BLUE ECONOMY BANKABLE PROJECTS

Size: px
Start display at page:

Download "BLUE ECONOMY BANKABLE PROJECTS"

Transcription

1 1 BLUE ECONOMY BANKABLE PROJECTS

2 2 The world s first 100% recycled plastic sail boat THE FLIPFLOPI PROJECT- LAMU Images (Twitter) PREPARED FOR BLUE ECONOMY BUSINESS AND PRIVATE SECTOR FORUM CONTENT AND EDITS: Dr. Kennedy I. Ondimu Mercy Chemoiwo Joseph Kemboi DESIGN AND LAYOUT: Samuel Njaaga

3 FOREWORD... ACKNOWLEDGMENT... KENYA AT A GLANCE... WHY INVEST IN KENYA... BLUE ECONOMY BANKABLE PROJECTS INTRODUCTION... AGRICULTURE AND FISHERIES Aquaculture Business Development Program (ABDP)... Development Of Fish Quality Laboratories... Aquaculture Technology And Innovations Transfers.. Exploitation Of Living Resources Under The Blue Economy... Magwagwa Multipurpose Dam... Nandi Multipurpose Dam... Webuye Multipurpose Dam... Munyu Multipurpose And Greater Kibwezi Irrigation. Development Of Lower Turkwel Irrigation Project... Lake Challa Water Resources Integrated Development Project... Integrated Fish Resources Development Project... Radat Multipurpose Dam And Irrigation Development Project... Strengthening Management, Monitoring, Control And Surveillance (MCS) Of The Fisheries Resource... Kenya Marine Fisheries And Socio-Economic Development (KMFSED)... MANUFACTURING Special Economic Zone (SEZ) At Dongo Kundu... Lamu Special Economic Zones... Eliye Springs Bottling Plant... MARINE TRANSPORT Mombasa Port Development Project (MPDP)-2Nd Container Terminal Phase II & III... Construction Of Dongo Kundu Berth I And A Free Port... Conversion Of Berth Into Container Terminals... Lamu Port Under Lamu Port South Sudan Ethiopia Transport Corridor (LAPSSET)... Development Of Lake Victoria Ports... Development Of The Shimoni Port Raising Of Masinga Hydropower Dam MW Geothermal Plant At Suswa... Baringo-Silali-Paka Geothermal Project... TOURISM Lamu Resort City... Lake Turkana Resort City... WATER MANAGEMENT Lamu Water Supply... Bute Dam Water Supply... The Kakamega- Bungoma Bulk Water Supply Project... The Keben Dam Water Supply Project... ENVIRONMENT Integrated Hydro-Metrological Information And Decision Support System... BLUE ECONOMY PIPELINE PROJECTS INTRODUCTION... Kilifi County... Kisumu County... Taita Taveta County... HomaBay County... Mombasa County... Siaya County... Turkana County... Busia County... Nakuru County... Nyandarua County... Embu County... Kakamega County... Kirinyaga County... Kericho County... INVESTMENT PROCEDURES & INCENTIVES... KEY CONTACTS ENERGY SECTOR Olkaria VI (140MW)... Karura 90MW hydropower plant

4 4 FOREWORD AMB. MONICA JUMA,DPHIL, CBS Cabinet Secretary, Ministry of Foreign Affairs. Kenya is continuously reviewing its investment environment to ensure that businesses and private sector investments can maximize their returns. The Government has modernized and simplified various legislations, regulations and standards to make the economy more business friendly and has made considerable strides in reducing the cost of doing business. These reforms have seen improvements in literally all continental and international business climate indices. For example, Kenya has improved from World Bank rank of 136 in The Ease of Doing Business to 61 in just 5 years! We are proud to host the first Global Conference on Sustainable Blue Economy. The main goal of the conference is to initiate actionoriented discussions focused on the productivity and sustainability aspects of the blue economy. The sector has potential to contribute to Gross Domestic Product (GDP) growth in Kenya and in the wider East African region. Innovation and growth in the coastal, marine and maritime subsector could deliver food, energy, transport, trade among other products and services and serve as a foundation for sustainable development. Diversifying the country s economy beyond land-based activities to include its coastal, marine and maritime, inland water masses and resources is critical to achieving the Sustainable Development Goals (SDGs) and delivering smart, sustainable and inclusive growth. The Government of Kenya welcomes all investors to our beautiful country; an ideal destination for investment, trade and tourism. It is for this reason that we have developed a booklet that contains very attractive investment opportunities in the Blue Economy Sector. Karibu (Welcome)

5 5 ACKNOWLEDGMENT AMB. MACHARIA KAMAU, MBS Principal Secretary, Ministry of Foreign Affairs This booklet is a culmination of participatory and inclusive process which involved various stakeholders. While it may not be possible, within this space, to acknowledge the invaluable input of all those individuals and organizations that contributed towards putting all these projects together, we would like to sincerely recognize and appreciate His Excellency the President of the Republic of Kenya, Uhuru Kenyatta, who realized the pivotal importance of oceans, seas, lakes and rivers to our people, our planet and our prosperity and actively rallied at the Third session of the United Nations Environment Assembly to have the 1st Global Sustainable Blue Economy Conference take place in Kenya. We appreciate the Co-hosts Canada and Japan as well as all the other Cosponsors for their financial and nonfinancial support. Our appreciation also goes to the National Government, County Governments, Private Sector, the Business Community and the organizing committee of the 1st Global conference on Sustainable Blue Economy Conference. It s my sincere hope that this booklet will go a long way in guiding investors on the bankable and potential investment opportunities in Kenya.

6 6 KENYA AT A GLANCE Kenya is the fifth largest economy in sub-saharan Africa with strong growth prospects supported by an emerging urban middle class with an increasing appetite for high-value goods and services. It is the dominant economy in the East African Community (EAC),contributing more than 50% of the region s GDP. GDP (2017) US$ 74.94B FDI Inflows (2017) US$ 672B GDP Growth (2017) 4.9% FDI Growth (2017) 71% Average GDP Per Capita(2017) US$ 1,663 Average Exchange Rate US$ 1 - KES AREA sq Km POPULATION 51.12M OFFICIAL LANGUAGE English AGE STRUCTURE 0-14 years: 40.02% years: 35% years: 21.98% 65 years and over: 3% POLITICAL SYSTEM Devolved State with Multiparty Democracy, 47 counties. Kenya lies on the equator and enjoys a varied climate ranging from tropical to temperate (10 to 40 c).

