INVESTORS BRIEF. Enabling Economic Transformation
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1 INVESTORS BRIEF Enabling Economic Transformation
2 2 Copyrights and rights reserved for the Taita Taveta County.
3 3
4 4 Dear Prospective Investor and Partner I am delighted to welcome you to Taita Taveta County and present you with the catalogue of Investment Opportunities in the County. I wish to introduce you to the remarkable investment potential of Taita Taveta County in various economic growth and enabling sectors in mining, tourism, ranching, education, health, and water. My government is working to fast-track completion of the necessary framework for investment and we are currently packaging a number of incentives to ensure a stable, dynamic and sustainable investment environment. We will be continuously implementing new regulations designed to enable you expand your business operations with ease. Our goal is to make Taita Taveta County one of the most attractive investment destinations not just in Kenya but within the greater East African region. To this end, my government will continue to further develop our business environment and the already existing high quality services we offer to investors, both local and international. Each project summary presented here provides initial information as a basis for entering into in-depth project assessment. My government will be happy to provide further materials and information you may require and I promise you professional support during the entire investment process. Gov. John Mruttu, Taita Taveta County As Governor, I offer you Taita Taveta County as your investment destination County in Kenya. Visit. Invest. Transform.
5 its rich variety of mountain, hill and dale covered by the most luxurious vegetation...so beautiful was the country, so delightful the climate. - Diary entry by Rev. Johann Ludwig Krapf, the first missionary to travel to the Taita Hills in the 1850s. This is Taita Taveta County today, with Governor John Mruttu leading his people to harness all the natural riches in mining, tourism and Mombasa port logistical corridor to transform the County. It is the sixth of Kenya s 47 counties and part of the six counties forming the old Coast Province of Kenya with others being Kwale, Mombasa, Kilifi, Tana River and Lamu. Taita Taveta County borders Tana River, Kitui and Makueni Counties to the North, Kwale and Kilifi Counties to the East, Kajiado County to the North-West, and the Republic of Tanzania to the South. The County covers an area of 17,084.1 Km2 and lies between latitude 20 Past, Present and Future The story of the man-eaters of Tsavo, where workers on the railway line were preyed upon by a pair of lions, has continued to cement the County s reputation as a leading wildlife tourism centre. 46º South and 40 10º South and longitude º East and º East. The County was formed through the merging of four districts following the promulgation Kenya Constitution The districts are Voi, Mwatate, Wundanyi and Taveta Taita Taveta County s rich history includes slave routes which traversed the plains into the Kenyan interior. Of significant importance is the Uganda railway and the events surrounding the construction of the bridge across the Tsavo river - just outside Voi on the Nairobi Highway. As documented in the book The man eaters of Tsavo and well depicted in the 1996 Hollywood block buster movie; The Ghost and the Darkness more than anything else, the County is firmly etched in the minds of many people around the globe as a wildlife capital. Taveta, a town in Taita Taveta County, also made history as the place where the first bullet was fired on 15th August 1914, igniting the First World War East Africa campaign. The County hosts numerous First World War battlefield sites, artefacts, spectacular view of mineral rich hills and mountains, and is home to one of the largest parks in the world. In the park lies vast untapped arid bushes populated by multitudes of elephants and all other members of the big five.
6 6 Physiographic and Natural Conditions Divided into three topographical zones, Taita Taveta s upper zone is mostly agricultural land, suitable for horticultural farming. The lower zone consists of plains and volcanic foothills where rare gemstones and underground water and springs are found. Tsavo, Lumi and Voi rivers are the largest in the County while Jipe and Challa are the biggest lakes Lake Jipe is partially exploited for fishing and irrigation activities. Taita Taveta County has two rain seasons; the long rains occur between the months of March to June with short rains in October to December. The Highlands receive, on average, 1100mm of rain during the long rains while the lowlands record 157mm.The average temperature in the County is 23 degrees centigrade with lowlands recording lows of 25 degrees and the upper Zone having a low of 18 degrees. Demography The population of Taita Taveta is projected to hit 313,339 by 2015 up from 284,657 in the 2009 population census which placed females at 139,323 and males at 145,334. Urban population was 22% or 64,285 people. In 2012, the estimated urban population was 78,201 which amounted to 25.5 percent of projected population 306,203 There are about 150 market centres serving as agricultural and livestock products market outlets. Political Units The County has four constituencies - Wundanyi, Mwatate, Voi and Taveta. There are also 20 electoral wards distributed across the four constituencies. In 2013, the Independent Boundaries and Elections Commission IEBC records had112,219 registered voters.
