricultural produce to be exported from the Municipality. The airport has the potential to be a key asset in the trade route within the western areas of Kenya, and if this potential is realised it could become a major gateway to East Africa. Despite this, the airport currently only operates 5 cargo flights a week, with key difficulties in bulking produce for export.

For these advantageous transportation offerings to be fully utilised, there needs to be improved methods of collection and bulking of agricultural produce, especially to make cargo flights from Eldoret Airport commercially viable. Collection points should be established at key points throughout the county, with the produce being bulked together for exportation. Collection points are explored further in Section 5.4.4.1, as Project 3.1.

9. FAO (2018) Gender and ICTs: Mainstreaming gender in the use of information and communication technologies (ICTs) for agriculture and rural development, by Sophie Treinen and Alice Van der Elstraeten. Rome, Italy

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Aim

4.1.3 Trade and services

Action

Description

Establish an Eldoret Export Board

A8: Barriers to export were noted during the business consultation process. The proposed Export Board could provide advice to businesses on export promotion, negotiate shared deals with brokers and develop a branding strategy around Eldoret products. The board should be developed in close cooperation with the public and private sector and include local businesses, representative from the Chamber of Commerce and Eldoret government trade and agriculture officials. The Board should also drive forward inclusivity and climate resilience to ensure the longevity of the agricultural sector.

The board could provide farmers with a centre within the Municipality where they can obtain information on agricultural certification and licencing, as well as controlling the quality of local agricultural produce in line with KEPHIS requirements.

Support farmers to become certified for organic farming

A9: The Municipality could support farmers to become certified as suppliers of organic produce. Certification provides information to buyers regarding the quality of the product, which allows the farmer to sell at a higher price and increase income. Becoming a certified organic producer also gives farmers access to new markets which require organic produce and increases the opportunities to export produce, both nationally and internationally.

Due to the challenges with controlling for external conditions, it is often difficult to bulk produce organic crops. One solution to this challenge could be the development of greenhouses, due to an increased ability to control agricultural inputs and grow crops in a quality-controlled way.

Organic certification often takes several years, during this period it is essential that farmers receive support from the local government and other organisations to enable them to complete the certification process successfully. It will be useful to engage with the Kenya Organic Agriculture Network (KOAN) and Kenya Institute of Organic Farming (KIOF) and organic certification control bodies, such as Encert and East African Organic Products Standard (EAOPS), and other international control bodies to better understand what it needed from farmers and what support should be provided.

SIG’s involvement in organic production should be encouraged and supported by the municipality. The POETCom initiative has developed a toolkit which guides farmers to increase organic production, through applying gender and social inclusion best practice.

Develop agriprocessing sector

Establish an agri-industrial cluster

A10: A new industrial cluster area should be developed in Eldoret, outside of the centre, where agri-processing Value Chain projects, selected through the UEP evaluation process, will be located in the proposed industrial cluster. Industrial clusters are explored further in Section 4.1.4 (Action C1) and the Development Framework, Section 5.4.

In order to ensure a stable and timely supply of inputs to the agri-industrial cluster, the agri-processors should establish local contract farming and a buying and collection centre for local produce from within the County and beyond with neighbouring counties within NOREB. Contract farming with local farms will ensure that the required crops are grown in the right quantity and quality and will provide farmers with a guaranteed income and processors with a guaranteed supply. Contract farming models can also be used to help with farmers’ access to credit, and can be structured to promote the adoption of resilient farming practices.

Both contract farming and buying/collection centres require time to become established and build a level of trust between supplies and buyers; the Municipality could offer support by encouraging farmers to utilise these offers and ensure that contracts are enforced and neither party is exploited.

Develop an incubation hub for SMEs

A11: The incubation hub will support entrepreneurs in taking forward potential agri-processing value chain opportunities and fast-tracked with a one-stop-shop for supporting services and best practice. The incubator should provide a testing ground for how opportunities can be started and sustained. This would suitably be supported with aspects including IT and e-commerce skills, business mentoring and low rents or upfront credit for available plots and equipment within the industrial cluster. The incubation hub should be well connected with the business support platform (action A4), to prevent overlapping.

It will be important to ensure that the incubation hub is accessible to all members of the local community, especially youth, women and PWDs. To complement business and entrepreneurship, it is recommended to develop training on functional literacy and numeracy, and financial literacy. An example of this working well is The Community-Based Entrepreneurship development (C-BED) is an International Labour Office (ILO) initiative that provides training programme to help entrepreneurs and micro-businesses improve their business (detailed in Section 5.3.2).

Eldoret is the main urban centre in the NOREB region and as such accounts for a large share of its wholesale and retail and hospitality sector. It has developed into the key location for economic activities within the region, with a large volume of people travelling to Eldoret to trade and do business. The County currently accounts for 42% of the retail and wholesale economic value in the NOREB region, which shows its regional importance. Eldoret is easily accessible via road, which allows people to travel to the Municipality from neighbouring counties and neighbouring countries. There is a sizeable regional market for servicing from Eldoret, including eastern Uganda and with the key border points of Busia, Lwakhakha, Malaba and Lokichoggio for Uganda and Isebania for trade with Tanzania, which account for a significant share (estimated 60%) of the informal cross-border trade in Kenya.

As Eldoret continues to expand and develop as an economic hub, tertiary sectors are likely to have an increasingly important role in the offer and competitiveness of the Municipality. It will also be a crucial element of Eldoret as it transitions to City status. Various urban planning and mobility issues have been identified and constitute a key development action. Infrastructure improvements to the urban centre should be focussed on creating a more functional and liveable city with an appealing environment, accessibility and mobility, and reduced waste and pollution.

Eldoret has key strengths in its education offer, attracting students and young enterprises as well as providing critical links to industry and economic initiatives. The development of the services sector will need to deliver the calibre of jobs to ensure that Eldoret retains and attracts skilled people.

Eldoret also offers a concentration of specialist and significant hospitals that serve a wider area.

Strengths, Weaknesses, Threats and Opportunities

Action Plan

From the Diagnostics Report analysis, the following key strengths, weaknesses, opportunities and threats were established and reported in Table 4.3. These were used to determine the actions proposed in the following section.

Table 4.4 lists the actions to be undertaken to develop and support the trade and retail activities and Table 4 5 explores actions to develop the services sector, taking account of the Municipality’s strengths and weaknesses.

Table 4.3 Trade and Services: SWOT Strengths

Weaknesses

› Eldoret offers ten main markets and is a key contributor to NOREB’s wholesale and retail economy › Several hospitals are located in Eldoret, including Moi Teaching and Referral Hospital, one of the largest in East Africa › Moi University and University of Eldoret attract students from the region and other countries. › Eldoret has developed a strong financial services sector › Eldoret is well served by road links to neighbouring, regional and international markets › Eldoret International airport enables cargo and passenger flights

› Extensive trading activity along main roads which restricts pedestrian movement › Sprawling urban area and uncontrolled development › Limited access to finance and capital › Congestion in urban commercial and service areas with poor traffic management › Overlapping license requirements restricts and increases cost of trading in the region › Truck parking is a pressing issue › Eldoret International airport is running below full capacity

Opportunities

Threats

› Eldoret Transport Masterplan proposes logistical hubs and 4 Bus Rapid Transit (BRT) corridors › Develop medical tourism offering, building on the reputation of the health facilities › Establish a national education hub or ‘University City’ › Role for the education facilities in supporting social inclusion › Rail link provides potential for bulk-breaking activities, targeting regional markets › Olympia City will provide a new residential centre, with demands for urban services, retail and leisure › Climate-resilient infrastructure, reducing damage and disruption from flooding

› The A8 has severe capacity limitations as the Municipality’s main arterial road › Population increases will put a strain on urban infrastructure › Increased risk of flooding, both river and from heavy rainfall › A lack of green spaces in the urban area › Lack of affordable housing for students and graduates › Continued exclusion of youth and women access to business opportunities through procurement barriers and access to finance › The airport’s runway is too short to carry long haul cargo

Source: Eldoret Diagnostics Report (2021)

Eldoret should capitalise on the well-established Jua Kali sector, which can support the agricultural sector, through creation of innovative equipment and machinery, particularly for the agri-processing businesses.

Case Studies10 10. Empowering Women in Organic Value Chains | The Pacific Community (spc.int)

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Table 4.4 Trade and Retail action plan

Aim

Aim

Action

Description

Improve conditions at local markets

Develop a well-functioning unloading zone at market

B1: The unloading process at the markets has been identified as a major challenge for traders, due to measures regarding unloading times, which restrict unloading to either during the night or very early morning. The restricted unloading timing measure was put in place to manage traffic congestion within the market areas and CBD.

B2: In order to improve the market experience for both traders and customers, there are a number of additional facilities and infrastructure which should be established: Traders would benefit from cold room storage facilities for fruit and vegetables at the market, which will increase the shelf life of these products and enable traders to earn more income from reduced waste and higher prices. Given increasing temperatures there is a clear climate resilience benefit to cold storage facilities.

Both traders and customers would benefit from roofing/ permanent shelters covering all market areas, which would reduce damaged produce and increase the number of customers accessing the market, especially in the rainy season. Drainage could also be improved to reduce surface flooding from heavy rainfall events. This is explored further for the Focus Area 1 development in Section 5.2.

Description

Promote local and regional exports

B6: There is good potential to increase the exportation of local goods to other locations in Kenya and neighbouring countries. The proposed Export Board (explored further in Action A8) could provide advice to businesses on export promotion, negotiate shared deals with brokers and develop a branding strategy around Eldoret products.

One of the major constraints to exporting that was identified during the business consultations was the complexity and cost of all the necessary fees and licenses required. A platform should be created which simplifies which fees and licences are required and options for how they can be paid. This will encourage more businesses in Eldoret to export due to the improved transparency and understanding around fees and licences.

Eldoret should establish a virtual queuing system whereby delivery trucks and lorries can access the market area without causing congestion. In the short run, this system could comprise a truck parking facility, located in Eldoret but not in the CBD, and which acts as a waiting bay for trucks and lorries wanting to access the market.

The markets should have a small number of designated unloading bays, which can be accessed once a truck has reached the front of the virtual queue. This system could be created using a well-functioning app that truck and lorry drivers can download on their phone and the virtual queue should only be able to be accessed once a truck has arrived at the waiting bay. It is envisioned that this facility could be located at the ICDC site and alongside this queuing system, the Municipality should establish designated routes for inflows and outflows of trucks to this site and the CBD, which is explored further in Sections 5.2 and 5.3 with the proposed transport projects.

In the longer term, the Municipality should aim to develop a fleet management system which can enable efficient scheduling of unloading based on available bays at the market and expected arrival times of trucks into the CBD. This system would have challenges in ensuring all trucks and lorries are registered with the Municipality and have tracking chips installed to provide live location data to enable accurate scheduling.

Provide facilities and infrastructure at the market

Action

A more liveable Municipality

Develop a strong transportation sector

B7: In order for Eldoret to establish itself as a major logistics centre, it needs to have a good supply of labour with the appropriate skills to enable growth. The universities and other local education institutes could help provide education and training for local workers wanting to become employed in the transportation sector. This training should be prioritised for the youth and other members of the community who already work in the transportation sector.

Improve connectivity around CBD

B8: During the business consultation process, several business owners identified congestion around the CBD as a major constraint to economic growth. A series of transport improvement measures have been identified in Section 5.2.4.

Ensure sufficient leisure and commercial offering

B9: As Eldoret transitions towards City status it needs to ensure that it remains an attractive place to live and visit. Eldoret should aim to build upon its leisure and commercial offerings in order to attract and maintain its population. This will include continuing to develop retail, sports, entertainment and cultural facilities and activities which are suitable for the population and easily accessible to all.

It will be important to protect and establish more green spaces around the CBD for leisure activities, this will not only make the CBD a more attractive place to visit, but it will also improve the air quality and provide space for relaxing.

There should also be an increase in the provision of sanitation facilities and water access points. This is explored further in Section 5.2.4.8, with Project 1.8.

Consideration should be given to the flow of pedestrians around the markets and more broadly around the CBD. This is explored further in Section 5.2.4.1, with Project 1.1.

All markets should have universal access, ensuring that all members of the local community can freely move around them, such as infrastructure that provide access to wheelchair users and designated parking spaces close to the market entrance. Consideration should be made to allow for enough space in corridors for wheelchairs to circulate and other assistive devices, and shades for people with albinism. There should also be market stalls which are specifically designed for wheelchair users and other SIGs which may require modified stalls to enable trading.

Establish a well-organised and integrated market offering

Establish Eldoret as a logistics hub

Better utilisation of transportation offering

Increase supply of affordable housing

B10: While not directly related to economic development, provision of infrastructure, including affordable housing will ensure retention of the labour force that will drive economic development.

It will be important to establish housing options for students and graduates to ensure they are not priced out due to the high cost of living and lack of appropriate infrastructure.

Affordable housing will also ensure locals, especially vulnerable people, are not driven out of their homes due to increasing land values, with property developers investing in land for commercial profit.

B4: There is currently an issue with a large number of street traders and hawkers establishing themselves on the edges of the market and trading illegally. These traders block pedestrian walkways and have a competitive advantage over official market traders due to the absence of market fees. The restrictions on street trading should be enforced more strictly to prevent these negative impacts.

The informal sector comprises a significant share of the Kenyan economy, and it is expected to have increased due to the economic impacts of COVID-19. Moreover, women and other vulnerable groups usually constitute the majority of these informal workers. Consequently, provisions should be made to integrate and accommodate hawkers in official market areas, so that they do not lose their income stream and livelihoods. Consider offering support for the costs associated to formalisation processes and include them and their organisations in the formulation and implementation of this action.

This is particularly applicable for developing rail transportation, as there is currently a lack of skills and experience due to the limited current use of the railway. There should be opportunities for locals to access training in how to operate and maintain a well-functioning railway, including how to drive trains, maintain tracks, operate signalling equipment, efficiently load/offload, etc.

It is recommended that these housing projects consider adaptation and mitigation measures such as climate-appropriate designs. Community-based knowledge is fundamental for the development of urban projects that are climate resilient. Planning is also key to prevent urban growth in hazard-prone areas.

Improve urban infrastructure

B11: As the population of Eldoret grows it will be important to increase the capacity of urban infrastructure, so that it can support the needs of the additional population.

Key actions are explored further in Section 5.5.2.

B5: Eldoret has the potential to expand its current logistics operations to become the main regional hub for logistics in western Kenya. Eldoret is strategically located, with good road access and has the added benefit of the railway. The logistics sector should utilise the railway for freight transportation to and from Nairobi as a more reliable and cost-efficient option compared to using trucks and lorries.

In the longer term, the potential for the airport to support the logistics sector should be explored. Cargo flights could increase exports from Eldoret, however there needs to be sufficient bulking of produce to make it commercially viable. The airport would also need to be upgraded to support larger cargo planes, such as extending the runway.

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Table 4.5 Services action plan

4.1.4 Industry and manufacturing

Aim

Action

Description

Develop services sector

Promote education and medical facilities

B12: Eldoret should build on the well-established medical and education facilities to attract more visitors to the Municipality.

Eldoret is home to the one of the largest hospitals in East Africa, which should be leveraged to boost medical tourism. With suitable transportation options, accommodation and post care facilities, Eldoret would be able to attract visitors for medical procedures and operations. This would increase spending in the Municipality and create jobs for locals. The hospital should also aim to provide translators and interpreters (e.g.: in sign language) to ensure the medical service is accessible to all.

There are two major Universities and one polytechnic located in the Municipality, which attract students from across Kenya. These educational facilities should collaborate to improve advertisement and marketing targeted at attracting international students. They should also work together to create partnerships with international universities and establish exchange programmes for students.

Establish business incubation training hub

B13: A business incubation training hub should be established within Eldoret, which supports SMEs, particularly in high-tech and entrepreneurial activities, and could also be designed to support innovation around climate resilient products and services. This will create a highly-creative and innovative economy which adopts the latest technology, drives forward change and produces industry leading businesses.

Creating a business incubation training hub will encourage highly educated students to remain in Eldoret post-graduation to develop their own entrepreneurial ideas or join an innovative, fast growing business. This will increase the availability of “white collar” jobs for the youth in the Municipality.

The business incubation training hub could be linked up with the improved business support for agricultural businesses (explored further in action A4 and A11), with several training areas overlapping.

Develop hospitality offer

B14: There is potential to increase the number of visitors attracted to Eldoret for business and tourism purposes.

Eldoret is home to a number of nationally significant trade fairs and conferences, which attract people from the local region to learn about best practice and new innovative ideas and equipment in several sectors, including agriculture. There is a great potential for tourism to attract a wider audience from all over Kenya and neighbouring countries, due to the good transport accessibility of Eldoret and the number of accommodation options available.

Eldoret has already established itself as the main financial and business services hub for the NOREB region and further development will enable the Municipality to attract people from the wider western Kenyan region. Appropriate training in the hospitality sector will further enhance the offer. This will inject additional income into the local economy due to increased spending and multiplier effects.

Kenya’s Vision 2030 seeks to transform the County into a rapidly industrialising and globally competitive nation, with manufacturing and industry identified as the main driver of economic growth. The manufacturing sector accounts for around a quarter of all exports in Kenya, however it has been identified that there is a large potential to improve Kenya’s international competitiveness in the sector.

Eldoret was planned as a regional industrial town providing opportunities for manufacturing, processing and logistics and distribution. It is currently home to several large industries including Rivertex, Unga Limited, New KCC and Kenya Pipeline Corporation. It also hosts other service industries relying on the hinterland for production inputs and providing secondary employment opportunities for residents in the satellite urban centres, within the County and region as a whole. Eldoret already has an advantage in NOREB as being a key contributor to its manufacturing sector value and is well recognised in its strategic role and level of development as a location for further business investment.

Manufacturing and industrial activities are constrained by some areas of poor quantity or quality of factors of production and currently have limited market exposure. Action is needed to support skills development, the provision of affordable and clustered incubation space and logistics, connectivity and market improvements. There are noted risks concerning the sector’s waste and pollution which will need to be mitigated, and for which opportunities exist alongside agricultural processes to develop process linkages and apply circular economy principles.

Strengths, Weaknesses, Opportunities and Threats From the Diagnostics Report analysis, the following key strengths, weaknesses, opportunities and threats were established and reported in Table 4 6. These were used to determine the actions proposed in the following section.

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Table 4.6 Industry and manufacturing: SWOT Strengths

Weaknesses

› Legacy of textiles production including blankets and jerseys › Moi University is one of the leading training institutes for textiles and apparel in Kenya › Larger manufacturers have established activities in Eldoret › Developing construction sector, responding to increased infrastructure need › Significant growth in MSMEs producing a range of products in light manufacturing › Eldoret is well served by road and rail links to neighbouring and regional markets

› Textile activities has seen a decline in recent years due lack of capacity building and high competition › Lack of clustered and well-serviced space for small industrial activity in the urban area › Unreliability of water supply › Issues with congestion on the main arterial roads and in the CBD › Lack of truck parking and unloading space in the CBD › Majority of rail network is in relatively poor condition

Opportunities

Threats

› Eldoret Transport Masterplan proposes logistical hubs and 4 Bus Rapid Transit (BRT) corridors › Develop medical tourism offering, building on the reputation of the health facilities › Establish a national education hub or ‘University City’ › Role for the education facilities in supporting social inclusion › Rail link provides potential for bulk-breaking activities, targeting regional markets › Olympia City will provide a new residential centre, with demands for urban services, retail and leisure › Climate-resilient infrastructure, reducing damage and disruption from flooding › Land at Kipkenyo landfill site for recycling and waste centre and energy from waste › Use of sustainable materials and processes in construction

› Lack of skilled labour in the sector which will limit production and constrain future growth › Competition from nearby industrial hubs e.g. Kisumu SEZ › Developed industrial uses having negative impacts on the urban environment › Lack of logistics and warehousing at key locations › Waste and pollution of industrial activity › Continued exclusion of PWDs in more industrial processes

Source: Eldoret Diagnostics Report (2021)

Action Plan Table 4.7 lists the actions to be undertaken to develop and support industry and manufacturing, taking account of the Municipality’s strengths and weaknesses.

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Table 4.7 Industry and manufacturing action plan

Aim

Aim

Action

Description

Provide the necessary built infrastructure to support the industrial sector

Develop industrial clusters

C1: The Development Framework Section of the report proposes two eco-industrial cluster areas to be developed in Eldoret at the ICDC and AEZ sites, where infrastructure requirements can be provided efficiently and where future expansion can be accommodated. The two industrial sites are explored further in Sections 5.3 (ICDC site) and 5.4 (AEZ site).

It will be important for the ICDC cluster to have distinctly different target markets located here compared to the AEZ. The Municipality should aim to relocate community-servicing industries and light manufacturing at Focus Area 2 due to its closer proximity to the CBD. These industries will be beneficial to the local community and should have the minimal negative impacts, such as noise and pollution. Conversely, heavier manufacturing and industrial activities are better suited to being located at the AEZ. Industrial clustering benefits businesses through synergies and agglomeration effects. These include improved access to inputs, economies of scale, better access to transportation and freight services, reduced waste, increased rate of innovation and better access to skilled labour.

In order for the industrial clusters to have the most beneficial impact on the local economy, it will be important that local businesses want to relocate to the industrial area. Incentives should be provided to encourage businesses to establish themselves in this area. An awareness programme should be developed which highlights the benefits of the industrial clusters, including support with regards to licencing and fees, reliability of services and economies of scale. The AEZ has identified several incentives which are expected to be introduced at the site, including exemption from stamp duty, dividend withholding tax, lease restriction and local and national licence and advertising fees. Other industrial areas established in Eldoret could face challenges attracting businesses if they do not provide similar/alternative incentives to the AEZ as they will be seen as less desirable. Dependent on land ownership, the government could create fiscal benefits at other industrial clusters or lease payment holidays to encourage relocation.

Develop local industries

Well established Jua Kali space in the CBD and ICDC Site (Focus Area 2).

C2: Within the Municipality there should be an allocated space for the Jua Kali sector to create and sell products. This area should include workshops with good access to electricity, water, lighting and other necessary supplies to ensure the sector is not constrained by lack or resources.

Promote textiles

C3: There is a growing textiles industry in the Municipality which should be supported and promoted to enable development and future expansion. With Rivatex and several other smaller businesses having established themselves in Eldoret, there is potential to create a textiles hub in the Municipality which can compete at a national and international level.

It will be important to deliver an affordable space for Jua Kali members to prevent locals getting priced out and setting up their own makeshift stalls which are not fit for purpose and are unregulated.

Establish a skilled workforce

Establish a skilled workforce

Action

Description

Help SMEs access financial and business support

C5: The development of a business incubation hub (explored further in action B13) would provide support to SMEs regarding marketing, sales, accounting and other critical business functions to help them establish a sustainable and profitable business.

Help SMEs access financial and business support

C5: The development of a business incubation hub (explored further in action B13) would provide support to SMEs regarding marketing, sales, accounting and other critical business functions to help them establish a sustainable and profitable business.

Develop partnerships with local education institutions

C6: The industrial sector should seek to utilise the higher education institutions and their proximity to the industrial cluster areas, with a large pool of graduates, to link up development policies with the education.

Create inclusive employment targets for the sector

C7: Industrial development should be a key driver for inclusive growth, with opportunities taken forward to connect special interest groups with employment opportunities. Consideration should be given to creating potential incentives for respective employers to ensure a proportion of available jobs are targeting youth, local students, women and PWDs to gain work experience. Ensure quotas for PWDs (established by the Persons with Disabilities Act, 2003) are implemented.

This will ensure that the financial and non-financial benefits of developing the industrial sector are captured within Eldoret and are spread across the local community.

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Partnerships should be established which coordinate efforts between TVET institutions and universities, relevant local/regional businesses and Eldoret County Government to provide training courses to fill skills gaps identified by the sector. Local/regional businesses should inform about skills shortages and work together with educational institutions to develop adapted curricula including potential apprentice schemes.

There should be clear targets for local employment for international investors that want to establish a business premises in one of Eldoret’s industrial clusters. This will ensure that local people benefit from foreign investment through increased employment opportunities

ALEAP Green Industrial Park, Telangana, India:

Women make up a high proportion of the workforce in the textiles industry in Eldoret. It is thus important to consider incentives to support women’s participation in the labour market and their wellbeing. For example, by ensuring businesses provide mother’s rooms and that women are informed about community day-care services. It is also recommended to develop awareness training that involves women and men to incentivise women’s greater participation within the household. Also, to consider additional measures to support women’s safety within and in their way to workplaces. Plus, to develop on-the-job apprenticeships to build their capacity and skills.

C4: The Municipality should promote and support local businesses which form part of the supply chain for major industrial and agri-processing activities. Local businesses and farmers should be encouraged to produce the raw inputs required for industrial processing, such as cotton for the textile industry and bamboo for the construction industry. This could be achieved through the Municipality establishing contracts between local suppliers and industrial businesses, with the local government being the intermediary to ensure both parties fulfil their side of the contact.

A business support platform would improve access to capital and finance by providing information about how to obtain loans and other funding streams in an affordable way. This platform will also help SMEs access financial support from various initiatives such as the County Enterprise Development Fund and the Inua Biashara Fund, which aims to promote new small enterprises in the manufacturing sector, specifically enterprises owned by youth, women, and other SIGs. This platform should be closely linked to the platform outlined in action A4, with several overlapping areas.

Case Study

The Municipality could build upon the existing partnership between Rivatex and Moi University and the University’s Centre for Excellence to make Eldoret the national hub for the textiles industry, with access to high-quality training programmes, trade fairs, demonstration areas and high-tech equipment and machinery.

Develop local supply chain

A business support platform would improve access to capital and finance by providing information about how to obtain loans and other funding streams in an affordable way. This platform will also help SMEs access financial support from various initiatives such as the County Enterprise Development Fund and the Inua Biashara Fund, which aims to promote new small enterprises in the manufacturing sector, specifically enterprises owned by youth, women, and other SIGs. This platform should be closely linked to the platform outlined in action A4, with several overlapping areas.

The Association of Lady Entrepreneurs of India (ALEAP) developed with support from the German Development Agency (GIZ) a green industrial park of 82.55 acres of land that hosts 170 women entrepreneurs. The master planning of the park took into consideration the special needs and requirements of women entrepreneurs and employees. To identify their needs, a series of workshops, meetings and field visits were organised. A site master plan was developed and reviewed at various stage by stakeholders, especially the women entrepreneurs and ALEAP. Along with environmental considerations, workers’ specific needs and requests have been taken into account, including the development of services such as creches, rest houses, and first aid facilities.

Deliver high quality products to an international market

Promote local exports

C8: There is good potential to increase the exportation of local goods to other locations in Kenya and neighbouring countries. The proposed Export Board (explored further in Action A8) could provide advice to businesses on export promotion, negotiate shared deals with brokers and develop a branding strategy around Eldoret products.

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Aim

Action

Description

4.2 Value Chain Projects

Ensuring sustainability and protecting the environment

Establish an eco-industrial cluster

C9: A cluster of ecologically focused industrial businesses should be established near the industrial parks. The eco industrial cluster should seek to apply resource efficiency and circular economy principles, utilising waste and by products generated by the industrial cluster. This will generate further income for the local economy and reduce the negative environmental impact of the industrial cluster. SMEs and other innovative businesses should be encouraged to relocate to this area, with the incentives of cost-free inputs (industrial waste products) and the benefits of synergies.

4.2.1 Eldoret Value Addition

Case Study

Identifying the UEP value chain opportunities for Eldoret was a four-stage process:

Harare Eco-Industrial Park, Zimbabwe: Harare Eco Industrial Park (EIP) was developed in Zimbabwe to reduce the levels of pollution and waste generated from industrial activities, which are dominated by manufacturing and warehousing.

Businesses located in the EIP cooperated with the industrial activities to improve resource efficiency and reduce the use of raw materials and energy by replacing them with waste and by-products produced in the industrial area. The EIP concept can also take the form of shared logistics, wastewater cascading and receiving facilities, green technology purchasing blocks, multi-partner green building retrofit and energy systems.

Implementing an EIP, such as the example in Harare, is expected to deliver the following results: › › › › ›

a 15-25% decrease in waste deposited at landfills improve competitiveness material efficiency energy efficiency collaboration among firms

Case study11,12 East London Industrial Development Zone (ELIDZ): The ELIDZ is a 400 hectare site which has been developed into a suitable industrial multi-use space for business activities across a number of sectors. It is operated by a state-owned corporation and funded partially by revenue generated by the zone and partially through government funds. The site has allocated and prepared pieces of land which are well suited for generation of renewable energy to serve the zone and the local community.

The ELIDZ is linked by integrated networks of road, rail, port and air, and is easily accessible to and from major market hubs in South Africa such as Cape Town, Johannesburg and Durban, as well as with other major export markets. The ELIDZ also benefits from being only 2km from East London Airport, which is serviced daily by a cargo freight carrier from Johannesburg International Airport.

4.2.1.1 OVERVIEW

> Long - list process: an extensive list of economic opportunities, reflecting government policies, VC studies, exports and imports assessment, inputs requirement, outputs and processes, linkages with key policies and programmes, and market linkages. > Diagnostics alignment: the long-list was assessed against the SWOT analysis and other factors identified in the Diagnostics stage. The resulting list was presented to stakeholders.

Businesses operating from the ELIDZ are provided with a variety of fiscal support benefits such as:

> Evaluation: the SUED evaluation framework used to sift the opportunities, including criteria for the SUED principles (included within Appendix B). The PSG, the MB and other stakeholders identified the relative importance of each criteria for Eldoret, to provide weightings for final evaluation and identification.

1.

2.

3.

4.

5.

> UEP selection: six short-listed VCs were further assessed in detail, including their costs and revenues, competitiveness and land and infrastructure requirements, utilising the wider SUED assessments.

exemption from VAT on goods imported and capital equipment duty-free imports for raw materials and goods for storage competitively priced land rental preferential utility rates access to national manufacturing and other generic government incentives 6. various other cash grants, compensations, rebates and allowances through the Department of Trade and Industry

Following further discussions with stakeholders, three VCs were selected for taking forward:

In addition to these fiscal benefits the ELIDZ has an in-house team of professional experts to assist businesses with relocation, industry start-up requirements, regulatory compliance and access to policy services, application assistance for national and local incentive benefits, facilitation of workforce procurement and skills development, and access to convenient, zone-based community resources and amenities.

11. 252.pdf (ieomsociety.org) 12. Pre-Feasibility Studies for Naivasha SEZ, Kisumu SEZ & Lord Egerton Agro City

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Primary VC Level 1: > Canning of fruits and vegetables: this VC targets a range of crops from across Usain Gishu and neighbouring counties for canning, providing a secure offtake and some price stability for farmers. The VC would include the production of cans, which could be supplied to other canneries in the region. In addition to reducing post-harvest losses, by-products from the VC can support animal feed mills. This VC scored highly in terms of climate resilience, inclusion, employment potential, and readiness for investment.

Primary VC Level 2: > Bamboo lumber, later fibres: bamboo cultivation is being encourage across Kenya and increasing numbers of farmers are planting bamboo as a cash crop. This VC is for a processing centre to serve the northwest region. The initial focus will be on bamboo lumber and boards for the construction sector, which will reduce the need for imports and pressure on existing forests. Once volumes are secured, the VC can expand into bamboo fibre production which can link into the existing yarns and textile sector in Eldoret. > Maize milling: grown by almost all farmers in the County, maize is central to the agricultural economy of Uasin Gishu which is seen as the breadbasket of Kenya. This VC is for a new maize mill that works for the benefit of farmers and builds on an initiative by a group of farming cooperatives, which has already raised some of the finance required.

This VC will also link into the animal feed sector, supplying maize germ and bran.

These VCs have been assessed against climate resilience and social inclusion, scoring highly. They have also been assessed to have higher readiness for investment than the other shortlisted VCs, and as such are suitable as initial projects to spur further growth given the County’s competitive advantages.

The Technical Briefing Paper (Appendix B) included assessment for a further three shortlisted VC opportunities: avocado processing, bicycle production, aquaponic and hydroponic services.

4.2.1.2 VALUE CHAIN CLUSTER – WIDER OPPORTUNITY The VC projects, and supporting activities, suit clustering to efficiently utilise infrastructure provision and promote circular economy principles to support resource efficiency and sustainability.

The linkages between these primary VCs, existing and other VC activities are shown below. This shows the primary VCs (in green) with secondary VC activities (yellow) and existing activities as inputs to, or enhanced activities from, the wider VC linkages (in grey).

The shortlisted agri-processing VCs would support other agri-processing opportunities into the longer-term as secondary VCs and provide input to animal feed mills and energy from waste processes to further provide sectoral value uplift. A produce collection network would be a central opportunity to lower costs and provide efficiencies for co-located agri-processing VCs. Eldoret’s existing metal work and scrap would link directly to the bicycle production VC. Bamboo lumber is the earlier phase for the bamboo VC, whilst the development of its use in fibre can then link to Eldoret’s strong legacy in textiles to increase spinning activity and textile outputs.

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4.2.1.3 SOCIAL INCLUSION AND CLIMATE RESILIENCE CONSIDERATIONS FOR ALL VCS

Figure 4.2 Wider Value Chain Cluster and Linkages

The development of the agri-processing sector and its markets provide an immense opportunity for generating economic growth and reducing poverty. The three primary VCs have the potential to contribute to the inclusion of women, youth and PWDs. However, to maximise social benefits for SIGs, challenges such as lack of skills, access to land or capital, and lack of involvement in decision-making processes should be addressed. Tackling discrimination and harmful social norms that act as barriers to social inclusion is also key, and this could be done through awareness campaigns that include SIGs, and their parents, spouses, and/or caregivers. These sessions should explain the socio-economic benefits for communities and households when women, youth and PWDs are fully included in farming and agri-businesses.

To succesfuly include PWDs, the adequate equipment and infrastructure should be provided (i.e.: PWD-friendly toilet facilities, access ramps, adequate space to work and circulate, handrails, etc.). Information such as health and safety and other important communications should be in a format and language accessible to all people. Agri-processing industries should implement quotas for PWDs inclusion according to Kenya’s Persons with Disabilities Act (2003).

Source: SUED Atkins Team

The VCs have been assessed to be best placed in the AEZ (Focus Area 3), with potential roles for the secondary industrial sites across Eldoret (Focus Area 2). The AEZ is the suitable location for the VC projects given its timeline for being ‘investment ready’ with the current development of services provision and the AEZ Phase 1 plans. The VCs will benefit from the AEZ location, in either being suitable for international investment, utilising access to the Plateau rail station or being export oriented or with potential to expand into international markets in the future. The VCs and their locational requirements and fit, including land values and leasing costs, have been assessed through the UEP development process and with critical engagement with key stakeholders relevant across the Focus Areas.

The successful implementation of the VCs at the AEZ are supported by the sector action plans (Section 4.1) and the proposed infrastructure projects (Section 5), in particular: > Agriculture and VC produce collection network (Project 3.1) > AEZ Railway Facilities (Project 3.2)

The lessons from Case Study 1 below indicate that to include PWDs in VCs, it is important to develop awareness sessions at the community level, to inform people about existing regulations, and to work towards removing cultural barriers and changing mentalities that prevent the inclusion of PWDs in different activities of the VCs.

> Organic Waste Processing (Project 3.3) > Solar Refrigeration (Project 4.2) > Solar Irrigation (Project 4.3) > Sustainable Workforce Transport Access (part of Transport Project 4.1 and AEZ recommendations) > Strategic road network improvements (Planned by Municipality and refined in UEP)

PWDs and PWD groups should participate in those trainings.

Due to social stigma, PWDs are more likely to have low levels of education, be unemployed or have low self-esteem. The development of these trainings could contribute to their

> Business incubation provision (industry and manufacturing sector action plan) > Farmer cooperative support, access to equipment and skills (agriculture and agri-processing sector action plan).

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empowerment and help them see themselves as capable of participating in the VC and other economic activities. Liaising with local advocacy organisations such as This Ability Trust, United Disabled Persons of Kenya (UDPK), National Council for Persons with Disability (NCPWD), and the Association for the Physically Disabled of Kenya (APDK).

Given that women have been identified as an excluded group in Eldoret, it might be necessary to consider additional gender inclusion measures. Based on the Gender in Value Chains Practical toolkit13, and considering the local cultural context, the preferred initial gender strategy would be building on existing roles and increase women’s professionalisation. This is recommended since in more traditional environments women face less opposition when engaging in activities considered as female. This represents a good opportunity to empower women while reducing the risk of community opposition and of exacerbating gender-based violence.

It would be important to involve local authorities, gender champions, and programmes already working with gender inclusion to generate more opportunities for women in value chains, and support women who are already participating in value added links of the VCs (i.e.: businesses, processing). An example is the Lea Mtoto Africa, a programme that supports young single mothers particularly with their engagement in table banking. Link women and women’s groups with existing funding opportunities such as the Inua Biashara Fund (Action C5).

Ensuring SUED activities do not result in women’s time poverty is also an important consideration. Women’s increased access to the labour market should not represent an additional burden on their domestic and community responsibilities.

Providing mothers’ rooms at the workplace or linking women to community day-care facilities might be necessary.

Due to restricted mobility, competing responsibilities, and a lack of information, women are often excluded from accessing

agricultural information and training. As explained in Action A1, trainings can be more effective when adapted to women’s schedules, literacy levels, and needs. Outreach training might be a useful solution to increase women’s participation rates.

Whenever possible, direct payments should be prioritised.

There is often a gap between the work women do and the benefits they receive from it. The World Bank has identified that direct payments, for example though systems such as M-pesa, can contribute to women’s empowerment14.

All these measures should be implemented step by step, and they should be always be accompanied by specific awareness sessions targeted at women and men (parents, spouses) to avoid negative consequences within the household (see Case Study 2). These sessions should be aimed at making the economic and domestic contributions from women visible, and encourage greater sharing of decision-making and income within the household (e.g. family budgeting, and financial management).

It might be useful to consider different entry points for these measures, such as community and economic benefits, which might be less sensitive.

To include youth, it is recommended to train a cohort of young peer educators15, who could later offer training for a fee.

This could increase youth participation in agriculture-related training and represents an opportunity of additional income for trainers. Similar formats could be implemented for other SIGs. For certain tasks such as maintenance, it is recommended to provide opportunities to people who might be already developing these activities informally. Liaison with programmes such as the National Hygiene Program (NHP) and Kazi Mtaani, a programme that employs informal settlement dwellers, particularly the youth, whose economic activities were interrupted/affected by COVID-19, to include these groups in different VCs opportunities, is recommended.