7 7 WHY INVEST IN KENYA EASTERN AFRICA S MAIN TRADING HUB USD 29 trillion global market VIBRANT CITIES AND SCENIC NATURAL BEAUTY Nairobi is ranked among the in Africa As the coastal industrial hub, Mombasa features the best beaches and the busiest port in the region REGIONAL LOGISTICS HUB Kenya has high quality and growing infrastructure. 30,000+ high quality roads and the Port of Mombasa, the new Port of Lamu which services 5 million+ passengers a year, making it a top 5 airport in Sub- Saharan Africa WELL-FUNCTIONING DEMOCRATIC SYSTEM Governance systems most stable and business friendly in East Africa - Transparency of government policy making in Kenya is 58th in the world and 9th in Africa, vs. a regional average of 91-48th in the world and 11th in Africa, vs. a regional average of 60 THE REGION S MOST DEVELOPED PRIVATE SECTOR Kenya s saw the USD 2 billion Eurobond USD 8.8 billion The country has a thriving private sector and trusted global players WORLD-CLASS ICT SECTOR Kenya has the region s most developed ICT infrastructure, and new developments are underway The government is at the where government services can be accessed online using a single sign-on DYNAMIC AND OPEN FINANCIAL SECTOR as shown by stock exchange. Kenya has 43 commercial banks, more than any other regional countries. wide range of services We have also witnessed homegrown commercial that are also key players in the region such as Kenya Commercial Bank (KCB), Equity Bank National Bank, Commercial Bank of Africa among others. RENOWNED TALENT POOL 30th in the world and number 1 in Africa being highly s being holding degrees from being, due to a large number of returning diaspora GLOBALLY COMPETITIVE COST STRUCTURE For every dollar spent, you can rent more land in Kenya than Tanzania, Uganda or Ethiopia Kenya has the in Eastern Africa RAPIDLY EXPANDING REGIONAL MIDDLE CLASS 20 million+ 32% in the last 3 years Smart phone ownership reached 60% in 2017.

8 8 Aerial View of Galana-Kulalu Food Security Project Image Courtesy: National Irrigation Board (NIB) Continental free trade area A common market spanning half of Africa A step towards a continental free trade area Tripartite Free Trade Area Links 3 regional blocs COMESA Common Market of East and Southern Africa SADC South African Development Community EAC East African Community Intra-regional trade as a share of region s total exports COMESA + SADC D. R. Congo Zambia Malawi Zimbabwe Swaziland Madagascar Libya Angola Namibia Botswana Countries 26 Population 625 Million Total GDP $ 1 trillion Egypt Aim Boost Trade Between African countries Sudan Eritrea Eritrea Djibouti Djibouti COMESA + EAC Uganda Ethiopia Kenya Rwanda Burundi South Sudan Mozambique South Lesotho Africa SADC + EAC Tanzania Comoros Seychelles Mauritius 11% 21% 70% 50% Africa Latin America/ Caribbean Europe Developing Asia Source: UNCTAD

9 9 BLUE ECONOMY BANKABLE PROJECTS INTRODUCTION The Blue Economy seeks to promote economic growth, responsible production and consumptions, social inclusion, and preservation or improvement of livelihoods while at the same time ensuring environmental sustainability of the ocean and coastal areas through the circular economy. This Global Conference on the Sustainable Blue Economy hosted by the Government of Kenya supported by United Nations Development Program (UNDP) together with its co-hosts Canada and Japan under the theme Blue Economy and the 2030 Agenda for Sustainable Development. The conference focus is on integrating economic development and sustainability, new technologies and innovation for oceans, seas, lakes and rivers as well as the challenges, potential investment opportunities, priorities and partnerships. In relation to the theme, the conference builds on the momentum of the United Nations 2030 Agenda for Sustainable Development, the 2015 Climate Change Conference in Paris and the UN Ocean Conference 2017 Call to Action. The booklet has been prepared to showcase Kenya s bankable projects in the Blue Economy sector which also drives the Country s Big 4 Agenda ( Food Security and Nutrition; Enhancing Manufacturing; Affordable Housing and Universal Health Coverage). The projects span across the following sub-sectors; Agriculture and Fisheries; Renewable Energy, Maritime transport & Trade, Tourism, water supply & environmental management. The booklet aims to: Accelerate the implementation of the United Nations 2030 Agenda & Sustainable Development Goals (SDGs) Harness the potential of the blue economy to create jobs and combat poverty and hunger particularly people in developing states, women, youth and Indigenous peoples. Show how economic development and healthy waters go hand in hand. Leverage on latest innovations, technologies, scientific advances and best practices to build prosperity while conserving our waters for future generations. Encourage businesses & private sector to collaborate with governments & civil society.

10 10 BLUE ECONOMY BANKABLE PROJECTS AGRICULTURE & FISHERIES

11 11 AQUACULTURE BUSINESS DEVELOPMENT PROGRAM (ABDP) Promoter: State Department for Fisheries, Aquaculture and the Blue Economy Private Sector Participation: Public Private Partnerships (PPPs) Estimated Investment Cost: USD Million Location: Phase I: Homa Bay, Migori and Kakamega (in Western Kenya Region) Kirinyaga, Nyeri and Meru counties. Phase II: Tharaka Nithi, Kisii, Kisumu, Siaya, Busia, Embu, Kiambu, Machakos and Kajiado counties. The programme focus is to establish and strengthen smallholder business oriented aquaculture organizations; Support pond construction and improve productivity existing structures ; Create technical and business skills ; Conduct community nutrition initiatives; Identify activities to be implemented through Public Private Partnerships (PPPs ); Improve aquaculture production, productivity as well as food security and nutrition of smallholder farmers; increased private sector participation in Aquaculture value chain operations through strategic Public Private Producer Partnerships (PPPPs); enhance aquaculture value added products through processing and increase youth employment through aquaculture enterprises

12 12 DEVELOPMENT OF FISH QUALITY LABORATORIES Promoter: Private Sector Participation: Estimated Investment Cost: Location: The project is aimed at sustaining access of Kenyan fish and fisheries products to the global and domestic market in compliance with food safety and quality standards. The programme State Department for Fisheries, Aquaculture and the Blue Economy Public Private Partnerships (PPPs) USD 11 Million Nairobi, Kisumu and Mombasa counties focuses on construction, equipping and operationalization of fish quality control laboratories in Nairobi, Kisumu and Mombasa

13 13 AQUACULTURE TECHNOLOGY AND INNOVATIONS TRANSFERS Promoter: Private Sector Participation: State Department for Fisheries, Aquaculture and the Blue Economy Public Private Partnerships (PPPs) Estimated Investment Cost: Location: The project aims at developing aquaculture technology and innovations, providing the necessary trainings and technology transfer facilities at Sagana and Kiganjo. The focus areas are Upgrading of Aquaculture Facilities at Sagana and Kiganjo and use of Aquaponics USD Million Kirinyaga, Nyeri, Laikipia, Nyandarua, Thara Nithi, Muranga, Kisii, Machakos, Kiambu, Nairobi, Kakamega, Nakuru, Kajiado, Meru, Embu, Vihiga, Busia, Kisumu, Kitui and Makueni. for Training and Demonstration in Schools and other Learning Institutions. The project is expected to develop Aquaculture technologies and innovations and transfer to stakeholders, increase fish production from aquaculture and increase per capita fish consumption

14 14 EXPLOITATION OF LIVING RESOURCES UNDER THE BLUE ECONOMY Promoter: Private Sector P Estimated Investment Cost: Location: State Department for Fisheries, Aquaculture and the Blue Economy Public Private Partnerships (PPPs) USD Million Countrywide The programme focuses on development of fishing facilities/ infrastructure along the Coast to maximize socio economic benefits from the sustainable utilization of the living resources under the Blue Economy. Under the programme National Fishing Fleet for the Exclusive Economic Zones (EEZ) will be developed and fishers capacity to venture into deep sea developed by procurement of fishing vessels. Facilities to be developed include fishing ports, jetty, fish markets, cold storage stores and auxiliary facilities

15 15 MAGWAGWA Multipurpose DAM Promoter: Lake Basin Development Authority Private Sector Participation: Estimated Investment Cost: Location: Magwagwa Multipurpose Dam Project comprises the construction of a 95m high and 450meters long concrete faced rock fill dam with a design total output of 120MW and an annual energy production of 510GWh/y. It also comprises a reservoir with a Build-Operate- Transfer (BOT) USD 868 Million Nyamira, Bomet, Kisumu, Kericho and Homabay counties maximum capacity of 445*10,000,000 cubic meters expected to supply water to 19 service centers starting with Magwagwa town, whilst also providing water for irrigation and fisheries.

