Thursday, November, 23, 2017

baner

County Government of Nyamira
Nyamira Investment Profiles Summaries
Nyamira County;

The Background

Nyamira County is one of the 47 County Governments in the Republic of Kenya created under the First Schedule of The Constitution of Kenya 2010. Situated in the Western highlands of Kenya, it covers an area of 894 km² with a projected total population of about 750,000 as at 2014 and a population density of 724 persons per square kilometre. The population growth rate stands at 2.4% (KNBS 2010). It borders the counties of Kericho to the East, Bomet to the South East, Kisii to the South, Homa Bay to the West and Kisumu to the North West. The County is divided into 5 Sub-counties namely; Nyamira, Borabu, Masaba North, Nyamira North and Manga which are further sub divided into 20 wards.

The promulgation of the Constitution 2010 brought previously non-existent opportunities for regional growth closer to Kenyan citizens by introducing a devolved system of government that brings decision-making structures and processes closer to the people. Within the devolved structure, Kenyans can more actively participate in the planning and implementation of development plans for their region. Nyamira County lies in the Lake Victoria region, a region whose ten counties have come together to form the Lake Basin Economic Block born out of the understanding that strategic connections between counties with shared interests seated in a desire for mutual benefit can be an effective and intelligent means of increasing the possibility of creating notable development impact across several counties. The Lake Region is one of the most densely populated regions of Kenya with over 10 million people which constitute about 25% of the population in Kenya. These counties not only have similar ecological zones and natural resources, but also have analogous cultural histories that date back to historical migrations and trading routes. A partnership between the counties was thus both essential and timely and creates a practical framework through which county government efforts can be pooled to harness the abundant natural resources, build on existing strengths and address challenges. Furthermore, the Lake Region Counties are strategically located within the East African region very proximal to Eastern Uganda, Southern Sudan and North-eastern Tanzania making them very strategic in the East African Community Trading block.

 

Figure 1: The Lake Basin Region Economic Block Counties

 

It is with this background that Nyamira County has undertaken to rigorously explore and seek investment partnerships in order to leverage on the economic and social opportunities provided by the Lake Victoria Region economic block. The objective of the Nyamira County Government is to emerge as the industrial and production epicenter of the lake basin given its strategic location within the block counties and also with the counties in the rest of the country.

The County Government has identified six projects to be driven through private investment or through public-private partnership frameworks namely as follows;

 

  1. Coffee Processing and Value Addition
  2. TeaProcessing and Value Addition
  3. Bamboo Industrial Processing and Marketing
  4. Creation of the Nyamira Industrial and Commercial Park
  5. Set up of the Nyamira County Referral Hospital
  6. Development of a Pharmaceutical Manufacturing Plant

Below is a brief description of each of these project profiles;

1. Set Up of the Nyamira County Referral Hospital

Legal Health Mandates of Nyamira County Government

The Nyamira County Government derives its legally devolved health functions from the Fourth schedule part 2(2) of The Constitution of Kenya 2010, the Transition to Devolved Government Act, 2012 and the attendant Gazette Notices in particular Legal Notice No. 159 of the Kenya Gazette Supplement No. 116, Legislative Supplement No. 51 of 9th August, 2013. Herein are some of the health functions that are devolved to the County Government of Nyamira:

  1. Management of County health facilities and pharmacies including those in the sub-county hospitals;
  2. Management of Ambulance services including emergency response and patient referral system;
  3. Licensing and control of undertakings that sell food to the public including food safety and control;
  4. Enforcement of waste management policies, standards and regulations; in particular:

Project Justification

Current national government health sector budgetary allocations in Nyamira County basically finance recurrent expenditures such as salaries, maintenance and clinical services. Current revenue collections from the existing facilities are inadequate to finance significant capital and expansion expenditure beyond the current scope of operations. Meanwhile, there is rapidly growing pressure in demand for healthcare services within and from without the County. The equally rapidly changing medical case mix, scientific and technological developments and increasing patient demand is driving a growing need for investment in healthcare systems and infrastructure to meet the 2030 Health Pillar Goals objectives. The County government and National governments have limited resources to respond to these needs. To address this challenge we consider it prudent to turn to the PPP approach to access funding for the project under contracts for the design, construction, financing and management of the new facility.