13. AgriProFocus Learning Network, Available at:https://agriprofocus.com/upload/ToolkitENGender_in_Value_ChainsJan2014compressed1415203230.pdf (Accessed 13/07/2021) 14. IFC (2021) Investing in Women along Agribusiness Value Chains. Available at: https://www.ifc.org/wps/wcm/connect/02c5b53e-420f-4bf4-82bb-6f488ff75810/Women+in+Agri+VC_Report_FINAL.pdf?MOD=AJPERES&CVID=m0JfSbv (Accessed 13/07/2021) 15. OECD (2018) The Future of Rural Youth in Developing Countries: Tapping the Potential of Local Value Chains, OECD Publishing, Paris.

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Case Study 1: Promoting inclusion of people with disabilities (PWDs) in cocoa, coffee and palm oil VCs in Tanzania16 The project, currently under implementation, aims at: a) providing PWDs sustainable livelihood opportunities, b) improving PWDs access to markets, and c) generating awareness about the importance of PWDs inclusion at the community level.

Key programme elements PWDs inclusion: The involvement of PWDs starts in the production stage, engaging PWDs and disability organisations. For the processing of raw materials, PWDs work with equipment that is accessible. For marketing and trading, PWDs and PWoDs (people without disabilities) are organised as economic groups. The programme trains PWDs in soft skills such as leadership, entrepreneurship and business skills. It also links them to providers of financial and business development services, and existing government programmes.

Social awareness: sensitisation campaigns, guided by a Behavioural Change Communication (BCC) strategy, were developed to overcome the preconception that PWDs cannot successfully engage in agriculture, targeting the general public and PWDs themselves. Moreover, the project implemented awareness campaigns to develop solidarity among PWDs. Finally, the programme also learned that local knowledge is key to developing successful inclusion measures, for example, sign language might not be used in rural areas, but family members can act as interpreters.

16. Interview; Traidcraft Exchange (2018), Disability Inclusion in the Coffee and Cocoa Value Chains in Tanzania, Available at: https://traidcraftexchange.org/project-disabilityinclusion (Accessed 17/06/2021)

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Case Study 2: Sustainable intensification of maize-legume cropping systems for food security in Eastern and Southern Africa (SIMLESA) – promoting women and youth participation17 This case study focuses on the programme’s interventions in Mozambique and its aim to integrate women and youth in value chains. The intervention identified the following barriers: a) they are less informed about maize conservation than men; b) they have more difficulties to access land, capital, and inputs; c) they develop labour-intensive farming activities, and women have additional care responsibilities; d) they are often engaged in lower links of the value chain, for women, this is worsened by social norms that restrict mobility; among other challenges.

Key programme elements Women’s and youth inclusion: After a gender assessment, SIMLESA developed trainings and sensitisation workshops, and encouraged participation of youth and women in agricultural platforms and farmer groups. The latter contributed to improving access to information and productivity. Sensitisation helped promote household conversations about resources management and contributed to women’s inclusion in decision-making processes. Better farming practices and mechanisation freed up time for other activities outside the farm.

The development of the VCs provides a clear opportunity to jointly consider climate resilience and social inclusion. In particular, there are considerations related to employment practices both on the farms that form the supply chain for the VCs and in the processing plants themselves, as well as related to which groups have access to training. In terms of employment practices, both PWDs and women experience extremes of climate differently, and may need to take additional breaks during particularly hot or cold weather, as well as support with transport to and from work during flooding in particular.

Training and extension activities related to climate change adaptation should also be designed so that they are accessible to SIGs, both in terms of the logistics of training, as well as the practical content of the measures suggested.

Social inclusion and climate resilience considerations and recommendations are made for each VC in turn. The following sets out the assessment and operational detail for the three primary VCs.

17. SIMLESA, Promoting women and youth participation in agricultural value chains improves food security and livelihoods. Available at: https://simlesa.cimmyt.org/ wp-content/uploads/MozambiqueGender.MO_RA-Policy-Brief-08.01.2019-002.pdf (Accessed: 05/07/2021).

4.2.2 VC 1: Fruit and vegetable canning This VC project is for a mixed fruit and vegetable canning facility, sourcing fresh produce across the County and region.

The facility will also produce cans, initially for in-house use, but also for other processors if required.

The key outcomes of this VC include: > Providing a secure offtake for fruit and vegetables, which in turn can support investment in farming; > Reducing post-harvest losses, especially during gluts, and improving overall food security; > Providing a base for additional value-added processing of food products, such as sauces, ketchups, soups, etc; > Providing cans for other agri-processing e.g. for nuts, coffee, fish, milk concentrates; > Generating economic volumes of processing waste that could support an animal feed mill; and > Creating direct employment for around 124 full-time employees, with high potential for employing special interest groups (SIGs) and people with disabilities (PWDs).

4.2.2.1 BASE ASSESSMENT In common with many of its neighbours, Uasin Gishu produces a wide range of fruit and vegetables, but there is limited processing and value addition. As a result, most produce is marketed fresh, and farmers are exposed to price volatility. At times markets are subject to serious gluts and prices collapse, leading to some produce being left in the field. Farmers in Uasin Gishu are also exposed to periodical imports of low-value produce from Uganda.

In addition to price volatility, the lack of processing is one of the factors behind the high level of post-harvest losses, which can be up to 50% for horticultural produce18.

To address these issues, there is a need for commercial-scale processing to extend the life of fruit and vegetables.

Several processing options are available including drying, freezing, bottling and canning. Given the volumes of produce available across Uasin Gishu and neighbouring counties, and the potential markets for selling processed foodstuffs, the leading option would be canning. To spread risk, the canning facility should process a range of fruit and vegetables, though the staple crop tomato could be the main input.

For a commercial-scale operation, capacity to produce the cans from flat sheets and pre-made ends needs to be built alongside the food processing facility.

Development of the fruit and vegetable canning value chain is supported by: > Uasin Gishu CIDP: targets the promotion of value addition in a range of agri-processing industries, including vegetable canning; > Big Four Agenda: prioritises the manufacturing sector which covers all areas of agri-processing; > Post-harvest loss strategy: supports the Government’s target to cut post-harvest losses from 30% to 5% of total production. > The fruit and vegetables targeted by the VC are grown across the County. Farmers across the County will then benefit from a new secure off-taker offering stable prices

18. applewebdata://B5B2532D-1A7C-4FF2-AAB6-92B44C6C415B/#_ftn1

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4.2.2.2 PRODUCTION POTENTIAL AND SUPPLY CHAIN Production process: Canning is a relatively simple process for preserving fruit and vegetables: the produce is prepared washed, peeled, cored, etc.- then sliced or pulped if required before canning and in-can sterilising.

The level of processing of produce for canning would initially focus on simple preparations (e.g. peeling, destoning, chopping, etc.), and be developed (e.g. pastes, soups, addition of herbs and spices, etc.) as produce volumes are secured and skill levels are built up.

Fruit and vegetable processing The reception and cold stores for the facility would be common to all fruit and vegetables.

For tomatoes, the initial processing (steam peeling, slicing, etc.) would be largely mechanical and automated, while the prepping of other fruit and vegetables would be largely manual. The canning line and sterilisation process would be common to all produce.

Processing waste (e.g. peel, seeds and stones) would be either dried prior to selling for animal feed or sent wet to a local feed mill. Alternatively, the processing waste could be composted to provide a fertiliser/soil enhancer or fed into an anaerobic digestor to provide gas for power or bottling for cooking and a compost residue.

Can production and filling

Figure 4.4 Process flow for fruit and vegetable canning

For can production, the tin sheets can be printed on before cutting (if paper labelling is not used), and then rolled to form the can body. After the base is attached, the can is ready for filling and having the lid attached. The sealed can and contents are then sterilised. After this, a paper label can be attached if required.

Figure 4.3 Process flow for fruit and vegetable canning

For the size of operation being considered, to begin with the cans would only be part processed at the facility. Can ends and flat sheets for the can bodies would be brought in. The sheets would then be cut and rolled to form the can tubes.

Once the facility is established and capacity increases, there will be potential to develop the can processing operations to include: > Laminating the inside layers; > Printing labelling directly onto the metal body; > Using large rolls of metal sheet; and > Producing can ends.

Source: SUED Atkins Team

Source: SUED Atkins Team

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Capacity

Table 4.8 Capacity and volumes for fruit and vegetable canning

Given the potential supply base, the canning facility would have a target capacity of 28 tonnes per day of fresh produce input, totalling around 7,000 tonnes per year. Taking into account processing losses, the output would then be around 50,000 cans per day, though the precise amount would depend on the fruit and vegetables being processed.

Production Target and Volume Flows

The target volumes represent a significant share of current production of suitable fruit and vegetables in Uasin Gishu and neighbouring counties. To put the volumes targeted in perspective, Uasin Gishu, Elgeyo Marakwet and Trans Nzoia have an estimated combined production of tomatoes of over 15,000 tonnes per year as well as substantial volumes of other suitable fruit and vegetables.

Once established, the VC would provide a secure offtake for farmers investing, and supporting their investment in increasing production through expanding irrigation, using improved seed and plant stock.

Inputs Produce

Wastage

Canned produce

Tonnes/year

Tonnes/day

Share

Tonnes/year

Tonnes/year

Tomato

2,500

10

10%

250

2,250

Other

4,500

18

40%

1,800

2,700

Total

7,000

28

2,050

4,950

Packaging Cans

Cardboard

Per year

Per day

12,375,000

49,500

Tonnes

644

2.6

Tonnes

124

0.5

Number

Prices and margins

Demand Outlook

Supply chain and markets

The prices of fruit and vegetables targeted by this VC can be quite volatile. One objective of the VC is to establish a secure off-take at stable prices to provide some certainty for farmers and support their investment in future crops.

The demand outlook for canned fruit and vegetables is for continued growth. Forecasts for the global canned food sector, currently valued at around $100 billion, identify growth of around 4% per year to 202621. While COVID-19 has had some impact on this (reduced demand in some countries, and shortages of metal and cardboard packaging in others), the overall outlook is good.

The fresh produce would be sourced across Uasin Gishu and wider region. The target fruit and vegetables are grown throughout the County and the neighbouring counties of Nandi, Elgeyo Marakwet and Trans Nzoia.

Farm gate prices for the key target crop of tomatoes have been around KES 4,000 per 64kg crate in recent years19 (equivalent to KES 62 per kg). In September 2020, a combination of a bumper harvest and COVID-19 restrictions led to a glut in the market and caused prices to drop to around KES 2,000 per crate (equivalent to KES 32 per kg).

In early 2021 prices recovered, largely due to dry weather, rising to KES 8,000 per crate20 (equivalent to KES 62 and KES 124 per kg).

In calculating the processing margins, an average price of KES 75 per kg fresh fruit has been used (equivalent to 4,800 per crate).

Source: SUED Atkins Team

While there are no independent forecasts of demand for canned foods in Kenya, the overall growth is expected to be higher than the global outlook as a result of continued urbanisation reducing the use of own-grown fruit and vegetables, and the growing middle class.

The growth of the middle class in Kenya is a key factor in driving demand for canned and other processed foods, and this group is forecast to increase by 5% per year to 205022 (well above the expected overall population growth rate of around 2% per year)

Prices for canned produce are more stable. The retail price of canned tomatoes is around KES 110 to KES 140 per 400gm can, with a wholesale price of around KES 70 to KES 80 per can.

A factory gate price for tomatoes of KES 75 per can has been used in calculating the overall financial viability of the project.

The VC has strong margins at these prices, and can achieve a break-even point at a sales price of KES 60 per 400gm can, with the purchase price of KES 75 per kg of fruit.

It is proposed that the VC source fresh produce directly from farms and consolidation points, as well as linking in to existing supply chains taking food from farms to market.

For sales of canned fruit and vegetables, the VC would target Eldoret, as well as the wider regional market and Nairobi, including making use of the rail link.

Output from the canning plant will be equal to two full-sized (40-foot) containers per day, plus shipments of organic waste, scrap metal and cardboard.

Location Specific Analysis The facility requires a site of around 1,500m2, which would include 1,100m2 of light industrial style buildings, with the remaining area needed for deliveries and dispatch.

The VC would benefit from co-location with other agri-processing activities, as this would support joint services and facilities e.g. collection, dispatch, waste processing.

19. Thomson Reuters News. Available online at: https://news.trust.org/item/20200921080905-ryyr1 20. Soko Directory, March 2021. Available online at: https://sokodirectory.com/2021/03/a-crate-of-tomatoes-for-ksh-8000-across-the-country/ 21. Allied Market Research. Available online at: https://www.alliedmarketresearch.com/canned-food-market-A05939 (Accessed 01-07-2021) 22. Deloitte – Kenya Private Sector Alliance, Kenya, Grounding Africa’s Economic Growth (2016)

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4.2.2.3 INDICATIVE COSTS AND REVENUES Investment The total investment required is estimated at around KES 500 million. Around half of this total is for machinery and vehicles, and around a third is for working capital. The remainder covers buildings and site preparation, marketing, and initial training.

Operating costs Total operating costs are expected to approach KES 800 to KES 1,000 million, with just over 60% of these costs being for the purchase of fruit and vegetables. Note that for the financial assessment, tomato canning has been used as a benchmark, providing indicative costs and value added for a range of fruit and vegetables.

Figure 4 5 Operating costs 2026

Human resources

Revenues

Fruit and vegetable processing and canning is relatively labour-intensive activity, with significant jobs required for sorting, washing, peeling and packing.

Annual revenues are estimated at KES 1,100 million by 2026.

This is based on an average sales price of KES 75 per 400gm can of tomatoes, the core product.

> Head count of 124 FTE in total;

The estimate of total revenues excludes any revenues from selling any of the organic waste for composting or animal fodder.

> Monthly salaries of KES 13,000 to KES 25,000 depending on skills; and > Additional employment costs estimated at 25% of salary.

Raw materials The project economics are based on tomato processing: > Average purchase price of tomatoes is KES 75 per kg, paid at the collection points across the County; and > Packaging costs – metal for the cans, labels, card boxes, etc., is estimated at KES 15 per can (400gm content).

Other Opex Covers electricity, water and other utilities, maintenance of machinery, marketing and training. The opex also covers transport fuels and vehicle maintenance costs, (based on using two 20-ton trucks to collect the fruit from depots across the County and deliver canned goods to warehouses / rail head).

4.2.2.4 RECOMMENDATIONS AND NEED ASSESSMENT Enabling Business Environment and/or Other Catalysts The VC would benefit from close cooperation with farming cooperatives to help develop a collection network that meets the needs of farmers and the VC.

Environmental Assessment

Value added The value added, calculated as sales revenues less the cost of the contents (tomatoes) and other inputs (can, electricity, water, etc.), is estimated at the equivalent of KES 49 per kg of tomatoes purchased, representing around one third of the sales price.

Table 4.9 Value added KES per kg of tomato equivalent Purchase price

75

Other inputs

35

Value added

49

Sales price

159

Source: SUED Atkins Team

The environmental benefits of the project include the use of waste products for animal feed ensuring low levels of waste are produced that require disposal. The project could also encourage further planting of fruit trees, contributing to the long-term greening of the County. An EIA is required, to ensure the development does not cause detrimental effects to the environment23[2]. The following issues should be considered during the decision-making process: > The waste from the facility would predominantly be organic (to be estimated), that could be processed to produce animal feed or composted to produce a solid fertiliser.

There will be some packaging waste, such as cardboard and metal scraps, that can be aggregated for recycling.

> The canning centre will provide a stable price for inputs to farmers and reduce post-harvest losses, increasing the economic value of the natural inputs and reducing waste produced as a result of post-harvest losses. > Given the level of energy demand (640-770kW) needed for processing and cold storage, high efficiency equipment and on site renewable energy systems should be installed to provide a proportion of the energy needed and supplement the grid supply. Battery storage should also be included, to help with any power cuts or general fluctuations in supply quality. > The process is highly water intensive (55-120m3/day), which could be reduced by treating wastewater on site and reusing as much of it as possible within the facility. > High demand for vegetables like tomatoes may increase land demand and deforestation of forested areas or reclaiming wetlands through draining to acquire land for growing fruits and vegetables. > The site selected should not be at close proximity to air and noise sensitive receptors (human settlements). This is due to noise pollution from machines in use and odours expected to emanate from the plant.

> Solid wastes and liquid wastes are produced as a result of processing fruits for canning. In some fruits, the discarded portion can be very high (e.g., mango 30-50%, banana 20%, pineapple 40-50% and orange 30-50%). This could pose waste disposal challenges, e.g. flies and rats around the processing room, if not effectively managed.

Climate Resilience The primary input will be tomato, but a wide range of fruits can be also be substituted. There is a good supply of tomato and the variety of inputs that can be used creates a good level of redundancy, with the plant able to switch between different varieties depending on conditions. Yields of the different fruits are somewhat linked, however, i.e., in a drought year yields will decrease across the board; therefore, the food processing plant has Moderate sensitivity to climate change.

The key climate risks for tomato primarily relate to water availability for rain-fed crops, and changes in the prevalence and distribution of pests and diseases. Although annual rainfall is more likely to increase than decrease, rainfall is expected to become more variable, and there is potential for an earlier end to the Long Rains, and less reliable rainfall during both rainy seasons. Given the potential for irrigation, and the potential to also use drought-tolerant fruits, the impact is rated as Neutral, and the overall vulnerability of the value chain as Moderate.

A wide range of agricultural adaptation options are possible, including: > Switching to more drought tolerant varieties; > Increased water harvesting; > Use of seasonal forecasts to allow forward planning in sourcing inputs; and > Irrigation.

It is not expected that climate change will impact the viability of the VC.

Source: SUED Atkins Team

23. International Food Policy Research Institute, Post-harvest losses in fruits and vegetables, the Kenyan context (2018).

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Gender and Social Inclusion Assessment

Figure 4.6 Social Inclusion Considerations – VC1

Infrastructure needs

The fruits and vegetable canning VC has a substantial potential to generate employment for women, youth and PWDs, particularly during processing and in back office activities. To maximise benefits for SIGs, however, it is important to address the recommendations in section 4.2.1.3.

The Technical Briefing Paper (Appendix B) sets out the water, wastewater, solid waste, energy and transport needs for the VC production outputs as volumes and provision solutions.

These needs across the primary VCs have together informed the proposed projects in the Development Framework (Section 5). The following is a summary of the critical infrastructure needs of the fruit and vegetable canning VC:

SUED interventions will contribute to reducing post-harvest losses, increasing productivity and making smallholders more resilient to the impacts of climate change. Better practices when handling produce during transportation and improved roads will enhance sales. Better infrastructure, equipment, and trainings will improve productivity and food security.

> A private water source for the plant, likely a borehole with renewable energy for the borehole pump and treatment plant, with storage – to meet the demand estimate of 55-120m3/day. > Generated waste includes peel, seeds and stones that can be processed to produce animal feed, composted onsite to produce fertiliser or processed with a small onsite Anaerobic Digester (AD) plant – supporting circular economy processes. Other waste streams – packaging, staff and office – would need to be segregated and fed into the upgraded Solid Waste system (Section 5.4.4).

Since there are persistent disparities in the production and commercialisation of vegetables and fruits, it would be important to support SIGs by facilitating credit and quality inputs. Promoting SIGs, or their participation in agricultural associations, it is also necessary to enhance their access to agricultural and market information.

Some additional social inclusion considerations for each link of the VC include:

> The processing facility will have a dedicated 11kV supply from the grid, and 11/0.4kV transformer on site. There are four utility-scale solar projects adjacent to the AEZ site, with likely enough capacity in their associated substation to serve the site. Solar PV, battery storage should also be installed on the site to improve resilience and reduce costs for the facility operator, which could be located on the building roofs. Battery storage should be installed in a dedicated building; and the use of low energy equipment across the plant. > Product packaging, storage and transport will be critical in management of its quality. As there is no single high-volume source of the product, a farmer aggregation system through a network of collection points with cold storage should be considered. This could also serve the avocado value chains. > The access road to the AEZ that links to the A8 will need to be paved to bitumen standards with storm water drainage.

For local and regional transport, road would be preferable while air can be considered for export markets. During transportation temperature-control with goods packaging units that cushion the products should be used.

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4.2.3 VC 2: Bamboo lumber (extending to bamboo fibres) This Value Chain project is for the production of laminated bamboo lumber as a first step, followed by bamboo fibre production, once supplies and process volumes are established.

The key outcomes of this VC include: > Establishing a new value-added chain and market for farmers; > Providing low-cost construction materials e.g. roofing frames and boarding to support house construction;

4.2.3.1 BASE ASSESSMENT There is great potential for harvesting natural resources of bamboo as well as plantation grown bamboo to produce a range of products from fibres and textiles for lumber and energy.

Bamboos grow naturally across Kenya at high altitude (over 2,200 metres). The total area covered by natural bamboo forest is around 131,040 hectares24, with the main locations being:

> Reducing imports of timber and pressure on forests;

> Aberdare Range: 50,038 hectares

> Providing some charcoal as a by-product, further reducing pressure on local wood supplies;

> Mount Kenya: 35,966 hectares > Mau Forest: 30,196 hectares

> Providing an additional supply of local fibre / yarn for the textile sector;

> Mount Elgon: 14,341 hectares

> Creating direct employment for around 128 full-time employees, with some potential for employing special interest groups (SIGs) and people with disabilities (PWDs).

> Cherangany Hill: 8,180 hectares While natural bamboo forests are to be found at high altitude, bamboo can be grown in lowland areas given the right conditions. In general, bamboo has a high level of tolerance to flood, drought and fire.

Bamboo offers many advantages over growing trees for timber, paper and related products. Bamboo provides a much higher supply of wood-type fibre than trees: a fast-growing tree such as Eucalyptus can provide an average of 20 tonnes per hectare per year of dry wood mass, compared with 80 tonnes or more from bamboo25.

Harvesting bamboo can start within 5 to 7 years of planting (depending on species and location), compared with 10 to 50 years for trees. Furthermore, harvesting is simpler, just requiring a hand saw or machete.

> Green Pot Enterprises are supporting farmers through a joint ownership model to establish sufficient plantations to support commercial-scale processing in Nairobi.

To unlock Kenya’s potential the Government listed bamboo as a cash crop in 2013. However, since then, progress with planting and processing has been slow until recently.

> Africa Plantation Capital are working with Bidco Africa to establish plantations in Kilifi County to support biomass power generation in Mombasa.

In the last few years, the planting of bamboo has begun to gain some traction and is now being promoted by many county governments, agencies and private companies, supported by the Government’s National Bamboo Policy, 2019. This policy document sets out a number of targets and guidelines for promoting the planting of bamboo and commercial-scale and artisanal processing. These include a call to mandate bamboo planting along rivers and slopes over 30 degrees, targeting 10% of the annual planting budget to bamboo promotion and the identification of land for plantations.

There is then potential for establishing commercial-scale processing in Eldoret, building on the planting potential in the western region.

Uasin Gishu Government has targeted an increase in forest cover from 7% to 10% of the County through bamboo planting26. The benefits of bamboo for stabilising soil and improving water retention has been recognised by the Kenya Water Towers Agency, which has planted bamboo on a site in the Kaptagat forest in the Elgeyo Hills. This demonstration site is now being expanded.

Bamboo can be used for a range of products and applications including power generation through burning, laminated lumber and fibre boards, textile fibres and yarns, furniture, and agricultural poles. Of these applications, bamboo lumber and textile fibres offer the best value-added potential, fitting well with local capabilities and demand27.

Development of the bamboo value chain is supported by: > Uasin Gishu CIDP: prioritises the development of industry value chains, identifying bamboo processing specifically; > Big Four Agenda: prioritises the manufacturing sector including building materials; > Affordable Housing Program: provides a source of low-cost, sustainable, building materials; > National Bamboo Policy: provides an off-take for the increasing supply of bamboo resulting from the additional planting under the policy.

4.2.3.2 PRODUCTION POTENTIAL AND SUPPLY CHAIN The first step for this VC is the production of a range of bamboo lumber products. Bamboo lumber can be made into laminated planks that are stronger than wood or boarding, and that competes favourably with traditional plywood and chipboards. As well as the laminated planks being suitable for construction work as roofing frames and rafters, their high density and impact resistance makes them suitable for flooring. Bamboo lumber products also have a high level of resistance to water and pest damage.

Production process For bamboo lumber production the bamboo poles are harvested at 9cm diameter. The first step is to strip the leaves, cut to size (0.25 to 1 metre lengths) and split the poles lengthways into slats. These slats are then planed and treated with hydrogen peroxide as a preservative, and then carbonised for strength28. At this stage there is a divergence between panel and timber plank production: > Panels: the slats are dried, sanded and then arranged into sheets, and glued and pressed. The final sheets are then cut to size and trimmed to finish.

These bamboo lumber products would be sold into the local construction sector, where there is strong demand for competitively priced, durable, local materials.

> Planks: the slats are crushed into strands (of 1cm diameter), glued and then pressed into blocks, before being cut into planks.

For a second stage of bamboo processing, there is potential to manufacture fibre and yarn. This can utilise some of the waste from the lumber processing, specifically the leaves and the soft inner pith. Bamboo fibres can produce some of the softest materials available. They have a natural sheen and drape equal to that of silk but are less expensive and more durable.

Bamboo panels provide a good substitute for plywood and chipboards, while bamboo planks can outperform many timbers. The planks are highly durable, hardwearing, heavy and stronger than most laminated wood planks. The dimensions of the panels and planks, and balance in volumes between the two products, will be developed with reference to the needs of the local construction sector.

The production of bamboo textile fibres is similar to the process for rayon, with bamboo textiles having the same eco credentials as linen fabric made from flax or hemp.

There is a strong and growing market for bamboo textile fibres (and yarns) in European and North American markets as an eco-friendlier alternative to synthetic fibres or non-organic cotton.

With established spinning and textiles operations in Eldoret, there is potential for selling fibres locally, thereby keeping the next step of value addition within the Municipality and broadening the supply base for Eldoret’s textile sector.

Waste material from the bamboo processing (offcuts, leaves, sawdust, shavings, etc.), can be used to make charcoal, or used for electricity production. With development of fibre processing capacity, the leaves and inner pith can be separated and used for fibre production.

For bamboo fibre production the Lyocell process has the smallest footprint in terms of energy requirement and chemical inputs. The process includes pulping the fibres, mixing and dissolving with NMMO, filtering out the fibres, spinning and washing, and then drying. The resulting fibres can then be spun into yarns and then used in textile production.

The NMMO (N-methylmorpholine-N-oxide), is a weak alkaline, and can be recovered for re-use. With a good “closed loop” system, some 99.5% should be recovered during each cycle.

24. Ministry of Water and Irrigation, Practice Manual for Small Dams, Pans and Other Water Conservation Structures in Kenya (2005) Available at: http://smalldamsguidelines.water.go.ke/technical_reports/ Accessed: 20/04/2021 25. Rooting behaviour and soil properties in different bamboo species of Western Himalayan Foothills, India | Scientific Reports (nature.com) 26. CIDP 2018-22

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Two private companies are promoting the planting of bamboo, with the aim of establishing commercial-scale processing:

27. Bamboo Timber - Bamboo Lumber (bamboogrove.com) 28. How is Bamboo Lumber Made? (bambooimport.com)

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Figure 4.7 Process flow for bamboo lumber

Capacity The target capacity for the plant is 40 tonnes of raw bamboo per day (10,000 tonnes per year). This input can be supported by 100 to 200 hectares of dedicated bamboo forest.

Total output will be around 9,000 tonnes of boards and planks per year, equivalent to 1.7 million m2 of standard 20mm boarding.

Table 4-10 Production volumes for bamboo lumber Production Target and Volume Flows Per day

Per year

Input Raw bamboo: tonnes Bamboo poles: number Processing losses: tonnes

40

10,000

2,533

633,333

4

1,000

Output Total weight: tonnes Equivalent to plywood: m2

36

9,000

6,912

1,728,000

assuming 20mm boards at 2.4m x 1.2m

The bamboo panels and lumber will be sold into the local construction sector and building materials distribution network, providing access to an extensive market. Eldoret is the main centre of supply for building materials to the northwest of Kenya29.

Prices and margins Bamboo poles are not yet widely traded in Kenya. The closest product are wood poles that have been trading at KES 800 to KES 900 each30. Bamboo poles should be considerably cheaper than wooden poles, as they grow faster. However, for the financial assessment of the VC, a base price of KES 1,000 per bamboo pole has been used.

For the sales price of the laminate, a benchmark price of KES 2,500 per board (22mm board at 2.4m x 1.2m) has been used.

This compares to current board prices of around KES 3,700 for boards of the same size but lower in terms of quality (softwood ply with little water-proofing and protection against termites).

While some construction timber and boards are sourced locally, increasing volumes are imported, and the ban on logging in February 2018 accelerated this trend. Total wood imports averaged $52 million for the period 2015 to 2017, before rising by an average of 38% per year to reach $140 million in 2020. Lumber imports come mainly from Tanzania, Uganda and Congo, but as these markets begin to overexploit their resources, increasing volumes are being sourced from China.

Demand for construction timber and boards are expected to remain high as Kenya has a substantial housing deficit, estimated at over 1.8 million units in 201531. This shortage is being addressed, in part, by the national target of developing at least 500,000 affordable new houses by 2022.

To put the output of the bamboo lumber VC in perspective, the 9,000 tonne per year output would be sufficient to provide boarding (for ceilings) or timber for roof frames for 35,000 to 50,000 low-cost housing units per year .

With a purchase price of KES 1,000 per pole, the break-even point for the VC is a sales price of around KES 1,750 per board.

Location Specific Analysis

Demand outlook and markets

The facility requires a site of around 2,100m2, which would include 1,300m2 of light industrial style buildings, with the remaining area needed for storage of raw bamboo, deliveries and dispatch.

Kenya has strong and growing demand for construction materials, particularly for house building where there is a need for lumber for frames and panelling.

Source: SUED Atkins Team

The bamboo will be sourced from across Uasin Gishu and the neighbouring region: Elgeyo Marakwet, Kakamega and Nandi counties all target the promotion of bamboo planting in their CIDPs.

Source: SUED Atkins Team

The VC’s operations will include several trucks to collect the culms from the farms.

29. Housing Construction Value Chain Mapping, Kenya. Habitat 2017 30. Uasin Gishu CIDP 31.Centre for Affordable Housing Finance in Africa Yearbook, 2015

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4.2.3.3 INDICATIVE COSTS AND REVENUES Investment The total investment required is estimated at KES 1,500 to KES 1,700 million. Some 80% of this total is for machinery and vehicles, and some 10% is for working capital (covering the gap between paying farmers for bamboo and receiving payment for the lumber). The remainder covers buildings and site preparation, marketing and initial training.

Operating costs Total operating costs are expected to approach KES 870 to KES 900 million, with around 75% of these costs being for the purchase of the bamboo.

Figure 4.8 Operating costs 2026

Human resources

Value added

Bamboo lumber production requires a lot of labour to collect and prepare the poles, and feed the pre-processing tanks, presses and sanders, etc.

The value added, calculated as revenues from sales of laminate boards less the cost of the bamboo, formaldehyde and other inputs, is estimated at the equivalent of KES 996 per tonne of bamboo purchased. This represents around 44% of the board sales price.

> Head count of 128 FTE in total; > Monthly salaries of KES 13,000 to KES 25,000 depending on skills; > Additional employment costs estimated at 25% of salary.

Raw materials > Average purchase price for the bamboo is KES 1,000 per culm (pole), paid at the collection points across the County; > The other raw material is urea formaldehyde which is costed at around KES 150,000 per tonne (based on an international price of US$800 to US$1,100 per tonne).

Other opex

Table 4.11 Value added KES per tonne of bamboo equivalent Bamboo purchase price

1,000

Other inputs (adhesives)

156

Other opex (power, fuel)

98

Value added

996

Sales price

2,250

Source: SUED Atkins Team

Covers electricity, water and other utilities, maintenance of machinery, marketing and training. The opex also covers transport fuels and vehicle maintenance costs, based on the use of four 20-ton trucks collecting the bamboo from farms across Uasin Gishu and neighbouring the Counties.

4.2.3.4 RECOMMENDATIONS AND NEEDS ASSESSMENT Enabling Business Environment and/or Other Catalysts The VC would benefit from close cooperation with farming cooperatives to expand the growing of bamboo, with the potential for providing seedlings and/or loans for planting.

There is also the potential to work with some of the bamboo furniture producers in the region, as their processing waste could be used for MDF/fibreboards or bamboo fibre production.

Environmental Assessment The environmental benefits of this project include the production of durable construction materials from bamboo timber32, reducing the use of hardwoods and decreasing the rate of deforestation. An EIA is required to ensure the development does not cause detrimental effects to the environment. The following issues should be considered during the decision-making process: > Bamboo requires little fertilizer or pesticide to grow and absorbs carbon dioxide at a faster rate than most other tree species. It also prevents soil erosion and sequesters carbon from the atmosphere33. > The species of bamboo that are suitable for timber grow very rapidly, up to a metre or more each day, and are harvestable in one to four years as opposed to hardwoods that take at least 40 years to mature. Once harvested, bamboo begins growing again without the need for additional cultivation34.

Revenues Annual revenues are estimated at KES 1,500 million by 2026. This is based on an average sales price of KES 2,500 per standard laminate board (2.4 m x 1.2m at a thickness of 20mm).

> During harvesting and processing, every part of the bamboo tree, its leaves, pith and off-cuts, can be used with a much lower consumption of energy than hardwoods, enabling for an environmentally responsible production.

Source: SUED Atkins Team

> Given the level of energy demand (300-600kW) for processes including mixing, melting polymer and product extrusion, high efficiency equipment and on site solar renewable energy systems should be installed to provide a proportion of the energy need and supplement the grid supply. Battery storage should also be included, to help with any power cuts or general fluctuations in supply quality. > Stem cutting, splitting of the poles, planning of slits into regular dimensions and sanding to final quality would generate dust. Resultant dust may present a significant source of air pollution both on site and in the surrounding locality. Dust from these processes need to be captured. > Promoting the bamboo lumber project will likely attract more farmer interest into bamboo planting, thereby effectively contributing to greening and to the increase of the Municipality and County’s forest cover. > Limited odour may be generated from the soaking reservoirs and from the adhesives (polymers) used in the boar / lumber making process. > Project location should not be at close proximity to air and noise sensitive receptors (human settlements) due to noise and dust pollution as a result of the machines in use and dust expected to emanate from the plant. > The project requires limited water use, which is essentially needed for steam during bamboo processing and for use by the factory employees. > During the lumber making process, the bamboo splits / strips are usually treated by boiling in hydrogen peroxide for about 7 hours to prevent future insect attacks and fungi.

The treatment process also bleaches the splits/strips to obtain a uniform natural colour35. As a result, wastewater should be treated on-site.

> Planting of bamboo can provide a sustainable income for farmers and livelihood for their families and the community.

Climate Resilience Assessment The VC relies on consistent supply of bamboo and will need good volumes in order to be viable. There are many varieties of bamboo suited for a wide range of climatic conditions, and rapid growth means that new varieties can be established quickly if conditions become less favourable for those already being grown. Yield of bamboo itself is fairly resilient, however, drought can reduce bamboo growth and would lead to lower yields36 and lower inputs into the VC. As an agricultural VC dependent on good volumes, the VC has a moderate sensitivity to climate change.

Bamboo requires a good supply of water to become established, however, once root systems are mature its water requirements can be relatively modest, in particular if more drought-tolerant varieties are selected. Bamboo has carbon sequestration benefits, and as a quick-growing plant has also been used in land restoration projects to stabilise soils and reduce erosion. Care should be taken, however, that bamboo plantation is not at the expense of more biodiverse native vegetation systems.

The VC overall is given a vulnerability rating of Moderate.

A quick review of adaptation options also shows the potential for: > Installation of water harvesting and storage structures > Use of more drought-tolerant varieties The design and location of the production plant will need to be assessed for climate resilience, and attention should also be given to the supply chain, to ensure that there is consistent supply even in the event of prolonged heavy rains.

Overall, if appropriate varieties are used for the supply of bamboo to the lumber plant, we do not expect climate change to significantly impact this VC.

32. Bamboo mapping of Ethiopia, Kenya and Uganda for the year 2016 using multi-temporal Landsat imagery, 2017. International Journal of Applied Earth Observation and Geoinformation, April 2018 33.Building with bamboo | Institution of Civil Engineers (ice.org.uk) 34. https://link.springer.com/article/10.1007/s11284-017-1529-1 35. How is Bamboo Lumber Made? (bambooimport.com) 36. Building with bamboo, Institution of Civil Engineers (ice.org.uk)

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Gender and Social Inclusion Assessment For the development of the bamboo lumber VC to be inclusive, it would be important to provide subsidised or free seedlings to smallholders. This action should especially target SIGs, SIGs associations and other vulnerable groups who would like to grow bamboo as a commercial crop.

While young men predominantly work in the processing of bamboo lumber, there are several opportunities for including other SIGs, for example in value-added activities of the VC such as back-office tasks and marketing. It would be important to develop soft skills training for people engaging in sales, particularly on why it is better to buy bamboo lumber than wood, e.g. it is more ecological, and it is versatile, etc.

Additional social inclusion considerations for each link of the VC include:

Figure 4.9 Social Inclusion Considerations – VC2

Infrastructure needs The Technical Briefing Paper (Appendix B) sets out the water, wastewater, solid waste, energy and transport needs for the VC production outputs as volumes and provision solutions. These have informed the proposed projects in the Development Framework (Section 5). The following is a summary of the critical infrastructure needs of the bamboo lumber VC: > Bamboo processing offcuts, leaves, sawdust and shavings can be processed into charcoal or as a small biomass burner to produce hot water, which in turn can drive a turbine to produce electricity. There are therefore circular economy opportunities here, to be further tested in their feasibility. > The processing facility will have a dedicated 11kV supply from the grid, and 11/0.4kV transformer on site. Solar PV should also be installed on the site to improve resilience and reduce costs for the facility operator, which could be located on the building roofs. Battery storage should be installed in a dedicated building. > Bamboo will be sourced from Uasin Gishu and neighbouring counties, where forest areas typically have less transport access and farm tractors would be needed to deliver the cut bamboo to the nearest road where it can be transported by lorry. All weather access roads will be necessary. > The Eldoret bypass would help offset traffic pressure on the A8 and divert trucks away from the centre. A dual paved road linking the plant with the national trunk road will be necessary as well as good public transport connection for plant employees and visitors.

4.2.4 VC 3: Maize milling This Value Chain project is for a new maize mill based in Eldoret that will support local farmers by processing their

grains at fair prices, supplying the Kenyan market with a range of maize meal products. The mill will also provide by-products (germ and bran) for local animal feed use. The VC can either be part of the existing cooperative-based initiative or similar separate project.