16 16 NANDI Multipurpose D A M Promoter: Private Sector Participation: Estimated Investment Cost: Location: Nandi Multipurpose Dam Project comprises the construction of a 67m high and 1.558meters long rollercompacted concrete faced rock fill dam with a design total plant output of 50MW. It also comprises a reservoir with a maximum capacity Lake Basin Development Authority Build-Operate - Transfer (BOT) USD 477 Million Nairobi, Kisumu and Mombasa counties of 230*10,000,000 cubic meters expected to supply water to Vihiga Counties town, whilst also providing water for irrigation in Chemase (1.125Ha), Kibigori (1.328Ha) and Miwani (556Ha).

17 17 WEBUYE MULTIPURPOSE DAM Promoter: Private Sector Participation: Lake Basin Development Authority Build-Operate - Transfer (BOT) Estimated Investment Cost: Location: USD 120 Million Bungoma County Webuye Multipurpose Dam Project comprises the construction of a 54meters high and 1.560meters earth fill dam with a design total plant output of 30MW. It also comprises a reservoir with a maximum capacity of 200*10,000,000 cubic meters.

18 18 Image Courtesy: National Irrigation Board (NIB) MUNYU MULTIPURPOSE AND GREATER KIBWEZI IRRIGATION Promoter: Private Sector Participation: Ministry of Water and Irrigation Public Private Partnerships (PPPs) Estimated Investment Cost: Location: This project entails construction of a dam with 625 million m 3 ; generation of 40MW hydro power; and irrigation USD 140 Million Kiambu, Machakos, Makueni, Kitui, Kilifi Counties of 13,000 Ha and water supply in the regions.

19 19 Image Courtesy: National Irrigation Board (NIB) DEVELOPMENT OF LOWER TURKWEL IRRIGATION PROJECT Promoter: Kerio Valley Development Authority Private Sector Participation: Estimated Investment Cost: Location: The project was conceived as a multi-purpose project to develop dam to store water for hydropower generation, consumption for both households and livestock; develop irrigation infrastructure for 30,000Ha Public Private Partnerships (PPPs) USD 300 million Turkana County for sugarcane and food production and environmental conservation including fisheries and tourist development.

20 20 Image Courtesy: National Irrigation Board (NIB) LAKE CHALLA WATER RESOURCES INTEGRATED DEVELOPMENT PROJECT Promoter: Coast Development Authority (CDA) Private Sector Participation: Estimated Investment Cost: Location: The proposed Project is an Integrated Project involving domestic and livestock water supply, irrigated agriculture and forestry and whose overall goal is to improve the living Public Private Partnerships (PPPs) USD 10.5 Million Taita Taveta County. standards of Taveta residents through Poverty Alleviation and Sustainable Development.

21 21 INTEGRATED FISH RESOURCES DEVELOPMENT PROJECT Promoter: Private Sector Participation: Coast Development Authority (CDA) Public Private Partnerships (PPPs) Estimated Investment Cost: Location: USD 2 Million Kwale County Coast Development Authority (CDA) aims to improve the livelihoods of the local fishermen and the community in the coastline of Kenya through the Integrated Fish Resources Development Project. This project intends to implement various components in an integrated manner including rehabilitation of fish habitat, fish farming and breeding, fish harvesting, fish processing and value addition, marketing and market linkages and community Support.

22 22 RADAT MULTIPURPOSE DAM AND IRRIGATION DEVELOPMENT PROJECT Promoter: Private Sector Participation: Ministry of Agriculture, Livestock and Fisheries Public Private Partnerships (PPPs) Estimated Investment Cost: Location: USD 147 Million Baringo County The project components include dam construction to meet the expanded irrigation demand of Perkerra irrigation project of 280,000m3/day; Perkerra Irrigation Scheme Expansion area to 2020 hectares. The current water supply from the Perkerra River, can meet irrigation demand of up to 35,424m3/day.

23 23 STRENGTHENING MANAGEMENT, MONITORING, CONTROL AND SURVEILLANCE (MCS) OF THE FISHERIES RESOURCE. Promoter: articipation: Private Sector Participation: Ministry of Agriculture, Livestock and Fisheries Public Private Partnerships (PPPs) Estimated Investment Cost: Location: The project aims at improving fisheries monitoring, control and surveillance (MCS) and management of trans- boundary fish stocks in the South West Indian Ocean. This will entail conducting surveys of fisheries resources; training of national and county fisheries inspectors, observers USD 69 Million Kenya s Maritime waters (Economic Exclusive Zone) and managers. The investment opportunities will include: Construction and development of Kenya School of Fisheries and Blue Economy as well as Institute of Ocean sciences and Governance.

24 24 KENYA MARINE FISHERIES AND SOCIO- ECONOMIC DEVELOPMENT (KMFSED) Promoter: articipation: Private Sector Participation: Ministry of Agriculture, Livestock and Fisheries Public Private Partnerships (PPPs) Estimated Investment Cost: USD 100 Million Location: This is a proposed project will run for five years and has four components: Component 1: Governance and management of marine fisheries and aquatic resources, whose objective is to strengthen marine fisheries and coastal aquaculture governance so as to control over fishing, maintain or improve stock productivity and enhance associated ecosystem integrity. Component 2: Promote investment in marine fisheries and coastal aquaculture whose objective is to promote efficient utilization and valueaddition of the resources by increasing investment in the marine fisheries and aquaculture sector. Component 3 Strengthening Coastal Counties of Mombasa, Kilifi, Kwale, Lamu and Tana River Marine Fisheries and Aquaculture-based Livelihoods for Coastal Communities, which aims to enhance social and economic benefits that coastal communities derive from sustainable use of marine living resources. Component 4 - Project management

25 25 BLUE ECONOMY BANKABLE PROJECTS MANUFACTURING

26 26 SPECIAL ECONOMIC ZONE (SEZ) AT DONGO KUNDU Promoter: Private Sector Participation: Ministry of Industry, Trade and Cooperatives Public Private Partnerships (PPPs) Estimated Investment Cost: Location: A Special Economic Zone (SEZ) is planned to be set up at Dongo Kundu, Mombasa. A SEZ Master Plan has been developed with support from the Government of Japan and presents opportunities for investment USD 1.5 Billion Dongo Kundu, Kwale County in value addition in Industrial zone. The development of the SEZ will include establishment of Free Trade Zone, free port, logistics hub and an industrial zone.