This project will specifically address the use of Public Private Partnership (PPP) approach to fund capital investment in physical infrastructure, medical equipment and health management systems. It will consider the healthcare social infrastructure aspect ranging from diagnostic and treatment especially for non-communicable diseases which are on the increase throughout the region. Currently, there are only two referral hospitals in Kenya; Kenyatta National Hospital and Moi Teaching and Referral hospital both of which are at least 300 kilometres away from the region. There being no facility to offer highly-specialized care in the lake basin region, this true referral facility will have a population catchment of at least 10 Million people and also serve as a medical tourism centre for citizens from Eastern Uganda, Southern Sudan and Northern-eastern Tanzania.

Project Description

Nyamira County is seeking a private investor who shall design, build, operate and transfer a world-class medical referral facility. Our concept is modelled around the efficacy of the referral system with the main objective of reaping its maximum benefits. Benefits of good referral system are many and include increasing the efficiency and effectiveness of the health system; strengthening peripheral health facilities and improving decision making capacity at lower levels, promoting cooperation and complementation between the three levels of care. Besides, patients will enjoy expert advice, superior technical examination, advanced technical intervention, care beyond the existing facility’s capability and currently unavailability of resources.

We envisage that the new referral hospital will be able to tend to the needs of the patients who were previously referred out for outpatient and inpatient services from the Lake Victoria Region and also attract those patients from outside this region from areas that lack these facilities. In addition opportunity lies in the utilisation of the facilities by medical teaching institutions whose students require hospital experience as it will be inundated with all the requisite services required for their internship. Through this the facility is set to be the leading teaching hospital in the region and thus harness on research and modern technology to expand and grow.

Project Need and Scope

The project need is assistance of Nyamira County government to secure necessary funds for construction of a new 450-bed capacity referral hospital that will provide quality health and medical care services for the population Lake Region and its environs. Further, opportunities for investment training and teaching opportunitiesalongside medical tourism support services will also be integrated into the project.

Role of the Private Sector include:

  1. Providing detailed referral hospital design
  2. Capital financing
  3. Construction of the hospital
  4. Providing of medical supplies & equipment
  5. Providing clinical services
  6. Maintenance of equipment
  7. Provision of non-clinical services
  8. Shared Staffing responsibilities

 

The Role of Nyamira County Government include:

  1. Provision of land
  2. Part-project financing
  3. Obtaining legal permits and authorization
  4. Reimbursement for clinical and non-clinical services
  5. Performance monitoring
  6. Medical licensing & certification
  7. Shared Staffing responsibilities.

    2.
    Construction of a Pharmaceutical Manufacturing Plant in Nyamira County

Scope of Work: 

The proposed project “Construction of pharmaceutical plant in Nyamira” essentially consists of the construction of a 50-acre plant with a manufacturing capacity producing approximately 2 billion tablets per year for large volume generic formulations of plain or coated types with possible addition of hard gelatin capsules and effervescent tablets, intravenous fluid, syrups and extemporaneous preparations such as eye/ear drops.

Development Objectives

The proposed project essentially aims at developing a state of the art pharmaceutical plant at a location called Sironga in Nyamira County. The development of a plant will definitely be an answer to the long-standing aspirations of the people of the lake basin region.               

Project Benefits

As stated in the preceding paragraph, the people of the lake basin will be the principal beneficiaries of the proposed plant, enabling them to get constant supply of affordable drugs throughout the year. This should greatly contribute to improved health outcomes in the region and thereby promote economic growth, as a result of a healthier workforce. It will also go a long way in lightening the burden of the Public Health Engineering Department, as it will enable them to store huge volumes of drugs at the County. The plant will also create employment, from the production operations and along the entire value chain, including transportation, distribution, sales and marketing. Further, the proposed plant is expected to serve the wider lake basin region, with about 10 counties, with an estimated population of over 10.5 million people. The distribution and marketing of these plant’s products shall also extend to the other neighbouring countries of Uganda, Tanzania and Southern Sudan.                