The key outcomes of this VC include: > Providing an additional secure offtake for maize farmers with fair and open prices; > Reducing post-harvest losses with additional quality grain storage capacity; > Supporting the Kenyan Government’s programme of fortifying basic flours; > Improving efficiency of local milling; > Supplying increased volumes of by-products (e.g. germ, husk/bran) for local animal feed; > Increasing the potential for local downstream processing (e.g. fermentation products from maize germ); > Creating direct employment for around 62 full-time employees, with potential for employing some people from special interest groups (SIGs) and people with disabilities (PWDs).

Maize is a staple crop that is grown throughout Uasin Gishu and the surrounding region. Developing a farmer-oriented milling facility will then bring widespread benefits in terms of fair pricing and secure off-take.

4.2.4.1 BASE ASSESSMENT Maize is the dominant crop in Uasin Gishu, and the County is widely viewed as the breadbasket of Kenya. Total maize production averages around 380,000 tons per year in the County, over 10% of Kenya’s total, and just over one third of total arable land in the County is given over to the crop.

Maize is the main crop grown by small-scale farmers (those with less than 20 acres) in Uasin Gishu and across Kenya.

Together, small-scale farmers account for some 70% of the total maize cop in Kenya37.

Maize accounts for an estimated 58% of total production from small farms, and is an essential element in the crop mix (together with potato, sorghum and beans)38.

There has been some decline in yields since the peak in 2013 of just over 4 tons per hectare to 3.6 tons in 2020, due to a range of factors including low prices, increasing costs of pesticides and fertilisers, and disruptions in rainfall patterns.

Productivity in Uasin Gishu remains well above that for Kenya as a whole: the national average maize yield is around 2 tons per hectare.

While yields in the County are relatively high, there is still potential to raise them: the Kenya Agricultural & Livestock Research Organization estimate that with best practice, maize yields could be increased to 6 to 8 tons per hectare in the highlands39. There is then potential for maize production in Uasin Gishu to be increased by 65% to 150%.

To help realise the County’s potential for maize production, the Uasin Gishu Government has set a modest target in its CIDP of raising maize yields to 4.5 ton per hectare by 2022, this would represent a 24% increase in production. Several factors support the potential increase in yields: > Improved seed: the County Government has a programme for dispersing subsidised quality seed; > Improved use of fertilisers: farmer education programmes are supporting improvements in the timing and delivery of fertilisers, reducing overall use and cost to farmers;

37. FAO, Egerton University Presentation, Smallholder Maize Production Efficiency in Kenya. Accessed online at: http://www.fao.org/fileadmin/templates/esa/Workshop_reports/Smallholders_2012/Presentations_1/Olwande_Smallholder_Maize_Efficiency_Kenya.pdf (Accessed July 2021) 38. FAO, The economic lives of smallholder farmers (2015) 39. KALR Maize background document. Available at: https://www.kalro.org/Maize (Accessed 28/05/2021)

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> GM corn: Bt maize, a genetically modified maize that provides protection against stem borer and fall armyworm, is currently under trial and subject to approvals could be available commercially by 2022.

While production volumes and outlook for maize are strong, there are some issues with milling: > Capacity: There are a number of maize millers in and around Eldoret, processing local maize and produce from the Northern Rift Valley region, including Eldoret Grains, Jamii Millers, Buffalo Millers, Rami Millers and Unga Millers. However, overall local processing capacity is well short of production, and much of the grain from Uasin Gishu and surrounding counties is milled elsewhere, mainly Nairobi. Processing outside of the County limits local value added, in particular the use of by-products, e.g. bran and germ for animal feed. > Processing efficiency: large-scale commercial grain milling, which covers around 40% of grain milling capacity40 is all based on roller-mills, while a substantial share of smaller mills are hammer mills. In general, hammer mills have much higher energy consumption than roller mills (around 67% higher for a 100 ton per day capacity mill41. > Trust: In addition to a processing gap, there is a trust gap, whereby many maize farmers and their cooperatives feel that they are not receiving full market prices, and that they are exposed to being exploited by middlemen, cartels and traders. To overcome this gap, some new millers such as Rami Millers, have set out to work explicitly with local farmers and cooperatives from the outset.

Given these factors, there is a need for additional commercial-scale maize milling capacity in Eldoret that is aligned to the needs of small-scale farmers in Uasin Gishu and surrounding counties. To meet this need, the Moisoy Cooperative Union, formed from 40 primary farmers’

cooperatives in Uasin Gishu, representing over 5,000 small farmers, has identified a maize mill project and completed a feasibility study and business plan funded by the County Enterprise Development Fund. To date the cooperative has raised KES 232 million of the estimated KES 479 million needed to complete the project42.

The mill would supply enriched flour, which is flour fortified with a pre-mix of micronutrients in line with the Kenyan Government directive. The micronutrients include vitamins Vitamin A, B1, B2 and B6, and zinc and iron. While compliance is mandatory, many mills do not include the micronutrients, especially small and medium-scale mills43.

The development of the maize milling value chain is supported by:

Production process

> Uasin Gishu CIDP: prioritises the development of agricultural value chains, identifying maize processing specifically; > Big Four Agenda: prioritises the manufacturing sector which covers all areas of agri-processing; > Moisoy Cooperative Union: representing 40 primary cooperatives societies in Moiben and Soy sub-Counties, the Union has identified the need for a mill and made progress in raising funds.

4.2.4.2 PRODUCTION POTENTIAL AND SECTOR SUPPLY CHAIN The maize mill would have a target capacity of 100 tons per day, or some 25,000 tons per year. This scale of processing supports a high level of processing efficiency and good economies of scale. To put this level of capacity in perspective, if the County Government meets its 2022 target for maize yields of 4.5 tons per hectare, well short of the potential for the region of 6 to 8 tons, this equates to additional maize output of 73,000 tons per year.

The mill would be a dry process roller mill, producing maize products bagged for consumers (grades of maize flour and grits), as well as bran and maize germ for use in animal feeds.

Roller milling provides an efficient means of producing grade 1 flour, the main product consumed. There is also potential for producing grade 2 flour ‘wholemeal’, if required.

Figure 4.10 Process flow for maize milling

The target capacity for the facility is 25,000 tons per year of maize, with potential to grow beyond that as additional volumes are secured. The overall product flows are summarised in the table below.

Table 4.12 Process volumes for maize milling Production Target and Volume Flows

The basic breakdown of the three core maize milling products is as follows, with the precise balance depending on the variety of maize and the growing conditions: > Skin / husk / bran:

6% to 9%

> Germ:

7% to 15%

> Kernel for flour:

87% to 76%

The flour would be bagged in standard 0.5kg, 1kg, 2kg and 5kg consumer paper packs, with the main packaging being 2kg bags, sold in 12 x 2kg bales. The by-products would be bagged in 25kg sacks.

Per year

Maize inputs

100

25,000

Flour

81.5

20,375

Bran

7.5

1,875

Germ

11

2,750

Prices and margins

Before taking maize from the farmers, the quality is checked together with the moisture content. Drying is undertaken where necessary to get the grains to the required 10% to 12% moisture content which is ideal for dry milling.

Prior to processing the maize is stored in secure silos. The first step in processing is then the removal of stones and other contaminants such as straw, husk, and dust which is undertaken by a combination of spinning and sieving. This is then followed by de-germination whereby the maize germ is removed to prolong the life of the maize kernels.

Per day

Source: SUED Atkins Team

Source: SUED Atkins Team

The base price for maize in Kenya is generally set by the National Cereals and Produce Board (NCPB). The Board acts as the Government’s agent in the purchase, management and distribution of grains for the Strategic Food Reserves and Famine Relief Stocks. To secure supplies, private mills have to match or in some case exceed the prices set by the NCPB. The NCPB purchase price was KES 2,500 per 90kg bag, but recently was raised to KES 2,700 per bag.

Low priced product (KES 2,200 to KES 2,300 per sack) has been coming in from Uganda and Tanzania, but there have been concerns over the levels of aflatoxin (a type of mould than in high concentrations can prove fatal).

The kernels are then dry roll milled to produce the flour, which is then separated from the husk, graded for size, and bagged.

The sales price of maize flour generally moves in parallel with the grain price. Though during the first COVID-19 lock down, prices dropped to KES 100 per 2kg bag from the more usual KES 120 per bag. As a base price for the financial assessment, a factory gate price of KES 100 per 2kg bag (KES 1,200 per bale of 12 x 2kg bags) has been used matched with a

40. Cereal Millers Association, Kenya. Available at: http://www.cerealmillers.co.ke (Accessed 29/05/2021) 41. Economics of grinding animal feeds, CPM. Available at: https://www.cpm.net/index.php (Accessed 30/05/2021) 42. AIM Resources, Draft Feasibility Study for Moisoy Milling Plant. 2019 43. Status of commercial maize milling industry and fortification in Kenya, African Journal of Food Sciences, (2019)

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farm-gate purchase price of KES 2,600 per 90kg bag.

The prices for the other two products, bran and maize germ, are generally less volatile, going into more stable food processing and animal feed sectors. Bran trades at around US$ 200 per tonne (KES 20,000) and maize germ at around US$ 260 per tonne (KES 26,000).

Margins for maize milling are generally low. At the purchase cost and sales prices given above: > The cost of maize is 64% of total revenues; > Overall value added is 11% of total revenues.

Demand Outlook The key product from maize milling is maize flour, which is used to make ugali, a staple of the Kenya diet and eaten regularly by 78% of the population. Total consumption of ugali, maize porridge and whole maize was estimated at about 60kg per person in 201844.

While consumption of wheat grain products such as pasta, bread, etc. has been growing strongly, especially in the main urban centres, maize is expected to remain the leading staple food in Kenya. Overall demand growth is put at a modest 3% per year, with total demand rising from an estimated 50 million 90kg bags to 60 million by 202545.

Kenya’s maize production varies with weather patterns, and to a lesser extent, market prices. Annual production has been rising, albeit erratically, in recent years, reaching 44.4 million 90kg bags in 2020. The shortfall between demand and supply is filled by imports, managed by the NCPB, with most production being sourced from Uganda and Tanzania.

Maize is a crop that is grown by most Kenyan farmers, and eaten by most Kenyans. The management of imports to meet the gap between demand and supply has a direct impact on

prices. The market for maize and maize flour, is then expected to remain highly politicised.

For maize germ and bran, the outlook is for strong demand in the animal feed sector. Most animal feed used in Kenya comprise 60% to 80% maize (whole maize, bran and germ)46.

The base outlook for livestock farming is for continued growth: cattle numbers are forecast to increase by 1.9% per year out to 2050, while the poultry flock is set to rise by 4.6% per year over the same period47. With open grazing resources being largely fully utilised, this implies good demand for animal feed, in particular maize-based products.

Operating costs

Human resources

Value added

Total operating costs are expected to approach KES 950 to KES 1,000 million, with around 80% of these costs being for the purchase of maize.

Milling is a machine-intensive operation, with employment focused around packing, deliveries and dispatch:

The value added, calculated as sales revenues from flour, bran and maize germ, less the cost of the maize and other inputs such as packaging, micronutrients, electricity, etc. is estimated at the equivalent of around KES 4,800 per tonne of maize purchased.

Figure 4.11 Operating Costs 2026

Raw materials > Average purchase price for maize is estimated at around KES 2,600 per 90kg bag, paid at the farm gate / consolidation points in the County. This equates to KES 28,600 per tonne, assuming 11 x 90kg bags per metric tonne to account for impurities such as stones or dirt, and wastage, such as over-damp grain;

The grain will be sourced from farms/cooperatives in the County and surrounding areas if required. Joint collection could be arranged with the cooperatives.

> Other material costs such as packaging and micronutrients are costed at a total of KES 5.5 per kg of maize flour.

The flour and by-product (for animal feed) will be sold into the local and regional markets.

Other OPEX

Location Specific Analysis

Source: SUED Atkins Team

4.2.4.3 INDICATIVE COSTS AND REVENUES

Covers electricity, water and other utilities, maintenance of machinery, marketing and training. The opex also covers transport fuels and vehicle maintenance costs, on the assumption that a fleet of five 20-ton trucks are used to collect maize from farms and consolidation points across the County.

Revenues Annual revenues are estimated at ranging from KES 1,000 million to KES 1,200 million by 2026, based on an average sales prices of:

Investment The total investment required is estimated at KES 600 to KES 700 million. Some 60% of this total is for machinery and vehicles, and some 35% is for working capital, covering the gap between paying farmers for the maize and receiving payment for the flour. The remainder covers buildings and site preparation, marketing and initial training.

> Maize flour KES 100 per 2kg bag KES 50,000 per tonne > Bran KES 20,000 per tonne > Germ KES 26,000 per tonne

44. Research and Markets, The Kenya Maize Flour Business Report: Market, Process, Production & Finance (2019) 45. The Conversation, Understanding the political economy of maize in Kenya, 2020. Accessed online at: https://theconversation.com/understanding-the-political-economy-of-maize-in-kenya-120336 (July 2021) 46. Feed Navigator: Feed demand to push corn consumption in Kenya higher. Accessed at: https://www.feednavigator.com/Article/2021/04/20/Feed-demand-to-push-corn-consumption-in-Kenya-higher (Accessed on 06/07/2021) 47. FAO, The Future Livestock in Kenya, 2019 and FAO 2050 Country Livestock Database. Available at: http://www.fao.org/global-perspectives-studies/food-agriculture-projections-to-2050/en/

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> Monthly salaries of KES 13,000 to KES 25,000 depending on skills; > Additional employment costs estimated at 25% of salary.

Markets

The facility requires a site of around 1,700m2, which would include 1,000m2 of light industrial style buildings, with the remaining area needed for storage silos, deliveries and dispatch.

> Head count of 62 FTE in total;

Table 4.13 Value added KES per tonne of bamboo equivalent Purchase price

28,600

Other inputs

9,243

Value added

4,857

Revenues

42,700

4.2.4.4 RECOMMENDATIONS AND NEED ASSESSMENT Enabling Business Environment and/or Other Catalysts The VC would benefit from working with the Moisoy Cooperative Union which has already secured some funding for the project and has a buy-in from farmers in the 40 primary cooperatives it represents.

Environmental Assessment The environmental benefits of this project include the re-use of organic wastes/ by-products for either livestock feed or solid fertilizer, ensuring low levels of waste are produced that require disposal. The project also provides an outlet for farm produce; reducing post-harvest losses incurred by farmers. An EIA is required to ensure the development does not cause detrimental effects to the environment48. The following issues should be considered further during the decision-making process:

> An increase in demand for maize crops e.g. maize, sorghum, bean etc., and for milling or oil crops e.g. sunflower, simsim for oil pressing, could result in an increased demand for irrigated land; leading to the clearance of bushlands, encroachment of riparian areas and open grasslands that are used by pastoralist for livestock production. Increased demand for irrigated land would also increase water demand for agriculture. > The organic wastes produced by the facility could be used in the production of livestock feed, this would lower the demand for grazing land by pastoralists. The wastes could also be used in the production of solid fertilizer. > The project proposes the use of imported unprocessed cereals and oil crops as part of raw materials from neighbouring countries. Such imports should be subjected to rigorous border inspections, by designated government agencies, e.g. Kenya Plant Health Inspectorate Services - KEPHIS, to prevent the importation of biohazards negatively impacting on the environment, agriculture, and human health. > Measures should be put in place to prevent the centralized grain storage and processing facility from attracting pests and vermin. > The site selected should not be at proximity to air and noise sensitive receptors (human settlements). This is due to the noise and dust pollution as a result of the milling machines used in the facility.

Climate Resilience Assessment The VC is 100% agricultural and is dependent on a crop which has already experienced reduced harvests in the county as a result of climate change. Changes in the reliability of the rains has been a contributing factor to recent reductions in yield, while major drought events, predominantly linked to El Nino, can cause major losses. Although the volume needed for the milling plant is relatively low, representing 6.5% of the county’s production, there may be significant competition between

48. National Environment Management Authority (NEMA), Environment Impact Assessment (EIA) (2003)

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milling operations for access to quality produce during major droughts. Overall, the sensitivity of the value-chain is medium-high.

Maize production is affected by the reliability of the rainy season, which causes uncertainty over planting, land preparation, the length of the growing season, and the timing of harvests, all of which can lead to losses or yield reductions. For example, farmers report changes in the onset and reliability of the rainy seasons, and dry planting of maize is now less common due to less certainty over the onset of reliable rainfall; to avoid losses farmers must wait until the onset of the rains before planting49. Episodes of intense rainfall can damage crops, particularly if they occur during the harvest period. Years with significantly below average rainfall, or major drought, lead to low yield and low quality of produce.

able to adapt to, and manage, the effects of climate change would have a strong resilience benefit, and could potentially serve as a model for other, similar, cooperatives. Additionally, providing a consistent price and market for the farmers in the cooperative helps to strengthen livelihoods, and allows for increased forward-planning and investment, which can support the development of more climate-resilient farming practices.

Specifically, the following is recommended to be explored: > Use of shorter-maturing varieties > Increased access to seasonal forecasts and advisories through KMD > Improved use of early-warning for drought, but linked to assistance to allow adaptation measures to be implemented > Inclusive access to finance and credit

Although total annual rainfall is expected to increase, the trend of unpredictable rainfall is likely to continue, with an increased risk of crop losses and reduced yields arising from late onset or early cessation of the rains, and less consistent intra-seasonal rainfall. There are also indications that overall, the rainy season may decrease in length, with the same, or greater amounts of total rainfall occurring in a shorter period of time, with an increase in extreme rainfall events. El Nino events may become stronger, leading to increased severity of droughts during these years. The impact of climate change on maize production in Eldoret is negative, and overall the vulnerability of the VC is medium-high.

Working with a farmer cooperative, however, provides a good opportunity for SUED to actively seek to strengthen the resilience of smallholder maize farmers in the County, and explicitly incorporate a social inclusion perspective within this, drawing on experience from examples such as those outlined in section 4.2.1.3. While it is clear that climate change poses a threat to this VC, a targeted set of activities which build capacity in the cooperative so that its farmers are better

> Index-based crop insurance > Water conservation measures such as conservation farming and water harvesting approaches.

Gender and Social Inclusion Assessment Focus group discussions in Eldoret have indicated that while youth and women are actively involved in farming, their work is often invisible and unpaid as it is considered family work.

Moreover, women often lack access to agricultural information and are not involved in decision-making processes (e.g. cooperatives and associations) due to their heavy domestic and community responsibilities. Their access to land is through their spouses, which in turn limits their access to finance.

Youth and PWDs also face difficulties when accessing land, capital, and quality inputs.

Including SIGs in different links of the VC, from production to processing and sales, can enhance maize milling productivity and commercialisation. To maximise benefits for SIGs, however, it is important to consider the following measures: > Facilitate credit support for smallholders and particularly to SIGs and SIGs groups or link them to existent funds. Provide credits or microfinancing particularly for the acquisition of seeds and fertilisers. > Promote SIGs groups and incentivise SIGs participation in agricultural cooperatives and associations to improve access to information and increase participation in decision-making processes. This needs to be accompanied by awareness sessions (section 4.2.1.3). > As indicated in Action A2, it is recommended to implement a communication strategy to support farmers, and target SIGs in particular, to access to market information, i.e. technology and funding opportunities, training, weather issues, production schedules, prices, emerging market opportunities. > Ensure SIGs have access to technical support and that training is tailored for their needs (Action A1). Develop training on business skills and financial literacy and consider trainings for people with low literacy levels, such as functional literacy and numeracy.

Some additional social inclusion considerations for each link of the VC include:

Source: SUED Atkins Team

49. CGIAR (2018) Climate Risk Profile for Uasin Gishu.

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Figure 4.12 Social Inclusion Considerations – VC3

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Infrastructure needs The Technical Briefing Paper (Appendix B) sets out the water, wastewater, solid waste, energy and transport needs for the VC production outputs as volumes and provision solutions. These have informed the proposed projects in the Development Framework (Section 5). The following is a summary of the critical infrastructure needs of the maize milling VC: > A private water source for the plant, likely a borehole with renewable energy for the borehole pump and treatment plant. > Milling waste of stones, grit and other debris removed from the grain in the first processing stage can be processed into charcoal or as a small biomass burner to produce hot water, which in turn can drive a turbine to produce electricity.

There are therefore circular economy opportunities here, to be further tested in their feasibility. > The processing facility will have a dedicated 11kV supply and 11/0.4kV transformer on site. Solar PV should also be installed on the site to improve resilience and reduce costs for the facility operator, which could be located on the building roofs. Battery storage should be installed in a dedicated building. > There is already a transport route for maize, in moving produce from farmers and then to Nairobi for milling with locations that have previously been used for maize storage.

This should be re-considered as part of a produce collection network for the VC and the AEZ clustering. > The access road to the AEZ that links to the A8 will need to be paved to bitumen standards with storm water drainage.

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5. Eldoret Development Framework 5.1

Introduction

In addition, several projects have been identified to address challenges across the wider area, which support the city development with adequate infrastructure coverage and enhance agri-industrial opportunities.

To accompany the Economic Development Plan, this Section brings together climate resilient and inclusive urban development and infrastructure proposals that support economic growth, promote sustainable development across Eldoret and address the most urgent needs to build a resilient and integrated economic environment.

The proposed projects have been assessed against climate vulnerability and a number of adaptation measures have been identified to ensure resilience. The climate vulnerability assessment report is appended to this report (Appendix D).

For each focus area high level principles of development are identified that relate to the master planning and infrastructure proposals. The principles are aligned with the SUED key principles, set out in Section 1, and serve as a tool to guide development in Eldoret within and beyond the scope of the SUED programme.

The development proposals are guided by phased city investment opportunities and Eco-Industrial principles. This is in alignment with the UEP vision of: “a liveable, smart city providing high-quality and resilient services and inclusive economic opportunities… expanding its role as a leading centre for agri-processing, industry and innovation”, which is driven by value addition, robust urban services and a fully-functioning City for the NOREB region.

The Development Framework projects are organised around: A) Eldoret’s Development as a Regional City – driven forward by Focus Area 1 of CBD regeneration and consolidation; and

The timeline categories used for the UEP are:

B) A Regional Eco-Industrial Hub – driven by Focus Area 2 as the Eldoret Industrial Area with supporting logistic network interventions, and Focus Area 3 with the AEZ development creating opportunities for VC projects.

> Immediate: Year 1-2 > Short-term: Year 2-5 > Medium-term: Year 5-10 > Long-term: Year 10 onwards

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Table 5.1 List of Projects for Eldoret Development Framework

The proposed projects are demonstrated below across the focus areas.

5.1.1

Figure 5.1 Eldoret Development Framework – Focus Area Proposals

Projects are presented within each focus area with their rationale, sub-components, estimated costs, impacts and associated benefits, key stakeholders with potential delivery mechanisms identified. Climate resilience and social inclusion recommendations are made as relevant for each project.

Sector

CBD Regeneration package

Phase 1: Eldoret Piazza – Landmark Tower or Retail, Food & Beverage Pavilion; 15-minute transport hub; and multiple urban features

1

Chapter 6 sets out the approach to implementation in more detail for this Development Framework.

Transport

1.1 Expanded NMT Network

1

Transport

1.2 Bus Park Interventions

1

Transport

1.3 Matatu Priority Measures

1

Transport

1.4 Digitised maps for paratransit services

1

Transport

1.5 Traffic Management – Junction Improvements

1

Transport

1.6 Traffic Management – HGC Access Control to CBD

1

Energy

1.7 Streetlighting

1

Sanitation

1.8 Accessible Public Toilets

1

Projects overview

These proposals have been tested with the Eldoret PSG and key stakeholders, utilising the SUED engagement process to inform their development. The infrastructure projects have been developed to build on, enhance and refine ongoing works and current plans by the Municipality, County, IFIs and other organisations. These project proposals, as Development Framework elements, can enable Eldoret to meet its vision and provide sustainable socio-economic opportunities, as set out in Section 3. The projects are listed below.

Project Title

Focus Area

Eldoret City Development

Eldoret Regional Eco-Industrial Hub Development Overview

ICDC site and recommendations

2

Transport-logistics

2.1 New Logistical Hub

2

Energy

2.2 Industrial Energy Efficiency Projects

2

Overview

AEZ recommendations

3

Transport-logistics

3.1 Agricultural and VC Produce Collection

3

Transport

3.2 AEZ Railway Facilities

3

Solid Waste

3.3 Organic Waste Processing

3

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Table 5.1 cont.

Sector

Project Title

Focus Area

Wider Area – Eldoret City Development Transport

Road Network Redundancy

Cross-cutting

Solid Waste

Kipkenyo Rehabilitation and Incinerator

Cross-cutting

Solid Waste

Solid Waste Collection

Cross-cutting

Solid Waste

Materials Recovery Facilities

Cross-cutting

Solid Waste

Mwendeni Dumpsite Rehabilitation

Cross-cutting

Wider Area – Regional Eco-Industrial Hub Energy

Solar Refrigeration (Cold stores)

Cross-cutting

Energy

Solar Irrigation

Cross-cutting

These projects are detailed in turn below by Focus Area, for the City Development and Regional Eco-Industrial Hub, following an overview of the development approach for each.

A) Regional City Development 5.2 Focus Area 1: Urban Regeneration and Consolidation 5.2.1 Overview The UEP has identified Focus Area 1 as the suitable focal point for urban regeneration to catalyse development and increase the offer and appeal of Eldoret as a city for the region’s residents, businesses and institutions. It will not only support the urban service economy and generation of employment but will also provide an opportunity to generate income for the Municipality through value uplift and increase private sector investment in the area.

Focus Area 1 will drive forward the development of Eldoret as a regional city, through its phased approach, given: Its proximity to the existing CBD area and key commercial, retail and administrative/civic activity areas whereby linkages can be enhanced and strengthened to create a functional and attractive city centre.

Its hosting of public sector offices, higher education facilities and key markets, serving as an increasingly important node for residents and visitor access. Sustainable accessibility is important from different parts of Eldoret, the County and the wider region.

Figure 5.2 Focus Area 1 with demonstrated NMT facilities

Its proximity to the River Sosiani and Nandi Park, offering an opportunity to incorporate green corridors with public realm upgrades to enhance the amenity, user experience and green credentials of Eldoret, which are key parts of the vision.

Its current land ownership and land availability status, providing opportunities for mixed use densification as a landmark development for Eldoret and the region.

The UEP vision for Eldoret City requires the development of Focus Area 1 to align with principles of liveability, sustainability, inclusion, climate resilience and smart city service provision. The proposed urban development and infrastructure projects have responded to these principles.

Wider Municipality area and cross- focus area projects are also included. These support the city development, beyond Focus Area 1, with solid waste interventions and Eldoret’s growing regional role with road network redundancy interventions.

These are presented in Section 5.5.

Its untapped potential with the existing Eldoret rail station location, where it has limited current capacity and use but can change over the short, medium and long-term for additional freight, logistics and passenger utilisation.

Its hosting and proximity to current bus stations and matatu routes, planned rapid bus transit (BRT) and non-motorised transport (NMT) facilities. This offers the opportunity for effective multi-modal networks and transit orientated development creating land value uplifts and increased footfall benefits.

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5.2.2 Focus Area 1 Urban Regeneration Given its extent and range of uses and landownership, Focus Area 1 will need to be developed through a series of phased development packages which are aligned to an overall master plan and vision for the area. The two distinct characters and land ownership regimes across FA1 lend itself to a natural phasing of the proposals. There is also an opportunity to fast track and test certain proposals before tackling larger, more complex and comprehensive urban transformations.

The study area can be subdivided into two halves, north and south of the Eldoret-Kitale Road (A8).

The character of the southern district through to the Sosiani River is mainly dominated by trade and commerce, retail, hospitality and service sector activities. To the north, however, the industrial heritage of Eldoret is very much evident and it is also reflected in lesser congestion and larger land holdings and footprints. A major landowner and stakeholder in the northern district is the Kenyan Railway Corporation which shares the land with industrial activities to the west and a variety of businesses and stakeholders to the east, including Government agencies.

The UEP has previously recognised the incongruous and dysfunctional land uses and activities taking place and has therefore identified short, medium and long term development actions and processes which aim to catalyse initial development opportunities which will then allow further development to take place in a phased, managed and incremental fashion.

The UEP is therefore proposing a multi-phased approach – Phase 1 aims at delivering a demonstrator project within the southern district of the CBD (Eldoret- Kitale Rd to Sosiani River); phase two (and successive) focus on the incremental development of the northern district of the CBD (EldoretKitale Rd to the railway line and station) underpinned by a series of principles revolving around urban liveability and economic success.

Eldoret Piazza is the Phase 1 project, and can be considered a demonstrator initiative introducing and testing a more holistic urban regeneration approach whereby public realm upgrading, urban assets up-lifting (i.e. market and bus stations) and real estate investment underpin economic development opportunities and growth at a local level.

Phases 2-4 adopt the principles of Eldoret Piazza (Ph1) but expands to the northern district through a carefully considered network of pedestrian paths and human scaled urban blocks and community amenities (parks and piazzas) culminating into a newly transformed TOD around Eldoret station. Key components of this proposal include: > Introduce a new green boulevard linking the River Sosiani Urban Park with the railway station area

5.2.3 Phase 1- Eldoret Piazza (Pilot Area) The Bus and Matatu stand on Muliro Road (Main Stage), plays an important economic role for the CBD. It provides direct access and constant footfall to local business, helps the immediately adjacent markets thrive and has been a driver of growth for local businesses for a considerable time.

However, the area has now reached beyond its capacity and it is consistently overcrowded with overspill of matatus in the surrounding streets and beyond. The huge number of matatus attracted in such a small ‘sliver’ of land (approximately 150x30m in size) is no longer a positive factor but rather cause for nuisance and congestion which, ultimately, hampers economic development and growth. Congestion is one of the main factors that pushes away visitors from town centres, and it is universally accepted that, beyond a certain threshold of congestion, revenues drop due to the unwillingness of visitors to negotiate with an unpleasant difficult environment.

With this backdrop, and with the aspiration of Eldoret to achieve City status, the regeneration of such areas is the ideal starting point for an uplifted CBD.

Figure 5.3 Newly established bus station, north of CBD

The proposed approach suggests a re-purposing of this space in the context of a series of strategic initiatives. With a newly established bus station in the north of the CBD by the Eldoret Rail station (Figure 53), there is an opportunity to reduce the space allocated to matatus on the Main Stage bus station site.

This, coupled with a highly improved operational efficiency of the brand-new bus stop, also supported by mobility as a service ‘MaaS’ technology will retain the role of a leading transport node in town operating on a short stay regime of up to 15mins for drop-off/pick up only.

The Market itself will benefit from a general uplifting and be transformed into a more modern and functional facility distributed across 3 storeys and capable of accommodating more traders (currently spread across the streets and, also a considerable cause of congestion).

The piazza’s public realm links the surrounding urban fabric and expands across the entire urban block uplifting the surrounding properties values. Mulino Rd – now fully pedestrianised, is transformed into high quality public realm and open space linking the new Sosiani River Park gateway to the south and the transformed Arap Moi St to the west. Arap Moi takes the form of a ‘rambla’ like boulevard and ultimately connects to Mahatma Gandhi Rd and another market area.

Following extensive consultation with local stakeholders and considering the morphology and key metrics of the CBD context, a series of issues very specific of this area, can be highlighted, including: > Lack of quality public spaces

> Identify new development and urban regeneration opportunities on plots located along the boulevard

> High degree of congestion in the CBD

> Creation of a TOD based development around the existing railway station complex

> Clogged right of way due to over-spilling matatus and connected activities

> Establish a pedestrian network based on walkability, desire lines, heritage sites and the strengthening of linkages with the existing CBD and its key activity zones.

> Unsafe urban environment

The reduction of space allocated to transit allows for about 65% of the site to be transformed into a much needed, high-quality civic space with some associated investment and economic opportunities. As such, a piazza combined with a small ‘urban forest’ and innovative shading structures, will become a ‘hot-spot’ for the community. Such space will also cater for better access to both the local market, the matatu station and all the adjacent shops to the south of the piazza.

> Poor air quality

Source: SUED Atkins Team, East-west view

> Poor urban quality

The real estate component completes the make-up of the development package for this land with two possible scenarios (high and low capital cost). It is recognised that market demands might fluctuate largely over a very short time period, as such two scenarios have been explored to equip the Municipality with different options to negotiate PPP agreements with prospective investors or lenders. These are detailed below, with accompanying figures.

These development and regeneration initiatives are detailed below.

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Figure 5.4 High intensity development scenario – Option A Landmark Tower

OPTION A - Landmark tower

Figure 5.5 Eldoret Piazza, street and aerial view – Option A

Eldoret Piazza is a landmark for the whole southern CBD, a 12-storey bamboo clad tower, hovers above the urban forest and acts as a hinge between the park, the bus stop and the new market. It’s a Grade ‘A’ office space and desirable workplace boasting all the latest collaboration technologies and wellbeing lifestyle features.

It’s a demonstrator and forward-looking project which allocates very small amount of on-site private car parking to limit traffic demand, but boasts state of the art cycle facilities, access to personal amenities, public transport and car clubs deals for leaseholders and guests. From the rooftop, which is publicly accessible to all, the view spans 360 degrees far and beyond Sosiani River and the rest of the city Centre. At the back a small amount of parking is accessed through Kimalel Street and shared with the market basement access.

Eldoret Piazza, street view eastwards from pedestrianised Muliro Boulevard

Servicing and on-site car parking access (minimum provision)

Eldoret Piazza, Aerial view looking south-east Short stay transport HUB (15mins max stay) 104

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OPTION B – retail, food and beverage pavilion in the piazza

Figure 5.6 Eldoret Piazza, street and aerial view – Option B

5.2.4 Anchor 2 - Future CBD Expansion Eldoret is well positioned to achieve the ‘city’ status, and this is an opportunity to be recognised as one of the Kenyan development engines and a prime attractor for investments.

Eldoret Piazza is the first purpose built civic space in Eldoret, it offers lush vegetation and space for people to mingle, chat, discover and relax in the shadow of innovative shading structures and afoot of an urban forest in town. A series of small pop-up pods are dotted around the piazza, whilst a large organically shaped pavilion is the main attraction. Over three storeys, retail and restaurants are immersed in ‘nature’ right in the middle of the city.

The issues currently experienced in the CBD, mirror the challenges that any city would face in its transition from an industrial-based economy to a service-based society.

Context It is evident that land uses originally located across the CBD, such as industrial activities to the north of the Eldoret-Kitale Road, are no longer compatible with the vision and aspirations that Eldoret has for its future, which is more akin to advanced trade, commerce and services.

The pavilion accommodates public services and is the ideal spot for a casual rooftop catch up with friends and colleagues whilst watching the world go-by not too far away through the piazza, the swarming market nearby and sun setting over the new Eldoret boulevards.

Some of the key factors driving the CBD development have been summarised below: > The congestion and poor air quality is mainly caused by the proximity of industrial traffic flowing along the Eldoret-Kitale Road, and challenges in enforcing effective road traffic management.

Eldoret Piazza, street view eastwards from pedestrianised Muliro Boulevard

> Site visits and stakeholders have highlighted that there is a fundamental lack of public places whereby all the spaces in between buildings are mostly taken over by informal traders and/or vehicular traffic. This directly impacts the pedestrian experience at street level. > North of the Eldoret-Kitale Road, the industrial identity and heritage of the town is clear. Larger land holdings and building footprints surrounded by goods and service vehicles are a common sight all the way to the Eldoret Rail Station. > A further challenge is posed by land availability for development, which is very scarce in the CBD. Most of the land it has been developed or utilised, albeit at low density, and this represents a missed opportunity.

> Well established transport infrastructure, such as the Main bus station on Muliro Road, is now at capacity and beyond, causing overspill of matatus, buses and boda-bodas onto the nearby streets. Idle waiting and engines exhaust complete the congested image of Eldoret CBD and contribute to the deterioration of the urban environment.

The combination of all the above factors hampers sustainable development of the city centre and, consequently, the attraction of further investment.

Despite all the challenges, thanks to the strong leadership of the local community, there are a series of opportunities upon which Eldoret capitalise: > North of Muliro Road, slightly decentralised from the CBD, is the existing city centre railway station. Its location within 5 mins walking distance from the Eldoret-Kitale Road makes it a potentially new business and community anchor linked to CBD activities. Such developments are typically known as Transit Oriented Developments (TOD) and are the focus of major investments across the world, including in Kenya. > At the southern end of Muliro Road, the Sosiani River Park revitalisation project aims at restoring access to water and creating a riparian park running east-west of the CBD. The project is ongoing, and it can potentially also connect the wider CBD (north and south of the Eldoret-Kitale Road). > Thanks to a sensible urban planning policy and a series of existing investments, there is an ongoing trend of industrial delocalisation. Industrial parks established out of town or in the immediate outskirts, are better suited to accommodate manufacturing activities, easily accessible via road or rail.

These are attracting new or existing industrial activities around Eldoret. Such trends might be visible in the CBD’s vacant warehouses.

Eldoret Piazza, Aerial view looking south-east

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Figure 5.7 CBD Regeneration Opportunity Uses

All of the above, offer a unique opportunity to re-consider the CBD scale and main anchors. Freed land can be re-purposed and accommodate a larger variety of mixed uses, ranging from service/knowledge-based activities, residential, last-mile logistics, training and education, entertainment and culture, and light and advanced manufacturing; all activities that are less environmentally impactful and underpinning the United Nations Sustainable Development Goals (UNSDG) agenda and a Net-Zero future.

Vision and Proposals

Figure 5.8 CBD Regeneration Opportunities

The expanded vision for the CBD, builds on the principles set out and delivered through the proposed Eldoret Piazza. The newly expanded CBD will benefit from an established forum of stakeholders and local communities that will be familiar with the ‘best practice’ approaches developed and demonstrated as part of the Eldoret Piazza installation (Phase 1- Pilot Area).

The revitalised Eldoret CBD will revolve around the use of natural local features, local heritage and create suitable spaces for the various communities to flourish.

Source: Atkins SUED Team Source: Atkins SUED Team

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Figure 5.9 CBD Vision View

The vision for the area north of the Eldoret-Kitale Road is for a modern walkable neighbourhood distributed across approximately 80 hectare of land. The scale and morphology of the site allows for it to be an example of fully walkable neighbourhood, and one of the first examples of the 15/20 minutes city concept in Kenya. Spanning 500m (5 minutes on foot) N-S and 1.5 Km East-West (15 minutes), the neighbourhood lends itself to accommodate a variety of uses within a short walk, as shown in Figure 58.