27 27 LAMU SPECIAL ECONOMIC ZONES Promoter: articipation: Private Sector Participation: Estimated Investment Cost: Location: The project involves construction of three international airports in Isiolo, Lamu and Turkana and will primarily serve the planned establishment of resort cities in these areas. The construction of these airports is also aimed to give the country s transport sector great impetus by creating LAPSSET Corridor Development Authority (LCDA) Public Private Partnerships (PPPs) USD 506 million Isiolo, Lamu and Turkana efficiency in the transport and logistics sector. The Isiolo Airport is complete. The project s EIRR is 20.7%

28 28 ELIYE SPRINGS BOTTLING PLANT Promoter: Private Sector Participation: Estimated Investment Cost: Location: County Government of Turkana Joint Venture USD 5.2 Million Turkana County The project is located on the western shores of Lake Turkana in Kenya, near the mouth of River Turkwel to supply to the local communities and tourist establishments and improve the livelihoods of over 6,000 people in the region. The plant will primarily manufacture two products of bottled water: 500ml and 1 litre. The 1 litre bottled water will sell at USD 0.045/ bottle while the 500ml bottled water will sell for USD 0.025/bottle exwarehouse Lodwar town and traders are able to realize a margin of between 9% and 71%.

29 29 BLUE ECONOMY BANKABLE PROJECTS MARINE TRANSPORT

30 30 MOMBASA PORT DEVELOPMENT PROJECT (MPDP)-2ND CONTAINER TERMINAL PHASE II & III Promoter: articipation: Private Sector Participation: Estimated Investment Cost: Location: The entire project consists of construction of a new container terminal in three phases with a capacity to handle 1.5million Twenty- Foot Equivalent Units (TEUs) per annum. Phase I was completed and commissioned in March 2016 with capacity of 550,000 TEUs. Kenya Ports Authority (KPA) Public Private Partnerships (PPPs) USD 380 Million Mombasa County Phase II consists of construction of berth No. 22 (250 meters and 15 meters deep) schedule to commence in 2018 and complete by It will give additional capacity of 450,000 TEUs.

31 31 CONSTRUCTION OF DONGO KUNDU BERTH I AND A FREE PORT Promoter: Kenya Ports Authority (KPA) Private Sector Participation: Estimated Investment Cost: Location: A Vision 2030 project aimed at development of a free trade zone, free port and industrial zones with a view to opening up the southern Coast and creating employment opportunities. The Ministry of Industrialization completed a Master Plan for the SEZ and Free Port at Dongo Kundu, under Public Private Partnerships (PPPs) USD 340 Million Mombasa County support from JICA. The project entails the construction and operation of the first Berth at Dongo Kundu free port.

32 32 CONVERSION OF BERTH INTO CONTAINER TERMINALS Promoter: articipation: Private Sector Participation: Estimated Investment Cost: Location: The berths have a total length of 736 meters and a width of 22.6 meters and container handling capacity of 420,000 TEUs per year. The berths are increasingly being used for container handling although they do not have the requisite equipment such as Ship to- Shore Gantry Cranes. The Kenya Ports Authority (KPA) Public Private Partnerships (PPPs) USD 120 Million Mombasa County aim is to convert Berths into a container terminal. The works will include extension to the sea by about 90meters, strengthening, deepening and straightening of the current berths.

33 33 LAMU PORT UNDER LAMU PORT SOUTH SUDAN ETHIOPIA TRANSPORT CORRIDOR (LAPSSET) Promoter: Kenya Ports Authority (KPA) Private Sector Participation: Estimated Investment Cost: Location: The project entails construction of 32 berths and a draft of 18 meters to accommodate larger ships of up to 200,000 tons. The expected Internal Rate of Return will be 23.4%. The first three berths are under construction through government funding with 48.75% of the dredging complete. The Public Private Partnerships (PPPs) USD 5.3 Billion Lamu County remaining 29 berths are available for private sector development through PPP framework. The port will be linked to Ethiopia and South Sudan through a road network and a standard gauge railway line via Garissa, Isiolo, Maralal, Lodwar and Lokichogio.

34 34 DEVELOPMENT OF LAKE VICTORIA PORTS Promoter: articipation: Private Sector Participation: Estimated Investment Cost: Location: Kenya Ports Authority (KPA) has taken over the operation of the Inland Water Ways including Kisumu Port. The project will entail improved physical infrastructure of Kisumu Port and other Lake Victoria ports, targeting transport services among East African Community (EAC) countries. The purpose of this project is to facilitate the Kenya Ports Authority (KPA) Public Private Partnerships (PPPs) USD 140 million for Green Field Port USD 100 million for rehabilitation of the existing Port. Kisumu County efficient and safe movement of goods and people through the port of Kisumu to serve both the local and regional East African market. The project entails the improvement of facilities at the current Kisumu port and construction and operation of the Kisumu Greenfield port to augment Standard Gauge Railway (SGR) operations.

35 35 DEVELOPMENT OF THE SHIMONI PORT Promoter: Kenya Ports Authority (KPA) Private Sector Participation: Estimated Investment Cost: Location: Kenya Ports Authority (KPA) undertook a Master Planning Study for small ports which identified potentials for the scheduled small ports in the country. Shimoni was identified as the most viable and had the highest potential for development. The feasibility done in 2017 identified the port as suitable for Public Private Partnerships (PPPs) US$ 15 Million Shimoni, Kwale County the development and implementation of a Local fish port, offshore fish port with a capacity of 50,000 Metric tons annually.

36 36 BLUE ECONOMY BANKABLE PROJECTS ENERGY SECTOR Image Courtesy: Geothermal Development Company

37 37 Image Courtesy: Geothermal Development Company OLKARIA VI (140MW) Promoter: Private Sector Participation: Estimated Investment Cost: Location: Olkaria Field is abundantly endowed with geothermal energy for provision of steam and Power. Kenya Electricity Generating Company (KenGen) has been exploring the field and currently the exploited capacity amounts to 487MW of power. The project presents opportunities in terms of advisory Kenya Electricity Generating Company (KenGen) Public Private Partnerships (PPPs) USD 675 Million Olkaria, Naivasha, Nakuru County services, consultancies, financing (Loan or equity), Engineering Procurement and Construction (EPC) contract, and Operations & Maintenance (O&M) management contract among others in line with the preferred model that will be selected for implementation.

38 38 KARURA 90MW HYDROPOWER PLANT Promoter: articipation: Private Sector Participation: Estimated Investment Cost: Location: The Hydro power plants operate as intermediate and peaking plants and this role will increase as the peak demand continues to grow. In addition, grid connection of renewable sources (wind & solar) is projected to accelerate as a result of private investments driven by the government Kenya Electricity Generating Company (KenGen) Public Private Partnerships (PPPs) USD 30 Million Mbeere South, Embu County and Mwingi Central, Kitui County under the Feed-in-Tariff (FiT) policy it is projected that between a total capacity of 645 MW renewable energy capacity will be added into the system. This addition, will need to be matched by additional peaking power and the proposed project is ready for implementation

39 39 Image Courtesy: RAISING OF MASINGA HYDROPOWER DAM Promoter: Private Sector Participation: Estimated Investment Cost: Kenya Electricity Generating Company (KenGen) Engineering Procurement Construction (EPC) USD 22.4 Million Location: The Masinga Hydropower dam is the largest dam on Seven Forks cascade with a storage capacity of 1,560 million cubic meters and installed generation capacity of 40MW. The project entails increasing the reservoir storage capacity to enhance power generation. The feasibility study Masinga, Machakos County conducted recommended the option of raising the dam by 1.5Meters to a full supply level of 1058Meters above sea level.

