Counties set sights on blue economy to drive growth

Lake Region Economic Bloc (LREB) chairman Wycliffe Oparanya (centre), vice chair Dr. Joyce Laboso (right) and CEO Abala Wanga address the press in Kisumu on August 13. FILE PHOTO | NMG

What you need to know:

  • The Lake Region Economic Bloc (lREB), plans to create a platform in which more goods from the region and farm produce are transported to the local, regional and international markets through Lake Victoria and the Port of Mombasa.

The lake region and coastal counties are devising a set of strategies to tap the economic potential of the blue economy, highlighting the sector’ rising status as a pillar of development and growth.

The two regions say the sector — that encompasses fisheries, tourism, maritime, transport, waste management, climate change and renewable energy – holds massive promise to spur economic growth.

The Lake Region Economic Bloc (lREB), plans to create a platform in which more goods from the region and farm produce are transported to the local, regional and international markets through Lake Victoria and the Port of Mombasa.

The LREB blue economy plans come amid renewed effort by Kenya to revitalise the sector that has been invariably described as a sleeping giant.

One of the key focuses of the LREB’s Trade Investment and Blue Economy Conference held in Bomet County two weeks ago was how to deepen maritime sector's economic gains.

LREB chairman Wycliffe Oparanya, who is the Kakamega Governor, said the bloc is seeking to exploit shared maritime resources such as Lake Victoria to benefit the people more. Marine transport and services, he said are some of the key issues that the LREB member counties are paying special attention to. He cited fisheries as one of the areas that present opportunities for growth in food security value chain and agro processing factories.

Participants at the conference also said Lake Victoria can be developed to be one of the regional tourism centres.

LREB vice chairperson and Bomet Governor Dr Joyce Laboso said there is need to exploit Lake Victoria more in trading with neighbouring countries within the East African Community (EAC). She said counties should work closely with the national government in efforts to make Kenya a maritime country through exploitation of opportunities that come with oceans, rivers and lakes especially trade, tourism, transport and fisheries.

"It is important for us in LREB to rise to the occasion, seize the opportunities and exploit shipping of goods through Lake Victoria to markets in neighbouring countries of Uganda and Tanzania while not losing focus on the wide ranging trade openings through the Mombasa port," said Dr Laboso.

The 14 LREB county members, she noted should focus more seriously on innovations and emerging technologies related to lake and ocean transport.

Vision 2030 board member, Dr Moses Ikiara said Kisumu has the potential to be a regional economic hub given its proximity to Lake Victoria.

“Lake Victoria, which is shared by the East African Countries, makes Kisumu a special point for an economic hub in the LREB region,” said Dr Ikiara.

Mombasa and Lamu, he added, are some of the regions in the country hosting Special Economic Zones (SEZ) which can help spur economic growth and create employment opportunities.

He said the challenge with Kisumu is that only 500 acres of land are available for SEZ while Kakamega County has set aside just 50 acres for the same purpose.

“We need close to 100,000 acres of land for SEZ. But our worry is, are counties ready to give up such huge sizes of land? This is something we are still exploring,” said Dr Ikiara who is also the KenInvest Managing Director.

Kisii Governor Mr James Ongwae says the bloc is keen on meeting the set goals.

“Governors from the Lake Region Eonomic Bloc are very serious on what they want to achieve. We will work together to ensure our people gain from our efforts and there is need to expand our horizons beyond the borders on matters trade,” he said.

Siaya Governor Cornel Rasanga said for the region to achieve sustainable blue economy goals, environmental conservation is critical.

“Apart from the Lake Victoria, we share rivers and forests. We need to cooperate for great achievement as no county can single-handedly claim to conserve natural resources without the support of others in the region,” said Mr Rasanga.

LREB brings together 14 counties from Nyanza, Rift Valley and Western regions in the country. These are Bomet,Kericho,Nandi,Kisii,Nyamira,Bungoma,Vihiga,Kakamega,Siaya,Kisumu,Migori,Trans Nzoia, Homa Bay and Busia.