Figure 5.10 Railway Plaza (TOD – Commercial/Transport)

Figure 5.11 Muliro Road/Boulevard Piazza and its shopping district

The new City Centre of Eldoret is framed by the Sosiani River Park to the south and the railway corridor to the north; the rail station, is a new multi-modal/multipurpose HUB comprising a civic plaza, commercial buildings, and an advanced multi-modal transport hub.

To the east, between Muliro Road and Oloo Street, the existing civic and commercial spine is expanded and includes new developments (Post office plot).

To the west, the education and commercial cluster around Mitaa Road, interfaces with the expanded and revitalised city centre, here a new student neighbourhood supports innovation and a knowledge driven economy.

View of the CBD looking north

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Proposed Railway Plaza looking north

Muliro Boulevard Piazza and shopping district looking west

Eldoret City Centre is proposed to benefit from 4 key landmark nodes, as demonstrated below in Figure 5.10 to Figure 5.13.

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Figure 5.12 Sixty-four Culture Park

Figure 5.13 Kitondo Street Park

With its signature park and towers complemented by the “Eldoret Theatre and Exhibition Hall” (culture);

The first new urban park in Eldoret spread across 4ha of remediated industrial land (six times larger than Nandi Park), offers a much-needed respite and recreational space to the local communities.

This robust urban structure could be extended, and integrated into the larger KRC land holdings north of Sixty-Four Street.

This would provide a balanced urban fabric (linking both sides of the rail line) capable of delivering the best urban quality standards (i.e. access to open, green spaces, a variety of employment opportunities and a range of affordable residential accommodation) that Eldoret requires to attract investment, business and create a healthier community. It could serve as an example for Kenya and beyond.

Figure 5.14 Proposed Muliro Boulevard looking north toward the Railway Station Node

The planning and design of the new City Centre will be supported by sustainable climate resilient infrastructure in order to manage rainfall events and mitigate existing flooding impacts.

Similarly, the newly pedestrian priority Muliro Boulevard, linking the station to the Sosiani River Park, should be made up of permeable paving and increased green areas, raingardens, and SuDS.

Sixty-four Culture Park looking south Proposed Kitondo Street Park looking north toward the railway

In the long term (2040 and beyond), due to increased demand for rail traffic, the station could be relocated to the west and adjacent to Sixty-four Culture Park axis creating both an enhanced arrival experience for the rail user, as well as accommodating additional rail sidings and platforms. Here a new, modern station would complement Sixty-four Culture Park and further catalyse development in the western portions of the city centre.

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A land bridge could then be developed at the Railway Plaza TOD which extends the Muliro Plaza and Boulevard to the KRC land to the north, thereby opening up further development opportunities north of the rail corridor.

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5.2.4.1 DELIVERY RECOMMENDATIONS

Infrastructure and transport plans

Climate Resilience recommendations

Social Inclusion recommendations

The Anchor 2 Future CBD expansion will need to be prepared with a clear understanding of what role the CBD can specifically play in addressing the key economic and societal needs of Eldoret. It also needs to be accompanied by detailed studies to enable successful delivery. There are certain key steps in this process as set out below:

The development will create additional demand for utilities such as water, power and ICT services as well as create wastewater and solid waste. As a new development it will be important to ensure flexible infrastructure supply to respond to phasing and mix of uses. It will also offer an opportunity to deliver infrastructure in a cost and resource efficient way adopting latest smart and low-carbon technologies such as metering, recycling, capture and re-use of rain and storm water.

It is important to develop climate resilient infrastructure, in particular in the face of floods and extreme rainfall, which is one of Eldoret’s identified climate risks, along with drought and high temperatures. Climate resilience can be integrated into urban development through:

These interventions and the improved access and links to Eldoret’s industrial sites have the potential to expand existing educational facilities, resulting in a better integration with students and industries across the municipality and the region.

Market assessment and economic and social impact It will be important to identify an appropriate mix of uses for the CBD, managing the balance between demand and supply to maximise values and avoiding oversupply which will destabilise the market. In doing so there needs to be a detailed demand assessment into key property sectors to identify current supply as well as future demand growth for office, retail, commercial, residential and MICE space within Eldoret.

The analysis needs to consider development trends including potential decentralisation trends with major developments such as the AEZ proceeding outside Eldoret.

Furthermore, identifying and quantifying the economic and social contribution of the development in terms of job creation, investment, consumer spend etc., will provide the necessary evidence to gain public and private sector confidence in the development.

Master Plan and placemaking The UEP has set out some high-level concepts for place making to ensure future development is well integrated and human centred. Informed by the market assessment, a detailed Master Plan will promote design quality and establish the spatial framework for development setting out urban guidelines including appropriate land use, plot ratio, building heights etc.

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Critical to the delivery of a sustainable, green and smart development will be the integration with the public transport system and ensuring access and mobility for pedestrians.

Delivery considerations First and foremost, there will need to be considered and effective stakeholder engagement in the development planning and implementation process. This will require a structured stakeholder body, or forum, representing all parties such as land and building owners, business operators, tenants, CBOs and special interest groups. Section 6 below highlights some of the mechanisms, such as a business improvement district, which can be engaged to facilitate inclusive and representative implementation.

Adaptability needs to be well embedded in the development.

Future proofing against potential changing social, economic, climatic conditions and ensuring flexibility is necessary in every step of this process.

Phasing of the development is also critical to ensure responsiveness to any changes and also to be able to deliver manageable packages of the overall scheme.

Structuring the development appropriately can not only deliver commercial gains for the developers but also revenue generation from value uplift for the Municipality, in addition to a well-functioning CBD that promoted economic growth and social development.

> Drainage and permeability – design measures, such as drainage and increased permeability of surfaces can be considered to reduce the impacts of extreme rainfall. This is particularly important in areas which are located downslope. > Green spaces – conserving current and incorporating new green spaces within the Municipality will reduce the urban heat island effect. The proposed designs ensure that everyone living in the development area is a 5 to 7 minute walk to a public space, which in the majority of cases is a green space. > Shading – providing shading is an important aspect to counteract high temperatures. It is recommended that this is constructed in combination with solar photovoltaic film, to provide an additional benefit of providing clean energy to the community. In addition, proposed developments in both the pilot area and CBD of three-storey buildings with extended elements to provide shading. This ensures that a minimum of 50% of the space in the areas being developed is shadowed. > Rainwater harvesting – incorporating rainwater harvesting requirements for new buildings is a measure that can be considered by the Municipality. In combination with permeable and green areas, this is a measure that can help control runoff, in addition to providing an additional source of water supply. > Retrofitting – retrofitting existing development with climate and disaster risk reduction technology, such as rejuvenating current green spaces, repurposing unused spaces to create shading, pedestrian and cycling passages of further green spaces

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Inclusive public spaces are fundamental for communities’ social cohesion, recreation, civic participation, and sense of belonging. The project will incentivise walking and cycling, which contributes to improving sustainable mobility and the overall health and wellbeing of the local community. There are opportunities of increased access to shared mobility services, such as bicycle sharing, which represent affordable mobility options and could particularly benefit local students.

Increased pedestrian movement contributes to increasing the revenue of adjacent businesses. The uplifting of the market represents new employment opportunities and more space to cater for existing traders and businesses. The transport hub improves access to community facilities, education, employment, trade, and last-mile logistics. > Communicate to local residents and adjacent businesses about the implementation schedule of these projects to mitigate the disruption of traffic, everyday life, and economic activities. This communication should be timely, in formats and languages that are accessible for all.

> Implement signage that is appropriate to people with hearing and visual impairments or learning disabilities.

It is recommended to utilise easy-to-read text or simple symbols. Avoid reflective material that could cause confusing glare. > Install appropriate lighting for people with visual impairments and to create a safer environment for all. > Liaise with local cooperatives, local SMEs, or with the National Hygiene Program (NHP) Kazi Mtaani for the maintenance of the new public spaces.

5.2.5 Phasing of Focus Area 1 Such large-scale regeneration for Eldoret requires a carefully considered delivery phasing to capitalise on infrastructure efficiencies, minimise disruption and ensure compliance with Eldoret’s overall urban planning goals. The proposed phasing considers land availability, ease of delivering supporting infrastructure and the significant aspirations of the city. It also aims at achieving quick results by fast-tracking projects that will have the highest positive impact.

The proposed phasing is presented in Figure 5.15 to Figure 5.19 below.

> For the new public spaces, adopt inclusive design standards that allow easy access and use for everyone: > Avoid graded routes and when changes in level are unavoidable, include ramps. Include tactile pavings at crosswalks. > Install benches in every circulation route for people with mobility impairments to rest. Consider benches that are appropriate for the elderly and people with reduced mobility. Leave space alongside benches for wheelchair users to be seated next to their companions. > Footways should consider materials that are firm and non-slippery, particularly during wet weather.

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> 2025 Eldoret CBD – Pilot Projects

> 2030 Eldoret CBD – Muliro Boulevard (Green Corridor)

> 2035 Eldoret CBD Expands West

> 2040 Eldoret CBD – Western expansion

Eldoret Piazza, Urban Forest, Markets and Boulevards (south) and new bus stops are implemented

Railway Station Boulevard/Rambla and Private/Municipal Land is re-developed.

Station Road expands to Stadium Road, Green links, Sixty-four Culture Plaza and Kitondo Street Park are developed along with the Mixed-Use blocks in between.

Blocks around Kitondo Street Park and Sixty-four Culture Plaza are developed.

Figure 5.15 2025 Eldoret CBD

Figure 5.16 2030 Eldoret CBD

Figure 5.17 2035 Eldoret CBD

Figure 5.18 2040 Eldoret CBD

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> 2040 and beyond Eldoret CBD – Western Expansion

> 2050 Eldoret CBD – Future City Centre

Western blocks are developed toward Mitaa Road, expansion north of rail corridor begins.

Figure 5.20 2050 Eldoret CBD

Figure 5.19 2040 and beyond Eldoret CBD

5.2.6 Infrastructure projects

5.2.6.1 PROJECT 1.1: EXPANDED NMT NETWORK

The regeneration and consolidation of the CBD is supported by a range of infrastructure projects to facilitate an effective movement of people within the focus area, including an NMT network and paratransit service map digitisation, as well as addressing congestion and transport inefficiencies through Bus Park and matatu interventions and traffic management. Focus Area 1 is largely well served by infrastructure at present, where the meeting of the aspirations for a higher quality public realm and land use density is also supported with streetlighting and provision for publicly-accessible toilets.

Overview

Table 5.2 List of Infrastructure Projects for FA1 Sector

Project Title

Transport

Expanded NMT Network

Transport

Bus Park Interventions

Transport

Matatu Priority Measures

Transport

Introduce and digitise maps for paratransit services

Transport

Traffic Management – Junction Improvements

Transport

Traffic Management – HGC Access Control to CBD

Energy

Streetlighting

Sanitation

Accessible Public Toilets

These infrastructure projects are detailed in turn below.

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The Eldoret Transportation Master Plan lays-out an elaborate Non-motorised Transport (NMT) network in the CBD to enhance safe and walkable spaces including the development of safe road crossings and pedestrian prioritisation measures.

The proposed NMT network has designated footpaths integrated with the existing road networks to create continuous links to bus terminals, offices and open spaces within the CBD. Beyond the CBD, the network connects to neighbourhoods and employment zones in the outskirts of the city.

An expansion of the planned NMT network is proposed to enhance connectivity with the proposed railway development under Focus Area 1, through green links to River Sosiani and open spaces such as Nandi Park. The proposal also involves the development of footpaths along Muliro Road, Moi Street and Dharma Street totalling 7.0 km, combined with the installation of pedestrian and streetscape furniture, safe crossings and landscaping to make the streets liveable and walkable. The proposed links are shown on the Focus Area 1 area in Figure 5.2.

Comfort, attractiveness, directness, continuity, universal access and safety are the main guiding principles for providing effective NMT facilities. For this reason, the footpaths should be divided into three main zones: frontage zone, pedestrian zone and furniture zone as shown in Figure 5.21. The pedestrian zone should provide continuous space for walking and should be clear of any obstructions. In terms of ROW, footpaths should allow for a minimum clear width of 2m on both sides.

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Figure 5.21: Typical NMT street section

Climate resilience recommendations

Table 5.3 Project summary information Sub-components 7km of pedestrian facilities with safe at grade crossings, vending spaces, drainage facilities and street furniture

Estimated cost (KES range) KES 105 million

Benefits and impacts Increased safety and accessibility for pedestrians Reduce vehicle use in favour of walking

Financing options and delivery mechanisms

Implementation agency and stakeholders

The County government would be the main implementing agency and Municipality would be responsible for their maintenance

County Government The project also aligns with objectives of the KUSP, as a potential contributor

Improve air quality by increased walking Walking can improve health and fitness Increased footfall to businesses along the network

Source: Street Design Manual for Urban Areas in Kenya

To ensure continuity, safety, and convenience across the busy commercial streets, pedestrian crossings should be provided at critical crossing areas such as bus stops, entrances to markets, parks, and malls and where a path intersects with other streets. Parking on these streets should only be provided after space has been allocated for NMT and street vending and parallel orientation is recommended as it occupies the least street space.

Linkages > Provides effective pedestrian access throughout Focus Area 1

Provision of shade along the routes is an important consideration, with the expectation of higher temperatures due to climate change. There may be an opportunity to include sustainable urban drainage features along the routes both to enhance amenity and reduce the likelihood of surface flooding.

Social inclusion recommendations Provision of a safe, accessible NMT and public transport facilities will enable equitable access for all by addressing inequalities associated with motorised transport. Good quality NMT provides basic mobility, is affordable and has health and recreation benefits. > It is recommended that NMT and transport facilities follow principles of inclusive design and ensure PWDs accessibility (i.e.: install ramps, consider non-slippery surfaces, include tactile pavings at crossings, etc.)

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Protecting against encroachment from two wheelers and street vendors

› Pre-feasibility study › Public consultation

Short term

Construction likely to interrupt traffic flow.

A traffic management plan would need to be developed which is usually part of an EMP

Case Study: Development of Non-Motorised Transport (NMT) Facilities in Nairobi City The Nairobi Metropolitan Services (NMS) has in the last one year carried out development of non-motorised transport (NMT) facilities and public awareness initiatives on the importance of NMT usage, and benefits. In 2020 alone, NMS rolled out nearly 50km of pedestrians and cycling lanes in the CBD along high pedestrian traffic streets like Muindi Mbingu, Kenyatta Avenue and Wabera. This financial year alone NMS has set aside KES 1.47 billion for expansion of the NMT corridors to other urban centres such as Westlands, Hurlingham and Jogoo Road to cover a total of 116km. Already the new NMT network has improved CBD’s accessibility and it is expected that the expansion of the network will offer safer commuting options to pedestrians and cyclists and contribute to reduced car use.

> Timely communication to local residents and adjacent businesses is recommended about the implementation schedule of the different projects to mitigate the disruption of traffic, everyday life, and economic activities. This communication should be in formats and languages that are accessible for all.

NMT facilities along Kenyatta Avenue

NMT provision is particularly pertinent with shocks such as COVID-19, where this provides alternatives to public transport use and helps mitigate against a longer-term shift to individual public transport, which can overwhelm the network.

Funding

> Builds on Eldoret’s Transport Masterplan

NMT facilities (grey line is meant for pedestrians and red for cyclists) along Muindi Mbingu Street

Category: Capital Investment: new

Source: https://roggkenya.org/2020/12/16/kenya-set-to-have-first-non-motorized-transport-law/, https://nairobinews.nation.co.ke/general/nms-unveils-sh1-47-billion-pla n-for-non-motorised-transport-corridors, Atkins 2021

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5.2.6.2 PROJECT 1.2: BUS PARK MANAGEMENT

Figure 5.22: Organisation of matatus at stages based on route direction

> Establishment of peripheral bus parks at the outskirts of the Municipality, in high traffic residential and commercial areas, to complement the CBD terminal (including central terminal bus stations)

Figure 5.23: Matatu demand at bus park based on time of day50

Overview Eldoret CBD has 4 main bus parks namely Main Stage, Tagore Stage, Chepkoilel Stage and Sosiani Stage. An assessment of public transport SACCOs operating from these 4 bus parks reveals that significant volumes of matatus operate from the Main Stage which is located at the heart of the CBD. Out of an approximate 4,141 matatus, at least 51% percent drop and pick-up passengers from this stage. An overwhelming number of these vehicles are small vehicles and their volume far exceeds available space. In addition, the concentration of other minor stages along the A8 is degenerating these streets into parking yards and terminal parks for matatus, exacerbating the acute congestion issue.

> Limit parking duration of matatus at stages to less than an hour > Higher capacity vehicles should be introduced on intercounty services to manage the fleet sizes > These project elements would need to be piloted to determine an arrangement that optimises fleet numbers and capacity at each stage while limiting the number of transfers and distances commuters must travel to complete a journey.

The success of these measures will also be closely linked to how effective boda bodas can be accommodated and managed in the bus parks. The Municipality can leverage information technology (IT) systems to manage access to the parks from both matatus and boda bodas.

Matatus cluster at the bus parks based on the geographical proximity to their routes, for example north bound vehicles primarily operate out of Chepkoilel Stage which is north facing, west bound. The vehicles operate from Main Stage which is closer to the west route as shown in Figure 5.22. This indicates that a degree of self-organisation exists that could benefit from optimization.

Source: SUED Atkins Team

Source: SUED Atkins Team

The vehicles operating in the CBD largely fall into two main categories, intercounty (62%) and intra-county routes (38%).

Intercounty vehicles account for a larger number of vehicles at the bus parks and are also more likely to queue longer as they wait to fill before departing. On these services the bulk of passengers board matatus at the bus parks, compared to intra-county routes where boarding and alighting along the route is more common. This means inter-county routes contribute more significantly to the congestion experienced at the parks. Matatu arrival times at the bus parks vary widely 122

but clear peaks occur during the morning and evening peak hours when there is a higher frequency of vehicle arrivals and departures respectively. The only exception to this is the Main Stage which experiences higher loading during the mid-day period which suggests fleet are idle for a longer duration at the park (Figure 5.23). This has implications for the stage management and the crowding experienced which further constraints access for local service matatus.

Stage as well as north bound inter-county matatus operating from Sosiani should also be relocated to the railway bus park.

A combination of new bus parks and management solutions are proposed to reduce crowding of matatus. This comprises introducing new bus parks at the railway station and next to Sosiani Primary School, shifting operations to redistribute demand across more parks, redevelopment of main stages as elaborated in the Eldoret Piazza (section 5.2.3) and managing fleet numbers by replacing smaller vehicle with larger vehicles. These are elaborated in more detail below:

> These relocations would serve to ease crowding at the current stages and free up space for Tagore and Sosiani Stage to primarily serve local matatu services.

> A bus terminal facility north of the CBD, at the railway station should be developed to serve north and east bound inter-county matatus operating from the Main Stage. East bound inter-county matatus operating from the Tagore

> A new bus park is also recommended south of Sosiani in line with the Eldoret Transport Masterplan proposal, which could serve south bound matatu services.

> West bound intra-county matatus operating from the Main Stage and Sosiani Stage should be relocated to Tagore Stage

50. Morning operations- 5:00 – 9:00 AM, Mid-day operation; 9:00AM – 3:30 PM, Evening operations; 3:30 PM – 7:30 PM

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Linkages

Climate resilience recommendations

Supports the regeneration and consolidation of the CBD, with more effective public transport movements to reduce congestion

The location and design of the new bus parks should be chosen to reduce the risk of flooding. Site drainage should account for increases in the size of heavy rainfall events, and include a mixture of traditional drainage, and SuDS features. Bus parks should include shade, and green features where possible to reduce urban heat island effects, and improve resilience to higher maximum temperatures.

Category: > Developing policy/plan/guidelines / legislation / regulation > Capital investment: new and improving existing Table 5.4 Project summary information Sub-components

Estimated cost (KES range)

New bus park at Railway station (Terminal A), 2.4 ha, Eldoret Block 13 No. 1

Railway bus park acquisition and development – KES 360 million

New bus park at Sosiani (Terminal B), 0.8 ha, Eldoret Block 13 No. 22

New bus park at Sosiani – KES 120 million

Redistribution of matatu fleets across the bus parks

Benefits and impacts Support future growth and public transport demand increase Increased footfall to support adjacent businesses

Financing options and delivery mechanisms

Implementation agency and stakeholders

County Government would be best placed to fund and oversee these developments, alongside the KUSP

County Government The project also aligns with objectives of the KUSP, as a potential contributor

Increase of sustainable transport options

KRC are a key stakeholder concerning the land acquisition near the station, and will also benefit with more effective matatu movements

Increase revenue for Municipality / County

Matatu operators and users

Increase revenue for businesses adjacent to the bus park

Improved management of adjacent streets Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Matatu sector consultation and buy-in needs to be sought

› Public consultation › Matatu schedules and passenger demand

Management measures can be implemented immediately

Will cause disruption to matatus services Upgrade likely to interrupt traffic flow

Case Study: Relocation of Ubungo Bus Terminal (UBT) to Mbezi Luis area in Dar es Salaam, Tanzania.

5.2.6.3 PROJECT 1.3: MATATU PRIORITY MEASURES

In 2020 the Tanzania’s city centre Ubongo Bus Terminal moved its inter-city bus services to the newly constructed modern bus terminal at Mbezi now Mafuguli Bus Terminal. The preparation of the Magufuli Bus Terminal project took a long time due to the various government procedures including land acquisition and compensation. The Magufuli Bus Terminal now accommodates all the inter-city buses that were previously at UBT and serves over 3,000 buses daily.

Overview

The cost of the project was reported at US $22 million.

Social inclusion recommendations Good quality, accessible public transport facilities support access to jobs, education, and health for all residents irrespective of gender, age, or disability.

Figure 5.7 shows the potential travel patterns in Eldoret based on planned urban land use. As illustrated, the structure of development is linear with the CBD located at the intersection of three main roads, the A8, B8 and B16 which serve as the central axis of the city. These roads form Eldoret’s key growth corridors and are currently experiencing linear development, high public transport through-fare and pressure for wider roads due to increasing congestion. With continued consolidation and higher density of activity planned for the CBD area, these growth areas will require forms of transport that can support mass movement, making them natural candidates for dedicated lanes for an initial high-capacity bus system.

Better management of matatus will improve safety and comfort of pedestrians and road users. Better management of boda boda at the bus parks will resolve conflicts with between boda boda operators and town council law enforcers.

Regularisation of boda bodas will benefit operators with access to credit and welfare options.

The project will also support job creation with the enhanced space for retail at the bus park, and with an increased capacity for matatus and new routes. > It is recommended that the bus park improvements follow principles of inclusive design to ensure easy access and use for everyone (e.g.: consider parking lots for PWDs and adequate space alongside them; provide public PWDs-friendly toilet facilities; install ramps, lifts, and escalators; seating and shelter).

For Eldoret to meet the travel needs of its growing population, a significant improvement in the level and quality of public transport services is needed. Real improvements in service reliability, speed of travel, frequency, safety and security, and ease of use can unlock the public transport’s potential to reduce congestion, improve accessibility and reduce transport related emissions.

Source: Project Construction Review Online

Bus park upgrades can be implemented in the short-term

Funding

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Figure 5.24 A simplified representation of the main potential trip vectors of intra urban public transport demand

lanes designed to isolate PSVs from general traffic congestion, reduce journey times and make services more reliable.

Priority especially at pinch point locations will be important to ensure PSVs bypass congested parts of the road network and take more direct routes to their end destination. A stepped approach in expanding this network according to performance, the evolution of population density and public transport demand is recommended.

These improvements will require expansion of the road corridors from single lane to dual lane. As of reporting, KeNHA is exploring dualization of the A8 roads. It will be important to ensure the designs provide a central verge of at least 10m that can be used for bus lanes and ultimately a BRT system in the future where matatus will play a complementary role.

A 10m wide lane is sufficient for BRT running lanes as the typical total requirement is usually 8m, which is comprised of two lanes of 3.5m each plus a 0.5m median on either side. However, this is not sufficient for the cross section at stations. In these locations, the width requirement of 12m that comprises of two lanes of 3.5m each, a station of 4m, and a 0.5 m median on either side would usually be required. A BRT feasibility study is therefore needed prior to road upgrades to outline the infrastructure requirements of the system and ensure subsequent planned road upgrades can accommodate BRT. Such a feasibility study should also cover the operational, institutional and regulatory aspects of the system as well as the sequence of implementation.

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Climate resilience recommendations

> Eldoret Transport Masterplan

With an increase in precipitation intensity in Eldoret due to climate change, flooding is a risk to road infrastructure.

The road expansion planned within this project provides an opportunity to include resilience elements to tackle the risk of flooding. As with other transport projects, including storm drainage to the design of this project can accommodate more frequent rainfall events and will significantly increase the resilience of the road to climate change impacts.

> Enables the benefits realisation from CBD regeneration and consolidation > A future extension should include direct access to the AEZ site (Section 5.4.3.1), to support workforce access, with corridor assessments to be undertaken.

Category: > Feasibility study / design / piloting > Capital Investment: new and improving existing

Social inclusion recommendations

Table 5.5 Project summary information Sub-components Dedicated lanes to be introduced as part of the dualling of A8, B8 and B16 Public transport study

Estimated cost (KES range)

Benefits and impacts

20km of dedicated lanes on A8 – KES 2.4 billion

Isolate PSVs from general traffic congestion

10km of dedicated lanes on B16 – KES 1.2 billion

Reduced public transport journey times

10km of dedicated lanes on B8 – KES 1.2 billion

Improved public transport reliability

Public transport study – KES 30 million

Financing options and delivery mechanisms

Implementation agency and stakeholders

The road corridors fall under KeNHA who have the right to dedicate a lane of traffic to public service vehicles and to control the access to this lane.

County Government Matatu operators and users

Institutional reform is prerequisite for reforming public transport. An accountable urban transport authority will need to be put in place. With supporting regulatory framework

The implementation of this project and the BRT system will improve frequency, speed of travel, and service reliability. The project will not disrupt the livelihoods of existing matatus operators, but it aims at improving the efficiency of transport services. This will result in enhanced productivity, public health, and safety of local communities51. > Consult and involve matatus operators in the development of the project to understand their preferences and needs. > Ensure BRT improvements are still affordable for low-income communities and that BRT infrastructure is accessible for PWDs (see DART case study).

Basic analysis and timeline

Source: SUED Atkins Team

The Eldoret Transport Masterplan proposes enhancing public transport through the development of Bus Rapid Transit (BRT) corridors along these corridors. BRT systems can deliver high quality bus services that are reliable, comfortable, and cost-effective through a series of design features such as dedicated lanes, median busway alignment, platform-level boarding, off-board fare collection, and intersection treatments. However, realising the full benefits of a BRT system will require integrated planning of several aspects

Linkages

beyond infrastructure such as vehicle operation and control, institutional and regulatory framework, management capacity for both public sector regulators and private operators.

Challenges

Data gaps

Time frame, key dependencies

Matatu industry organisation

Lack of public transport demand data. A demand assessment is required to validated proposed BRT corridors and outline services and operations of the network

Medium term

A dedicated urban transport authority is needed to oversee public transport management

This proposal recommends a structural network of priority bus corridors initially along the A8, B16 and B8 to make sure public transport service vehicles (PSV) have substantial priority over general traffic. This could take the form of a public transport priority scheme that comprises of separated and dedicated bus

Cooperation between matatu operators and county government needed 51. See EMBARQ (2013) Social, environmental and economic impacts of BRT systems: Bus Rapid Transit case studies from around the world. Available at: https://www.embarq.org/sites/default/files/Social-Environmental-Economic-Impacts-BRT-Bus-Rapid-Transit-EMBARQ.pdf

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Case Study: BRT Scheme Best Practice The best BRT schemes achieve a high quality of service, match customer needs and expectations, and meet their objectives not only because of the physical infrastructure, vehicles and equipment, but because schemes redefine the way public transport services are planned, regulated, managed and delivered in the urban context. In particular, whilst the infrastructure construction at the outset is important, effective performance often comes from the ability of the coordinating authority to specify, negotiate, contract or otherwise secure a high quality of service from private operators. This may, in turn, replace a former unresponsive public service monopoly or multiple individually owned and operated businesses with neither the industry coherence, resilience nor collective resources to meet passenger needs.

Case Study: PWD-inclusive design in Dar es Salaam’s Area Rapid Transit (DART)52

5.2.6.4 PROJECT 1.4: DIGITISE MAPS FOR PARATRANSIT SERVICES

In 2016, DART partnered with an NGO called Comprehensive Community-Based Rehabilitation in Tanzania to understand the needs of passengers with disabilities and ensure them BRT accessibility. The initiative aimed at testing the service by people with physical, hearing, or visual impairments.

This exercise resulted in several recommendations, such as using braille for tickets, installing lower ticket windows, and designing new signage. This was accompanied by an awareness campaign to inform PWDs about the improvements in the service.

Overview

Much BRT experience shows that institutional restructuring, both within the public sector and the private sector, and closer coordination between the two is a key factor for successful outcomes.

Often a publicly-regulated, but privately contracted or operated, system through one or a system of competitively tendered concessions or franchises, can provide an effective set of tools and incentives which deliver improved passenger service, financial sustainability and achievement of urban policy objectives. One issue which has historically undermined many conventional bus operations across Africa has been the political desire for low fares, which whilst understandable has prevented sufficient investment in renewals and led to a decline in the quality and quantity of service, incentivising the informal sector to take its place.

Bogota’s TransMilieno, provides one of the most well-known examples of combining private sector operations with strong public sector oversight. Equally, development of BRT-Lite in Lagos was based on a public / private partnership, whereby a newly created transport authority, LAMATA, provided the operating infrastructure and security of contract, and a private operator provided the rolling stock and service delivery.

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Figure 5.25: Proposed matatu network in Eldoret

This proposal is to introduce maps of paratransit services at all bus parks and digitize maps into General Transit Feed Specification (GTFS)53 format to host in map applications such as google maps. This will help improve the understanding of existing transport services.

Key to developing effective public transport solutions in Eldoret is an accurate understanding of existing transport services. The Transport Masterplan performed public transport surveys to collect and map an inventory of routes in operation. These surveys capture key planning data such as major public transport corridors and points of origin and destination which form an important database of the matatu services operating in Eldoret. By mapping and releasing this information to the public, this can help to improve wayfinding around the Municipality, assisting visitors, new residents, and even frequent riders with trip planning. The map also provides valuable data in the analysis of public transport patterns which will be critical in reforming existing services and planning of the BRT system. It also presents an opportunity for developers to create online trip planning tools and mobile applications.

Table 5.6 Project summary information Sub-components

Estimated cost (KES range)

Benefits and impacts

Financing options and delivery mechanisms

Implementation agency and stakeholders

Traffic lights at 6 intersections

Traffic lights – KES 60 million

Accommodate future growth

Municipality using county funds

Modification of intersections design, channelisation and pedestrian safety treatments

Intersection modifications -KES 8 million

Improved traffic throughput

Institutional reform is prerequisite for reforming public transport. An accountable urban transport authority will need to be put in place with supporting regulatory framework

Intelligent traffic control system

Intelligent traffic system – KES 120 million

More efficient junction operations Improved pedestrian safety

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Matatu services are prone to frequent changes in routes and map will require regular updating

› Lack of route frequencies › Lack of route coding/ numbers

Immediate

Source: Eldoret Transport Masterplan (2020)

Linkages > Eldoret Transport Masterplan

Location This proposal is CBD-wide and would be introduced for each bus park, reflecting the Eldoret Matatu network.

> Enables the benefits realisation from CBD regeneration and consolidation

Category: > Developing policy / plan / guidelines / legislation / regulation

52. ICED, Case Study: Disability inclusive design in Dar’s BRT, Available at: http://icedfacility. org/resource/case-study-disability-inclusive-design-dars-brt/ (Accessed 19/07/2021)

53. The General Transit Feed Specification defines a common format for public transportation schedules and associated geographic information.

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Social inclusion recommendations Paratransit services maps at bus parks and digitized maps will allow visitors and residents to be more informed about transport services and consequently, to achieve independent and safe mobility, especially benefitting vulnerable groups. > Maps design often ignores the needs of PWDs. To facilitate their navigation, it is important to include accessibility considerations (i.e.: tactile maps at bus stops or narrated digital maps for the visually impaired). Maps should also indicate the location of transport infrastructure that is accessible for PWDs (see for example the AXS map54).

Case Study: Digital matatus

5.2.6.5 PROJECT 1.5: TRAFFIC MANAGEMENT – JUNCTION IMPROVEMENTS AT INTERSECTIONS

A digital matatus’ map for Nairobi was created through a collaboration between MIT’s Civic Data Design Lab, Columbia’s University’s Centre for Sustainable Urban Development and University of Nairobi’s Computing for Development lab in partnership with Nairobi’s growing technology sector.

Overview The effectiveness of Eldoret’s network and proposed new links will largely depend on how intersections operate. The street network is constrained by six intersections through which most of the CBD traffic passes through. The junctions are either three or four armed, and none has any type of signalisation.

These junctions present a challenge to traffic movement due to lack of capacity and signalling to manage traffic. Turning vehicles have a significant impact on traffic flows causing queues which spill back into upstream intersections and can jam the entire network.

This project55 captured data on Nairobi’s transit system, developed mobile routing applications, and designed a new transit map for Nairobi that is the most comprehensive map to date of the city’s matatu system.

The critical junctions that are especially prone to traffic clogs: > Intersection of Kisumu-Iten Road and Eldoret-Nairobi Road (Four arm intersection) > Intersection of Oloo Street and Eldoret-Nairobi Road (Four arm intersection)

Channelization of these intersections with left turn lanes on four arm intersections and signalization at all six intersections is recommended. Channelisation is typically an intersection treatment that directs vehicles to make permitted turns through signage but most commonly through physical controls such as traffic islands that also restrict vehicles from traveling through the intersection. These treatments can accommodate high volumes of traffic with low delay and high safety. A few intersections have been redesigned to channelise turns and traffic flow is reported to have improved while operations function with little need for traffic police management.

Coordination of the intersection improvements with the bus priority measures will be important to ensure turning movements do not interfere with public transport movements.

Sub-components

Estimated cost (KES range)

Creation of public transport maps

Creation of maps - KES 10 million

> This proposal supports the functioning of the CBD as Focus Area 1 through decongestion, support to the bus priority measures and CBD regeneration. > Matatu priority measures (Project 1.3) Category: Capital investment: improving existing

Benefits and impacts

Annual budget of KES 10 million for regular map update

> Intersection of Kisumu Road and Nandi Road (Roundabout intersection)

> Intersection of Elgeyo Road and Iten Road (Four arm intersection)

Linkages

Table 5.7 Project summary information

> Intersection of Muliro Road and Eldoret-Nairobi Road (Four arm intersection)

> Intersection of Kenyatta Street and Nandi Road (Roundabout intersection)

These intersections should also be made safer for pedestrian movement through the introduction of safe at grade crossings and traffic calming measures.

Will assist in the regulation of matatus city-wide

Financing options and delivery mechanisms

Implementation agency and stakeholders

Municipality using county funds

Institutional reform is prerequisite for reforming public transport. An accountable urban transport authority will need to be put in place with supporting regulatory framework

Support optimization matatu services across the city, Provide more information to passengers

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Matatu services are prone to frequent changes in routes and map will require regular updating

Lack of route frequencies

Immediate

Lack of route coding/ numbers

54. https://www.pwc.com/us/en/library/case-studies/axs.html 55. http://digitalmatatus.com/

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Climate resilience recommendations The design of the intersections could be modified to address climate change issues. Both drainage facilities to address the risk of infrastructure flooding and shading to address pedestrian thermal comfort are important considerations to this project. This reflects the recommendations of other transport projects within Eldoret, with an increase in precipitation intensity and an increase in temperatures expected for the Municipality due to climate change.

Social inclusion recommendations Improved junctions will enhance the efficient movement and safety of all road users (matatus, trucks, motor vehicles, bicycles, and pedestrians).

Case Study: A3024 Bursledon Road, between Botley Street and Bitterne Road east, Junction improvements, Southampton, UK In 2019, Southampton City Council started a £5.8 m project to improve journey times for all road users on the A3024 Bursledon Road. The project delivered 111 traffic signals upgrades, created 2.6km of cycleway, replanted 40 trees (twice as many as were removed) and laid 1,130 m of future-proofing ducting.

For all junctions, the project made three major improvements.

1. All traffic signals were upgraded to make them more response to demand and to allow for remote control.

2. The crossing islands were changed to improve traffic flow through the junctions. Changes made included 1) reversing the direction of staggered crossings and 2) moving the stop lines closer to the junction thus reducing the crossing time.

The crossing islands were changed to toucan crossings with wider crossing areas and flat waiting areas 3. Widening of footways along the north side of Bursledon Road to create footway/cycleway and a link to city’s cycle network.

To maximise benefits for SIGs, ensure all infrastructure is universally accessible (for example, tactile pavings at pedestrian crossings for visually impaired people).

5.2.6.6 PROJECT 1.6: TRAFFIC MANAGEMENT – HGV ACCESS CONTROL TO CBD Overview The strategic location of Eldoret at the nexus of important road corridors linking Nairobi to northern Kenya, Uganda and South Sudan places the Municipality at the centre of significant flows of freight traffic. This traffic contributes to Eldoret’s economic vitality, but its growth and lack of management is having an impact on traffic and environment in terms of congestion, pollution and noise. A 32km bypass currently being developed along the A8 is expected to divert at least 30% of international and national freight traffic away from the CBD and will be critical in alleviating congestion. Truck parking planned along this bypass at Leseru and Kapsarbet will also be crucial in meeting the demand for parking facilities. However, Eldoret is an industrial hub meaning a significant volume of freight traffic will still be generated and attracted to and around the centre.

Appropriate strategies to distribute this movement spatially and temporally are needed to accommodate and manage the urban freight.