40 40 Image Courtesy: Geothermal Development Company 300MW GEOTHERMAL PLANT AT SUSWA Promoter: articipation: Private Sector Participation: Estimated Investment Cost: Location: The Greenfield electricity generation project which aims to contribute up to 300MW towards the Least Cost Power Development Plan. Independent Power Producers (IPPs) will be invited to buy the steam from Geo-thermal Development Company (GDC) under a Steam Purchase Agreement and sell Geothermal Development Corporation (GDC) Public Private Partnerships (PPPs) USD 850 Million Suswa, Kajiado & Narok County the electricity it generates to the Kenya Power ad Lighting Company (KPLC) under a Power Purchasing Agreement (PPA) to recoup investment costs

41 41 Image Courtesy: Geothermal Development Company BARINGO-SILALI-PAKA GEOTHERMAL PROJECT Promoter: Private Sector Participation: Geothermal Development Corporation (GDC) Public Private Partnership (PPP) Estimated Investment Cost: Location: USD. 250 Million Baringo County The Project involves the development of 100MW of geothermal energy. The exploration block comprises of Bogoria, Baringo, Arus, Korosi, Chepchuk, Paka and Silali prospects areas.

42 42 BLUE ECONOMY BANKABLE PROJECTS TOURISM

43 43 LAMU RESORT CITY Promoter: Private Sector Participation: Estimated Investment Cost: Location: Lamu Port South-Sudan Ethiopia Transport Corridor Development Authority (LCDA) Public Private Partnership (PPP) USD US$ million Lamu County The project will be at Mokowe and is premised by the rich cultural history including the Swahili village, beaches, unique cultural identity, world heritage sites and national reserves/parks. The construction of the project is expected to make Lamu one of the ten longhaul tourist destinations in the world. The project s Expected Internal Rate of Return (EIRR) is 17.1%

44 44 LAKE TURKANA RESORT CITY Promoter: articipation: Private Sector Participation: Estimated Investment Cost: Location: Lake Turkana Resort City is proposed to be located at Kalokol near Lake Turkana and will ride on facilities such as central Island National Park, Sibiloi National Park, Southern Island National Park, Lamu Port South-Sudan Ethiopia Transport Corridor Development Authority Public Private Partnerships (PPPs) USD 44 million Lake Turkana, Turkana & Marsabit County Eliye Springs and Loiyangalani sites. The project s Expected Internal Rate of Return (EIRR) is 20.8%,

45 45 BLUE ECONOMY BANKABLE PROJECTS WATER MANAGEMENT

46 46 LAMU WATER SUPPLY Promoter: articipation: Private Sector Participation: Estimated Investment Cost: Location: Ministry of Water and Sanitation Public Private Partnerships (PPPs) USD 500,000 Lamu County The project entails the construction of water intake on River Tana and laying of 185km pipeline to supply water to Lamu Port.

47 47 BUTE DAM WATER SUPPLY Promoter: Private Sector Participation: Estimated Investment Cost: Location: Ministry of Water and Sanitation Public Private Partnership (PPP) USD 70 Million Wajir County The project entails construction of Bute Dam and water distribution networks to supply Bute town, Buna and Wajir North sub-counties.

48 48 THE KAKAMEGA- BUNGOMA BULK WATER SUPPLY PROJECT Promoter: articipation: Private Sector Participation: Estimated Investment Cost: Location: The project will draw water from River Nzoia near Webuye at Nabuyole falls, a treatment plant shall be constructed at the extraction point; the foot of the Nabuyole falls the water will then be treated at the source and distributed to serve the larger parts of Bungoma and Kakamega Counties, mainly the rural Lake Victoria Water Services Board Finance, Design and Build USD 240 million Kakamega, Bungoma Counties areas. The water produced will also be injected into the existing water supply pipelines in Bungoma and Webuye currently operated by the Nzoia Water and Sanitation Company.

49 49 THE KEBEN DAM WATER SUPPLY PROJECT Promoter: Lake Victoria Water Services Board Private Sector Participation: Estimated Investment Cost: Location: Public Private Partnership (PPP) USD 240 million Nandi County The project will mainly serve Nandi Hills and Kapsabet towns and the surrounding neighborhoods including those along the distribution line, around 60 per cent of Nandi County.

50 50 BLUE ECONOMY BANKABLE PROJECTS ENVIRONMENT Fourteen Falls Thika Image Courtesy: Mutua Matheka

51 51 Integrated Hydro-Metrological Information And Decision Support System. Promoter: Ministry of Environment and Forestry Private Sector Participation: Estimated Investment Cost: Location: The project will integrate data, generate and disseminate hydrometeorological information and products for river basins in real-time in support of water resources assessment and management, flood and drought early warming, disaster prevention and mitigation as well as contribution Joint Venture USD Million Nzoia, Tana and Nyando river basins to the national goal of sustainable development of water supply, hydroelectric power production and infrastructure development.

52 52 BLUE ECONOMY COUNTY PIPELINE PROJECTS Lake Bogoria Image Courtesy: Mutua Matheka

53 53 BLUE ECONOMY COUNTY PIPELINE PROJECTS INTRODUCTION The Constitution of Kenya, 2010 created a decentralized system of government wherein two of the three arms of government; namely the Legislature and the Executive are devolved to the 47 Political and Administrative Counties as provided for under Article 6 and specified in the First Schedule. The primary objective of decentralization was to devolve power, resources and representation down to the local level. In line with Blue Economy, The County governments have presented various opportunities within their Counties. Majority of the projects are concepts within the County Integrated Development Plan (CIDP), which are five years county Planing frameworks. However, the resources to implement the development plan are inadequate hence the need to mobilize resources from other actors such as donors and private investors To successfully invest in the County pipeline projects, a number of steps are suggested: 1. Perform specific due diligence and any necessary feasibility studies on the proposed projects to determine its viability 2. Contact the Kenya Investment Authority to understand the nuances of investing in Kenya and facilitation at the One Stop Center in the Authority. 3. Connect with the Counties to understand the project better and the priority by the County and 4. The Council of Governors (COG) provides a forum for engagement between the counties and the national Government on development planning processes, mobilization of resources for implementation of Agenda 2030.