7 Infrastructure On energy, only 3,963 consumers, 7.7 per cent of total households, have access to electricity for lighting. Many households therefore use firewood, charcoal and paraffin. 86 of the 148 trading centres in the County are connected to electricity. Taita Taveta County is served by 1,713 kms of roads; Of the total road network 199km is bitumen, 138.2km is gravel and 663km is earth roads. The main bitumen roads are A109 -Bachuma to Mtito Andei (150 Km), Voi-Mwatate -Wundanyi (42Km) and C105 Voi loop (6Km). The County and National governments are focussing on improving the road network. Currently the Mwatate Taveta road is under construction while other local roads are to be rehabilitated using the newly acquired County road construction equipment. Two railway lines transverse the County; the Nairobi Mombasa railway line with stations in Maungu, Voi and Manyani and the 96 km Voi Taveta line with stations at Mwatate, Bura and Mwakitau which is however not in operation. The proposed standard gauge railway also passes through the County with Voi Town earmarked to have one of the stations. There are 17 airstrips in the County with 6 located in Taveta, 5 in Voi and 6 in Mwatate. Plans are underway to upgrade Taveta and IKanga Airstrips so as to boost travel for tourism and businesses On energy, 7.7 per cent of total households in the County use have access to electricity for lighting. Many households therefore use firewood, charcoal and Kerosene. This is however expected to change with the ongoing Rural Electrification programme. The County has embarked on a street light programme in all the major town and rural centres.this will not only enhance security but enable local people to participate in a 24 hours economy. On mobile telephone services, The coverage stands at 41% of the County. This is however expected to improve as mobile providers continue laying their infrastructure in various parts of the County Internet usage amongst the population at 1.2 per cent but its growth is rising fast due to the adoption of smart phones that offer internet connectivity. On electronic media, aside from the nationwide offerings by the national broadcaster, Kenya Broadcasting Corporation (KBC) and Standard groups Radio Maisha which cover most of the County, there are two local FM stations namely Mwanedu and Anguo which broadcast in local languages. Other FM stations include Sifa FM, Milele FM, Capital FM, and Radio Jambo amongst others. Education Taita Taveta County has over 425 Early Childhood Development Education centres, 260 primary schools with an estimated population of 56,988, and 85 public secondary schools. The transition rate from primary to secondary school is however quite low at 67.5% as at 2010 The Taita Taveta University College, a public university, and the Coast Institute of Technology and Bura Teachers Training Collage are among the higher education institutions found in the County in addition to various private colleges. The County has 14 government-assisted youth polytechnics, eight community sponsored youth polytechnics and one private youth polytechnic which train youth on various skills To improve education standards,the County governments has put in place various initiatives to ensure the situation improves. These include employing more teachers, providing teaching and learning facilities. The County government also invites private education providers to supplement the efforts of the County government by establishing private schools and colleges. Financial Institutions Taita Taveta County has five commercial banks with 10 branches in the three major towns of Voi, Wundanyi and TavetaIn addition,there are three licensed deposit taking Micro- Finance Institutions (MFIs) operating in the County. Other institutions offering financial services in the County include Kenya Post Office Savings Bank (Postbank), which has branches situated in each of the four major sub-county towns, and 27 Savings and Credit Cooperative (SACCO) societies. To enhance access to fianancial services, the County government is encouraging financial institutions to opens outlets at Mashinani