A combination of measures that are relatively easy to implement can be utilised to improve current situations. These should comprise of:

North East Road Junction Improvements 1)New junction signals 2) No. 3 new toucan crossings and 3) Removal of bus lays and shelter and install bus stop

The plan achieved the following: Results

1. A dditional priority by buses at traffic lights making bus travel more reliable and convenient than ever before

2. B etter travel by bike – with a brand new 2.6km cycle way made cycling safe

3. Traffic signal upgrades at 11 junctions between Botley Road and Bitterne Road East – have improved traffic flows and reduced congestion along this key route into and out of the city

Source: https://transport.southampton.gov.uk/projects-archive/a3024-bursledon-road-junction-improvements-now-complete/

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> CBD access restrictions to certain times of the day, preferably off-peak hours, can be employed to redistribute the traffic demand and maximize the use of the road network. > Access restrictions can be paired with the routing of freight vehicles to parts of the network that allow the HGVs to bypass the CBD. The ring roads identified under the CBD network redundancy project (Project 4.1) could form part of these routes. A truck route by law would be required to restrict and enforce HGV movement to this specific parts of the network > The transhipment of goods from long haul large trucks to smaller vehicles at specific hubs from where they can be delivered into the centre in smaller vehicles should be encouraged. The ICDC industrial park provides a natural E L D O R E T U R B A N EC O N O M I C P L A N ( U E P )

location for this to take place and is elaborated in more detail under Focus Area 2 (Project 2.1). > Provision of clear road signage and traffic signs to help drivers navigate the network and adhere to permitted routes and times for HGVs movement

Linkages > This proposal supports the functioning of the CBD as Focus Area 1 and across the wider CBD, by limiting the disruption to traffic and environmental quality caused by heavy commercial goods vehicles

> Manage the loading and unloading of goods in CBD by providing dedicated zones preferably behind buildings to minimise transport disruption.

> Focus Area 2 freight consolidation and logistics provision (Project 2.1)

> Encouraging delivery of light weight time critical shipments by cargo bikes by utilising existing ride matching apps.

Category: > Developing policy / plan / guidelines / legislation / regulation > Feasibility study / design / piloting

Table 5.8 Project summary information Sub-components Road signs on CBD Dedicated loading and offloading bays in CBD Enforcement officers

Estimated cost (KES range)

Benefits and impacts

Road signage (Estimate 5 No.)- KES 0.5 million

Ease congestion caused by freight traffic

Height barriers – KES 0.5 million

Increasing pedestrian safety and quality of public spaces

Dedicated loading and offloading bays – KES 10 million

Financing options and delivery mechanisms

Implementation agency and stakeholders

County Government in collaboration with responsible road authorities, KeNHA and KURA

County Government and road authorities Logistics companies and freight operators

Donor partners

Enforcement officers – KES 5 million Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Requires new bylaws and strict enforcement

Full assessment and development of strategic goods movement network plan is needed showing the origins, destinations and primary travel routes of the goods movement in the Municipality

Medium term, dependent on strategic goods movement being developed and upgrade of ring roads proposed as part of the CBD redundancy network proposal

Will require coordination with the road authorities responsible for the parts of the network to be used for goods movement

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Social inclusion recommendations Good traffic management will contribute to the safety of pedestrians and local communities. This project can enhance the performance of traffic networks without the need to expand existing infrastructure (which may lead to involuntary displacement of communities or economic activities).

Ensure the implementation of the project is communicated in a timely way, and in a language and format accessible to all to minimise possible disruptions in the economic activities of local communities.

Case Study: Bristol Urban Freight Consolidation Centre (FCC), Bristol UK The Bristol Freight Consolidation Centre (Bristol FCC) came about from a deliberate effort to implement the Bristol City Council’s Local Transport Plan and Air Quality Plan both geared towards reducing the impact of trucks while maintaining the economic vitality of the city centre. The Bristol Freight Consolidation Centre was set up as a pilot scheme in 2004, consisting of 5,000 square-foot warehouse on an established industrial estate and approximately 11km northwest of Bristol, to help alleviate issues associated with freight in Broadmead, Bristol. It was then known as Broadmead Freight Consolidation Scheme and was the first project of its kind in the UK. Bristol FCC was set up to reduce the delivery trips and double the load factor related to consolidated reverse flow.

Urban freight consolidation centres, as illustrated in the figure below, are part of the city logistics measures that aim to reduce the negative impacts related to urban freight transport activities, whilst at the same time providing a more seamless, higher-value logistics experience for their users. By collecting the goods destined to the target area and consolidating deliveries into one large delivery made by high-load vehicles, urban consolidation centres can relieve congestion and improve air quality.

During the pilot stage the Council made Bristol FCC attractive to retailers through enforcement of restriction for freight vehicle access times to the main pedestrian portion of retail zone from 5am to 8am and 6pm to 8pm and accompanied this restriction with a strict requirement for the trucks to use a one-way route system in the city. The impact of the scheme was positive in relation to truck reduction and air quality improvements. Now the operations have grown and have extended to retailers in Central Bristol.

5.2.6.7 PROJECT 1.7: STREETLIGHTING Overview This infrastructure project aims to provide streetlighting to all key areas. The main issues are the high cost of traditional grid powered lights provided by KPLC versus theft and vandalism of solar streetlights.

Part of this is to optimise the technology solution (particularly with respect to finding a robust solar solution) and implementation model for the municipalities to ensure climate resilience, financial and operational sustainability.

This project has several proposed components: > Review technology choices for streetlighting to find a suitable product for the environment (i.e. use of solar and robust construction);

> Review/ update current contractual arrangements between the Municipality and the utility, with the aspiration to improve the economic situation for the Municipality and utility and ensure long term maintenance of installed streetlights

Linkages New streetlighting installation identified in the Uasin Gishu County Integrated Development Plan with a budget in the Energy Services sub-sector programme of KES 200 million.

Category: Capital investment: new

Review current implementation plan Review current commercial and technical arrangements Design study to ensure suitable coverage of target area Equipment review and selection Development of new commercial plan (procurement, deployment, implementation, maintenance)

Estimated cost (KES range) Benchmark: KES150,000 per pole KES3.75-5 million per km depending on spacing Estimated total based on part coverage to new areas, part reworking of existing areas:

Benefits and impacts Improved finances for Municipality Improved safety and security Longer operational hours at commercial centres

KES37.5-50 million based on 10km of road covered

Financing options and delivery mechanisms Financing can be sourced from a number of options, including World Bank funded KUSP, which has funded streetlighting in Thika, Ruiru and Limuru The World Bank also offers advice, sample legal documents and further reading on using a Public Private Partnership route for streetlighting, detailing projects completed in Brazil, Mexico and India56.

Implementation agency and stakeholders Site selection – Municipality Equipment selection – street lighting design specialist Construction and implementation - Municipality.

Operation and maintenance – responsibility of Municipality

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Finding suitable robust solar streetlighting technology

Detailed maps showing current street lit areas;

Short-term to complete coordination, Short-to medium-term to complete implementation

Achieving buy-in from municipality, KPLC, KENHA

Detailed implementation schedule for new streetlighting; Currently selected technology Current commercial arrangements between municipality, KPLC, KENHA

56. Proven delivery models for LED public lighting: Municipal financing delivery model, Quezon City Case Study, accessed 14th June 2021 <https://www.esmap.org/sites/esmap.org/files/DocumentLibrary/Quezon%20City%20-%20Proven%20LED%20Delivery%20Models8_Optimized_Final.pdf

Source: https://travelwest.info/app/uploads/2015/07/Case-Study-Bristol-Freight-Consolidation-Scheme-1.pdf

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Sub-components

> Review of current streetlighting plans to ensure coordination with proposed urban development plans; > Augment to ensure coverage of all main streets in the three focus areas, and markets and areas of public congregation, and all main public streets;

Freight Consolidation Centre:

Table 5.9 Project summary information

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Climate resilience recommendations The potential to use solar powered light fittings will reduce the use of grid electricity and therefore reduce greenhouse gas emissions.

Increases in extreme temperatures, and potential increases in solar radiation may cause the streetlight assets to decay more rapidly, requiring more regular maintenance. This should be considered when planning operational maintenance for the project.

Social inclusion recommendations The increase in the provision of streetlighting has a number of positive effects on social inclusion. Street lighting reduces street harassment, crime, and fear of crime, contributing to the safety of women, PWDs and other vulnerable groups. Better lighting also allows markets and businesses to operate for longer hours, improving the economic outlook of vendors and market traders.

Case Study: Quezon City, Public Lighting Delivery Models, Philippines596057 Quezon City (QC) had been actively exploring and implementing upgrades to its street lighting system. Many streets and roads were not lit at night, so public safety was an ongoing concern. The Mayor created a Task Force to look at the installation, repair and maintenance of streetlighting. This body was charged with overseeing an initiative to expand night-time lighting coverage across the city. QC subsequently embarked on a citywide street lighting programme to illuminate 80 percent of the public road network. It involved installing 3,000 new streetlights, with an additional 1,000 streetlights retrofitted by Meralco, a private electricity utility.

In the past, QC had relied on traditional lighting technologies.

However, the emergence of the first generation of LED streetlights prompted a rethinking, since any improvements in energy efficiency would translate into desirable budget savings.

A constraint arising from the conversion of QC’s streetlights to LEDs was the split ownership of the assets and the flat rate charged by Meralco on a portion of the assets, as identified in the study. To solve this, the Mayor of Quezon City signed a Memorandum of Agreement with Meralco that turned over the nearly 3,000 ornamental streetlights owned by the utility to the QC government for a price of PHP 5.7 million (KES12.6 million). Meanwhile, the City installed meters on all of the ornamental streetlights so that savings from the retrofit of LEDs would yield energy cost savings. For the remaining pole-mounted streetlights that are owned by Meralco, the utility on its own authority has undertaken a project to convert the streetlights in its ownership to LEDs. Since QC continues to pay Meralco a flat rate per pole, the LED retrofit undertaken

by Meralco increases their profit, and the city benefits from better lighting.

The city funded a study to determine the feasibility of upgrading their streetlighting to more efficient technology.

The study compared the potential costs and benefits of three technologies: ceramic metal-halide lamps, induction lamps, and LEDs. It concluded that ceramic induction lamps would be a suitable replacement for existing street lighting, while LED luminaires, which were quite expensive at the time of the study, would only be suitable for new installations

Figure 5.26 Accessible Toilet Block – exterior and interior

Overview While there are several public toilets in the CBD area, these facilities typically do not meet the requirements of women and girls, nor PWDs. Failing to plan, design or manage public toilets to ensure they are female-friendly and accessible to all users restricts the movement of women and girls, as well as older people and PWDs, and consequentially limits their ability to participate in public life58.

The regeneration of Eldoret CBD is an opportunity to ensure that accessible public toilets are constructed in the bus station and market to meet the sanitation needs of people travelling into the area for business and leisure activities. The toilets must be safe and private, be accessible to all users, be affordable and available when needed, be well maintained and managed, and meet the requirements of caregivers and parents.

There is a sewage system in the CBD area of Eldoret and the toilets should connect to this. However, they should seek to put in water efficiency measure such as water saving flushes and recycling handwashing water to flush toilets.

There is an opportunity for the toilets to be run by a small business whereby an operator is appointed and collects a fee per use and pays for running costs such as the water, the sewage fees and maintenance. Figure 5-9 shows the typical features of an accessible toilet block.

57. Energy-efficient street lighting PPPs, accessed 17th June 2021, <https://ppp.worldbank.org/public-private-partnership/energy-and-power/ energy-efficient-street-lighting-ppps>

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5.2.6.8 PROJECT 1.8: ACCESSIBLE PUBLIC TOILETS IN THE BUS STATION AND MARKET

Source: https://www.wateraid.org/us/sites/g/files/jkxoof291/files /Female_friendly_toilet_guide.pdf

58. UNICEF, WaterAid and WSUP. 2018. Female-friendly public and community toilets: a guide for planners and decision makers. WaterAid: London, UK. Available at: https://www.wateraid.org/us/sites/g/files/jkxoof291/files/Female_friendly_toilet_guide.pdf

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Case Study: A 2011 study of public toilets in Dhaka, Bangladesh60

Category: Capital investment: new

Location CBD bus station and market area Table 5.10 Project summary information Sub-components

Estimated cost (KES range)

2 public toilet blocks

KES 17 million

Benefits and impacts Enables women and girls, as well as older people and PWDs to participate in public life.

Financing options and delivery mechanisms ELDOWAS (the water company) through the Water Sector Trust Fund

Implementation agency and stakeholders ELDOWAS to implement Stakeholders – › Women and girls › The elderly › PWDs Local NGOs for maintenance

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Establishing ownership and maintenance of the public toilet blocks.

Information on the current provision of public toilets within the CBD.

Medium-term.

Social inclusion recommendations Well-designed, affordable, and accessible public toilets will improve access to the public space to all, particularly for women, the elderly, and PWDs. This project also represents employment opportunities for small businesses as toilet facilities’ operators, and for local NGOs or community groups for the toilets’ maintenance. > Ensure toilet facilities have a baby-changing station, and that PWDs toilets have enough space for them and their caregivers. Facilities should be well-illuminated.

The primary projects to enable the regeneration of the CBD must be completed before the public toilet blocks can be constructed.

This study showed that the city had only 47 public toilet blocks serving around 7 million people. 75% of the blocks did not have female-friendly and child-friendly features, and more than 30% were in very unsafe locations. Furthermore, almost 60% of the blocks did not have a reliable water supply, and more than 80% had no lighting, making them impractical, undesirable and unsafe for women and girls.

The city municipalities decided to start reversing this problem by increasing the number and quality of public toilets to meet the requirements of all, especially women, girls and people with disabilities. They committed to build 100 new public toilets in partnership with WaterAid and other NGOs. As part of the Sunrise project, WaterAid has helped build dozens of female-friendly and accessible public toilets. They have separate male and female sections and features including handwashing facilities, showers, safe drinking water, reliable water and electricity supplies, CCTV cameras and professional male and female caretakers.

Users pay 5 taka (US$0.06) for defecation and urination, 10 taka for a shower and 10 taka to buy a sanitary pad. The toilet use fee is waived for people who say that they cannot pay.

B) Regional Eco-Industrial Hub Development 5.3

Eco-Industrial Principles

5.3.1 Overview It is proposed that both Focus Area 2 – Eldoret Industrial Area – and Focus Area 3 – AEZ – employ the principles of Eco-Industrial Parks for their development, whilst recognising they each play a different role in the industrial hub. Setting in place these principles allows Eldoret to maintain a long-term role as regional industrial hub following initial development, such that the industrial areas are sustainable, resource efficient, cost-effective, climate resilient and ultimately support wider benefits realisation.

Eco-Industrial Principles Eight principles are set out below, informed by best practice and case studies, for Eco-Industrial Parks which realise a range of socio-economic, environmental and sustainability benefits.

Figure 3.3 Eco-Industrial Park Approach – Principles and Benefits

> Develop a participatory process to establish opening times, user fees and special needs from SIGs59.

1. Climate resilient and sustainable, passive design

4. Clean production and renewable energy

> Promote tailored strategies for sub-zones to reflect unique characteristics and address local climatic conditions, such as reducing urban heating stress or mitigating climate change effects.

> Foster industries which reduce industrial environmental footprint by minimising waste, through reuse, and emissions, using local renewable energy sources such as solar energy, wind power, biomass, geothermal energy or hydroelectric power.

> Promote the design of buildings to reduce electrical cooling, heating, ventilation and lighting while guaranteeing comfortable conditions for all users. > Integrate natural features and green space.

2. Resource efficiency and re-use – circular economy and zero-waste > Effective industrial symbiosis and exchanges of energy, water and materials use in sub-zone loops to drive circular economy processes. This is supported by clustering and networks for such exchanges. > Rethink the waste management system to turn waste into resources. > Minimize the generation of waste by reorganizing industries in a way that one could use the waste from another as an input into a process or as a source of energy.

3. Resource efficiency and re-use – water re-use > Promote SuDS and water catchment across sub-zones. > Promote sustainable urban water cycles by implementing rainwater collection, storm water retention and harvesting techniques and wastewater recycling.

> Ensure toilet facilities are well managed and maintained.

Liaise with local NGOs or programmes such as Kazi Mtaani for toilets’ maintenance.

> Promote an efficient use of water resources, and ensure good water quality while protecting environmental assets.

Failing to plan, design or manage public toilets to ensure they are female-friendly and accessible to all users restricts the movement of women and girls, the elderly and PWD, and limits their ability to participate in public life.

> Cluster heavier, noisier, dirtier industries in appropriate sub-zones where they are distant from residential and public realm uses and can have their environmental impacts mitigated efficiently. > Encourage the use of smart technologies and automation to achieve an efficient use of natural resources and industry outcomes.

5. Sustainable travel and air quality protection > Ensure workforce access to employment opportunities in the industrial areas, in a sustainable, accessible and affordable manner. > Promote sustainable public and active travel within the sub-zones, away from vehicular use. Facilitate walking and cycling and the future use of electric vehicles within the park, and encourage sharing facilities to reduce private cars usage and parking. > Promote an urban design focus on improving the public space network with streetscaping that promotes healthy and active lifestyles. > Promote the use of smart technologies using information to digitalise transport infrastructure allowing the exchange of information. Examples are streetlights capable of monitoring parking spaces and traffic patterns. > Use landscape as a key element to help improve the air condition.

59. UNICEF, WaterAid and WSUP. 2018. Female-friendly public and community toilets: a guide for planners and decision makers. WaterAid: London, UK. Available at: https://www.wateraid.org/us/sites/g/files/jkxoof291/files/Female_friendly_toilet_guide.pdf 60. Source: https://www.wateraid.org/us/sites/g/files/jkxoof291/files/ Female_friendly_toilet_guide.pdf

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6. Efficient input collection and output distribution networks > Provide shared logistics and facilities for industrial area users to access transport hubs and markets. Cluster businesses and industries to enable this sharing such as warehouses and logistics, training and meeting facilities and parking areas. This also reduces overhead costs. > Utilise cold and dry storage options in production areas to support the efficient transfer of inputs to industrial areas and limit losses.

7. Inclusion – local and inclusive employment and enterprise opportunities > Ensure age, gender and (dis)ability sensitive design; people-centred accessible, safe spaces. > Business and community centres as part of sub-zones, i.e. with the agri-processing VC cluster > Promote a focus on creating local jobs and proactive approaches to training partnerships and programmes that upskill local people for emerging opportunities. > Consider procurement approaches that are accessible to local enterprises run by youth, women and PWDs. > Ensure better working and labour conditions and improving occupational health and safety.

8. Wider benefits creation > Promote business incubation and education facility links to enable local SMEs and start-ups to engage with the industrial area opportunities and pilot site use. > Facilitate wider supply chain links to support local enterprises that do not locate in the park themselves, including procurement and upskilling support in advance of industry start-ups on site.

5.4 Focus Area 2: Eldoret Industrial Areas

Figure 5.28 Eldoret Identified Industrial Areas

5.4.1 Overview The lack of affordable, well located space for clustered industrial uses has been raised by stakeholders. It has been recommended that industry is moved outward from the city centre and clustered to enable more efficient infrastructure provision and to free space for the city centre to focus on a growing urban services economy as a destination for residents, businesses, visitors and institutions.

This will enable this part of the economy – education, markets, innovation, city and public sector services - to grow and interact more effectively. As such, Focus Area 2 plays an important role in an effective, integrated economic ecosystem for Eldoret’s development as a regional city and regional industrial hub.

The ICDC Site is a 60 hectare site to the south of the urban core. This area is well located for the North Rift and Lake Economic Bloc regions alongside access to bordering countries. There are existing industrial uses to the North of the site, with Pioneer and Rivertex industries. The site provides space that can be developed in phases following site preparation and infrastructure works. The site’s landowner and developer is the Industrial & Commercial Development Corporation (ICDC) that has produced a masterplan including infrastructure requirements61. The Masterplan sets the vision for the park: ‘to be a leading frontier in industrial estate design, setting standards in sustainability, social amenity and building efficiency.’ The premise is that ICDC will put in place the infrastructure - administration block and offices, road infrastructure, basic amenities i.e. water and wastewater - and private developers will lease plots62.

The UEP defers to the ICDC Masterplan, and future updates that will be made, where the Masterplan is well-aligned to the SUED principles.

The site has a key role to play in both Eldoret’s regional city and industrial hub development. The UEP recommends the continued ICDC Master planning follows eco-industrial principles, and that two projects are added – to extend its proposed logistics role and to ensure energy efficiency.

These projects are developed below

The Eldoret LPDP has identified sites across the Municipality and within a planned city boundary for industrial development.

Three site options have been assessed for the UEP’s Development Concept as a Focus Area 2 for localised industry, logistics, commerce and city services as part of the industrial ecosystem and in supporting the city’s consolidation of uses as it grows and develops.

These sites are shown on Figure 5.28, with site overviews below. All three industrial sites would be linked to the Southern bypass once it is extended, as shown below with other key roads.

Source: SUED Atkins Team

The Leseru site to the northwest of Eldoret centre. The site is located on the under construction Southern bypass and the Nairobi-Malaba railway line, with proximity to a KRC rail station, and is identified for a logistics/ industrial zone. The development timeline for investment to be able to be realised is towards 5 years given the bypass is up to 2 years away from completion and the site needs a full suite of access roads and utilities provision. Further land acquisition from private landowners near the station may be necessary, whilst the site is currently some distance from the urban core and in turn difficult for workforce access. It is recommended that it will

61. Eldoret ICDC Industrial Park Masterplan Report, ICDC (2015) 62. SUED Engagement: ICDC Executive Director (June 2021)

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benefit from the creation of a new urban centre or satellite town in its proximity. The site is assessed to have long-term potential to provide further logistics support and industrial space for Eldoret as a growing city.

The Kapseret site has a good location near to the airport with access from C93 and is relatively close to the Southern bypass interchange, it is thus identified as a potential industrial zone within the LPDP. The site forms part of a much larger portion of land, and can therefore be expanded and upgraded, as necessary, to provide the full suite of utilities and services, whilst mitigating potential adverse impacts on the surrounding area. Land acquisition may be difficult and take significant time, whilst its relative proximity to the airport means the site will have to adhere to restrictions or oversight from the Kenya Aviation Authority (KAA).

The site is assessed to have long-term potential to provide further logistics and industrial space as an airport supporting logistics hub, supporting Eldoret’s growth as a city and regional industrial hub.

The UEP Development Framework focuses on the ICDC Site.

5.4.2 ICDC Site Development Recommendations The ICDC Masterplan63 is premised on eco-industrial principles, such that it will represent: ‘a community of manufacturing and service businesses that are keen on enhanced economic and environmental performance through collaboration in managing environmental and resource issues, including energy, water, and materials.’ The ICDC Park is strategically located with good access to key infrastructure such as roads, power, water and sewerage. The park also promotes a system of materials and energy exchanges that can minimize energy and raw materials use, minimise waste, and build sustainable economic, ecological and social relationships. The Masterplan provides a rationalisation of the land use activities alongside infrastructure plans.

The land use plan has co-located industries that have similar functional needs and characteristics like service demand, energy and water consumption, traffic type, and waste generation. As a result, four major clusters have been proposed - industrial clusters, commercial cluster, open spaces and greenery cluster, amenities cluster and road infrastructure. Of these, industry is the most significant use with a planned 62% share of the site’s land area, whilst roads cover 19%, open space 8%, commerce 6% and utilities 5%.

> The road layout is envisaged to enable, sustain, and enhance optimum functioning of the industrial park.

Figure 5.29 ICDC Land Use Plan

> Potable water and wastewater systems have been designed for optimization and conservation of available resources.

Recycling and reuse schemes are integral to the design.

To support the development of local benefits realisation and industrial innovation, the UEP highly recommends and supports that: > Space is provided within the clusters for piloting and testing, to facilitate local entrepreneurship and opportunity development in advance of formal facilities development.

This should include workspace for Jua Kali.

> The drainage system has been designed to allow flow by gravity. Runoff reduction is to be achieved through on-plot water harvesting and landscape design.

> There is a business incubator and business services hub provided on-site, where this links to Eldoret’s education facilities in physical access, knowledge sharing and business support concerning emerging value addition initiatives (as per sector action plans, Section 4.1.4).

> Electricity supply shall primarily be from the national grid with proposals for future alternative sources from solar and biomass. In the long run, bio-energy carriers waste is proposed for energy production i.e. electricity and heat for utilization within the industrial park.

To support eco-industrial principles across Eldoret’s regional hub, the UEP recommends that the site is linked in and provides a logistics node that serves industry and value flows beyond the ICDC site users themselves. There are economic benefits to be realised where Eldoret’s markets and transport nodes (railway stations and International Airport) can be accessed using this intermediary site for storage in advance of last-mile distribution, this includes keeping HGV traffic out of the CBD and offering local supply chain opportunities as Eldoret’s industry grows.

The ICDC Land Use Plan is demonstrated below in Figure 5.29. Considering the amount of available land, road access and utility requirements, clustered areas can be formed in varying sizes from 4 hectares to over 12 hectares. The plot area distribution and clustering can also accommodate the establishment of circular economy processes.

It is also recommended that as the other industrial sites (Kapseret and Leseru) become development feasible, that their complementing roles with the ICDC site are well thought out. For example, Kapseret would suit specific time-sensitive logistics in relation to the airport and Leseru may increasingly provide relatively more commerce and urban services as a satellite centre grows in its vicinity, as well as becoming a key transit hub for goods and products moving northwards to Uganda and beyond.

In terms of building and infrastructure plans, ICDC aligns with eco-industrial principles whereby: > Sustainable industrial building designs have been explored to improve building performance through energy efficient design and site layout (e.g. passive solar gain and cooling). > Landscaping features for the park - pedestrian paving, fences, landscape furniture, street lighting, signage, bins, etc. – have been designed to blend well with the building prototypes.

Source: ICDC Masterplan (2015)

> The quality and visibility of green space is a key part of the park, with development control guidelines.

63. Eldoret ICDC Industrial Park: Masterplan Report, ICDC (2015)

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Climate Resilience Recommendations

Social Inclusion Recommendations

The major climate resilience considerations for the site overall relate to flooding from the River Cherunya, and localised flooding as a result of extreme rainfall. The Strategic Environmental Assessment of the site notes that there is wet ground and swampy conditions in certain areas, with some saturated areas of ground. The flat topography means there is no risk from land movement. The development of the site should include comprehensive drainage measures which are designed to accommodate likely increases in the frequency and magnitude of extreme precipitation. Where possible, SuDS measures should be included in the site, and the amount of impermeable surface should be minimised.

The ICDC site provides employment opportunities for local communities and entrepreneurs. The project will contribute to widening the available talent pool, strengthening industries’ reputation, and increasing compliance with environmental and social standards.

A flood risk assessment should be carried out to ensure that the site is planned in such a way that land adjacent to the river that is at risk of flooding is not developed, and can be used for flood storage, green space, and potential recreational activities. This assessment will need to be based on future flood levels, and not simply historical levels of flooding. With increasing risk of high temperatures, it would also be prudent to include shade and green space in the site design to the extent possible.

> Actively communicate about the ICDC site and its business development opportunities in local media, universities and TVET centres. Ensure communication formats and languages are accessible to all.

In addition to the site itself, there is a need to ensure good access to and from the site, in particular during the rainy season. Re-surfacing access roads, and main arterial roads for the site, as well as upgrading drainage, will increase the resilience of operations at the site.

Focus group discussions revealed that the Municipality counts with a young, dynamic population, supported by various higher education institutions. However, unemployment is high among the youth with limited job opportunities. The area could attract young graduates who would like to start a business or engage in light industries.

Case Study: Learning entrepreneurship without a trainer: C-BED programme The Community-Based Entrepreneurship development (C-BED) is an International Labour Office (ILO) initiative that provides training programme to help entrepreneurs and micro-businesses improve their business.

The key aspect of C-BED is that training can be carried out without external trainers or resources and has been designed to be used by marginalised and vulnerable communities. Only a facilitator is required, and participants work together in small groups to solve problems and share existing knowledge and experiences. The programme is therefore action-based and combines local insights with analysis. All C-BED resources are free to access.

5.4.3 Infrastructure Projects The ICDC developer approach has been set out in the ICDC Masterplan64 and this includes infrastructure proposals to prepare the site and facilitate private sector investment and the leasing of sites. Road access upgrade is one identified intervention for the ICDC Site, where this provides access south to the International Airport, alongside site servicing utilities and connections.

The UEP has considered the Masterplan, which is well thought out and comprehensive, and proposed two infrastructure projects in addition that will support the further development of the industrial ecosystem of Eldoret – the provision of a wider serving logistics hub that is integrated with other proposals – and an energy efficiency programme for industrial uses.

Table 5.11 List of Infrastructure Projects for FA2

> Liaise with, and inform local communities about, existing government opportunities and funds to support local entrepreneurs, start-ups or SMEs. Aim at particularly targeting SIGs and SIGs groups. > Promote internships and on-the-job trainings to support skills development of local students. Target participation rates for PWDs, youth, women and vulnerable groups should be set.

Sector

Project Title

Transport-logistics

Provision of New Logistical Hubs

Energy

Industrial Energy Efficiency Projects

These infrastructure projects are detailed in turn below.

> Ensure the business incubator and business-related trainings in Action A11 are also accessible for SIGs. Consider developing low-cost and accessible opportunities for out-of-school youth, low-income communities, and people with low literacy levels (see for example the C-BED programme).

5.4.3.1 PROJECT 2.1: NEW LOGISTICAL HUBS AT ICDC Overview Goods movement constitute an important component of traffic flow in Eldoret’s road system. The centre hosts a cluster of industries and commercial centres that generate a large number of freight trips which result in higher demand for often limited logistics space. Key areas within Eldoret that are largely affected by logistics activities, include the Kenya Pipeline Centre and the National Cereal Produce Board as well as upcoming commercial centres such as Rupa mall.

These locations attract many freight vehicles attempting to fulfil deliveries, often with limited parking supply. This results in long queues of delivery trucks that spill over into the surrounding network or park illegally along road shoulders and walkways where they obstruct other road users and intensify traffic congestion and pollution.

This proposal is intended to address freight movement within the centre, by utilising the ICDC Park as a centre where consolidation of deliveries can take place before they enter the busy CBD area. Located in the southern edge of the CBD, the ICDC park is a large 60 hectare government owned space that has the potential to provide dedicated space for freight handling and raise the CBD parking offer. The site is within walking distance of CBD and neighbouring residential areas such as Langas. This provides an ideal basis for promoting low and zero carbon trips to the development by facilitating pedestrian improvements around the development to make walking a safer, quicker, more direct and more attractive form of travel.

Operationally, it could serve as a space for HGVs to park and offload goods into storage from which they can be loaded into smaller vehicles for delivery within the city centre.

The logistics operation would need to be coordinated with measures that restrict the entry of heavy vehicles into urban areas during the day as proposed in Project 1.6. A series of ring roads are also proposed under the CBD network redundancy project (Project 4.1) which would form the primary goods movement routes for ICDC related traffic to avoid clogging the central parts of the network. To regulate axle loading and avoid damage to the road network, either fixed or mobile weight bridges should be introduced in the logistics park to ensure vehicle loads are compliant before dispatch. In the CBD, loading and unloading of goods would need to take place in dedicated areas with limits on parking duration to encourage swift truck turn-around times.

The projected types of traffic likely to access the ICDC site range from passenger vehicles; delivery/collection vehicles – both heavy and light commercial vehicles; service vehicles; taxis; emergency vehicles; and NMT. Considering this anticipated traffic, access should be restricted to the north and south access points to minimise conflict with other adjoining land uses. Traffic circulation should be controlled by Intelligent Traffic management systems that control both access and exit and manages internal circulation of vehicles to enhance the safety and efficiency of movement within the industrial park.

Linkages > CBD network improvements (Projects 1.6, 4.1) > Supports effective functioning of the trade and services sector, and facilitates improved access to Eldoret’s markets for local produce.

Category: Capital investment: improving existing

64. Eldoret ICDC Industrial Park: Masterplan Report, ICDC (2015)

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Table 5.12 Project summary information Sub-components Internal circulation roads Intelligent traffic management system and traffic control centre

Estimated cost (KES range) Internal road network, approx. 20km– KES 1.2 billion Traffic management system and control centre – KES 100 billion

Benefits and impacts Increasing logistics space in Eldoret Reduction of truck parking and congestion in CBD

Financing options and delivery mechanisms Bulk enabling infrastructure would need to be provided by ICDC to attract private sector investment to develop serviced plots

Implementation agency and stakeholders ICDC Business community Logistic companies County Government

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Attraction of logistics companies to the location

Design has been based on the provided design year traffic flows for 2013. More up to date traffic data and a later design year are likely to be required.

Medium-term

Climate resilience recommendations

Social inclusion recommendations

The construction of new roads under this project should take into account the increased risk of intensive rainfall due to climate change. As precipitation intensity and extreme rainfall events are expected to increase, upgrading the road surface and including storm drainage designed to accommodate more frequent rainfall events will significantly increase the resilience of the road to climate change impacts.

Better traffic management will improve the public health and safety of local communities. By facilitating pedestrian improvements around the area, the project will also incentivise sustainable mobility and contribute to the comfort and safety of pedestrians.

Case Study: Africa Logistics Properties (ALP) North at Tatu City Industrial Park, Kenya

5.4.3.2 PROJECT 2.2: INDUSTRIAL ENERGY EFFICIENCY PROJECTS

ALP North is a 50,000sqm international logistics and distribution complex located in Ruiru, Kenya within the Tatu City industrial area. The development is accessible from two major bypasses, the Eastern Bypass and the Northern Bypass.

The development allows 5 alternative access/egress routes into Nairobi metropolitan and surrounds. The complex has controlled access and exit points for trucks, parking, waiting areas and circulation map and is equipped with modern loading and offloading equipment to ensure efficiencies in loading and truck turnaround efficiencies.

Overview

It provides warehousing solutions for several retail, light manufacturing, and distribution businesses serving Nairobi and its environment. These range from e-commerce companies specialising in the distribution of Fast-Moving Consumer Goods (FMCG) to rural areas, farmer aggregation companies, Freight Forwarders, contract logistics companies, wholesalers among others.

Eldoret has a significant industrial base that includes agri-processing, metal fabrication, textiles, animal feed, textiles, fertiliser and bottled water. Each of these industries have substantial energy uses and many industries described having high energy costs as part of the SUED business consultation exercise. Reducing these energy costs will improve businesses competitivity, allowing more investment to enable them to expand or increase profits. It is likely that due to the different industry types that there are many different uses for energy, which could allow for multiple opportunities interventions to improve efficiency. These range from installation of high-efficiency equipment such as motors, to better lighting controls and staff education programmes.

This infrastructure project aims to undertake thorough energy audits of industrial premises of industry in Eldoret, conducted by the Centre for Energy Efficiency and Conservation (CEEC) , then identify and develop a reduction target and a basket of improvement projects. These projects will be evaluated and those that offer best value should be implemented. There should also be training delivered to company staff on basic energy efficiency practices, and training for one specific operative in each company to enable them to take on an energy efficiency role in their company.

This project is relevant to emerging industrial areas in Eldoret, especially where the overall Development Concept proposes consolidation of the urban centre to have industrial uses move outward to cluster service provision and decongest the CBD.

Location These projects should be implemented in Focus Area 2, and the identified industrial zones at Kapseret and Leseru for further development (Section 5.3.1).

Source: https://africawarehouses.com/

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Table 5.13 Project summary information Sub-components Energy audit of industrial premises and target setting Development and selection of intervention projects, selection of context suitable technology and budgeting Development of procurement and implementation plan Development of education and training plan

Estimated cost (KES range) Benchmark: KES 15 million fund for energy audits KES 300 million funding pool for improvement projects

Benefits and impacts Reduced energy bills for industrial companies Reduced GHG emissions

KES 5 million for capacity building

Financing options and delivery mechanisms The programme will fund energy audits carried out

by CEEC. A pool of funding will be made available for which companies can apply to, to fund the best value improvement projects determined by the audit.

Implementation agency and stakeholders The fund to be administered by Kenya Association of Manufacturing Supporting stakeholders: Support from municipalities to help advertise fund

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Effort needed to obtain comprehensive data on current situation

No knowledge of current situation

Medium-term, as industrial users locate to the ICDC site and for new industrial investment that is ongoing

Obtaining suitable energy efficiency equipment and systems Obtaining funding

Climate resilience recommendations

Social inclusion recommendations

There are no direct climate resilience considerations for the project. The project is going to add to the climate resilience of the area through lowering the demand on energy, as climate change may pose risks on the electricity supply.

This project will contribute to an increased competitiveness and higher profits for local businesses and industries.

Case Study: Owens Corning industrial energy efficiency programme

5.5 Focus Area 3: AEZ

Owens Corning, an international manufacturer of insulation and related building products, embarked on an energy efficiency programme in 1999 by declaring a target of reducing energy costs by 20%. In 2001 the company formed an internal energy services company and introduced simple measurements of performance to each department and encouraged ideas for improvements through competitions and awards. In 2003 the company reduced annual energy costs from US$ 260m to US$ 220m and yet invested less than US$ 20m into energy efficiency projects. Many of the measures were no or low cost. In this period production increased by 18% and energy prices rose by 10%. Three quarters of the gains were achieved from measures identified and implemented by employees. The highest performing units also had the highest quality and safety, and the lowest waste levels. After this period the company relentlessly pursued energy efficiency – setting a target of achieving a further 30% improvement in energy productivity in pilot plants. Between 2002 and 2011 company-wide energy intensity reduced by 20% and absolute energy use was reduced from about 11 million MWh to about 8.5 million MWh. The company is targeting a further 20% reduction in energy intensity to 2020 relative to the 2010 achievement65.

5.5.1 Overview The Plateau site AEZ (a Special Economic Zone) is a transformative development for Eldoret and the region, with a 692-hectare site to the south-east of Eldoret. It is a nationally significant project as part of its designation as a regional agri-processing and industry hub – driving exports and substituting imports, with value addition, international and local investment and significant economic and employment uplifts.

The AEZ site has been gazetted as a Customs Area and the land has been gazetted as an SEZ with a developer and operator license provided. AEZ has submitted an Environmental Impact Assessment (EIA) report, with NEMA issuing a license of approval such that AEZ has been able to start Phase 1 implementation.

The site is presented below in Figure 5-30. This shows the zoning plan for the sub-region (LPDP 2015-2040) around the Plateau site and the AEZ development area. This is an important forward planning document which aims to direct, manage and control development not only within the AEZ but also within its surrounding hinterland.

The UEP has considered how the AEZ opportunity can be best realised to support benefits distribution for Uasin Gishu and the wider region’s residents and businesses and interaction with other developments in Eldoret.

The AEZ is a significant area of land, currently located some distance from the Eldoret CBD, within the rich agricultural producing North Rift, and with excellent current or proposed transport networks across road, rail, air and port access. The AEZ developer has produced a Masterplan and Development Phasing Strategy for international and localised investment opportunities. This covers a wide range of sectors including agri-processing, construction materials, clothing and textiles, machinery, logistics, electronics and digital equipment, chemicals, medicine and health. This Masterplan is flexible to the needs of investors.