Erick Ngetich, who is in charge of the department of Trade and Tourism in Bomet County, said the maritime sector needs to be demystified to enable the youth benefit from it.

"It is important to demystify the maritime trade to attract more youths to exploit the sector to create jobs and spur sustainable development in the region," he said.

Not to be left behind, the coast region is also strategising how to reap maximum benefits from the blue economy. The region prides itself with being in possession of the biggest share of maritime resources given their proximity to the vast Indian Ocean and the Port of Mombasa, which is the gateway to the region.

The region through its economic bloc Jumuiya ya Kaunti Za Pwani (JKP) will hold a three-day Jumuiya Agribusiness and Blue Economy investment (JABEIC) conference at Ocean Beach hotel in Malindi from November 14 to November 16.

Speaking to Shipping, JKP chief executive Emmanuel Nzai said the pre-conference dubbed ‘changing the story’ is about how the six counties can come together and develop their resources for the benefit of the people.

“The forum will also serve as a pre-conference to the first global Sustainable Blue Economy Conference (SBEC) to be held between November 26 and November 28 in Nairobi,” Mr Menza said.

The conference, he added, is being held in the realisation that the region is well endowed with unique sea and land resources, among them the Indian Ocean, rivers, lakes, marine resources, tree crops, forestry (mangroves), Kayas, minerals, wildlife, tourism, diverse cultures, monuments, heritage and history.

“Kenya offshore tuna and associated fishery potential is estimated at 150,000-300,000 metric tonnes, estimated to be able to generate between Sh21 billion and Sh42 billion,” he said.

The coast conference is anchored on Phase One of the regional economic blueprint – Jumuiya 2030 (Jumuiya Gender Sensitive, Food and Nutrition Security Strategy, 2018 – 2030), developed by JKP Secretariat and Food Agricultural Organization(FAO).

The national government has also been undertaking huge development projects at the coast, supplementing the need to have a robust blue economy in the region.

The Kenya Ports Authority (KPA) has embarked on a Sh120 billion expansion programme and modernisation initiatives aimed at improving efficiency at the Port of Mombasa and other ports under its management along the coast.

Currently KPA is undertaking the construction of the Sh20 billion Shimoni port, the Sh40 billion new Kipevu Oil terminal, the construction of the Sh30 billion second container terminal at the Port of Mombasa and the construction of the Sh30 billion Dongo Kundu free trade zone.

The construction of the Shimoni port along the Kenya/Tanzania border is awaiting public partnership approval, according to KPA acting managing director Daniel Manduku.

The fishing port of Shimoni is one of the 11 small facilities KPA wants to develop countrywide in a multi-billion shilling programme.

Mr Nzai said the JKP blueprint will outline how the six counties of Lamu, Kilifi, Mombasa, Kwale, Taita Taveta and Tana River will benefit from these projects.

“Counties must position themselves to reap from the significance of these projects which include roads and infrastructure being implemented by the government. We are doing the conference to put all these agenda on the table before we head to Nairobi for the blue economy conference,” said Mr Nzai.

The official added that a fund for the development of the six coast counties is to be established in November to spearhead development. The Jumuiya Fund according to Mr Nzai will help address problems facing the formerly marginalized region.

Mombasa, Kilifi, Kwale, Taita Taveta, Lamu and Kilifi counties, Mr Nzai said, are to contribute money to the fund to ignite growth with the major focus being on blue economy.

“We need to change the story as we are a sea land of opportunities. We want to work together as universities, industries and county governments to steer the region to prosperity,” Mr Nzai said in earlier interview.

Kenya is set to co-host with Canada the first global sustainable Blue Economy Conference (SBE) to be held in Nairobi between November 26-28 in November this year .

Dubbed the "Blue economy and the 2030 Agenda for Sustainable Development",the theme echoes the United Nations Sustainable Development Goals.

Apart from Canada, other countries that have pledged their support include United Kingdom, South Africa, Norway Fiji and Portugal.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.