Ongoing Initiative: 

Under the County development fund, an initiative has been proposed is for construction of a pharmaceutical plant. However, with the limited resource allocation under the County exchequer and considering the magnitude of the proposed project, the county funds scheme will not be enough to complete the proposed project. Funding under the PPP agreement or central government grant is the only viable option for starting and completing of the proposed project and hence the proposal.

Sustainability: 

Construction of pharmaceutical plant at Nyamira would go a long way in enhancing the resilience of the communities around by enhancing and or incorporating a reservoir for Continuous supply of pharmaceuticals all year long. Community participation and ownership of the proposed project is assured, since they would provide a big proportion of the direct and indirect workforce for the pharmaceutical plant, from production plant operations to support infrastructural development e.g. enhanced, electrification and road networks. The prohibitive cost of the pharmaceutical products, currently being sourced from the capital city, Nairobi, has also been a perennial headache for all county governments. The proposed plant will greatly reduce the cost of these products, thereby guaranteeing a constant market for the lake basin counties.

Statutory Clearances

The proposed project is for construction of a pharmaceutical plant at Nyamira. The proposed site does not include reserved forest or build-up area and hence, does not involve acquisition of land or property. In other words, land is available free of cost and free from all encumbrances. No forest or environmental clearances will be required for taking up the project.

 3. Bamboo Growing for Environmental Management and Industrialization of Nyamira County

Introduction: Background and Problem Statement

During the last about 60-70 years Nyamira has been transformed from natural tropical forests to an open agricultural landscape; having lost its forests, biodiversity, habitats for wildlife and is now faced with degraded soils and water resources. Yet the Nyamira people continue to depend on these natural resources (water resources, rich soils and forest products) for survival and development.

The greatest pressure leading to the recent decades’ natural resources and environmental degradation has been from insatiable demand for land for agriculture; unsustainable land use practices; over-dependency on biomass fuels; timber; and human settlements. The root cause however is undoubtedly the unprecedented rapid changing demography and lifestyles that demands unsustainable provision of goods and services from the ecosystems: food, biomass fuels, water, shelter, timber and herbal medicine.

The riparian zones are virtually covered by the water guzzling Eucalyptus trees which provide timber and industrial/domestic biomass fuels. Riparian zones and wetlands have been lost to eucalyptus while the catchments have been lost to agriculture. Due to these factors the water resources in the County have been degraded and declined drastically. The water shortages especially in the short dry spells become a big community concern. This is affecting the peoples’ health and other social services, agricultural productivity, economic performance and poverty levels to be as high as 47%.

The Nyamira County has initiated sustainable land management (SLM) programme that is encompassing protection, conservation, rehabilitation and reclamation of water catchment areas. This entails appropriate afforestation of hilltops, intensification of agroforestry in the over-cultivated mid-slopes, and replacing Eucalyptus species from the wetlands and all riparian zones with bamboo. It is estimated that Nyamira needs 5000 ha or about 2million clumps of bamboo to fully develop several bamboo based industries. This translates to an average of about 15 bamboo clumps per household in Nyamira. There is more than enough space available in all the County’s riparian zones and hill tops.

The Bamboo industry in the County will transform the socio-economic status of the Lake Region by;

  1. Bamboo has been described as a plant that is: a source of food, timber for building and various household furniture, fiber for fabrics, pulp for paper, a source of health products - medicine, chemical products including Bamboo drinks, vinegar, air purifiers and biological pesticides, fuel and inspiration. It conserves soil and water in the environment

  2. Bamboo has the potential of creating an environment and a source of goods and services for sustainable development for a community – with profound potential to transform the community in terms of economic growth, social and cultural change and ecological sustainability.
  1. It has the potential to jumpstart industrialization and to attract investments to Nyamira County within a short period of 2-4 years.

  2. It has the potential of raising and stabilizing household income of Nyamira people due to the diversity of industrial products that can be manufactured out of bamboo. If bamboo becomes the economic mainstay in Nyamira, the decline of one bamboo product in the market cannot make the economy of the County collapse as it has been experienced in recent years in respect to coffee, tea and pyrethrum markets in the County.
  1. Research and development of the technology responsible for raising quality processing of bamboo into the numerous bamboo products is very well advanced and still being improved in China. Nyamira only needs to propagate and raise enough farm stock to support the industry. Nyamira can then acquire the technology from China for her industrialization.