65. Best practices and case studies for industrial energy efficiency improvement, Accessed 25th June 2021 <https://c2e2.unepdtu.org/wp-content/uploads/sites/3/2016/02/best-practises-for-industrial-ee-web.pdf>

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Figure 5.30 AEZ location in Eldoret Context Source: AEZ Masterplan Land Use Plan; Proposed Local Physical Development (Zoning) Plan for Africa Economic Zone in Plateau 2018-28, County Government

5.5.2 Phase 1 and VC Project Development

Figure 5.31 AEZ plot areas and Value Chain cluster

The AEZ has been identified as the most suitable location for the VC projects given its timeline for being ‘investment ready’ with current development of services provision and Phase 1 plans. The VCs will benefit from the AEZ location, in either being suitable for international investment, utilising access to the Plateau rail station or being export oriented or with potential to expand into international markets in the future.

The VCs and their requirements have been assessed in Section 4.2. Trading between site users (both inputs and outputs) is a key opportunity for all agri-processing and other value chains, as part of a circular economy within the AEZ itself.

The SUED VCs can be placed as anchor/early tenants and can catalyse wider investment into the AEZ from Phase 1, whilst setting the standard for the sites’ development approach, utility use and wider networks development (inputs, employment, supply chain, outputs, marketing). This in turn can catalyse further site development in line with the SUED principles and an eco-industrial regional hub model.

The location of the primary VCs consider: > The enabling infrastructure needs that SUED investment can provide, and in turn to support next stage investment and secondary VCs. > The wider agri-processing VC clustering for the effective location, utility and facilities sharing, and efficiencies in input-output networks.

Information industry

Office & household supplies

Light industry & food

Medicine & health

> Other industrial VC opportunities, where these could then be located, recognising metal works as a key element.

Clothing & textile

Transport machinery

Electronics & electrics

Construction materials

Figure 5.31 below shows the AEZ Masterplan with proposed disaggregation of the area by activity, with its light industry and food sub-zone the suitable location for the proposed VC cluster.

Wholesale market

Comprehensive service zone

Landscape axis

Logistics

Fuctional axis Source: AEZ Masterplan Land Use Plan (2018)

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The total facility site requirements of the primary VC projects are 5,300 m2, and this will be well accommodated by the AEZ light industry and food zone whilst leaving sufficient space for the further value addition clustering opportunities, as set out in Section 4.2.1.2.

The infrastructure needs are of a County but also a National Government level issue given the AEZ status and aspiration. The UEP does not propose an extensive set of infrastructure projects for this focus area, but rather defers to the AEZ Master planning work which includes land use and infrastructure development proposals. The UEP makes specific development recommendations on this basis and in line with an eco-industrial regional hub approach. For the development framework, four infrastructure projects relevant to early development of the AEZ and areas of infrastructure recommendation for future development are proposed.

Firstly, intervention regarding the Plateau Railway is included (Project 3.2) to allow a focus on import substitution for the regional and wider (East) African markets, noting upstream and downstream links with Mombasa. Further, there is an important role for the strategic road network and rural roads for produce inputs with a recommended agriculture and VC produce collection network (Project 3.1). Other proposed transport projects support the development of road network redundancy and linkages to proposed bypass upgrades (Project 4.1) to enable access to the Mombasa-Nairobi SGR railway, phase 2 of Nairobi-Malaba and Eldoret International Airport. It is also recommended that sustainable and affordable public transport for Eldoret’s residents to access the AEZ’s employment opportunities, initially focussed on the VC projects, which has been incorporated into the transport projects. The VC projects also require interventions in solid waste, with Project 3.3. proposing organic waste processing to support eco-industrial delivery.

The existing AEZ Phase 1 plans intend to provide basic services infrastructure to support the leasing of space

and warehouses to potential industrial investors and is envisaged to be ready by the start of 2023. This includes a one stop shop and offices which have been set-up to date.

This includes key considerations:

Table 5.14 below sets out key points by infrastructure sector for the current status and emerging plans of the AEZ.

> How people and SIGs can sustainably and affordably access the employment opportunities;

Table 5.14 AEZ Infrastructure Status – Challenges and Opportunities

Engagement with the AEZ developer, County Government and other stakeholders has established an understanding for the latest Masterplan work, the status of infrastructure and the Phase 1 development plans. This engagement has also confirmed a commitment to collaborate with the SUED programme and to facilitate the proposed VCs at the AEZ. This basis of collaboration is highly important and will be a key part of the AEZ and VC cluster implementation, detailed further in Section 6.

> How local businesses can be part of the supply chain;

Collaboration will also be necessarily inter-county, where the AEZ as a regional hub will utilise produce from neighbouring and NOREB counties into the sub-zone processing opportunities. This supports income for the regional farming community and other county input factors such as metals.

Regional trade facilitation is important to address current differences with county licenses, permits and approaches, so that there is a coordinated and aggregated approach to collecting and distributing inputs and outputs effectively to then access markets across Kenya and East Africa. The AEZ plans are cognisant of this regional trade facilitation need, with dedicated SEZ facilities and best practice to this end, and the UEP sector action plans also provide recommendations here (Section 4.1).

5.5.3 Further Development at the AEZ An effective development approach to the AEZ should enable it to be driven forward as an Eco- Industrial Park.

The AEZ should be well linked to the Eldoret city centre and urban fabric through markets, residential and industrial areas to provide market, workforce and supply chain access. This will enable benefit realisation and distribution to support Eldoret’s wider vision and its regional hub role for agri-processing and increased industrial activity and know-how.

> Effective transport links between the AEZ industry and surrounding residential, commercial and social spaces, as set out in the Proposed LPDP, with various roads and public transport upgrades; > A flexible agricultural and produce collection system for the value addition inputs, so that it can expand and effectively reach the relevant production areas; > Increasing market logistics as storage and distribution plans and further expansions from the AEZ to Eldoret’s markets and wider regional and East Africa markets, and where other identified industrial sites in Eldoret can play a role in the network (Focus Area 2); > Transport interventions to maintain and enhance access to strategic roads, enable increased Railway and Eldoret International Airport utilisation for AEZ produce; > The AEZ will also need to be well linked and be complemented by service offerings at the long-term development of Olympia City;

Sector

Key points and status

Water and Sanitation

› Consultation is continuing with ELDOWAS and County Government on water, where water provision is a key issue and may require dam works to ensure sufficient and continuous supply › The Masterplan has identified a WWTW and location in the zoning plan › Piped water will be supplied by the county government through pipelines. The Zone will also have access to a water treatment plant and Eldoret’s water purification plant › Water to the AEZ will be sourced from Kerita dam which is close by. Construction of transmission infrastructure has already begun. › For the rest of the Municipality, ongoing works on Kipkaren dam are expected to plug the current water deficit › Wastewater coverage needs to be expanded to areas around the CBD where settlements are densifying

Solid Waste

› The high level of solid waste generated within the planning area is recognised, including waste from domestic sources, commercial enterprises and farms. The amount of solid waste is expected to increase significantly with the AEZ development across its different zoning areas › The planning area lacks a structured approach to solid waste management such as bulk collection and waste bins, waste is not sorted, and the main current method of disposal is compost pits and open burning › Solid waste sites should be located on the leeward side and have a 100 m protection belt. Proposed minimum land size for solid waste collection points is 0.1 hectare. › The zoning plan proposes that solid waste collection points be provided in each commercial zone

Energy

› The AEZ is currently in collaboration with KPLC on electricity and Kenya National Grid will support the power supply in the Zone › The AEZ is also adjacent to two solar power plants – one with production capacity of 93MW. The plant intends to sell power to KPLC, then KPLC will supply AEZ. › There are also proposed to be preferential policies on power rates for tenants

Transport – road

› › › ›

Transport - rail

› Important interaction with Kenya Railway Corporation (KRC) concerning the rail siding - the current site is not part of the zone itself but could be developed to enable efficient AEZ loading and distribution › Railway may be the most cost-effective way of transportation for the AEZ – proximity and connection to the Mombasa port with Uganda › The Mombasa-Nairobi Standard Gauge Railway linking the Mombasa Port and Nairobi has been put into operation. According to the long-term plan of Kenya, the Nairobi-Malaba SGR, the 2nd phase of the Mombasa-Nairobi SGR project, will connect the six countries in East Africa › A new freight station is projected to be setup in the AEZ

> The impact on informal settlements around the industrial clusters and plan for upgrades and improvements. The County have been looking at land use and how to effectively manage and control development around the AEZ. There is a need for an effective economic hub that positively interacts with surrounding land use plans and settlements, such as both Eldoret City and the proposed Olympia City residential and mixed-use development which is in close proximity and further down the development pipeline.

These aspects have been well incorporated in the County Government’s Proposed Land Use Plan for the AEZ to 202866, and the AEZ own planning approach67.

There has been engagement with the County Government and National Government for road access improvements The transportation corridor linking Mombasa and Uganda is connected by A8 and A109 Highways Wider industrial sites are well linked with road infrastructures. There is a new road running through the ICDC site, through to A104 and AEZ site Phase 1 can be developed with the current access road, which is all-weather and provides sufficient and reliable access, traffic will then start to increase with trucks and the road will need to be widened › Zone operator will build a main road connecting the Zone to the Eldoret Nakuru Highway and set up road facilities along the line › Improvements (Murraming) are ongoing on the access road link from A104 to the AEZ site – the road needs to be tarmacked and should form part of the Eastern bypass alignment › Besides the access, the AEZ site has two roads that needs to be tarmacked (i.e. 11kms from Stabex to Ongeria and Cheptiret – Chepkoroi)

66. Proposed Local Physical Development (Zoning) Plan For Africa Economic Zone In Plateau 2018-28, County Government 67. Source: AEZ Masterplan Land Use Plan

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Table 5.14 cont Sector

Key points and status

Transport – other

› The airport will/is accessible from AEZ through the Southern Bypass with freight vehicles. This supports seamless flow of goods and people to and from the airport › AEZ is targeting markets in Asia, COMESA region, East Africa, and Africa › AEZ will have dry storage on site but will also rely on cold storage at the airport

Source: Proposed Local Physical Development (Zoning) Plan for Africa Economic Zone In Plateau, County Government (2018-2028); SUED engagement

5.5.3.1 WORKFORCE ACCESS The UEP highly recommends affordable and effective public transport access to the AEZ for Uasin Gishu residents to take up employment opportunities and ensure the AEZ supports wider benefits realisation and distribution.

Project 4.1 concerns road network redundancy, and a key part of this is the Southern bypass, and new link roads such as the Plateau Road; the Eastern bypass, whose alignment is being explored by KeNHA and which the UEP recommends should provide direct access to the AEZ; and additional connection through to Plateau Road via Starbex – together these form a continuous ring round Eldoret.

The Plateau - Starbex secondary road access would be suitable for local traffic access, as opposed to HGVs, and matatu services are proposed from Starbex connecting to the Plateau Road (and into the CBD). The volume of trips the site generates will increase and become more feasible and provide major incentives for matatu operators to run regular services to the AEZ facilities. An alternative is for the facilities to operate dedicated shuttle services between the centre and key residential areas and the AEZ site for its employees. Project 1.2 and 1.3 provide a basis for this matatu provision.

In the long run, a BRT service plan needs to be developed that explores the provision of direct services to the AEZ site, given its enhanced connectivity to the rest of the network provided by the identified road network upgrades (above). The Eldoret Transport Masterplan includes BRT provision and Project 1.3 considers these BRT corridors with their required sub-components and assessments. A next stage should 154

consider the further facilities and stops and the route and service patterns that an express route to the AEZ, capturing key residential areas, should follow.

5.5.3.2 SOLID WASTE AND CIRCULAR ECONOMY RECOMMENDATIONS The UEP adds further recommendations for establishing waste approaches to establish a circular economy and align to eco-industrial principles. This is in advance of Project 3.1 and the needs of the primary VCs, set out below.

At an early stage the segregation, storage, collection and management of solid waste at the AEZ should be both considered and clearly set out in an overarching solid waste strategy that should be available for and signed up to by the companies who occupy the AEZ. A holistic solid waste strategy could significantly reduce the quantities of waste generated and increase the levels of recycling, in itself creating a revenue stream and reducing the demand on local and international raw materials.

As part of the strategy and to support a circular economy approach, companies moving to the AEZ should be required to report on the types and quantities of waste they generate, utilising an online platform so that other companies on the AEZ can identify whether the waste could be feedstock for their current processes or even a waste that can be used to develop new processes.

Where any products produced in the AEZ are also consumed there or in Eldoret the strategy could consider the adoption of reusable packaging that is then returned to the manufacturer

in the AEZ. This reduces costs for the manufacturer in buying single use packaging and reduces the generation of waste overall. This could also be supported through the utilisation of certain wastes as packing materials, such as offcuts from textile manufacturing being used to pack fragile components, instead of single use plastics.

An integral part of the circular economy is the movement away from ownership to sharing and leasing. As such the AEZ could consider having a bank of leasable/shareable items that are useful for all occupants of the AEZ but potentially not in constant use. These items could be ladders or other tools but could extend to the scale of forklift trucks or other vehicles.

A further key part of supporting the circular economy within the AEZ is the setting up of repair, remanufacturing and/or repurposing workshops, still with the ultimate goal of reducing the generation of waste. The repaired and remanufactured products could also be listed as part of the online waste reporting platform to form a mini marketplace within the AEZ, thereby reducing the carbon footprint for transporting these products. Workshops should utilise modern methods of repair and remanufacture such as the use of 3D printing for plastic and metal components.

Having developed and integrated the circular economy approach it will still be critical that the waste strategy sets out approaches to segregate what waste is still generated and store and collect it in the most efficient manner. This could include shared waste storage containers with smart technology access rather than individual companies having their own storage and large numbers of contractors and E L D O R E T U R B A N EC O N O M I C P L A N ( U E P )

vehicles accessing the AEZ to collect the waste. It could be that those overall owners of the AEZ also use a single waste contractor, again to reduce inefficient collection of waste.

Containers themselves, as well as having smart technology access could be located underground, which reduces ground level land use, impacts on public realm and also regulates the temperature of the waste containers better and deters vermin from accessing the waste.

A final part of the solid waste strategy for the AEZ would be to have regular (6 monthly or annual) audits of the waste generated to identify patterns, future markets for the waste or processes to use it on site, changes in practice, such as reusable packaging and ultimately reduce the overall amount of waste generated.

5.5.3.3 ENERGY RECOMMENDATIONS Eldoret is in a unique position, given its historical but also expanding industrial situation, and the numerous utility scale solar PV plants that are being developed locally. This includes two adjacent to the African Economic Zone site. This site could develop as a region leading zero carbon industrial facility, which could be applied to other new developments and eventually trickle down to the existing industrial zones.

One way to guarantee this is to create a Municipal or County Energy Plan to drive the development of low carbon power to serve priority economic sectors. The Plan would look to take on the findings of the industrial energy efficiency proposals of this UEP, improve energy planning and leverage funding to implement these plans and provide investment into renewable energy and energy efficiency schemes.

5.5.3.4 CLIMATE RESILIENCE RECOMMENDATIONS The development of the site should include comprehensive drainage measures which are designed to accommodate likely increases in the frequency and magnitude of extreme precipitation. Where possible, SuDS measures should be included in the site, and the amount of impermeable

surface should be minimised. With increasing risk of high temperatures, it would also be prudent to include shade and green space in the site design to the extent possible.

In addition to the site itself there is a need to ensure good access to and from the site, in particular during the rainy season. Re-surfacing access roads, and main arterial roads for the site, as well as upgrading drainage, will increases the resilience of operations at the site.

5.5.3.5 SOCIAL INCLUSION RECOMMENDATIONS There are several ways to ensure that the AEZ adopts an inclusive approach as part of its development as an eco-industrial park. Ultimately, the aim is that the park provides equal opportunities to all residents, supports local entrepreneurs and boosts education and training development.

To summarise, some actions to be done include: > Providing social infrastructure (e.g.: accessible toilets and infrastructure, childcare services, and mother’s rooms, etc.) and follow social performance standards in relation to social inclusion, gender equality, labour conditions, and community dialogue;

can have access to on the park; > Providing opportunities for skills development, particularly targeting SIGs, people with low literacy levels, and other vulnerable groups; > Developing user’s satisfaction and complaints forms as feedback mechanism for stakeholders within the AEZ and for the local community (e.g.: complaint boxes or hotlines); > Ensuring adequate working conditions in line with national and local laws and standards. Guarantee equal working opportunities for all people (e.g. respect the 5% quota for PWDs inclusion68) and providing accessible infrastructure and equipment; > Maintaining health and safety at working spaces and implement regular trainings and audits; > As suggested for each VC, regular matatu services to AEZ facilities or dedicated shuttle services are recommended.

These services should be affordable and provide accessibility for PWDs at the same cost. If necessary, consider implementing women-only services.

> Engaging throughout the development of the AEZ and after phases or sub-zones have been developed, with local workers, local businesses, SIGs and other users of the park, to ensure it provides solution to local issues and ensure all views have been transparently taken into consideration; > Ensuring a good relationship with the community.

Develop programmes to improve social aspects within the local community and provide accessible communication platforms; > Working in partnership with education providers (universities, TVTE) to develop inclusive programmes that are tailored to the needs of local businesses in the park; > Providing support to local entrepreneurs, by setting procurements target and developing shared space that they

68. Parliament of Kenya, Persons with Disabilities Act, 2003 (Section 13)

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5.5.4 Infrastructure projects This section details the three proposed infrastructure projects for the early development of the AEZ in respect of the VC projects.

Table 5.15 List of Infrastructure Projects for FA3 Sector Transport-logistics

Project Title Agricultural and VC Produce Collection Network

Transport

AEZ Railway Facilities

Solid Waste

Organic Waste Processing

These infrastructure projects are detailed in turn below, as the Phase 1 and early development projects – Projects 3.1 - 3.4 – and then broader infrastructure approaches going forward for the AEZ development.

5.5.4.1 PROJECT 3.1: AGRICULTURAL AND VC PRODUCE COLLECTION NETWORK Overview This project includes two key elements – all weather road access to agricultural productive areas and the development of collection points, which will be well complemented with solar refrigeration (Project 4.2).

All weather road access The first stage of movement of produce from farm to roadside and finally industrial uses or markets can be the most expensive especially where the terrain is difficult to navigate and there is no motorable road. Poor roads constrain access to produce markets causing high transport costs, higher incidences of post-harvest losses, community isolation and deprivation. Improving critical rural urban linkages can support farmers with better access to markets, reduce transport costs and post-harvest loss. Priority is recommended on improving rural roads that are likely to have the largest impact on agricultural productivity and market access. According to KRB 156

rural access index for Uasin Gishu, 60% of the rural population live within 2km of an all- season road.

Moiben, Ainabkoi, Ndalat and Kipkenyo are some of the critical agricultural production areas. While all the agriculture feeder roads that cover these areas need development in some form to ease access to markets, including the AEZ’s industrial processes, and farming inputs for farmers, the proposal focuses on improving those that would have most economic impact. A practical target would be to halve the proportion of the rural population living beyond 2 km of an all-season road which would be equivalent to raising the Rural Access Index (RAI) to 80%. This would entail improvement of the existing roads to provide all weather access, safeguarding works against deterioration and conducting regular annual maintenance.

Collection points The VC projects and wider VC cluster cover the following key produce inputs, with particular locations for their production: > Fruits and vegetables canning The VC project has identified annual produce capacity of 2,500 tonnes of tomatoes and 4,500 tonnes of other fruits and vegetables. The target fruit and vegetables are grown throughout the County and the neighbouring counties of Nandi, Elgeyo Marakwet and Trans Nzoia. Uasin Gishu has a tomato belt across the Moiben River.

> Maize Milling

Case Study:

Table 5.16 Project summary information

> Maize is grown in large scale in Kesses, Kapseret, Turbo and Ainabkoi

Sub-components

> Bamboo Lumber > New planting has occurred in Kaptagat forest in the Elgeyo Hills. The bamboo will be sourced from across Uasin Gishu and neighbouring region: Elgeyo Marakwet, Kakamega and Nandi counties all target the promotion of bamboo planting in their CIDPs.

Increase network of all season rural agricultural roads to raise RAI

Estimated cost (KES range)

Benefits and impacts

Benchmark KES 40 million per km

Improved access to VCs and markets Reduced post-harvest losses

Identify effective locations of collection for produce areas

Linkages

Category > Capital Investment: new

This produce suits solar refrigeration at the collection points, as set out in Project 4.2 which is County wide. This will provide a number of small solar powered refrigeration systems (half to full size shipping container) that act as hubs to local farmers who currently have no access to a cold store.

Donor partners

Maintenance through Kenya Road Board – Road Maintenance Fuel Levy Fund (RMLF)

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Rural road inventory and condition data is limited.

Incomplete information on rural road network coverage, condition and traffic data

Medium-term, in line with development of initial VC projects at the AEZ

Cost benefit analysis needed

Rural road investment program required to inform phasing of investment

Climate resilience recommendations The upgrading of the road to all-weather access will provide a much more resilient road surface, and significantly reduce disruption due to surface water flooding, road surface deterioration and costly damage to infrastructure brought about by adverse weather. As precipitation intensity and extreme rainfall events are expected to increase, upgrading the road surface and including storm drainage designed to accommodate more frequent rainfall events will significantly increase the resilience of the road to climate change impacts.

Social inclusion recommendations

This will require about 650 tons of metal annually. As the site is located near the plateau railway station, ongoing rehabilitation of the metre gauge railway should include a dedicated railway siding to serve the movement of this bulk material (project 3.2).

County government

Funding through development partners

Agricultural producers and cooperatives

> Facilitates the VC projects and farmers’ access to these income opportunities > Project 4.1, as the wider road network redundancy interventions

KeRRA

Reduce transport cost

> Further VC projects as part of the cluster Other inputs for secondary VCs include potatoes, avocados and other fruits and vegetables for juicing. These inputs are produced across the County and neighbouring counties, and will likely be able to build upon the collection network for the primary VCs.

Financing options and delivery mechanisms

Implementation agency and stakeholders

Investing in low-cost rural roads has been found to generate larger marginal returns, raise more people out of poverty per dollar invested, and reduce regional development disparity more sharply than investing in urban roads.

For instance, in China, investment in rural roads has been found to have benefit–cost ratios for national GDP that are about 4 times greater than the benefit–cost ratios for high-quality urban roads and yield 1.57 yuan worth of agricultural GDP for every yuan invested. This implies investments in rural roads fosters more broadly distributed economic growth.

farmers’ incomes and households’ food supplies.

Many smallholder farmers currently suffer losses in potential earnings, and adverse effects on their livelihoods, from spoilage of produce before it can reach market. The new collection points and the solar refrigeration systems will strengthen farmers’ livelihoods. > Ensure communication strategies about the availability of space in the store and similar opportunities are available and accessible to all people, particularly to SIGs and SIGs organisations engaging in agriculture

Better roads improve access to markets for farmers, traders, residents, and vehicles, and enhances agricultural productivity. > Considering climate resilience recommendations for the design of roads is fundamental to ensure the security of Source: Road Development, Economic Growth, and Poverty Reduction in China, IFPRI 2005

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5.5.4.2 PROJECT 3.2: AEZ RAILWAY FACILITIES Overview Increasing the diversity of mode choice and competition for freight transport can lead to lowering overall transport costs.

Eldoret can leverage its existing rail assets to play a stronger role as a gate way into NOREB and inland neighbouring countries such as South Sudan, Rwanda, Burundi and Uganda. However, the majority of the rail network is original Meter Gauge Railway track, the network is in relatively poor condition, with maintenance backlogs stretching back over many years. Currently, rehabilitation works are being conducted along the entire stretch of the network by the CGoK and hold the potential to improve conditions of the track to operable standards.

The AEZ is located along the railway network next to the Plateau station. The planned AEZ and location of VCs at the site will generate bulk commodities that warrant the investment in rehabilitating and renewing rail infrastructure to the site. Necessary interventions needed would comprise of a dedicated siding to the AEZ site, goods yard or depot, loading and offloading facilities, logistics area and upgrades to the station building and platforms. A feasibility study would need to be undertaken to assess and verify the potential upgrades required at the Plateau station to accommodate the growth in activity and volumes. The study would also need to determine the tariffs and frequency of the trains needed to ensure the railway offers an economical solution to transporting general freight that is not time sensitive.

Category:

Climate resilience recommendations

> Capital investment: new

Climate change can impact railway infrastructure in a variety of ways. For Eldoret, acute climate events such as intense precipitation, increase in temperatures are expected to impact associated infrastructure. Slow onset events, namely the increase of air temperature, may also impact Eldoret’s railway infrastructure.

> Capital investment: improving existing Table 5.17 Project summary information Sub-components Station masterplan that encompasses provision for Railway siding, loading and off-loading facilities and dedicated warehousing among other interventions required for improving freight handling capacity of the station

Estimated cost (KES range) Station master plan – KES 100 million

Benefits and impacts Opportunity to activate railway to accommodate freight demand Opportunity to provide more efficient operations such as access and safety

Financing options and delivery mechanisms Kenya Railways Corporation or Public Private Partnership where public body funds infrastructure and private entity operates services

Implementation agency and stakeholders National Government KRC Donor funding PPP approaches

Will add value to adjacent land

Social inclusion recommendations

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

May cause initial disruption to currently operating service

Feasibility study needed

Medium term

Upgrade will require further consultation Funding

This project focuses on railway infrastructure at the AEZ site, and specific considerations include suitable drainage, and warehouses that are designed to reduce the impacts of higher temperatures (which could increase damage/spoilage to cargo). Although potentially outside the scope of this proposal, an assessment of the resilience of the route to key markets is also recommended. If disruption is likely, developing strategies minimising the impact of operational failures caused by extreme weather conditions is recommended.

Site Survey

The improvement of the railway station and associated transport infrastructure will benefit the economic development of the industrial site and surrounding areas. It will also contribute to better connect economic activities and regions. > Communicate to local residents about the implementation schedule of the project to mitigate the disruption of current railway services and economic activities. Involve and consult communities about the different phases of the project.

All communication should be timely, and in a format and language that is accessible for all.

Public Consultation

> Adopt inclusive design standards that allow easy access and use for everyone (e.g.: consider parking spaces for PWDs and adequate space alongside them; provide public PWDs-friendly toilet facilities; install ramps, lifts, or escalators).

Linkages > Supports FA1 by diverting some of the goods movement away from road corridors by providing an alternative mode. > Enables efficient supply chain movements for the VC produce including metal inputs and product access to wider markets.

5.5.4.3 PROJECT 3.3: ORGANIC WASTE PROCESSING Overview This project will complement the wider waste collection projects (Projects 4.6 to 4.9) as well as the VCs which will produce organic solid waste as a bi-product by providing a solution to manage organic solid waste and reduce the volume of waste sent to the dumpsite. This in turn leads to less impact on the environment through degradation of land and pollution.

This project relies on organic waste being segregated at source and collected separately from other waste streams from agri-processing industries, other businesses (food and beverage, hotels, etc.) and households. Once the organic waste is collected it can either be composted and used as a soil improver/fertiliser or processed in an anaerobic digester (AD) to produce biogas or electricity and a soil improver.

It would support the VCs, environmental resilience and climate change as it would reduce/eliminate the volume of organic waste going to the dumpsite which generates methane gas.

Linkages > This project could be located in the AEZ or co-located with the Materials Recovery Facilities (MRFs). > The proposed energy from waste (incinerator) facility at the existing Kipkenyo dumpsite (Project 4.4) > There are links between this project and the energy infrastructure projects. In particular it will be important to ensure necessary arrangements are in place to sell electricity (if it is generated). > There are also links with transportation infrastructure projects as vehicles will bring in organic waste and take out soil improver.

Category: > Capital investment: new

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Table 5.18 Project summary information

Climate resilience recommendations

Sub-components

Estimated cost (KES range)

In-vessel composting

CAPEX KES 50 million

or

CAPEX KES 323 million

AD plant

Benefits and impacts Reduction of waste to landfill Reduces methane production in the landfill Better alignment to circular economy

Financing options and delivery mechanisms

Implementation agency and stakeholders

Private Public Partnership (PPP) and/or private waste service provision

Employment, training and maintenance

by Municipality or private entity Collaboration with farmers to secure local end markets

The site of the processing would need to be chosen to reduce the risk of flooding and ensure good access. Indirect resilience benefits of this project are an increased supply of fertilizer to farmers, which could help enhance yields, while mitigation benefits are clear in the reduction of methane.

Social inclusion recommendations Both processes, organic waste collection and its processing into fertilisers, represent employment opportunities, providing salary, equipment, and training. > The project presents employment opportunities for SIGs. Many young men already work in transportation and they could be engaged in waste collection. There are also employment opportunities for women and PWDs, for example in back office activities to manage collection operation and logistics.

Provides employment Supply of fertiliser to local agricultural market Potential source of renewable energy Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Limited number of proven and established developers/ operators of AD

Waste quantity and composition currently not fully known

Short and medium-term as AEZ investors implement on site

Funding and bankability

Limited knowledge of suitable developers/ operators/ partners for AD

Throughput guarantees and off-take agreements for electricity, biogas and soil improver

Case Study: Thecogas Senegal, Dakar 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 10 km 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 (US$ 990,000), funded jointly

by Thecogas Senegal (40%) and a grant from the Dutch government (60%)69.

Heron In-vessel Composting (IVC) The Heron IVC is a containerised South African composting technology that takes unwanted food waste and turns it into a soil improver. 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 IVC 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 Africa70.

To provide the facility when the VCs come on stream and door to door waste collection begins Secure land for the facility

69. Bioenergy for Sustainable Energy Access in Africa, Technology Country Case Study Report (incorporating Country Scoping Reports), E4tech, 7th August 2017: https://www.e4tech.com/resources/4-bioenergy-for-sustainable-energy-access-inafrica-a-scoping-study-of-the-opportunities-and-challenges-of-bioenergy-replicationacross-sub-saharan-africa-2017.php 70. https://earthprobiotic.co.za/Food_Waste_Recycling_Solutions/Food-Waste-SolutionsShopping-Malls/

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5.6 Beyond and Cross-Focus Areas 5.6.1 Overview The UEP also considers the wider Municipality and County area for proposed infrastructure projects, as important upgrades that support city development beyond Focus Area 1 and those that support key centres of agricultural production, enabling access to the AEZ opportunities.

5.6.2 Infrastructure Projects These infrastructure projects are detailed in turn, as included in Table 5.19.

Table 5.19 List of Infrastructure Projects for Beyond the Focus Areas Sector

Project Title

Transport

Road Network Redundancy

Energy

Solar Refrigeration (Cold stores)

Energy

Solar Irrigation

Solid Waste

Kipkenyo Rehabilitation and Incinerator

Solid Waste

Solid Waste Collection

Solid Waste

Materials Recovery Facilities

Solid Waste

Rehabilitating the Mwendeni Dumpsite

Water and Sanitation

Resilience and Supply Study

5.6.2.1 PROJECT 4.1: ROAD NETWORK REDUNDANCY Overview The road network in Eldoret is primarily composed of radial routes connecting surrounding regions to the CBD. The main arterial roads are the Malaba - Eldoret - Nakuru (A8) road which forms part of the Northern corridor, the Kisumu road (B8) and Iten Road (B16) all of which intersect in the CBD causing conflict between international transit traffic and local traffic. Despite being classified as trunk roads, the CBD sections of these roads effectively function as urban streets serving a complex variety of users. The roads are dominated by high density commercial buildings, industrial activity, residential areas and paratransit services, and have a heavy presence of vendors. This mix of different users combined with a significant volume of HGVs and inadequate traffic management leads to frequent traffic snarl ups. The lack of redundancy in the street’s network further compounds these problems. The network fails to provide adequate route choice, with most vehicle trips between different neighbourhoods being forced to share limited paved street space with few options for diversion of traffic around incidents or locations of congestion. This is usually intensified around the CBD area where the lack of circumferential roads forces many peripheral trips through the centre.

Recent developments such as the new Southern bypass under construction and new link roads such as the Plateau Road promise to ease the level of through traffic at the centre.

However, more benefits can be realised by increasing the network’s redundancy and capacity through the introduction of missing circumferential roads to create an alternative route for local traffic to bypass CBD. This would entail upgrades to existing parts of the network which have potential to serve as alternative routes but are currently inaccessible due to poor road conditions. These are highlighted in blue in Figure 5 11 below. A new Ziwa road bypass is proposed to the west of the CBD which together with the proposed road upgrades (blue) would complete the loop of inner ring of roads.

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In addition, a new Eastern bypass whose alignment is being explored by KeNHA (green) could provide an alternative route for through traffic headed to the northern part of Eldoret. This proposal also recommends adjusting the Eastern bypass’s alignment to provide direct access to the AEZ. The access to AEZ could be strengthened by providing an additional connection through to Plateau road via Starbex. The Eastern bypass together with the Southern bypass would complete a continuous ring round the Eldoret.

Location Figure 5.32 Proposed circumferential ring roads

Table 5.20 Project summary information

Linkages This proposal supports the functioning of the CBD as proposed in Focus Area 1 with the reduction of through traffic, decongestion, ease of market access and support to CBD regeneration. Further, it supports Focus Area 2 and Focus Area 3 by increasing network redundancy and capacity to handle new trips generated to and from the industrial parks.

These are critical upgrades to facilitate affordable public transport access to the AEZ for Eldoret and wider workforce (Uasin Gishu and satellite towns) to access employment opportunities, and businesses provide supply chain services.

Sub-components

Estimated cost (KES range)

Upgrade 35 km of proposed ring roads

Proposed ring roads – KES 2.7 billion

Eastern bypass 40km

Eastern bypass + land acquisition – KES 4.8 billion

Ziwa road bypass 10km Starbex – Ongeria Road, 11km

Ziwa bypass + land acquisition KES 1.2 billion Starbex road – KES 825 million

Category:

Implementation agency and stakeholders

Decongests the CBD to help realise the benefits from urban regeneration and consolidation

Upgrading of the ring roads and Ziwa bypass to be delivered by the KURA

Reducing journey times and costs for freight, improving resilience for industrial development and market linkages

Eastern bypass – KeNHA

County Government direction with KeNHA and KURA implementation.

Donor partners may also support funding.

Air quality improvements for Eldoret residential and commercial areas

> Capital investment: new > Capital investment: improving existing

Benefits and impacts

Financing options and delivery mechanisms

Case Study: Nairobi Southern Bypass Highway The Nairobi Southern Bypass Highway is a 29.6-kilometre road, four-lane dual carriageway highway forming a semicircle through the south-western neighbourhoods of Nairobi city. The road allows traffic from Mombasa, destined for western Kenya and Uganda to bypass downtown Nairobi thereby reducing traffic congestion in Nairobi’s CBD. Commissioned in 2016, the road has helped divert mainly freight trucks ferrying goods along the corridor hence alleviating downtown traffic congestion.

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Land acquisition for new road alignments

Feasibility study and road investment appraisal needed

Ring road upgrades can be achieved in the short term Eastern bypass and Ziwa road can be achieved in the medium term

Climate resilience recommendations Flooding due to extreme rainfall events may affect the operation of the refurbished roads. Storm drainage provision and management can reduce flood risks and lessen infrastructure damage and associated maintenance costs.

The frequency and intensity of heavy rainfall events is likely to increase, and as such, in order to increase resilience to climate change, and to ensure that the new roads remain passable, drainage features will need to be designed to accommodate more extreme rainfall events.

Social inclusion recommendations Good quality roads make a crucial contribution to economic development and growth and bring important social benefits.

In addition, providing access to employment, social, health

Source: SUED Atkins Team

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and education services makes a road network crucial in tackling poverty.

Southern Bypass (in Blue) from Mombasa Road to Kikuyu

> The displacement of communities and economic activities should be avoided whenever possible. When resettlement is unavoidable, a Resettlement Action Plan (RAP) should be prepared to mitigate adverse socio-economic impacts and the disruption of social safety nets. > Considering climate resilience recommendations for the design of roads is fundamental to avoiding disruption of livelihoods or economic activities in case of climate hazards. > Prioritise the employment of local communities for the construction and maintenance of roads.

A section of Southern Bypass 163

5.6.2.2 PROJECT 4.2: SOLAR REFRIGERATION (COLD STORES) Overview Post-harvest losses are a significant problem across the agricultural sector. Cold stores can extend the shelf life of perishable food by between 2 and 21 days, reducing postharvest losses by up to 80% and increase small farmers’ income by 25%. Cold storage facilities in hub locations as part of a comprehensive cold supply chain are critical in improving rural economies.

This proposal is to provide solar powered cold store systems in strategic hub locations to support Eldoret’s farmers who currently have limited access to a cold store and therefore lose produce due to spoilage.

Modular solar powered refrigeration systems or cold stores are becoming popular in small farming communities where grid electricity is not available or expensive. They work on a subscription model where farmers pay a flat daily rate for each crate of food they store. Some providers use mobile apps to communicate to farmers about the availability of space in the store and to process payments. The revenue created goes towards maintenance of the facility and employment of a facility manager. Many providers target job creation for women.

This project will provide a number of small solar powered refrigeration systems (half to full size shipping container) that will act as hubs to local farmers who currently have no access to a cold store. All farmers can use the facilities whether they are linked to the Value Chains or not.

This project has several proposed components: > A baselining exercise to determine the number, size and location of arable farms and livestock holdings and their seasonal outputs, the current status of their storage facilities and their refrigeration needs, and their current produce sales practices and market access needs; > Establish the towns and villages that would benefit from a small solar refrigeration system; > Preparation of designs for solar refrigeration systems as well as a procurement and deployment plan; > Deployment of systems to selected agricultural holdings (including construction of facility, roll-out of payment mechanism, selection and training of managers); and > Capacity building with selected locals to ensure maintenance and operation of systems.

Location These projects will be located County wide, aiming to assist micro, small and medium sized farms in rural areas where provision of refrigeration services is currently non-existent or too expensive for the farmer.

Table 5.21 Project summary information Sub-components Mapping of ownership of all local agri and livestock holdings and their product outputs, mapping of current distribution hubs and status of their product storage facilities

Estimated cost (KES range)

Benefits and impacts

Benchmark: KES 750k per system71 Estimated cost: KES 11.25 million based on max 15 systems

Reduced crop spoilage leading to higher revenues for small farmers Employment opportunities for women

Establishment of needs for solar refrigeration systems

Financing options and delivery mechanisms

Implementation agency and stakeholders

Donor funding is available from numerous sources, including Self Help Africa and Agra

Site selection – Municipality with assistance from national agricultural specialists

Public sector funding may be available from the central government via funding from the Ministry of Agriculture and Irrigation

Preparation of design brief for refrigeration systems

Equipment selection – Municipality with assistance from cold chain specialists Construction and implementation - Municipality Operation and maintenance – responsibility of Municipality

Development of procurement and deployment plan

Linkages to some of SUED VCs at the AEZ, fruit and vegetable canning in particular, to minimise tomato spoilage, and maize milling and realise the economic uplift potential.