54 54 Counties Map

55 55 KILIFI COUNTY H.E AMASON JEFFAH KINGI, EGH Governor DESALINATION WATER PLANT Economic and population growth has risen water demand for household, industry production, Tourism and agriculture. Desalination of seawater and brackish water is an accepted alternative source to fulfil growing water demand. Coastal areas are increasing their desalination capacities to meet water demand. The project entails development of a desalination plant to meet this growing demand by harnessing technologies that lower energy requirements, implementing practices that achieve greater operational efficiency, and adopting measures to enhance environmental stewardship. MARICULTURE DEVELOPMENT The project entails the establishment and management of mari-culture farms for Crab farming, prawns and Sea Weed. The project will involve private investors establishing grow-out farms, and development of marketing systems REHABILITATION OF MANGROOVE ECOSYSTEM Mangroves provide ecological services that may not be provided by any other species. This includes reducing beach erosion, carbon sequestration, and habitat for sea/ocean organisms. It also has a high economic value as they provide poles for construction. The project entails development of Mangroove tree Nurseries and contract farming through engagement with the youth for tree planting exercise. The returns generated from the project will be from sale of the poles. DEVELOPMENT OF A FISH PORT The project entails development of a New Fish Port that will consist of Landing Berths, Mega Cold Storage Facility able to Serve Industrial Fishing Ships in Kenya Exclusive Economic Zones (EEZ)

56 56 DEVELOPMENT OF LOCAL FISHING FLEET The project entails development of boat building yard, local capacity for the boat building and establishment of a fisheries development fund. This will reduce over reliance on immigrant fishers by most local fishers due to lack of skills and vessels for beneficial fishing and enable local fishermen acquire boats built in the facility. PROPOSED ESTABLISHMENT OF CRUISE SHIP TRANSPORT CORRIDOR IN KILIFI COUNTY The project entails construction of Kilifi Cruise ship terminals, purchase of the cruise ships; Establishment of the transport corridor and Operationalization of the cruise transport system. PROPOSED CONSTRUCTION OF A PORT AT TAKAUNGU The proposed Takaungu Port aims to de-congest Mombasa Port that has faced challenges of shortage of space for in-port heavy industries/storage facilities coupled with increased volumes. The port will provide direct employment to over 2000 people and over 10,000 indirect employments, reduce costs of industrial and semiindustrial raw materials and Increase earnings from port activities. DEVELOPMENT OF FISHERY HATCHERIES The success of aquaculture depends on a number of factors high among them availability of quality inputs. The most important of the inputs in fish farming is the fingerlings. The Lack of quality fish seeds (fingerlings) is one of the major bottle necks in the development of aquaculture in the county. The aquaculture industry will be able to offer a wider variety of the farmed marine and fresh water products. ESTABLISHMENT OF FISH AUCTION MARKET Fish and fishery products are some of the most traded products in the county but there is no overall structure to manage the marketing. Fish being a highly perishable commodity, its marketing assumes special significance. It needs good roads and quick transport facilities, cold storage to keep fish fresh for longer time. The project involves development of fisheries based co-operatives and setting aside land for development of fish auction markets. DEVELOPMENT OF FISH FARMS Kilifi county has permanent water sources along the permanent River Galana with many irrigation schemes with operational water intake structures. Water temperature ranges in the county would support the optimum growth of the warm water fresh water fish which include Tilapia and Catfish. The project involves development of the fresh water fish farms to commercial levels. KILIFI WATER SPORTS ACADEMY Kilifi County has the longest coastline with appropriate ocean sites for water sports, many hotels/resorts with tourists who are consumers of water sports services however, it lacks manpower from locals to assist tourists in water sports services. The academy aims to equip water sports services staff with essentials skills capacity build the locals/youth on water sports.

57 57 KISUMU COUNTY H.E HON PETER ANYANG NYONGO, EGH Governor RECREATIONAL FISHING INDUSTRY (REFI) IN LAKE VICTORIA The fishing industry in Lake Victoria represents the largest fishery in the country (about 90%) providing employment opportunities to over 220,000 people directly involved in fishing. ReFI offers economic opportunities for blue growth in local designing, manufacture and retailing of fishing gears and recreational fishing boats thereby providing the community with an alternative source of income from the already strangled commercial stocks. It will also open up opportunities in exploration of marine life beyond consumption and trade thereby promoting sustainability. DEVELOPMENT OF FISH BREEDING GROUNDS The project entails development of fish breeding grounds which have already been identified and marked using floating buoys and protected to allow for the regeneration of the lake. BOAT BUILDING Currently Kisumu County has 3430 fishermen operating 1453 boats. Considering the population supported by fishing activities and growing demand for fish presence an opportunity for boat building industry. The project seeks to promote the development of boat building yard that will offer employment to the youth within the region. AQUACULTURE Wild fish stocks in western Kenya are dwindling. Lake Victoria is suffering from overfishing, and tilapia, the most popular freshwater fish in Kenya, is becoming scarce. The County is promoting fish production in freshwater ponds to help protect Lake Victoria s strained resources

58 58 and provide a growing population with a sustainable source of fish through aquaculture. The project will incorporate the value of the natural capital in its development, respecting ecological parameters throughout the cycle of production, creating sustainable, decent employment and offering high value commodities for export. LAKE FRONT FISH SCIENCE EXPLORATORIUM On Lake Front fish science Exploratorium can play a major boost for attraction inform of conserving the heritage of lake fish species. This involves having big glass aquarium on land where we have all the indigenous fish species are kept for easy viewing and learning purposes Hippo Point, Lake Victoria, Kenya.

59 59 TAITA TAVETA COUNTY H.E GRANTON SAMBOJA Governor REHABILITATION OF KIGHOMBO DAM The project will involve de-silting, rehabilitation and expansion of the dam. This project is envisaged to provide water to approximately 3,456 households. LAKE JIPE IRRIGATION SCHEME The project has a principal objective of rehabilitating the irrigation infrastructure of the major canals. The total acreage of the project is 128,000 acres. WATER BOTTLING PLANT FROM MZIMA, KILIMANJARO AND NJORO SPRINGS The project will source its waters from the springs of Mzima, Kilimanjaro and Njoro to supply to the local communities and tourist establishments and improve the livelihoods of the people in the region.

60 60 HOMABAY COUNTY H.E CYPRIAN AWITI Governor FISH AUCTION CENTERS The project involves development of fish Auction/processing centers and is expected to provide opportunities in fish cold storage, processing facilities and marketing within and outside the county. At maximum capacity the project is expected to achieve 30,000MTper year and create 80,000 jobs directly and 100,000 indirectly. The annual sales at maximum will be $60 Million. WATER PURIFICATION PLANT This project seeks the construction of a water purification plant to provide a sustainable supply of portable drinking and safe water that is scalable to the growing needs of the region. RURAL AND URBAN WATER SUPPLY This project seeks the development of new water treatment plants in major urban centers; to develop effective distribution and billing systems as well as water reservoir facilities in the five major towns within the county. TAKAWIRI TOURIST LODGE & HOTEL This project involves the construction of a world class five-star tourist lodge and hotel at the serene Takawiri island of Lake Victoria. This will include executive guest rooms, superior guest rooms and presidential suits. Conference and entertainment facilities will also be available.

61 61 MOMBASA COUNTY H.E HON.ALI HASSAN Governor COLD STORAGE FACILITY The project entails the construction of 20,000 Metric-tonne cold storage facility that will create 1,000 jobs directly and indirectly. With the Economic Partnership Agreement between EU Kenya and the upcoming Fisheries, Management Bill in measures to secure marine resources including along the Exclusive Economic Zone EEZ land within the waters of Mombasa and benefits its residents: deep sea fishing will be a big boost for the economy of Mombasa. When big fishing vessels land in Mombasa there will be a need for an industrial cold store facility to meet the demands of that the large vessels can hold.