8 8 Land Use Out of the 17,059.1 Sq Km (4.3M acres) of total County land, the total agricultural land is approximately 10,630 Sq Km(2.7M acres) of which 2,055 Km (508,000 acres) is arable. The rest is rangeland suitable for livestock rearing. The National park covers 10,650 Sq Km (2.7M acres). Water bodies mainly Lake Challa and Lake Jipe cover approximately 16 Sq Km (3,954 acres). The remaining 22% of land is used for settlement and agricultural activities. Tourism Tsavo East and Tsavo West National Parks have been key players of the Kenya tourism circuit for many decades. The main tourist attraction remains the big five found in large numbers in the Tsavo National Park. Other tourist attractions include; The Lugard Falls, Aruba dam, Yatta Plateau a birdwatchers paradise, Rock Climbing, historical and cultural sites The County has ensured security is maintained within the park
9 While the National Government is responsible for national projects and security, the County Government and County Executive Committee and is charged with County Planning and Development, Agriculture, County Health Services, Control of Air Pollution, Noise Pollution, other Public Nuisances and Outdoor Advertising, Cultural Activities, Public Entertainment and Public Amenities as well as County roads and Transport among others. The County Government Act 2012 requires the County government to develop a five-year County Integrated Development Plan (CIDP) and Annual County Budgets with citizen participation. All these to be approved by the County Assembly. The County integrated development plan are aligned to the Kenya government medium term Plan, the Kenya Vision Economic Development Transform Taita Taveta by 2020 (TTT2020) is a proposed collective initiative to enable and sustain Taita Taveta Counties socio-economic transformation from CHALLENGES The following are critical challenges impeding the maximum utilization of County s natural resources to spur quantum economic development. > Inadequate funding from the proportionate share of national revenue and development partners to enable full exploitation of the great potentials of the key economic growth sectors. > Low private sector investments and participation. > Inadequate local tax revenues base despite the County being rich in minerals and being a major tourism destinations. Transform Taita Taveta 2020 The Taita Taveta County government has development a County Integrated Development Plan ( CIDP )which is now the basis of for development of various sectors strategic Plans.The CIDP and strategic plans are geared to inject new thinking and ways of doing business for the purpose of making the County economic environment competitive.the County government goal is to stimulate transformational economic development towards moving a majority of its population into a middle income status with improved levels of living and to lower the percentage of the number of people living below which now stand at 57.2 per cent. As the County government is focusing in creating wealth, keen interest will be taken to ensure equity in the distribution of economic gains. Capital and Social investments will be put in place to address perennial challenges of which brought about high poverty levels such include historical marginalization and exclusion, human-wildlife conflict, inadequate funding in irrigation and agriculture, roads health care delivery and education. Other key issues that will be addressed include land, challenges affecting Youth and women and people with disabilities. Against this backdrop, Taita Taveta County government in partnership with Taita Taveta University has a strategic roadmap to change the fortunes of the County. Consistent with Kenya Vision 2030,Transform Taita Taveta by 2020 (TTT2020) is a proposed collective initiative to enable and sustain Taita Taveta Counties socio-economic transformation from To fast-track the TTT2020 process, support is required from national government, development partners and international community to partner with Taita Taveta County Government to ensure the fundamentals (enablers) in the County are in place even as investors are sought for Public Private Partnership projects (PPP).