This also supports the highly significant, growing, milk processing sub-sector in Eldoret.

Broad areas of agricultural produce have also been set out in the agricultural and VC produce collection network (Project 3.1), where this is a key interaction for the agri-processing sector.

Category:

Providing a refrigeration solution that is powered by renewable energy and targets small-scale farmers will help increase the resilience of these farmers to climate change, and as such strengthen their livelihoods. Care should be taken to place storage facilities in areas not at risk of flooding.

Agriculture is a key component of Kenya’s gross domestic product, contributing over quarter directly and another quarter indirectly. It also employs more than 40% of Kenya’s population and more than 70% of its rural population72. Improving the financial sustainability of agriculture could provide significant improvements to the livelihoods of the local agriculture community and an expanding sector could lead to increased employment opportunities across the community.

Socially inclusive implementation should focus on: > Ensuring communication strategies about the availability of space in the store are available and accessible to all people, particularly to SIGs and SIGs organisations engaging in agriculture.

Develop training plan, for management, operation and maintenance

> Ensuring the employment opportunities associated to the project are available for SIGs and other vulnerable groups.

Basic analysis and timeline

Linkages

before going to market, and as such providing more time for roads to become passable again.

Challenges

Data gaps

Time frame, key dependencies

Effort needed to obtain comprehensive data on current situation

No knowledge of current situation

Short to medium-term

Obtaining funding

Climate resilience and social inclusion recommendations This project contributes to both climate change and social inclusion objectives. The project targets smallholder farmers who currently suffer losses in potential earnings, and adverse effects on their livelihoods, from spoilage of produce before it can reach market. As both extreme, and average, temperatures

in Eldoret have increased, and will continue to do so under all emissions scenarios, the incidence of high temperatures causing food products to spoil is likely to increase. Additionally, extending the shelf-life of produce provides resilience to flooding which can block roads and access to market, by increasing the amount of time that produce is able to ‘wait’

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71. 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> 72. FAO Kenya at a glance, accessed 12th June 2020 <http://www.fao.org/kenya/fao-in-kenya/kenya-at-a-glance/en/>

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Case Study: Solar cold stores in Wakatobi and Pacitan, Indonesia73 Contained Energy successfully developed and deployed stand-alone, off-grid, 100% solar-powered cold storage facilities with thermal energy storage technology in combination with ultra-efficient compressor packages.

The 20 cubic metre unit was designed to keep 500 kg of fish at -2ºC, with the capacity of adding and cooling 200 kg of ‘un-iced’ fish per day (for a total cooling load of 30 kWh per day).

The unique feature of the system is that it deploys a large volume of Phase Change Material in the ceiling, capable of storing and releasing 15 kWh of cooling capacity at -4ºC. This thermal energy storage technology allows the compressor package to do most of its ‘cooling work’ during the day, when the solar power is available, saving a substantially larger quantity of battery storage that would otherwise be required.

The cold storage helps local fishermen to keep their catch fresh for longer once they’ve returned from fishing.

It is powered by a 6.4 kW solar array backed up by a relatively small 10 kWh valve regulated lead-acid battery bank.

5.6.2.3 PROJECT 4.3: SOLAR IRRIGATION Overview This proposal aims to provide solar irrigation pumps/ systems to local farmers (potentially up to 3,000), particularly smaller scale farmers who currently have irregular or no access to water supplies, or who are currently paying an unsustainable amount for water and who will not be served by a wider irrigation project. This will support all farmers, not just those growing crops that support VC projects. This will make irrigation easier and affordable to improve the economics for farmers, but water abstraction needs to be monitored to ensure sustainability of groundwater supplies.

This project is intended to improve the output of local micro, small and medium size farmers by providing them with a consistent water supply for crop irrigation and also improve their finances by reducing costs associated with the provision of water. It will simultaneously reduce greenhouse gas emissions associated with irrigation by utilising solar power.

The proposal is to provide pumping kits that i) pump water through an above ground distribution network, where the farmer has adequate rainwater storage but gravity irrigation won’t work, or ii) pump water up from a borehole where the farmer doesn’t have any rainfall water storage, or iii) do both.

Location These projects will be located County wide, aiming to assist micro, small and medium sized farms in rural areas where provision of refrigeration services is currently non-existent or too expensive for the farmer.

Linkages

73. Renewable energy and reducing food loss and waste in fish value chains, accessed 23rd April 2021, <http://www.fao.org/flw-in-fish-value-chains/flw-in-fish-value-chainsresources/articles/renewable-energy-and-reducing-food-loss-and-waste-in-fish-value-chains/es/ >

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Linkages to some of the SUED VCs at the AEZ, fruit canning in particular, to minimise tomato spoilage, and maize milling. Broad areas of agricultural produce have also been set out in the agricultural and VC produce collection network (Project 3.1), where this is a key interaction for the agri-processing sector.

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Category:

Climate resilience recommendations

> Feasibility study / design / piloting

This project meets SUED principles on climate change and sustainability in a number of ways. Firstly, by providing energy for pumping irrigation water from renewable sources and secondly through assessment of the depletion of groundwater resources to ensure it is extracted at a level that ensures the supply will be sustainable. Given increasing unpredictability of rainfall seasons, and likelihood of increasing variability and dry spells, the provision of irrigation systems has clear resilience benefits.

> Capital investment: new Table 5.22 Project summary information Sub-components Mapping of ownership of all local agricultural and livestock holdings and their irrigation needs, current status of their irrigation facilities

Estimated cost (KES range)

Benefits and impacts

Benchmark: KES 75,000 per system74 Estimated total: KES 225 million based on max 3,000 systems

Review of abstraction volumes from each borehole to ensure sustainability of water resources

Consistent service provision for farmers with no powered irrigation Lower costs for farmers where current system is on grid Reduced carbon emissions associated with agricultural sector

Establishment of needs for solar irrigation and borehole systems

Financing options and delivery mechanisms

Implementation agency and stakeholders

Donor funding is available from numerous sources, including Small-scale irrigation and value addition project run by the Global Agriculture and Food Security Program75.

Site selection – Municipality with assistance from national agricultural specialists

Public sector funding may be available from the central government via funding from the Ministry of Agriculture and Irrigation

Equipment selection, construction and implementation – Municipality with assistance from irrigation specialists Operation and maintenance – responsibility of the smallholder recipients

Preparation of design brief for boreholes/ irrigation systems Development of procurement and deployment plan Maintenance plan

Social inclusion recommendations Improving the financial sustainability of agriculture could provide significant improvements to the livelihoods of the local agriculture community. An expanding sector could lead to increased employment opportunities across the community. > Women are less likely to practice irrigation and those who do, usually deploy physically demanding methods.

Women often lack access to this type of opportunities due to restricted mobility, low literacy levels, and competing obligations76. Youth and PWDs often face similar barriers to access information and opportunities.

It is thus recommended to ensure irrigation opportunities and information are available for SIGs, and specifically target SIGs groups, by including them in communication strategies, consulting their preferences, and involving them in trainings.

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Effort needed to obtain comprehensive data on current situation

No knowledge of current situation

Short to medium-term

Obtaining funding

74. 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 75. GAFSP Small-Scale Irrigation and Value Addition Project, accessed 17th June 2021 <https://www.gafspfund.org/projects/small-scale-irrigation-and-value-addition-project-sivap > 76. REACH (2019) Considering Gender when Promoting Small-Scale Irrigation Technologies. Available at: https://reachwater.org.uk/making-small-scale-irrigation-work-for-women/ (Accessed 17/07/2021)

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Case Study: Valle family farm, Matagalpa, Nicaragua77 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 average monthly electricity bill to run their pump was as much as the equivalent of KES3,300, but their income was only US$ 103 (KES10,300). Also, the supply quality was poor, meaning they could only irrigate on 3 days instead of every day. Other expenditure reduced their earnings to KES2,500 a month.

Working with Grid Alternatives and local company Suni Solar, they installed a solar irrigation system. The total cost was US$ 10,000 (KES1,000,000), but the Valle family was only asked to pay US$ 2,000 (KES200,000) which they financed via Unión Nacional de Agricultores Ganaderos, a 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 raise tilapia. They increased their livestock from 8 to 12 cows, and also use the water for domestic purposes, whereas previously they had to walk to the community well to get drinking water. Their monthly electricity bill is now US$ 3 (KES300), whilst their monthly earnings have now increased to US$ 546 (KES54,600).

5.6.2.4 PROJECT 4.4: KIPKENYO REHABILITATION AND CONSTRUCTION OF INCINERATOR

Location

Overview

Linkages

This project covers the construction of Municipal waste incinerators or energy from waste (EfW) facility, following rehabilitation of the existing dumpsite at Kipkenyo. This is a local project that is proposed for SUED refinement.

The County is working with the Swedish Government to construct an EfW facility located next to the current dumpsite (following acquisition of sufficient land) which will have a capacity to process 316 tonnes of solid waste per day (95,000 TPA) and would generate electricity and heat. It is suggested that the facility is built in 3 stages:

Table 5.23 Project summary information

Adjacent to and around a rehabilitated Kipkenyo dumpsite.

Sub-components

The project relies on a good transportation network therefore there are links between this project and the transportation projects (Project 4.1, Projects 1.5 and 1.6).

The project will be fed by waste transfer stations and the Materials Recovery Facilities, as project 4.6.

Environmental and Social Impact Assessment.

Purchasing land adjacent to dumpsite to construct EfW (15 acres)

Category:

Rehabilitation of Kipkenyo Dumpsite (phase 1)

> Developing plan, guidelines and regulation

Site civil, road and drainage works

> Capital investment: new

1. First 4.5 MW boiler and one 450 kW turbine

Electrical Interconnection Equipment

Estimated cost (KES range)

Benefits and impacts

KES 21 million

Job creation

KES 10.5 million

Energy production

KES 106 million

Providing learning and capacity building opportunities

KES 53 million KES 21 million

Facility will serve as education hub

KES 2,700 million

Financing options and delivery mechanisms

Implementation agency and stakeholders

Private Public Partnership (PPP) and/or private waste service provision

Employment and training by Municipality or private entity

Donor partners

Maintenance responsibility of Municipality or private entity

Provide solution for the solid waste challenge in Eldoret making the County cleaner

KES 102 million

Construct EfW

2. Two additional 4.5 MW boilers and one 900 kW turbine

Annually running costs of EfW facility

3. Two additional 4.5 MW boilers and one 900 kW turbine

Basic analysis and timeline

Based on the available waste volumes, the EfW facility would be able to produce 18.86 GWhrs of electricity and 155.8 MWth of heat annually over a useful life of 20 years.

Challenges

Data gaps

Time frame, key dependencies

Feasibility study

Exact volumes and types of waste generated in order to correctly size the EfW facility

Ongoing and short-term delivery

The EfW facility will also produce bottom ash which can be utilised as a recycled aggregate for road building, road maintenance and building blocks.

Environmental and social impact assessment

The expected footprint of the facility is 5,904 m2 (48 m x 123 meters). Rather than have fixed capacity, the incinerator would have a modular approach, as separate incinerators, where more can be added in the future.

Tendering process for the selection of a qualified private party

Negotiation and signing of the off taker agreements for electricity and heat

Geotechnical condition of the land of the current dumpsite

Before a new collection system and materials recovery facilities are introduced

Cutting off revenue stream for those that make a living from picking over waste at the dumpsite

Waste will be brought to the EfW facility from the waste transfer stations as well as any rejects from the MRFs.

Disposal of fly ash and other hazardous wastes from the EfW facility

77. 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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Energy from Waste facility, Addis Ababa, Ethiopia.78

5.6.2.5 PROJECT 4.5: SOLID WASTE COLLECTION

In Ethiopia an EfW facility has been constructed at the Koshe dumpsite, in Addis Ababa. The Ethiopian plant named Reppie, aims to process up to 1,400 tons of waste per day (420,000 TPA) and aims to produce 185 GWh of electricity annually enough to meet 30% of Addis Ababa’s household energy needs.

Overview

The EfW facility has two sets of 25 MWe turbines and meets EU emissions standards and is housed on a 7 hectare site.

Construction started in September of 2014, at a cost of US$120 million, and operations began in January 2018.

The project is the result of a partnership between the Government of Ethiopia and a consortium of international companies. The consortium was established to design, construct and in some cases own EfW facilities customized for Sub-Saharan Africa. The EfW facility is the first of what the consortium hopes will be a series of such facilities in major cities across the region.

The bottom ash that remains from the incineration process is sold as a building material to the local construction industry or used as landfill cover in the new Sendafa Landfill site. The EfW facility also uses magnets to recover steel and other ferrous metals to be recycled.

This proposal is to create a better system for the collection of waste, discouraging informal dumping and open-burning, as well as reducing the health and environmental impacts of open waste dumping and burning.

Information indicates that only 15% of solid waste generated in Eldoret is collected. Some of this is attributed to the poor condition of roads which prevents refuse collection vehicles from collecting waste from all households. As a result of these issues with waste collection, households manage their solid waste in the following ways: > 60% open dumping > 38% buried waste > 2% open burning The open dumping often occurs in storm water drains which exacerbates flooding when it occurs and also leads to solid waste being spread during floods including into the wetland areas.

An improved waste collection system would include procurement of new waste receptacles for residents and businesses, which encourage source segregation (organic, recyclables, residual). Waste receptacles would need to have an even distribution within the Municipality including in the markets, bus parks, high commercial activity areas, urban nodes, industrial areas and high-density residential areas.

As well as the procurement of new waste receptacles and new collection vehicles the project would also need waste transfer stations for a more efficient transition of waste and staff and offices to manage collection operations and logistics. Public awareness and education campaigns to encourage recycling/ reuse, and proper waste disposal would also be needed.

Location This would need to be Municipality wide and could extend outward to the AEZ to support revenue generation for the Municipality.

Table 5.24 Project summary information Sub-components Purchasing bulk containers Purchasing waste equipment and machinery Construction of waste transfer stations (6)

Climate resilience recommendations

Estimated cost (KES range)

Benefits and impacts

KES 168 million

Reduced wild dumping of waste

KES 375 million

Encourage source-segregation therefore reducing volume of waste to dumpsite

KES 120 million KES 10 million per annum

Ongoing operations

> The project would support the industry at Focus Area 2 and Municipality community areas by reducing/eliminating open dumping and burning of waste as well as reducing the volume of waste going to the dumpsite due to the segregation of waste.

> Supports SUED principles of sustainable urbanization, environmental resilience and climate change resilience.

Category: > Developing plan, guidelines, and regulation > Feasibility design and piloting > Capital investment: improving existing

Private Public Partnership (PPP) and/or private waste services

Employment, training and maintenance

by Municipality or private entity Employ local SMEs for waste services

Segregates higher quality materials which can be sold to recycling brokers

Challenges

Data gaps

Time frame, key dependencies

No household separation of waste occurs at present

Waste generation and compositional study to identify how many waste receptacles and collection vehicles would be required.

Short-term /ongoing

Current capacity of system is unable to serve future community needs and waste quantities.

Formalise collection process so that waste is sorted and transported to the appropriate facility

There are no direct climate resilience considerations for the project. There is, however, a clear benefit that the reduction in solid waste and wild dumping will reduce the amount of waste which is swept into drainage systems and rivers and streams, and which can cause blockages, and localised flooding. As such, a solid waste collection system should help to increase resilience to flooding.

As mentioned above, the collection system is dependent on a strong road network, and ideally, the roads used should undergo upgrades in both road surface and drainage to ensure that they remain passable, and collection can continue, even during heavy rainfall events.

Social inclusion recommendations

Basic analysis and timeline

Obtaining funding for new collection infrastructure

Waste collection vehicles do not have to be large, instead they can be a combination of bicycles with trailers, boda bodas with trailers, three-wheeled rickshaws and also larger collection vehicles. It is noted that the waste receptacles and the waste collection vehicles would need to be compatible.

Implementation agency and stakeholders

Improves flood and surface water management ability

Linkages

> The waste collection system relies on a good transportation network therefore there are links between this project and the transportation infrastructure projects.

Financing options and delivery mechanisms

This project has the potential to generate new job opportunities, particularly for the youth, women and PWDs. Many young men work in transportation and they could engage in waste collection. PWDs could be engaged in back-office activities to manage collection operations and logistics. > Engage with existent collection groups and waste pickers operating in the area and integrate them into the new system. > wWaste collectors should receive training in safe working methods, road safety, and receive the adequate PPE. They should also be trained on how to segregate the waste, and on how to handle waste properly to avoid dropping it on the way from households to the collection point and negatively affecting local communities.

Raising public awareness to segregate waste streams

78. Gray, Alex, 9th May 2018. “This African city is turning a mountain of trash into energy”. World Economic Forum. https://www.weforum.org/agenda/2018/05/addis-ababa-reppie-trash-into-energy/

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Case Study: Developing an Integrated Waste Management System (Kampala, Uganda) 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 of 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.

Source: Waste Pickers Alliance, Uganda

5.6.2.6 PROJECT 4.6: MATERIALS RECOVERY FACILITIES (MRF) Overview This project covers the construction of municipal waste Materials Recovery Facilities (MRFs) alongside the transfer stations (described in the collection project) and will enable the informal sector to recycle safely. It aims to maximise the extraction of valuable and recyclable materials such as plastics, glass and metal. Once segregated these can be sent for processing or onward sale to recycling facilities in Eldoret itself, Nairobi, Webuye and/or Uganda.

The MRFs will be small/ modular and simplistic at first with basic sorting tables for the segregation of different recyclables (recyclables will already be segregated from general waste and organics through the collection process). It can then be built up with sorting equipment, plastic shredders, aluminium can shredders, cardboard balers and a sheltered area for workers over time.

Location This project would be Focus Area wide, located alongside transfer stations as part of Project 4.7.

Linkages > The CIDP states that a lack of a recycling plant is something the County needs to address

Table 5.25 Project summary information

Climate resilience recommendations

Sub-components

Estimated cost (KES range)

Construction of Materials Recovery Facilities (6)

CAPEX KES 420 – 450 million

Benefits and impacts Reduces the volume of waste going to the dumpsite Increased formal employment in the waste sector

Financing options and delivery mechanisms

Implementation agency and stakeholders

Private-Public Partnership (PPP) and/or private waste service provision

Employment and training by Municipality or private entity

Turns waste into a positive component of the economy Higher quality materials which can be sold to recycling brokers

Maintenance responsibility of Municipality or private entity Use of local SMs for waste services Support from NGOs, community groups

Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Exact location of the MRFs will need to consider future developments

Exact volumes and types of waste generated to procure the correct type and quantity of sorting equipment

Construct concrete slab: short-term

Need to integrate waste staff (informal or formal) into new MRFs Obtain funding for initial equipment/ machinery/ engineering Secure markets for recyclates

> The project would support the industry at Focus Area 2 and Municipal community areas by reducing the volume of waste going to the dumpsite.

Material Recovery Facility (MRF): Short to medium-term

Capital assets such as material recovery facilities have a long life span, as they are expected to be operational for decades.

Climate change is already affecting waste management processes and operations that are subject to weather related impacts and its impacts are expected to increase over the coming decades. Given Eldoret’s location, the materials recovery facilities are expected to be sensitive to changes in temperature, fluctuations in precipitation and storms and high winds.

Higher temperatures could reduce worker’s productivity and in extreme cases adversely affect workers at risk from heat stress. Higher temperatures may require changes to equipment due to increased potential of dust, odour, bioaerosol release and combustion risk in both waste receptors and processing areas.

Precipitation decrease may reduce water availability for site management (e.g. dust suppression). On the other hand, flash flood occurrences on site can adversely affect operations in cases of inundation of site facilities (e.g. weighbridge, roads and offices depending on site location). Site location and design should account for potential surface water flooding.

As good transport links are an important part of the project, upgrades to roads to improve surface, and increase storm drainage would ensure better access all-year round and could be considered as part of the development of a more resilient transport system.

> It supports SUED principles of sustainable urbanization, environmental resilience and climate change resilience > The MRFs rely on a good transportation network therefore there are links between this project and the transport projects.

Category: Capital investment: new

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Case Study: CEMPRE (Brazil) Waste collection and materials re-use79

5.6.2.7 PROJECT 4.7: MWENDENI DUMPSITE REHABILITATION

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.

Overview

CEMPRE trains waste pickers, also known as ‘catadores’, 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 middleman 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.

The existing Mwendeni dumpsite was located in an abandoned sand quarrying at Mwendeni and there is some concern that leachate from it will be polluting the nearby River Sosiani. This project would cover the rehabilitation of the existing dumpsite.

Table 5.26 Project summary information

Linkages > There are links between this project and the water infrastructure projects as rehabilitation of the dumpsite should improve groundwater quality in the area around the dumpsite. > The project relies on a good transportation network in the short term during the rehabilitation therefore there are links between this project and the transport projects.

The existing dumpsite poses a health risk, degrades natural resources with the pollution of surface water bodies, groundwater aquifers and soils and is contributing to GHG emissions through the production of methane from decomposition of waste. Rehabilitating the existing dumpsite will reduce risks to human health and the environment.

> The resulting site will also offer effective green infrastructure over time, enhancing the green infrastructure provision across the Municipality, as also included with Focus Area 1.

Rehabilitating the existing dumpsite would include:

> Developing plan and guidelines

> Surveys and site investigations as necessary

Category: > Capital investment: improving existing - Rehabilitation of the existing dumpsites is proposed in the Draft CSP

> Remediation works for any contaminated soils > Geotechnical works for the improvement of soil stability to minimise erosion, allowing for site user safety

Sub-components Site remediation and restoration works

Estimated cost (KES range)

Benefits and impacts

KES 106 million

Improved ground and water quality around existing dumpsite Protects public health

Financing options and delivery mechanisms

Implementation agency and stakeholders

Private-Public Partnership (PPP) and/or private waste service provision

Employment and training by Municipality or private entity

Provides area for recreational public space Basic analysis and timeline Challenges

Data gaps

Time frame, key dependencies

Obtain funding for site remediation and restoration works

Understanding the characteristic of waste previously dumped at the site to determine geotechnical characteristics of remediated site

Short to medium term

Ensuring remediated dumpsite does not become uncontrolled/ unmanaged

Climate resilience recommendations

Social inclusion recommendations

> Monitoring systems for leachate contamination on impacted groundwater and surface waters

There are no direct climate resilience considerations for the project, however, consideration of leachate rates, and remediation measures should account for likely increases in the size and frequency of extreme rainfall events.

The rehabilitation of the dumpsite will have positive impacts on the local community, improving public health and providing an area for recreational public space.

> Landscape restoration works, with potential backfilling at selected areas

Social inclusion recommendations

> Planting of appropriate vegetation for contaminated soil remediation, soil stability and landscape and habitat restoration

The process of segregation and recycling waste represent employment opportunities, providing salary, equipment, and training.

> Fencing and capping works for potential exclusion (high contamination risk) areas

> Active and deliberately involve local conservation groups, youth and women in planting and caring for the planted trees until they are well established (this will also contribute to communities’ increased sense of ownership).

Case Study: Remediation of open dumpsites in South Asia80 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).

Case Study: Kibarani dumpsite restoration and relocation, Mombasa, Kenya Kibarani dumpsite in Mombasa received approximately 2,200 tonnes of solid waste per day for the last 50 years but has recently been transformed into a public recreational park. The dumpsite was moved to Mwakirunge, approximately 20 km from Mombasa town.

Through investment from private stakeholders, the existing dumpsite at Kimbarani was transformed into a green public space with trees, recreational areas, and a playground. This has drastically improved the visual and odour-related aesthetic of the area, in addition to boosting tourism81.

> Mitigate the disruption of waste pickers’ livelihoods by integrating them into the new waste management system thus providing secure income and reducing occupational risks. > Engage local communities and NGOs in sensitisation campaigns to generate awareness about the importance of source segregation and appropriate waste disposal.

79. www.cempre.org.br

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80. What a Waste 2.0, World Bank Group, 2018 81. Sources: Daily Nation, Kenya: https://www.nation.co.ke/kenya/counties/mombasa/ joho-s-plan-to-move-kibarani-dumpsite-gives-way-to-new-crisis--36032 ; https://www.theeastafrican.co.ke/magazine/Restoring-Mombasas-lost-allure/ 434746-5463778-13r1qeu/index.html

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Projects 4.4 to 4.7 will critically provide Eldoret with a vastly improved solid waste approach that provides renewable energy and materials use alongside significant improvements to the quality of place having rehabilitated the Kipkenyo and Mwendeni dumpsites. The timeline for these projects will need to reflect their integration and efficient ordering to realise the required behaviour change and ensure the new operational processes have the available workforce and equipment to start the step-change in the waste systems.

5.6.2.8 WATER RESOURCE RESILIENCE AND SUPPLY STUDY Category: Feasibility study Eldoret has experienced rapid urbanisation and population growth alongside dietary shifts and changes in demand for food, energy and water, which can further aggravate the already existing stress on natural resources. There is a water supply deficit in the Municipality, with demand estimated at 60,000 m3/day and supply at 46,000 m3/day.

As a result, water rationing is taking place in some areas.

Given that the population is expected to continue to grow in Eldoret, it is proposed that a water resource resilience study is commissioned to understand the future water supply and demand situation in Eldoret and its key developments, including the AEZ and CBD regeneration, to consider future-proofed water supply options to meet any potential shortfall in supply.

The assessment of water supply and use should take into account the effect of different possible climate scenarios, including the effect that higher temperatures will have on evapo-transpiration and crop water requirements.

This study and plans going forward should ensure water supply and sanitation to low income areas, aligned with the Municipality’s IDeP and LPDP. The low-income areas tend to be disproportionally impacted because they do not have sufficient storage facilities and instead rely on communal water points or unregulated water vendors for supply. This would cover Municipality level locations, including the informal settlements of Langas and Huruma 176

There is a need to develop last mile connections and low-cost pro-poor options for low income areas that are currently unserved or underserved to improve access to treated water supply. Such projects cannot be implemented until the completion of the Kipkarren Dam project which will ensure there is enough water resource to expand distribution.

The water company should consider providing connections to low-income households with a loan programme to support them in providing the one-off connection fees with suitable repayment modes. Metered connections also reduce water wastage from consumers and illegal connections since NRW can be easily monitored. This increases the efficiency and revenue of the water company.

Climate resilience recommendations Provision of metered consumer connections can reduce wastage of water as customers pay for the volume of water used, and as such will increase the resilience of the water supply during dry conditions.

Social inclusion recommendations Access to water is critical for socio-economic development and the improvement of public health. Provision of clean water will reduce incidences of water borne diseases within the community and consequently reduce money spent on healthcare and time away from productive activities.

> Ensure there are strategies for instalments, subsidies, or loans to support low-income populations with the connection to the water system.

Further, the sewer network covers 35% of the Municipality with most people using onsite sanitation methods of pit latrines and septic tanks. In informal settlements, pit latrines are typically poorly constructed and pose a risk of contaminating ground water and impacting general community hygiene.

To improve sanitation in the informal settlements, where sewers are available in close proximity e.g. Langas area, households should be connected to the sewer system and where the sewer system is not available e.g. Huruma area, ablution blocks should be provided to improve the shared facilities. In both interventions, water efficiency measures such as water saving flushes and recycling handwashing water to flush toilets should be introduced.

There is an opportunity for the ablution blocks to be run by a small business whereby an operator who could be a local youth, woman or PWD is appointed and collects a fee per use and pays for running costs such as the water, the sewage fees and maintenance.

Household connections improve accessibility to water for PWD and other consumers. This will also reduce time spent by women fetching water for the household, contributing to their wellbeing, and freeing-up time for income generation and other activities. > The operation of water kiosks has the potential to generate employment within the local community, particularly for PWD, youth and women. It is recommended to integrate water vendors who might lose their livelihoods due to the expansion of the water supply.

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6. Implementation Plan 6.1

Introduction

A number of other factors also have an 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 the implementation of the UEP, including risks and impacts from the current COVID-19 crisis or other external shocks, as well as increasing stresses from the effects of climate change. This will need to be a continuous process of reviewing identified risks starting from planning and design to implementation stages.

The proposed UEP and projects within the Development Framework have considered the existing and emerging economic and urban context including institutional and financial capacity of the County and Municipality.

Effective urban and economic planning by strong, empowered municipal governments is critical to the success of cities in responding to current and future challenges. The municipal government’s central role in the coordination of actors that shape urban development and economic growth is becoming even more important as governments are required to address increasingly complex challenges. Planning plays a critical role in directing and controlling land use, urban form, infrastructure and service delivery as well ensuring resilience of the urban system.

The UEP complements the Municipality’s development planning framework, with the IDeP and LPDP alongside the CSP and CIDP. Such a planning strategy will also guide the Municipality in being resilient in the event of future socio-economic disruption. It will support the Municipality in responding effectively, and in a coordinated manner between departments, to adapt the transport network, land use, economic ecosystem and supply chain as required.

Eldoret is a relatively successful urban centre offering a dynamic and attractive destination with its strategic location.

This has enabled various economic sectors to develop and has established its key role for NOREB through its industry, trade, services and educational institutions.

However, challenges from its rapid growth and uncontrolled development have emerged, alongside threats of climate change, as detailed through the UEP. In moving towards ‘city’ status, the Municipality has several constraints and requirements to address and opportunities that can be realised, including the AEZ and transport asset development.

An effective implementation plan for the Eldoret UEP will support the realisation and distribution of benefits, through catalysing Eldoret’s regional city and eco-industrial hub roles, including; > Increasing formal employment, including the VC projects across operation, packaging, management and the associated supply chain of goods transportation and trade; > Value uplift of Eldoret’s agricultural sector, with training for diversification and enhanced production, supported by an effective collection and distribution network;

through the supply chain with direct and indirect effects through increased opportunities and income flows; > Growth of Eldoret’s MSMEs and light industry output value, with affordable space, education and skills support and business incubator system alongside capacity building for digital, exports and financial access; > Socio-economic opportunities across society, providing employment access, business and Municipality contract opportunities for those from SIGs and those currently facing a lack of income security; > Establishment of Eldoret as a regional city offering business, leisure, educational and urban services, supporting footfall and visitor experience and driving opportunities from income flows and shared knowledge; > Uplift of land values within the CBD as a landmark destination development for commercial, retail, trade, mixed-use residential and services development; and > Securing sustainable revenue generation for the Municipality.

The following sections discuss relevant considerations across partnerships, funding and scheduling for the proposed VC and climate resilient and inclusive infrastructure projects and the wider economic development plan.

Crucial aspects to the implementation of these are capacity building and recommendations for social inclusion and climate resilience, which are provided further below.

> Value uplift of Eldoret’s agri-processing, industry and logistics sector, including opportunities at the AEZ and 178

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6.2 Partners and 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 multi-level governance: 1. Vertical governance which refers to the strength of coordination across multiple levels of government at national, regional and city levels, and 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.

Vertical governance recommendations Eldoret Municipality and its various departments maintain good relations with the County Government and various communication channels exist vertically.

Nonetheless, the Municipality should implement a plan of regular communication (e.g. 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 roll-out of supporting climate resilient and inclusive infrastructure and their associated costs.

Eldoret is the main urban centre and trade, commerce and learning hub for NOREB, playing an important role as its administrative and key economic centre. This role is likely to increase as it aspires to City status and in hosting major regional investments of the AEZ, Alten Solar Project and railway development stations. The economic bloc aims to enhance trade and investment opportunities through collaboration.82 The competitiveness of individual county economies will be increased through leveraging their comparative advantages and promoting inter-county collaboration in the implementation of projects with cross-border impact.

It is recommended that the Municipality and County Government establish regular communication channels with other counties and promote the inclusion of its regional industrial hub development on the NOREB agenda.

Investment at the AEZ will be incentivised and enabled by accessing the production areas of these counties, who in turn will benefit from having a stable market for their products through effective collection and distribution networks.

Horizontal governance recommendations The sector action plans (Section 4.2) propose an Export Board to provide advice to businesses on export promotion, negotiate shared deals with brokers and develop a branding strategy around products. Beyond close cooperation with the Eldoret private sector and AEZ operator and investors, this should be extended to collaborate with regional partners as County Governments, chambers of commerce, agricultural cooperatives and other relevant organisations to establish common goals and cross-border support. Regional access should be enabled to the centre, or with partnering centres, for information on certification, licensing and quality control. This would necessarily require consolidation on cross-border trade processes (agreements, licenses) to address constraints and delays. Further, this collaboration should consider the developing collection network (project 3.1) to bring regional produce into the eco-industrial regional hub locations, notably the AEZ. A NOREB action plan to utilising local opportunities from the AEZ could be developed with the relevant parties, with the AEZ operator as a key partner.

The following are likely to support the effective implementation of the UEP: > Involvement of stakeholders in steering committees and working groups: Eldoret Municipal Board and a continued PSG should involve a broad range of stakeholders, including SIG representatives, throughout the lifecycle of any SUED VC and infrastructure projects, sharing information and monitoring progress on intended outcomes for different stakeholders. > Thematic working groups: Eldoret Municipality should establish project teams drawn from representatives from government and community stakeholders to develop particular actions and track implementation. These working groups and project teams would usefully report back to Eldoret Municipality on a quarterly basis. These groups could be formed around the key sectors and urban elements, such as markets and trade, municipal services including the waste system, sustainable urban transport, land use and planning permissions, agri-industry development and the AEZ development. > An Urban Transport Authority should be developed and put in place with a supporting regulatory framework as a prerequisite for reforming public transport. This authority should oversee urban improvements (as proposed projects in Section 5) with relevant studies and design for how and where public transport routes, stations and information services are best developed; alongside the regulation of operators; performance monitoring; and maintenance. The authority should also collaborate with the Municipality and relevant organisations for resulting employment and training opportunities, and collaborate with the development leads and KRC on the extensive Focus Area 1 development and multi-modal linkages about the station.

> An Agri-Industrial board would be able to coordinate actions across agriculture, processing, trading and export, representing local businesses, the Chamber of Commerce, marketing experts and Municipality and County Government trade officials. This would aim to effectively track strategic objectives, identify and address skills shortages, exchange information and support production marketing and supply chain opportunities for the AEZ. The board would necessarily need to coordinate with the AEZ operator and investors as well as with regional partners through NOREB. > An Education and Skills Board that would coordinate efforts between Eldoret’s educational institutions, the Chamber of Commerce, development partners and local community groups. Eldoret Municipality should inform stakeholders of new development projects and consider how local skills can be utilised. Businesses and investors should inform about skills shortages and work together with educational institutions to develop adapted curriculums including potential apprentice schemes that align with the opportunities that are available from the developments at Focus Area 1, 2 and 3, and the VCs and sectors that feed into these. > 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.

Important and potential partnerships are set out below to deliver the UEP proposals:

Synergies with other development programmes DFID, the World Bank and other multilateral institutions have ongoing programmes within the County which will provide synergy with the SUED programme and potential for partnerships. Examples include the World Bank’s Kenya Urban Support Programme (KUSP) which could provide an important partnership in supporting proposed urban improvements. KUSP already has undertaken street widening and accessibility improvements.

The County has also been working with the Swedish International Development Cooperation Agency (SIDA) on the development of the Kipkenyo waste site toward an incinerator and energy from waste facility to address the dumpsite as a barrier to growth and realise new sustainable employment opportunities.

6.2.1 City Development Corporation With the extensive scale of the CBD regeneration proposed, the UEP recommends that a Special Purpose Vehicle (SPV) is established. A City Development Corporation as a vehicle of its own entity could suit the Municipal Board as the vehicle’s board with a partnership across the public and private sector including landowners, anchor tenants and CBD investors. The SPV would require a clear set of objectives and project packages for which it could: > Coordinate the regeneration programme as a whole; > Set the procurement terms for projects and manage procurement with contracts and monitoring; > Structure and lease concessionaires for operating elements such as for piazza space and facilities management;

82. Kenya Council Of Governors, ‘Regional Economic Blocs’ (2018) (available online: http://www.cog.go.ke/regional-economic-blocs)

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> Raise finance for the projects, which could include land value capture and the aggregation of private and public sector funds; > Manage any business grant and incentive programmes; > Coordinate with and oversee any business improvement districts; > Coordinate with local stakeholder and community groups, to ensure the right engagement and informed project and procurement design occurs; and > Manage reinvestment of funds generated by SPV revenues.

The SPV would need to be asset backed to enable the regeneration and re-use strategies for the CBD land and buildings. This could be developed as a public-private partnership so that individual public and private sector land owners can pool assets and unlock investment funding to catalyse revitalization of properties and land. An asset backed vehicle provides a basis to raise finance with the differentials between existing and future use values of property to fund improvements.

A City Development Corporation would require specialist expertise in its establishment and a range of capacity building for the Municipality to provide dedicated and skilled resources. Its structure would need to be responsive to its objectives and regeneration needs.

6.2.2 Business Improvement Districts

6.2.3 Value Chain partners

A popular concept for the establishment of zonal organisation is the formation of Business Improvement Districts (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. BIDs have been well implemented in regard to retail and trade areas, to ensure the area remains appealing to customers and supports businesses’ operation within this space.

There are enterprises and organisations that could be suitable partners in supporting the VC projects’ establishment at the AEZ, with regional level inputs and interaction with the national sector development. The NOREB is a key partner in facilitating the access the region’s producers, and this has been noted through a potential Agri-Industry Board.

In the context of Eldoret, this nature of partnership can be enhanced with public sector involvement to help direct and attract additional funding for the public realm and infrastructure improvements. Key benefits of this approach are an accountable, proactive and flexible approach, whilst bringing wider regeneration benefits.

The proposed Eldoret Piazza as the CBD Pilot Area would be suitable for a BID, where this can be expanded as the development phases are completed and continue with further CBD investment and expansion. In the first instance, with the Piazza, this could help realise the potential benefits of an improved urban fabric with enhanced footfall, active mode access and flexible commercial, leisure and mixed-use offerings which support business revenue. It would be in the landowners’ and business communities’ interests to coordinate to ensure an appealing environment is maintained for owners, tenants, residents and visitors from the wider region.

Fruit and vegetable canning involves relatively simple operations and full technology partners may not be necessary. What is critical is the development of an effective collection network. One of the short-listed VC opportunities was for avocado processing which has been confirmed to already being taken forward through Stabex. There is an opportunity for collaboration here including in collection.

Maize milling involves relatively simple operations and full technology partners may not be necessary. However, the Moisoy Cooperative Union is a key partner. The cooperative is formed from 40 primary farmers’ cooperatives in Uasin Gishu, representing over 5,000 small farmers. The cooperative identified a maize mill project and completed a feasibility study and business plan, funded by the County Enterprise Development Fund, whilst the cooperative has also raised funds for such a project.