4. Nyamira County Coffee Value Addition

Introduction

Small holder Coffee farmers in Nyamira County have a history of selling products at a relatively low market value owing to very limited value addition or none at all. This is not sustainable, as it forces growers to push the land and themselves past a healthy threshold just to survive economically. Many in the industry perhaps understand value addition to mean just putting the raw processed green coffee in a consumer packet and sending it overseas.

There is need to develop a culture of value addition to the agricultural products in the county in order to reap maximum benefits because it will enable all players within the entire coffee value chain to advance economically as opposed to the current situation where the coffee sales is serving the interests of raw material importers in the industrialized markets that Nyamira has for long referred to as its traditional markets.

Value-addition for coffee range from very intricately processed and packaged, to simple additions or processes that can add to the worth of the final product. The Coffee Value addition activities start at the very basic level yet very crucial in determining the final quality of the end product. Such activities include essentials such as appropriate land preparation, fertilizer application, pests and diseases control and management, primary processing, secondary processing & facilities maintenance.

All the Nyamira Coffee undergoes primary processing using the wet processing method to produce coffee parchment raw beans that are sun dried at the factory level.
The current production level is at (primary processing) 5,000 metric tonnes done in 8 Coffee societies with 19 factories.

Nyamira County grows world class coffee, and if it is to be value added to world standards for market, then the facilities doing so must equally be world class.

Partnership

The coffee investment can be done jointly with the County Government of Nyamira, the private investor and the Coffee societies who represent the small scale farmers

Ways to Add Market Value to Nyamira Coffee

  1. Grow organic Coffee - many buyers in the export market  will happily pay 30 -60% more for better taste and health, in line with the emerging trends and lifestyle in the major target export markets
  2. Sell the Nyamira Coffee as a recognizable brand (Branding of Nyamira Coffee)
  3. Sell direct and deliver to high-end consumers such as restaurants and hotels who put a premium on freshness.
  4. Focus on Nyamira Coffee as product with unique, special qualities due to the soil in which it is grown, altitude and special climatic niche.
  5. Production of Nyamira coffee beverages; Ready mix coffee beverage; Coffee-milk
  6. Process coffee as a Source of dietary fibre
  7. Charcoal production from the coffee husks;
  8. Mushroom cultivation support from the factory by product;

Economic importance of Coffee Value addition

Value-addition to products improves the County economic situation, as well as improving the livelihood of the County residents. This will also make the County be more creative in entrepreneurship and Market the Nyamira Coffee better than wholesaler for raw materials for more revenues and family income improvement.

5. Tea Value Addition in Nyamira County

Introduction

Agriculture is a key sector of the Nyamira County economy and employs the largest number of residents in a single sector. Agricultural activities include food and cash crop farming, livestock farming as well as aquaculture. Under the new constitution agriculture functions are devolved and county governments can leverage public-private partnerships (PPPs) to enhance agricultural production and productivity.

Nyamira county Government has prioritized agricultural production and value addition as one of the key drivers of the county economic development. Developing a strong value chain increases the market competiveness and spreads benefits to different actors in the value chain, this in turn creates opportunities for employment for the youth and women.

Tea is the main cash crop grown in Nyamira County and its grown in all the 20 wards, the sector is a source of livelihood for 90% of the local residents directly and indirectly. There are over 20,000 small scale tea growers supplying raw materials to 6 tea processing factories the uses about 90,000-100,000 tonnes of Greenleaf which processed into black tea all the year round. However many opportunities exist to diversify the tea products in order to increase the farmers’ income as well as creating employment to the well-educated youths in the county

Project sponsors

The proposed tea investment opportunities can be a joint venture with:

  1. The Nyamira County Government,
  2. Private investors both local and foreign
  3. The tea growers through the cooperative societies.

Product mix

The possible products for the tea value addition include diversification to purple tea, tea juice, packaging material production, blending/flavouring of the black tea with spices or herbs products (ginger, masala, lemon).

Packaging into different weights for consumers can be done into various weights.