10 10 Water Economic Development Enablers Strategic Challenge > Only 35% of the population has access to Safe clean water > 95% of our food production is dependent rain fed agriculture which is unreliable. > Ranching has collapsed due to water unreliability > Major Human -Wildlife conflicts due to fight s over water resources Enabling Project: Taita Taveta Integrated Water Infrastructure Project Taita Taveta Integrated Water Infrastructure is the anchor Project for Taita Taveta County Economic Transformation by This multi- purpose water infrastructure County flagship project is to produce 60,000 cubic metres of water from Lake Challa and Mzima Springs for water and food security, livestock, wild animals and industrialization. Status Project strategy and framework is complete. Lake Challa loop for the provision of 30,000 Cubic Metres feasibility and design is complete. Required Funding The County seeks partners who can fund the project with at least USD 180M. Land Strategic Challenge Most Taita Taveta County residents lack title deeds and there is a major challenge with the land tenure system making it difficult for the County to have a controlled and planned land use. As efforts are being undertaken to rectify these challenges, the County recognizes that one of its biggest assets is land of about 1.0 acres suitable for ranching. Currently, there the 28 ranches on 1.4m acres holding, some 179,864 heads of cattle, 480,125 goats and 55,540 sheep. These ranches are clearly underutilised. Enabling Project: Land Bank The County seeks to buy out and acquire selected land across the County, carry out surveys and adjudication, resolve challenges of squatters and establish a land banking project to lease to investors. This will enable the following; > Investor Security > Secure land as a factor of production > Reduce speculation Status 1 Million Acres identified in key places across the County. Required Funding This project requires about USD. 50M Mining Strategic Challenge The major mining activities in the County are in gemstones and industrial minerals. The sector is however under developed. Yet this subsector can help in the creation of wealth for the residents of the County through small scale mining and employment. Challenges for small scale miners include lack of water, lack of transport and proper mining equipment, enabling laws among others. There is need to support the players in the industry and assist small scale miners in value addition and selling of their final products so that the sub-sector can accrue economic benefits to the County. Enabling Project: School of Mining at Taita Taveta University College In partnership with Taita Taveta University College, the County seeks to elevate the University Mining Department into a full world class Centre for Mining, Fuels & Mineral Processing Engineering. Part of the activities that the County government needs to undertake with the national government include conducting a geological survey to determine available mineral deposits and economic value, simplification of the licensing procedures, promoting accessible credit facilities, improving roads and enforcing of environmental laws. The school will offer the following; > Academic Training Division with Engineering Laboratories for Mining Engineering, Mineral Processing Engineering/Extractive Metallurgy, Petroleum Engineering, Metallurgical Engineering, Geological Engineering, and Chemical Engineering.
11 Tourism Research, Innovation and Outreach Division - Coal, Iron Ores, Oil Gas, Industrial Minerals, Gemstones etc. A Gemmology Unit and a Lapidary Unit to transfer knowledge of gems and value addition skills of gem cutting and polishing and jewellery fabrication to the local population extensively involved in gemstone mining in Taita Taveta and Kwale Counties. Mine Fields to demonstrate the various Mining Methods, Typical Mineral Strategic Challenge The Taita Taveta County tourism sub-sector is very important not just to the County but to the country as a whole as Tsavo National Park is the nearest park for viewing the big five for tourists staying at the beach hotels along the coast. Ensuring the success of tourism through diversification will also help in creating more employment to the residents of the County where about 25 % the population is largely made of those between the ages of 15 to 29. Enabling Project: Destination Marketing and Bio-Diversity Conservation Project Destination Marketing and Bio-Diversity Conservation Project seeks Processing Assembly, Mining Equipment, Plant and Machinery, Typical Open-Pit Mine and Typical underground mine Status Mining Department has commenced and a strategic plan for the Centre is complete. Required Funding The County seeks support for this project that requires USD.120M to fully exploit the potentials of Taita Taveta County as a world leading tourism destination. The County government seeks to engage in marketing of the County tourist sites in collaboration with the national government and develop the infrastructure required for a conducive environment to support the biodiversity conservation Status Discussions with stakeholders to complete Project plan by November Required Funding This project requires funding of USD. 100M Education, Research & Development Strategic Challenge The 2.7 Million Tsavo park and its ecosystem combined with the upcoming mining and regional railway and road infrastructure over the next 10 years is expected to activate major economic activities in the region