6.3 Implementation Costs and Delivery Table 6 2 summarises the implementation costs and delivery for the VC, urban development and climate resilient and inclusive infrastructure projects across the three Focus Areas. Each project is considered by its sub-components; delivery partners and funding sources; capital costs and key cost elements; expected benefits to be realised; and timescale. This brings together the project information set out in Section 5.

Table 6.1 UEP Project Implementation Costs Summary Total estimated CAPEX for the UEP Development Framework Focus Area 1 CAPEX:

CBD Phase 1: KES 350-600 million Infrastructure: KES 5.6 billion

Focus Area 2 CAPEX

KES 1.3 billion with 300m investment pool

It is important to note that these costs do not include various cost items including land acquisition, design and planning, unless stated, where this could reflect 10-30% of the Capex costs. Inflation and optimism bias have not been included at this stage, where this would uplift the cost estimates. There will also be often sizeable operational expenditure which will need to be factored-in.

Focus Area 3 CAPEX

KES 1.8 billion Further costs with Railway needs determination

Wider Area CAPEX:

KES 11.5 billion

VC CAPEX:

KES 2.9 billion

Table 6 1 provides a summary for the scale of investment for the Development Framework.

Focus Area 1 CAPEX:

For bamboo lumber, there is potential to work with GreenPot Enterprises or other bamboo growers and lumber processors establishing in Kenya. There may also be scope to work with some of the plywood manufacturers to the west of Eldoret, as bamboo would provide a good substitute for the wood supplies (mostly imported from Uganda), that are running short. For bamboo fibres, there are a number of producers, mostly based in China. Two leading companies are Tenbro of Shanghai and China Bambro Textile Group based in Jiangsu.

In terms of the funding scale between private (PPP), public and other sources, the following is provisionally estimated: CBD Phase 1: up to 100% PPP; with donor Infrastructure: 75% public sector; 25% donor

Focus Area 2 CAPEX

75% Private Sector; 25% public sector

Focus Area 3 CAPEX

75% Private Sector and PPP; 25% donor and public sector

Wider Area CAPEX:

40% PP, 30% public sector, 20% donor

VC CAPEX:

SUED Programme with Potential for Other Public and Private Funding Involvement

In terms of the cost scale over time, the following breakdown is estimated given the individual project schedules: Immediate (1-2)

KES 10 million

Short term (2-5)

KES 10.5 billion

Medium term (5-10)

KES 13-13.3 billion + railway works

Long term (10+)

CBD Future Development – to be determined

At a Development Concept level, the project implementation is summarised below in Table 6.2, with the project scheduling following in Section 6.4.

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Table 6.2 UEP Project Implementation Costs and Delivery Project title

Project subcomponents

Delivery Partners

Focus Area 1 cont.

Sources of funding

Total Costs in KES

Benefits

Timescale

Focus Area 1 - CBD Regeneration and Consolidation Urban Development: Eldoret Piazza

Landmark Tower (Option A) or Retail, Food and Beverage Pavilion (B) With a 15-minute transport hub and urban features: › Urban Canopy (1,660m2 (Option A)/ 2,150m2(B)) › Bus stops waiting area (150m2) › Bus stops – vehicular circulation (1,350m2) › Bus terminal buildings (70m2) › Landmark building (4,800m2 (A)/ 400m2(B)) › Upgraded vehicular route North of Plaza (1,670m2) › Paved surface (12,715m2) › Urban forest (1,300m2) Plus Feasibility Study for market and Feasibility Study for market underground parking (Option A only)

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Coordinated by Municipality through a Development Corporation, Special Purpose Vehicle Business Improvement District (BID)

Public sector and PPP Potential for land value capture

Urban Canopy – KES 65 million (A) KES 84 million (B) Landmark building KES 281 million (A) KES 24 million (B) Bus waiting area – KES 7.8 million Bus – vehicular circulation – KES 70.2 million

› Decongested CBD › Increased visitors, footfall and income flows › Freed land and land value uplift › Commercial opportunities › Improved public space and leisure offering, quality of place benefits for residents › Investment catalyst › Revenue generation for Municipality

Medium term

Project title

Project subcomponents

Delivery Partners

Sources of funding

Total Costs in KES

Benefits

Timescale

Urban Development: Future CBD Expansion

Proposed elements include:

Coordinated by Municipality through a Development Corporation, Special Purpose Vehicle

Public sector and PPP

Not estimated at this stage

› City transformations as an attractive destination › Investment catalyst › Revenue generation for Municipality › Extensive business and formal employment opportunities › Visitor economy, income flows › Quality of place benefits

Long-term

› Railway Plaza; › Muliro Road/Boulevard Piazza and its shopping district; › Sixty-four Culture Park › Kitondo Street Park

Potential for land value capture

BIDs

1.1 Transport - Expanded NMT Network

› 5.4km of pedestrian facilities with safe at grade crossings › Vending spaces › Drainage facilities › Street furniture

County Government main implementation Municipality for maintenance

Public sector, business contribution County Government funds KUSP contributions Potential for business rates and contribution to the maintenance

Total capital: KES 105 million 5.4km pedestrian facilities with noted sub-components

› Increased safety and accessibility for pedestrians › Reduce vehicle use in favour of walking › Improve air quality by increased walking › Walking can improve health and wellbeing › Increased footfall to businesses along the network - income flows and support commercial uplifts and development

Short term - in place for and alongside CBD Eldoret Piazza

1.2 Transport: Bus Park Interventions

› New bus park at Railway station (Terminal A), 2.4 hectare › New bus park at Sosiani (Terminal B), 0.8 hectare › Redistribution of matatu fleets across the bus parks

County Government would be best placed to fund and oversee, alongside the KUSP

Public sector and donors County Government funds KUSP contributions Potential revenue recovery through bus park fees

› Railway bus park acquisition and development – KES 360 million › New bus park at Sosiani – KES 120 million Total capital cost KES 480 million

› Support future growth and public transport demand increase › Increased footfall to Support adjacent businesses › increase revenue for businesses adjacent to the bus park › increase of sustainable transport options › increase revenue for Municipality/County › Improved management of adjacent streets

Management measures can be implemented immediately Bus park upgrades can be implemented in the short-term

Bus terminal buildings – KES 3.6 million Upgraded vehicular route KES 26 million Paved surface – KES 140.5 million Urban forest – KES 0.5 million Option A total capital cost KES 595 million Option B total capital cost KES 356 million

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Focus Area 1 cont.

Focus Area 1 cont.

Project title

Project subcomponents

Delivery Partners

Sources of funding

Total Costs in KES

Benefits

Timescale

Project title

Project subcomponents

Delivery Partners

Sources of funding

Total Costs in KES

Benefits

Timescale

1.3 Transport – Matatu Priority Measures

› Dedicated lanes to be introduced as part of the dualling of A8, B8 and B16 › Public transport study

An accountable urban transport authority will need to be put in place. With supporting regulatory framework KeNHA role for road corridors

Public sector County Government funds KeNHA

20km of dedicated lanes on A8 – KES 2.4 billion

› Isolate PSVs from general traffic congestion › Reduced public transport journey times › Improved public transport reliability › Improve operation and bring opportunity for matatu operators

Medium term On basis of bus park interventions, and in response to study for route demand, including AEZ links

1.7 Energy - Streetlighting

› Review current implementation plan, commercial and technical arrangements, equipment › Design study to ensure suitable coverage of target area › Develop new commercial plan (procurement, deployment, implementation, maintenance) › New lighting poles installed

Municipality role for review, design, implementation and maintenance

Public sector and donors, PPP World Bank funded KUSP

KES 37.5 – 50 million, based on 10km of road covered

› Improved revenue and finances for Municipality › Improved safety and security › Longer operational hours at commercial centres

Short term Into medium term for completing further installation alongside wider CBD regeneration

1.8 Sanitation - Accessible public toilets

2 public toilet blocks

ELDOWAS to implement Local NGOs for maintenance, with SIGs

Utility ELDOWAS (the water company) through the Water Sector Trust Fund

KES 17 million

Enables women and girls, as well as older people and PWDs to participate in public life.

Medium-term.

The primary projects to enable the regeneration of the CBD should be completed

10km of dedicated lanes on B16 – KES 1.2 billion 10km of dedicated lanes on B8 – KES 1.2 billion Public transport study – KES 30 million Total Capital Cost - KES 4.8 billion; plus Study KES 30 million

1.4 Transport – Introduce and digitise maps for paratransit services

1.5 Traffic Management – Junction Improvements

1.6 Traffic Management – HGC Access Control to CBD

Creation of public transport maps

An accountable urban transport authority will need to be put in place. With supporting regulatory framework

› Traffic lights at 6 intersections › Modification of intersections design, channelisation and pedestrian safety treatments › Intelligent traffic control system

KeNHA and KURA to implement, with County Government interaction

› Road signs on CBD › Dedicated loading and offloading bays in CBD › Enforcement officers

County Government and road authorities

Public sector Municipality using county funds

Public sector and donors KUSP as potential lead, with County Government

KES 10M for map creation, and annual KES 10M budget for updates

Traffic lights – KES 60 million Intersection modifications – KES 8 million

› Will assist in the regulation of matatus city-wide › Support optimization matatu services across the city › Provide more information to passengers › Support development of Eldoret as a destination

Immediate And for revisiting for upgrades as CBD and routes develop

Accommodate future growth Improved traffic throughput More efficient junction operations Improved pedestrian safety

Short term

Intelligent traffic system – KES 120 million Total KES 188 million Public sector and donors County Government in collaboration with KeNHA and KURA Donor partners

Road signage (Estimate 5)KES 500,000 Height barriers – KES 500,000 Dedicated loading and offloading bays – KES 10 million

› Ease congestion caused by freight traffic › Increasing pedestrian safety and quality of public spaces › Improve operational and cost efficiency of freight and logistic companies

Medium term To be aligned with wider CBD network redundancy works (Project 4.1) and developing strategic goods movement

Focus Area 2 - ICDC Site Eldoret Industrial Area 2.1 Transport Provision of New Logistical Hubs

› Internal circulation roads › Intelligent traffic management system and traffic control centre

Bulk enabling infrastructure would need to be provided by ICDC to attract private sector investment to develop serviced plots

ICDC and Private Investment With coordination with County Government and the Municipality

Internal road network, approx.

20km – KES 1.2 billion Traffic management system and control centre – KES 100M Total capital cost KES 1.3 billion

› Increasing logistics space in Eldoret › Reduction of truck parking and congestion in CBD › Employment opportunities in operation

Medium term To be phased in alignment with ICDC site development

2.2 Energy Industrial Energy Efficiency Projects

› Energy audit of industrial premises and target setting › Development and selection of intervention projects, selection of context suitable technology and budgeting › Development of procurement and implementation plan › Development of education and training plan

Kenya Association of Manufacturing, coordinating with Municipality and ICDC with site investors

Public sector - grant funding The fund to be administered by the Kenya Association of Manufacturing The programme will fund energy audits carried out by CEEC. A pool of funding will be made available for which companies can apply to

Benchmarks:

Reduced energy bills for industrial companies Reduced GHG emissions

Medium term To be phased in alignment with ICDC site development

› KES 15 million fund for energy audits › KES 300 million funding pool for improvement projects › KES 5 million for capacity building

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Total Costs in KES

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Focus Area 3 cont.

Project title

Project subcomponents

Delivery Partners

Sources of funding

Total Costs in KES

Benefits

Timescale

Value Chain Project 3 -

Facility site of around 1,700 m2, with 1,000 m2 of light industrial style buildings, with the remaining area needed for storage silos, deliveries and dispatch.

Potential partners with existing and alternative producers

SUED Programme with Potential for Other Public and Private Funding Involvement

The total investment estimate at KES 600 – 700 million.

› Providing an additional secure offtake for maize farmers with fair and open prices; › Reducing post-harvest losses with additional quality grain storage capacity; › Supporting the Kenyan Government’s program of fortifying basic flours; › Improving efficiency of local milling; › supplying increased volumes of by-products (e.g. germ, husk/ bran) for local animal feed; › Potential for local downstream processing (e.g. fermentation products from maize germ); › Direct employment for around 62 FTEs, with potential for employing SIGs and PWDs.

Short term - investment for Phase 1 of AEZ

3.1 Transport - Agricultural and VC Produce Collection Network

› Increase network of all season rural agricultural roads to raise RAI Identify effective locations of collection for produce areas

KeRRA with County Government, in coordination with AEZ operator and regulator

Public sector and donor, investor contributions Under County Government and KeRRA remit, for seeking donor funding to support Potential for AEZ investor contributions

Benchmark KES 40M per km Total estimate KES 800 million - 1.6 billion

› Improved access to VCs and markets › Improve farmer and producer incomes › Reduced post-harvest losses › Reduce transport cost

Short term - investment for Phase 1 of AEZ Into Medium term as AEZ continues to develop with secondary VCs

3.2 Transport - AEZ Railway Facilities

› Station masterplan that encompasses provision for Railway siding › Loading and off-loading facilities and dedicated warehousing › other interventions required for improving freight handling capacity of the station

National Government level of coordination, with KRC Potential for donor funding and required PPP approaches to unlock investment and land value

Utility and PPP Kenya Railways Corporation or Public Private Partnership where public body funds infrastructure and private entity operates services

Station master plan – KES 100 million Further costs will be determined from plan and coordinated work with KRC and AEZ

› Opportunity to activate railway to accommodate freight demand › Opportunity to provide more efficient operations such as access and safety › Will add value to adjacent land › Employment and supply chain opportunities in construction and operation

Medium term To be phased in alignment with AEZ and KRC coordinated development

Focus Area 3 - AEZ and VC Cluster Value Chain Project 1 – Fruit and vegetable canning

Value Chain Project 2 – Bamboo Lumber, later fibres

A facility site of around 1,500 m2, with 1,100 m2 of light industrial style buildings, with the remaining area for deliveries and dispatch.

Facility site of around 2,100 m2, includes 1,300 m2 of light industrial style buildings, with the remaining area needed for storage of raw bamboo, deliveries and dispatch.

Potential partners with existing and alternative producers

SUED Programme with Potential for Other Public and Private Funding Involvement

Coordination with AEZ operator

Potential partners with existing and alternative producers Coordination with AEZ operator

The total investment estimate is KES 500 million.

Around half is for machinery and vehicles, and a third is for working capital. The remainder covers buildings and site preparation, marketing and initial training.

SUED Programme with Potential for Other Public and Private Funding Involvement

The total investment estimate at KES 1.5 – 1.7 billion.

80% of this is for machinery and vehicles, 10% is for working capital (covering the gap between paying farmers and receiving payment for lumber). The remainder covers buildings and site preparation, marketing and initial training.

› Providing a secure offtake for fruit and vegetables, which in turn can support investment in farming › Reducing post-harvest losses, especially during gluts, and improving overall food security › Providing a base for additional value-added processing of food products, such as sauces, ketchups, soups, etc › Providing cans for other agri-processing (e.g. for nuts, coffee, fish, milk concentrates, etc.) › Generating economic volumes of processing waste to support an animal feed mill › Direct employment for around 124 FTEs, with high potential for SIGs and PWDs.

Short term - investment for Phase 1 of AEZ

› A new value-added chain and market for farmers › Low-cost construction materials (e.g. roofing frames, boarding) to support house construction › Reducing imports of timber and pressure on forests › Providing charcoal by-product, reducing pressure on local wood › Providing additional supply of local fibre / yarn for the textile sector; Potential partners with existing and alternative producers

Short term - investment for Phase 1 of AEZ

Coordination with AEZ operator – Direct employment for around 128 FTEs, with potential for SIGs and PWDs.

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Coordination with AEZ operator

60% of this total is for machinery and vehicles, 35% is for working capital (covering the gap between paying farmers for maize and receiving payment for flour). The remainder covers buildings and site preparation, marketing and initial training.

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Cross-Area cont.

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Project title

Project subcomponents

Delivery Partners

Sources of funding

Total Costs in KES

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3.3 Solid Waste - Organic Waste Processing

In-vessel composting or Anaerobic Digestor plant

Coordination with AEZ operator and regulator, as part of waste Strategy Employment, training and maintenance

by Municipality and private entity Collaboration with farmers to secure local end markets

PPP and Private sector Private Public Partnership and/or private waste service provision

KES 50 million for In-vessel composting

› Reduction of waste to landfill › Reduces methane production in the landfill › Better alignment to circular economy › Provides employment opportunities › Supply of fertiliser to local agricultural market › Potential source of renewable energy

Short term - investment for Phase 1 of AEZ and VCs Into Medium term as AEZ continues to develop with secondary VCs

4.4 Solid Waste - Kipkenyo Rehabilitation and Incinerator

Environmental and Social Impact Assessment.

Purchasing land adjacent to dumpsite to construct EfW (15 acres)

Employment and training by Municipality or private entity Maintenance responsibility of Municipality or private entity

PPP and donors Private-Public Partnership (PPP) and/or private waste service provision Donor partners

ESIA - KES 21 million Land - KES 10.5

› Job creation › Energy production › Providing learning and capacity building opportunities › Facility will serve as education hub › Provide solution for the solid waste challenge in Eldoret making the County cleaner

Short-term - in advance of materials recovery system, and full collection system implementation

KES 323 million for AD Plant

› Rehabilitation of Kipkenyo Dumpsite (phase 1) Site civil, road and drainage works Electrical Interconnection Equipment › Construct Energy from Waste (EfW) facility Annually running costs of EfW facility

Cross-Area - Municipality and wider County

4.1 Transport Road Network Redundancy

› Upgrade 35 km of proposed ring roads › Eastern bypass 40km › Ziwa road bypass 10km › Starbex – Ongeria Road, 11km

County Government direction with KeNHA and KURA implementation.

National road authorities and donors Upgrading of the ring roads and Ziwa bypass to be delivered by the KURA Eastern bypass – KeNHA Donor partners may also support funding.

Proposed ring roads – KES 2.7 billion Eastern bypass + land acquisition – KES 4.8 billion Ziwa bypass + land acquisition KES 1.2 billion Starbex road – KES 825 million Total capital cost KES 5.9 billion

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› Decongests the CBD to help realise the benefits from urban regeneration and consolidation › Reducing journey times and costs for freight, improving resilience for industrial development and market linkages › Air quality improvements for Eldoret residential and commercial areas

Ring road upgrades can be achieved in the short term Eastern bypass and Ziwa road can be achieved in the Medium term

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Rehabilitation - KES 106 million Site works - KES 53 million Electrical and equipment KES 21 million EfW facility KES 2.7 billion Running costs - KES 102 million Total capital cost estimate KES 3 billion

4.5 Solid Waste Collection system

› Purchasing bulk containers › Purchasing waste equipment and machinery › Construction of waste transfer stations (6) › Ongoing operations

Employment, training and maintenance

by Municipality or private entity Employ local SMEs for waste services

Private sector and PPP Private Public Partnership (PPP) and/or private waste services

Bulk containers - KES 168 million Waste equipment, machinery - KES 375 million Waste transfer stations - KES 120 million Operation - KES 10 million per annum

› Reduced wild dumping of waste › Encourage source-segregation therefore reducing volume of waste to dumpsite › Improves flood and surface water management ability › Segregates higher quality materials which can be sold to recycling brokers

Short-term for initial improvements to medium term for full implementation

4.6 Solid Waste - Materials Recovery Facilities

Construction of Materials Recovery Facilities (6)

› Employment and training and maintenance by Municipality or private entity › Use of local SMs for waste services › Support from NGOs, community groups

Private sector and PPP Private-Public Partnership (PPP) and/or private waste service provision

CAPEX KES 420 – 450 million

› Reduces the volume of waste going to the dumpsite › Increased formal employment in the waste sector › Turns waste into a positive component of the economy › Higher quality materials which can be sold to recycling brokers

› Construct concrete slab: short-term › Material Recovery Facility (MRF): Short to medium-term

4.7 Solid Waste Rehabilitating the Mwendeni Dumpsite

Site remediation and restoration works

Site works overseen with Municipality and private operator Employment and training by Municipality or private entity

Private and PPP 'Private Public Partnership (PPP) and/or private waste service provision

KES 106 million

› Improved ground and water quality around existing dumpsite › Protects public health › Provides area for recreational public space

Medium-term

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Timescale

4.2 Energy - Solar Refrigeration (Cold stores)

› Mapping of all agri and livestock holdings and their outputs, current distribution hubs and status of storage › Establishment of needs for solar refrigeration systems › Design brief for refrigeration systems › Development of procurement and deployment plan › Develop training plan, for management, operation and maintenance

Municipality with assistance from national agricultural and cold chain specialists for design, development and implementation

Donor and public sector 'Donor funding is such as Self Help Africa and Agra, Public sector funding via the Ministry of Agriculture and Irrigation

KES 11.25 million based on 15 systems

› Reduced crop spoilage leading to higher revenues for small farmers › Employment opportunities, including SIGs

Short term - and into medium term to continue development

› Mapping of agricultural and livestock holdings and their irrigation needs, current status of facilities › Review of abstraction volumes from each borehole to ensure sustainability of water resources › Establishment of needs for solar irrigation and borehole systems › Preparation of design brief for boreholes/ irrigation systems › Development of procurement and deployment plan › Maintenance plan

Municipality with assistance from national agricultural specialists for site selection Municipality with assistance from irrigation specialists for equipment choice, implementation Operation and maintenance – responsibility of the smallholder recipients

4.3 Energy Water Solar Irrigation

6.4 Scheduling The synergies for each Focus Area and projects are described in Section 5. Figure 6.1 demonstrates the full set of proposed VC, development and infrastructure projects, showing where implementation would suitably begin.

Figure 6‑1 UEP Development Framework Schedule

Immediate (Y1-2) Focus Area 1

Short term (Y2-5)

Medium term (Y5-10)

Regional City Development Digitised transit maps >>

Expanded NMT Network

Eldoret Piazza – Landmark Tower/ Pavilion – 15 minute transport hub

Street lighting

Accessible public toilets

Public sector funding may be available from the central government via the Ministry of Agriculture and Irrigation

KES 225 million based on max 3,000 systems

› Consistent service provision for farmers with no powered irrigation › Lower costs for farmers where current system is on grid › Reduced carbon emissions associated with agricultural sector

Eldoret CBD Further Development & Expansion

Matatu Priority Measures

Bus Park Interventions Donor and public sector Donor funding is available from numerous sources, such as the Global Agriculture and Food Security Programme.

Long term (Y10+)

Traffic Management - Junctions

Short term - and into medium term to continue development

Traffic Management – HGV Access

Focus Area 2

Regional Eco-Industrial Hub Development ICDC Site Development

Leseuru Site; Kapseret Site Developments Energy Efficiency Projects

New Logistical Hub

Focus Area 3

AEZ Development

Wider Area – Agri-industry

VC Projects

Railway Facilities

Agri & Produce Collection Network

Organic Waste Processing

Solar refrigeration Solar irrigation

Wider Area Municipality

Regional City Development Road Network Redundancy Kipkenyo Rehabilitation & Incinerator Solid Waste collection Materials Recovery Facility Mwendeni Rehabilitation

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6.5 Funding

Global Funds

The investment attraction experts as part of the SUED programme will develop feasibility studies for the proposed 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.

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.

Presented below is a snapshot of the available climate change funds that cover climate adaptation and mitigation. It is important to note the following:

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.

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.

> 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. Existing guidance83 presents the following principles that need to be generally adhered to. The project activity must:

Philanthropic and NGO grant funding could also be leveraged through initiatives such as businesses dedicating 1% of profits to corporate social responsibility (CSR) initiatives. Examples of projects could include tree planting, provision of or access to recreational facilities such as Sosiani River and Nandi Park Green Corridor or SuDS development. The World Bank’s Kenya Urban Support Programme (KUSP) has also been identified as potential funding support for some of the UEP projects, including urban streetscape improvements and urban drainage solutions.

Mobilising the scale of resources to address the identified climate change adaptation measures to be implemented and ensure that the selected VC and infrastructure projects are climate resilient, the counties need to consider the full spectrum of potential funding sources available.

Climate change resilience funding

> The VC and infrastructure projects have had climate change resilience actions embedded in their proposals, and further recommendations have been made, as per the Section 5 Focus Area project details. This will aid the projects in accessing funding by demonstrating their significant contribution to climate change actions.

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 (SIDs). 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 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 mechanism used by the Adaptation Fund is grants.

NEMA is the National Implementing Entity (NIE) for Adaptation Fund in Kenya.

> 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;

The Least Developed Countries Fund (LDCF): The LDCF was established to meet the adaptation needs of least developed countries (LDCs). 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 (GEF) administers the LDCF and Operational Focal Points (OFPs) are responsible for coordination in country. The Ministry of Environment and Forestry is Kenya’s GEF Operational Focal Point.

The Special Climate Change Fund (SCCF): The SCCF was established to address the specific needs of developing countries under the 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 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 (SCF), 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 Adaptation for Smallholder Agriculture Programme (ASAP): ASAP channels climate finance to smallholder farmers so they can access the 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 (IFAD).

> 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, where the UEP Climate Vulnerability Assessment (Appendix D) provides important considerations here; > Link project activities to the context of climate vulnerability (e.g., socio-economic conditions and geographical location), reflecting only direct contributions to climate resilience.

83 http://pubdocs.worldbank.org/en/222771436376720470/010-gcc-mdb-idfc-adaptation-common-principles.pdfIMPLEMENTATION PLAN 126

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Regional Funds

County Mechanisms

The Africa Climate Change Fund (ACCF): the ACCF aims to support African countries transition to climate resilient and low carbon 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. The ACCF gives grants and launches calls for proposals periodically. The Secretariat is housed at the African Development Bank.

The Kenya County Climate Change Fund (CCCF) Mechanism: This improves a county’s readiness to access and disburse national and global climate finance to support community-prioritised investments to build climate resilience, five counties have so far established CCCFs. 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 change policies while delivering on local adaptation priorities. The expansion of the CCCF across the country is one of the priorities in the Kenya National Climate Change Action Plan, 2018-2022. The fund seeks a ringfencing of 2% of the development budget for climate change resilience and to leverage donor and private sector financing into climate change projects in the County.

The fund has criteria including the need for a wide benefit realisation across all social groups to address exclusion and to encourage social relations; the support of the economy, livelihoods and important services on which people depend; and to enhance resilience to climate change adaptation and, where possible, propose mitigation measures.

National Mechanism The financing of climate action is anchored on the Kenyan constitution. The Climate Change Act, 2016 requires that deliberate Climate Change considerations are made to ensure mainstreaming in all government plans, policies and programmes, resulting in inbuilt public climate financing of all sectors of the economy. The Climate Change Act, 2016 further created a Climate Change Fund to facilitate climate action. The National Treasury is the National Designated Authority (NDA) for climate finance in Kenya and oversees the implementing entities for various climate finance streams.

The National Treasury is the Kenyan National Designated Authority (NDA) for the GCF and developed the Kenya National Green Climate Fund (GCF) Strategy84 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 climate resilient and low-carbon initiatives. The Strategy provides a roadmap for stakeholders in harnessing resources from the GCF.

The Eldoret Municipal board has a financial Manager who liaises with the County Government to ensure Eldoret’s financial issues are well managed, where the Municipality continues to receive a budgetary allocation. It is expected that the Municipality will, in time, establish its own constitutionally mandated body to manage its finances including revenue collection. This will support the meeting of aspirations for Eldoret toward City Status, alongside appropriate institutional structures as set out in Section 6.2. Innovative and sustainable means to increase local revenue collection should be explored, such as automated revenue systems that the County has begun adopting, covering services such as market stalls, business permits and CBD parking.

Financial mechanisms such as tax incremental financing, public-private partnerships and land value capture would be most suitably implemented through an SPV or City Development Corporation with specialist expertise and capacity building for the Municipality. ,

It is recommended that the climate resilient and inclusive infrastructure SUED projects are used to drive a capacity building exercise across the County in advance of implementation and that the CCCF can be a potential source of funding for these and other adaptation measures.

6.6 Recommendations for Capacity Building Several areas are recommended for capacity building for the UEP implementation, with Municipality and departmental upskilling alongside partnerships and institutional structuring.

These would support the effective and integrated approach to sustainable and inclusive economic sector development; infrastructure delivery, operation and maintenance; and climate resilience future proofing development.

Project implementation Capacity building in project preparation, project management and delivery and maintenance from the Municipality, particularly when it comes to revenue generating activities and how to ensure revenue is received and used, is recommended.

Working with the private sector for the delivery of urban services and projects is increasing in importance and requires knowledge and skills to support effective implementation of market driven solutions including the PPP mechanism.

The UEP promotes an integrated approach to development and there is a need to ensure silo thinking is removed from planning and delivery. This enables understanding of what needs to come first in the development process, and the wider dependencies and synergies.

COVID-19 lessons Strengthening preparedness and emergency response capacity is critical. This means better preparedness in terms of financing, service delivery and business continuity including budgeting for future crises, emergency operations centres, capacity building, drills, and human resources redeployment plans. This capacity building is recommended for Eldoret Municipality, where a cross-sector taskforce would be a recommended structure.

The County’s Department of Finance and Department of Economic Planning are currently responsible for revenue collection; the financial management system; the formulation and implementation of the County budget, with monitoring and evaluation of programmes; and the improvement of the County’s procurement systems; as part of implementing the CIDP. The County Budget and Economic Forum play a key role in the consultation on, and implementation of, county-led funding and revenue generation – which will be of relevance for some of the proposed UEP interventions. This will need to be incorporated into County budget projections.

84. The Kenya National Green Climate Fund (GCF) Strategy https://www.gcfreadinessprogramme.org/sites/default/files/GCF%20Coordination%20Strategy%20Report.pdf

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Data and digital tools

Social inclusion

Effective data gathering and analysis will support the monitoring of strategic objectives for the Municipality, including UEP project implementation, where capturing stakeholder information can be a key element of this. Data management of Municipality services, such as waste management, public transport service and open space and SuDS maintenance, will support the Municipality in responding to its resident and business needs as well as monitor impact of these services. The development of an integrated spatial development plan would be supported with registries on land use and ownership, infrastructure assets and service provision, to better plan and respond both in normal times and during future shocks.

It is recommended that the Municipality and its departments are supported in their understanding and upskilling around social inclusion, including Social Inclusion Awareness Creation for the Municipality and its stakeholders to embed a shift in attitudes and reduce discrimination. This is important to open up socio-economic opportunities and infrastructure and services to all groups, improving social cohesion and addressing the significant outcomes of exclusion. This capacity building with the Municipality would suitably support the better application of inclusive contracts such as the Access to Government Procurement Opportunities (AGPO) policy.

It is also recommended that digital platforms be developed, with business and community involvement, to better coordinate and deliver in the first instance public transport services (Project 1.4). Digital platforms to support online trading and supply chain linkages are recommended as part of the sector action plans including an online marketplace for farmers including SIGs access. Bridging the digital skills and access gaps is an important element of capacity building for Eldoret and in upskilling for the implementation of smart city principles and recommendations for industrial sites including logistics management and workforce travel planning.

Climate resilience It will be important for the Municipality to develop its understanding of climate change impacts across different sectors, and exposure to risks and vulnerabilities. Such knowledge should be mainstreamed throughout services and projects to ensure resilience is embedded. The capacity and capability to access available funds (set out in Section 6.5) should be improved.

With all proposed projects being climate resilient and having specific recommendations, the Municipality and delivery partners will need to be versed in this and include the right expertise as projects are planned, implemented and operated to manage and monitor outcomes with relevant metrics. The Climate Resilience Vulnerability Assessment (Appendix D) sets out key requirements.

Economic opportunities and Value Chains The sector action plans (Section 4.2) present a series of recommendations around institutional structures and capacity to successfully develop the key sectors and realise the opportunity from the VC projects.

Capacity building for the sector action plans incorporates the County’s educational facilities, the County Government and Municipality, the business community, local community and sectoral partners. Further, business incubators are aspired to as local capacity is built with a key location being Focus Area 2 to support MSME growth and innovation.

An Agri-industrial Board is also recommended to build cross-sector understanding on the processing ecosystem, markets and export promotion, as well as track strategic objectives, in collaboration with the AEZ and regional partners.

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6.7 Recommendations for Social Inclusion To ensure Eldoret’s vision of a liveable, smart city that provides opportunities to all, regardless of age, gender, (dis)ability, ethnicity, religion, socio-economic background, or education levels, it is fundamental to consider social, spatial, and economic dimensions that contribute to achieving or enhancing urban inclusion. These considerations have been embedded into the development, design, prioritisation and proposed implementation of the Development Framework and the Economic Development Plan and VC projects.

One of the most important aspects in making smart cities inclusive is working towards closing the digital gap, particularly for women, the elderly and PWDs. New technologies and innovation should be people-centred, affordable, and accessible to all, and always prioritise the inclusion of marginalised groups. It is thus necessary to understand different needs, access, and control of ICTs, and to develop specific measures to communicate, and integrate vulnerable groups in the implementation of, smart city projects. Specific recommendations in this regard have been considered throughout the UEP.

Apart from the recommendations for the different projects, key recommendations include: > Ensure participation of all in the UEP planning, development, implementation, monitoring and decision-making. Stakeholder engagement should be a live process within the programme. > Commit to always engaging SIGs and vulnerable groups and give them a chance to be informed, to contribute to decision-making, and to actively give views on and participate in matters that affect them. This needs to consider that SIGs are not homogenous groups and that they face different challenges according to their age, gender, ethnicity, (dis)ability, etc. > Always communicate to local residents and adjacent businesses about the implementation schedule of the different infrastructure and urban development projects to mitigate the disruption of socio-economic activities. Provide accessible channels to receive and address complaints.

6.8 Recommendations for Climate Change and Resilience > Ensure employment quotas for PWDs as established by the Persons with Disabilities Act, 2003 are implemented and prioritise SIGs for the programme’s employment and capacity-building opportunities. Ensure all infrastructure adopts inclusive design standards. > The introduction of new climate resilient approaches and technologies that support income generation, such as crops and for farming, should be accessible to low-income groups. It is recommended to prioritise culturally appropriate and affordable options, or to provide financial and technical support to these groups. Green jobs should also be available to SIGs by providing access to the adequate training. > Establish a Gender and Social Inclusion Implementation Unit, which will work under the leadership of the UEP implementation manager to ensure inclusivity proposals in the UEP are implemented and monitored.

The full GeSI Report is provided in Appendix C.

> Ensure all communication about the programme is timely, and in formats and languages that are accessible for all.

This may include material for the visually impaired (audio, Braille), for people with learning disabilities and literacy difficulties (audio, easy-to-read written material), for people with hearing impairments (written material, sign language), and for people with co-ordination difficulties (easy-to-read written material, audio). The material should also consider people with low-literacy levels.

The County Climate Change Policy notes the need to build frameworks for climate change management at the village, ward, sub-district and county levels. The design of these devolved structures will be important in ensuring that Eldoret’s strategy to build climate resilience is participatory, inclusive, and informed by the needs a range of different communities.

In line with the CCCP objective to ensure that the response to climate change addresses marginalisation, and the needs of SIGs it is critical that these structures are designed to explicitly represent and empower traditionally disadvantaged groups such as women, youth and PWDs. We recommend that, in line with actions under Section 2.6.3 of the CCCP, an assessment of the specific needs of SIGs in relation to climate change is carried out as soon as feasible and used to inform the inclusive mainstreaming of climate change into county development processes.

For Eldoret to successfully build resilience to climate change there is a need to leverage different sources of finance to support the implementation of the range of activities needed.

There is growing financial interest in sustainable and climate resilient investments, both from national and international climate funds, as well as private sector investments with a focus on positive social and environmental impacts. The integration of climate resilience into the proposals put forward in the UEP, and the explicit linkages made between climate change, poverty and Inclusion, as outlined below, will provide a strong foundation for attracting sustainable finance, and will complement the County Strategy on Climate Finance 89.

89 This is understood to be currently being developed 90 The World Bank for example are working with Addis Ababa and several other cities on the development of models for climate-smart investment plans.

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We recommend that the County Strategy on Climate Finance expedite the development of a County Climate Change Fund, following the model successfully piloted by several other Kenyan Counties. Initial evidence shows that these funds are effective not only in terms of finance, but also for the coordination of climate resilience programmes among different actors. As such, we recommend that the County explore whether it is feasible to establish a similar fund for Uasin Gishu, or a body designed to attract inward investment of climate and sustainable finance. The projects presented in here have undergone a climate screening process, and are designed to meet the basic funding criteria for climate finance, although specific requirements will vary, and full project concepts would be needed.

Future developments in the county need to be designed to be resilient to climate change, or they risk not meeting development objectives. The CCCP rightly notes that in order to effectively manage climate risks and take advantage of any opportunities, there is a need to mainstream climate change into county planning processes. We recommend a review of current county planning processes to identify gaps in relation to climate risks and resilience, and entry points where simple climate risk management processes could be integrated to strengthen existing processes. In addition, targeted capacity-building on the integration of climate change into investment and budgeting processes90 would support this mainstreaming process.

The County Climate Change Policy highlights disaster reduction and risk management as one of 3 priority areas for the county, and emphasises the need for better dissemination of, and access to, climate information. The Kenya Meteorological Department is the primary provider of weather and climate information in the county, including tailored seasonal advisories for several sectors.

We recommend scaling-up the existing model of participatory scenario planning, which currently has limited implementation, so that seasonal advisories are more widely available. In particular, in addition ensuring that rapidly growth crops such as potato, avocado and tomato have robust seasonal advisories, and exploring the development of information services for non-agricultural sectors, such as transport and industry, could help improve the uptake and use of climate information, and increase the resilience of the municipality.

The major adaptation priorities for the County relate to agriculture and water management, and opportunities exist to increase productivity of crops such as potato and avocado by adapting to increased rainfall variability through improving access to reliable water sources, and making better use of weather and climate information.

Appropriate adaptation measures should learn from, and build on existing initiatives such as the Kenya Climate Smart Agriculture Project, which focuses on building resilience to climate risks through sustainable land management, enhanced water management, and livelihood diversification, among others. The CIDP and LPDP also note the importance of developing climate resilient infrastructure, in particular in the face of floods and extreme rainfall and propose integrating climate resilience into urban development through: > The design of climate resilient infrastructure within the Municipality in order to reduce the impacts of extreme rainfall events, for example better drainage and increased permeability of surfaces. > Retrofitting existing development with climate and disaster risk reduction technology. > Conserving and enhancing green spaces within the Municipality in order to reduce the urban heat island effect. > Incorporating rainwater harvesting requirement for new buildings to control runoff The full CCVA Report is provided in Appendix C. 199

6.9 Next Steps Following the completion of the UEP, during the next phase of the SUED Programme the proposed projects will be developed further 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).

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