62 62 SIAYA COUNTY H.E CORNEL RASANGA Governor FISH PROCESSING AND COOLING PLANT This project seeks the construction of a fish processing and cooling plant that will enable fishermen to access the local market in the region. Currently most of the fish caught in Lake Victoria is purchased by fish processors from outside the country while some fishermen are forced to throw away their catch due to lack of cold storage facilities. Therefore, a fish processing and cooling plant will provide the fishermen with a ready local market for the produce at fair prices. The increased income would contribute positively to uplifting the living standards as well as growing the region s economy. PRODUCTION OF TILAPIA AND CATFISH FINGERLINGS This project seeks the construction of hatcheries and standardization of fingerlings qualities to improve the viability of aquaculture in the region. Input of poor quality fingerlings leads to distorted growth which reflects production of fish not suitable for the market. This translates into huge losses for fish farmers. Any excess production can be used to restock the lakes and rivers in the county with Tilapia. AQUACULTURE This project seeks investment in aquaculture to increase the production of fish in Lake Victoria. Overfishing due to poor methods of fishing and poor environmental conservation in Lake Victoria has led to declining supplies of wild catch from the lake. The two main commercially captured species of the fish are Nile Perch and Tilapia. In order to increase fish supply, the National and County governments started encouraging fish farming on land and in the lake. The ponds and cages mainly farm Tilapia because some Nile perch and catfish cannot be grown in captivity. This project has the effect of decreasing pressure on the diminishing wild catch stocks and creates an opportunity for better planning and conservation.

63 63 TURKANA COUNTY H.E HON KOLI NANOK Governor ELIYE SPRINGS BOTTLING PLANT The project is located on the western shores of Lake Turkana in Kenya, near the mouth of River Turkwel to supply to the local communities and tourist establishments and improve the livelihoods of over 6,000 people in the region. The plant will primarily manufacture two products of bottled water: 500ml and 1 litre. The 1 litre bottled water will sell at USD 0.045/bottle while the 500ml bottled water will sell for USD 0.025/bottle ex-warehouse Lodwar town and traders are able to realize a margin of between 9% and 71%.

64 64 BUSIA COUNTY H.E SOSPETER ODEKE OJAAMONG Governor RECLAMATION OF YALA SWAMP There is potential for gravitational irrigation scheme using River Nzoia to reclaim Yala swamp. Bunyala has a swampy area of about 2000 acres which is ripe for a commercial irrigation scheme for rice and other crops. There is plenty of water available through the various numerous rivers in the county the factory. The feeder beaches that need cooling plants include: Bumbe beach, Bukoma beach, Sisenye beach, Mabinju beach, Namabusi beach among others. The daily production of these beaches can be boosted to about 100 tonnes per day. FISH PROCESSING AND FILLETING There is a huge opportunity in setting up a fish processing and filleting company in Marenga Beach, Budalangi subcounty. In addition, there is need to set up cooling plants in the neighboring beaches that will be feeding outlets for

65 65 NAKURU COUNTY H.E HON LEE KINYANJUI Governor FISHING AT LAKE NAIVASHA Fishing in Lake Naivasha is one of the main economic activities and contributes to food security and employment creation. The lake has several species including Common Carp, Tilapia and Black Bass and supports about 100 boats. There are 1,500 operational fish ponds across the county. There is a huge potential for investment in a fish plant to tap into fishing from Lake Naivasha, and other meat products including beef, chicken, pork. Total capture production was 1,088 MT valued at Kes 618 million

66 66 NYANDARUA COUNTY H.E FRANCIS KIMEMIA Governor LAKE OLOBOLOSAT DREDGING AND FERTILIZER PLANT The project is located at Lake Olobolosat that stretches for over 40 Kms, is the only lake within the Central Kenya region. Over the years, the lake has experienced huge siltation from the surrounding farms, the rivers that drain into it and other human related activities within the area. Through geological, geochemical and fertility study, it has been established that they are suitable for agricultural use. Dredging this lake could be a renewable natural resource that is sustainable. Dredging could also positively impact the ecosystem for the birds and animals in this ecosystem such as hippopotamus. Image courtesy: Lake Olobolosat, Nyandarua

67 67 EMBU COUNTY H.E MARTIN NYAGA WAMBORA Governor WATER HARVESTING Six major rivers, i.e. Thuci, Tana, Kii, Rupingazi, Thiba and Ena, serve the County. All these rivers are perennial and emanates from Mt. Kenya, draining towards River Tana. There are other sources of water such as earth dams, shallow wells and boreholes that serve a limited population. Embu County has an irrigation potential of 16,000ha that can be exploited using surface water, out of this, only 3,200ha has been exploited. Exploiting water harvesting and storage and ground water to a potential of 56,000ha can increase the current potential. There exists a potential for tapping and storing runoff water for use during the dry spells, or to supplement river base flows. These are in form of dams of various types and water pans. A few dams and water pans have been constructed and/ or rehabilitated by the County and National Government in the recent past. There are plans to construct dams on the upper side of the County to feed into the major rivers, and earthdams and water pans on the lower side to supplement other sorces of water.the About 10 dams and 50 water pans can be constructed. SPORTS TOURISM - MASINGA AND KAMBURU DAM Water sports at the Masinga Dam such as Kayaking would attract a lot of tourists to the county. In January 2008 the 5th Africa Flat water Canoe-Kayak championships were held at Masinga, this is evident that the dam has great potential for Sports tourism. A tourist class hotel can be set up at Machang a next to Kamburu dam. Other spots for sport tourism include Karue Hills for climbing games, Ena Nthenge-Njeru and Nthungu waterfalls for bungee jumping and adrenaline games and Kiang ombe hills for climbing games.

68 68 KAKAMEGA COUNTY H.E WYCLIFFE OPARANYA, E.G.H, Governor RECREATIONAL FISHING IN LAKE VICTORIA This project seeks the largest fishery in the country (about 90%) providing employment opportunities to over 220,000 people directly involved in fishing. Recreational fishing offers economic opportunities for blue growth in local designing, manufacture and retailing of fishing gears and recreational fishing boats thereby providing the community with an alternative source of income from the already strangled commercial stocks. It will also open up opportunities in exploration of marine life beyond consumption and trade thereby promoting sustainability.

69 69 KIRINYAGA COUNTY H.E ANNE MUMBI WAIGURU,EGH, Governor KIRINYAGA COUNTY SMALL & MICO HYDRO-POWER GENARATION This project seeks the development of micro hydro-power generation stations. Kirinyaga County has a high number of small unexploited micro hydro-power sites. Few have been developed by the Kenya Tea Development Agency (KTDA), while many of them remain unexploited. If exploited, these sites have the potential to increase the living standards of the local community as well as increasing the total revenue and promote the use of green energy. KIRINYAGA COUNTY WATER AND SEWERAGE SANITATON This project seeks construction of new intake works across Kiringa River, construction of new 27,000m3/day water treatment works, construction of large storage tanks and to clear water transmission to specific towns. This project aims at providing a steady supply of portable, affordable and sustainable water services to the people of Kerugoya, Kutus and their environs.