Pre-mixed tea with sugar and milk ready for use especially for young families, green tea from the appearance due to prevention of aeration during processing

Key players

Kenya Tea Development Agency (KTDA)

Is a farmers owned agency responsible for developing and fostering the small scale tea farmers in Kenya, the agency manages the tea factories that are owned by the farmers

The Tea Board of Kenya (TBK)

It regulates the tea industry in Kenya by provision of licences, registration and promotes adherence to tea regulations by all players

Tea Research Foundation (TRF)

Carries out the research activities in the tea sector especially for improved production through the best agronomic practices

Raw materials availability

The raw material for the black tea products are readily available within the county and the region, however the purple tea production will be started if an investor commits to process the products since the planting materials are available from other farmers in the country or from the tea research centre at Kericho

Production Plan

This will involve feasibility studies and recruitment of the purple tea growers in the first year as the infrastructure facilities are put in place.

The processing facilities can be set up on land provided by the county Government as a partner while the investors provide the capital to start off the enterprises

The production plan will be done in phases

Phase 1

  • Production of blended , flavoured black tea
  • Production of pre-mixed tea
  • Packaging into sachets/tea bags

Phase 2

  • Introduce the green and purple tea
  • Production of instant tea
  • Optimize the production levels

 

Estimated Investment cost

Start-up Costs

Item

Estimated Cost (Kshs)

Company registration and licencing

500,000

Insurance

1,000,000

Traveling expenses

1,000,000

Feasibility study, EIA and legal fee

3,500,000

Sub Totals

6,000,000

 

 

Investment costs

Land and building

80,000,000

Plant and equipment

200,000,000

Other assets

10,000,000

Working capital

30,000,000

Sub Totals

320,000,000

 

 

TOTAL

325,000,000

 

The investment will cost about Kshs 325 million (3.8 million US dollars) depending on the facility size and equipment to be used

Economic and social indicators

The investment opportunity is conducive because the demand for the tea products is available locally in Nyamira County as well as the neighbouring counties and the lake region the has a population of over 10 million residents, the venture will also give the small scale farmers an alternative for the tea and reduce tea hawking in the county apart from providing employment to the skilled youths for poverty reduction.

6. Setting up of an Industrial and Commercial Park in Nyamira County

Scope of Work: 

The proposed project “Setting up of an Industrial and commercial park in Nyamira” essentially consists of the construction of a 3000 acre park with both industrial and commercial facilities including hotels, conference facilities, shopping malls, recreational parks, social halls, cinema halls and solid waste management facilities.          

Development Objectives:

The proposed project essentially aims at developing a state of the art micro-city plant at a location called Sironga in Nyamira County. The setting up of the city of a will definitely be an answer to the long-standing aspirations of the people of the lake basin region and beyond.              

Project Benefits

The people of the lake region economic block will be the principal beneficiaries of the proposed park, enabling them to get the requisite social amenities. This should greatly contribute to improved social outcomes in the region and thereby promote economic growth as it strives to create wealth in the region. The city will also create employment. Further, the proposed plant is expected to serve the wider lake basin region with about 10 counties, and an estimated population of 10.5 million people.  There is no commercial and business park of this magnitude currently in the entire region.

Ongoing Initiative: 

Under the County development fund, an initiative has been proposed for construction of a micro city. However, with the limited resource allocation under the County exchequer and considering the magnitude of the proposed project, the county funds scheme will not be enough to complete the proposed project. Funding under the PPP agreement is a viable option for starting and completing of the proposed project and hence the proposal.

Sustainability: 

Great Cities have Great Parks! Major cities across the nation and world recognize the valuable benefits parks provide. In some cities, parks are defining features. Parks promote increased physical activity and mental well-being, provide venues for community building, enhance tourism and boost the local economy, positively impact real estate values, support ecosystem functioning and biodiversity, reduce air pollutants, provide storm water management, and contribute to cooling effects in urban areas.

As Nyamira transforms from a county headquarters to a major regional commercial and urban center, a connected network of urban parks will help to distinguish the lake basin region as a great region and bring benefits to the local economy and quality of life.

Statutory Clearances

The proposed project is for construction of a commercial and industrial park at Nyamira. The proposed site does not include reserved forest or build-up area and hence, does not involve acquisition of land or property. In other words, land is available free of cost and free from all encumbrances.