70 70 KERICHO COUNTY H.E. PAUL KIPRONO CHEPKWONY Governor FISH FARMING PROJECT The County s weather and geographical location is very suitable for commercial fish farming and with the growing demand and price of fish in the market makes it a viable opportunity. The project will involve preparation of fish ponds, sourcing and supply of fingerlings and processing of harvested fish for the market.

71 71 INVESTMENT PROCEDURE Kenya Investment Authority provides a wide range of pre-investment facilitation services from its One Stop Center which has streamlined the overly complex processes of setting up a company. Among the services facilitated at KenInvest include; Company Registration Company PIN Registration Single Business Permit National Social Security Fund (NSSF) National Hospital Insurance Fund (NHIF) Obtain approval for the company name from the Registrar of Companies. Stamp the Memorandum and Articles and a Statement of the Nominal Capital. Pay stamp duty at bank. Declaration of Compliance (Form 208) is signed before a Commissioner of Oaths / notary public. File deed and details with the Registrar of Companies at the Attorney General's Chambers in Nairobi. Apply online on the Kenya Revenue Authority website File Certificate of Registration and a copy of the Memorandum and Articles of Association. Apply through the various County Offices where the project is located. The fee varies by type of business, number of employees and size of business premise. Fee is payable to the local authority s, Licensing Department. The Authority will issue business permit. The employer pays a standard contribution of approximately 1% of salary subject to a maximum of KES. 400 per month. One half of the contribution is deductible from the employee's salary. The precise amount of the contribution (where less than the maximum) is determined by reference to salary bands. The employee contributes a fixed sum to the NHIF, which must be deducted by the employer from the employee s salary. The maximum contribution is KES.1,700 per month. The contributions are used to offset the costs of medical treatment but they only cover a fraction of actual costs. Hence, most companies put in place medical insurance cover for employees.

72 72 Registration with KenInvest NEMA Approval Work Permit Fill the Investment Application form and attach all company registration documents. Obtain an Investment Certificate. Identify a site and then undertake an environmental impact report which must be approved by National Environment Authority. This can be done by National Environment Authority accredited consultants (Depends on the sector). Apply for Work permit(s) for the foreign directors and expatriates from Department of Immigration through KenInvest. For more detailed information on the procedures, please visit; INVESTMENT INCENTIVES Substantial tax benefits and wide range of park services allow quick ramp up and international competitiveness under the EPZs; FINANCIAL BENEFITS BUSINESS SERVICES BASIC INFRASTRUCTURE SERVICES 10 years corporate tax holiday 10 years withholding tax holiday on remittances to non-residents Stamp duty exemption Import duty and VAT exemption on raw materials, machinery and other 100% investment deduction over a period of 20 years for building and machinery Full operation under one single license issued by EPZA Project approval and licensing within 30 days Foreign currency accounts and offshore borrowing allowed no exchange controls Unrestricted investment by foreigners One-stop shop service for facilitation and after-care Ready-made factory building and office premises Readily available services water, sewerage, electricity, landscaping etc. High security standards 24 hours security, illuminated perimeter fences. On-site customs documentation Major requirements for EPZ enterprises; Export orientation- over 80% sales should be made to countries outside EAC partner state. Local sales up to 20% can be made subject to Ministerial approval and payment of all taxes. Only new investments (not conversion of going concerns) in Kenya are allowed. EPZ location should be the primary place of business (not shell companies). 100% foreign shareholding is allowed.

73 73 SPECIAL ECONOMIC ZONES (SEZ) Below are some designated SEZs; PROJECT PROMOTER LOCATION SIZE Pearl River Special Africa Economic Zone Uasin Gishu County 2224 acres Economic Zone Ltd Tatu city Tatu City Limited Kiambu County 5000 acres Kenya Leather Park Ministry of Industry, Machakos County 500 acres Trade and Co-operative Kengen Industrial park Ministry of Industry, Nakuru County 1,120 acres Trade and Co-operative Dongo Kundu SEZ Ministry of Industry, Trade and Co-operative Mombasa County 3,192 acres INCENTIVES IN THE SPECIAL ECONOMIC ZONES (SEZ) Reduced Corporate Income tax rates of 10% for the first 10 years and 15% for the next 10 years. Dividends received by licensed SEZ enterprises, developers and operators are exempt from tax. Withholding tax on professional services and interest (other than Dividends) to apply at 10%. 100% investment deduction allowance for capital expenditure on buildings and machinery. Supply of taxable goods to special economic zones enterprises, developers and operators licensed under the SEZ are exempt from VAT. The licensed special economic zone enterprises, developers and operators shall be entitled to work permits of up to 20% of their full-time employees. However, on the recommendation of the Authority additional work permits may be obtained for specialized sectors. GENERAL INCENTIVES Some of the plant, machinery and equipment are exempt from VAT Plant, Machinery and equipment are duty exempt 100 % Investment Allowance: To qualify Investment should be more than Kshs. 200 million Preferential corporate tax treatment for newly listed Company for the first three years Feed-in-tariff for power generated from renewable energy source (wind, solar and geothermal) Shipping Investment Deduction- 40% GUARANTEES TO INVESTORS The Constitution of Kenya guarantees safety of life and property. Kenya is a signatory to the Multilateral Investment Guarantee Agency (MIGA) that insures private investment against non-political risks. Kenya is also a member of the International Centre for Settlement of Investment Disputes (ICSID) that guarantees arbitration of disputes between government and investors in a third party country. The Foreign Investment Protection Act (FIPA) guarantees against expropriation of private property by government and if this happens it will be for public good and compensation will be prompt and at market value.

74 74 KEY CONTACTS Kenya Investment Authority UAP Old Mutual Towers, Upper Hill 14th and 15th Flr P.O. Box , Nairobi Tel: (+254) Brand Kenya Board NHIF Building 4th Flr P.O. Box Tel: (254) /7 Ministry of Industry, Trade & Cooperatives Social Security House, Block A, 17th, 23rd Flr P.O. Box , Nairobi, Kenya Tel: Export Processing Zone Authority Administration Building, Viwanda Road, off Nairobi-Namanga Highway, Athi River, P.O. Box , Nairobi Tel: /3 Export Promotion Council 1st and 16th Flr Anniversary Towers, University Way P.O. Box , GPO Nairobi Tel: OTHER IMPORTANT CONTACTS Vision 2030 Delivery Secretariat KUSSCO Centre, 2nd Flr, Upper Hill. P.O. Box , Nairobi Tel: , LAPSSET Corridor Development Authority Chester House Building. P.O. Box , Koinange Street, Nairobi Tel: +254-(0) Kenya Private Sector Alliance Shelter Afrique Building, 5th Flr, Mamlaka Rd P.O Box , Nairobi Tel: Kenya Association of Manufacturers 86 Riverside lane, off Riverside drive, Riverside, P.O. Box , Nairobi, Kenya Tel: Kenya National Chamber of Commerce & Industry Heritan House, Ground Floor, Woodlands Rd P.O Box , Nairobi Tel:

75

76 76 Blue Economy Conference 2018