including Taita Taveta, Kwale, Mombasa, Kilifi, Tana River, Lamu, Kajiado, Makueni, Kitui counties and Northern Tanzania. This pace of this socio-economic transformation will require careful research and development and application of innovative ideas to balance the biodiversity conservation and socio-economics. Enabling Project: Regional Innovation Centre Taita Taveta County government in partnership with the Taita Taveta University College (TTUC) seeks to set up a regional innovation centre the Institute of Innovation & County Economic Transformation (IICET) will also bring in the regional counties and Universities.. Among other things IICET will be; > An R&D and global partnership platform > Centre for Capacity Building > A Global Partnership for Sustainable Development > The focal point of regional social economic development through innovation and research Status: Strategic framework complete Partnership engagement ongoing with expected launch by December 2014 Required Funding To establish this centre the County government requires funding of USD. 50M
12 12 Proposed WWI Memorial Projects To commemorate 100 years of the World War 1 and the role the County played as part of the war theatre in East Africa, and in memory of all fallen soldiers of all races, Taita Taveta County government seeks assistance from international and local governments and well wishers to establish two projects which will help the Taita Taveta community. Salaita World War One Leadership Institute This is a proposed institute to honour and commemorate Africans in British East Africa, who served in the First World War. A special place for Corporal Murimi Mwiti, one of the twenty five percent of the then population of just 4 million Africans in British East Africa, employed as porters or conscripted into the Kings African Rifles, fired the first shot that ignited the First World War East African campaign in the early morning of August 15th 1914 at the British frontier border post, just two and half miles outside Taveta town. The bravery, loyalty and fortitude of these porters, acting as the feet and the hands of the army often exceeded that of the soldiers. These men have received very little recognition for their heroic efforts from historians, as indeed has the East African Campaign. James G. Wilson, Historian and author Guerrillas of Tsavo. Status Feasibility to be developed upon agreement with stakeholders by November The County is seeking partners for the Taveta World War One Leadership Institute proposed to be built in Salaita. A specialized High School and college to possibly borrow from the model of King s School of War Memorial in Canterbury, UK. Pupils and staff will come from different religious and cultural backgrounds, but the school will emphasize strong on leadership, citizenry, moral values and tolerance and respect for others. The School will have a strongly academic curriculum that will be continually adapting to the changing demands of modern education. There will be an emphasis on scholarly excellence but it will also provide opportunities for all pupils to discover and develop their talents. Art, Drama, Music and Sport will play a major part in school life, alongside the Combined Cadet Force, the Presidential Award scheme, Governor of TTCG Award scheme and numerous other Activities. Lt. William Dartnell Memorial Hospital William Dartnell, born at Collingwood, Melbourne, Australia was 15 years old when he, in 1901,enlisted for service in South Africa with the Victorian Mounted Rifles. He was in South Africa in 1913 when war was declared. Using the name Wilbur Taylor Dartnell, he joined the 25th Battalion, the Royal Fusiliers, as a temporary lieutenant, and in April 1915 sailed for service in British East Africa. Wounded in the leg during an ambush, he insisted on being left behind to allow other wounded companions to be carried away though he was twice asked to leave. To honour his memory and that of other fallen soldiers, the County is seeking partners to put up the proposed
13 Upcoming Investment Projects Under Public Private Partnership LT. William Dartnell Memorial Hospital, a referral and teaching hospital, which will provide clinical education and training to future and current physicians, nurses, and other health professionals, in addition to delivering medical care to patients in the County. Status Feasibility to be developed upon agreement with stakeholders by November Taita Taveta County government realizes the importance of building strong partnerships with the private sector through offering investors a conducive environment to do business. Private investment in the County is the key to achieving the County vision of middle income County status by It will help create jobs for the more than 45 per cent of unemployed in the County and assist in the reduction of absolute poverty levels estimated at 57.2 per cent. To this end, the County government has analyzed various sectors where it can offer incentives to investors and invites potential investors from across the world to come and invest in Taita Taveta County. The following projects are at various stages of packaging; Hospitality Projects There are currently 23 international standard hotels and lodges in the County with a total bed capacity of 704 beds. Available funds/ Total required; From the ongoing analysis, the required funds for ensuring that the County is on course to meeting its transformational agenda and improve the lives of its citizens between 2014 and 2020, is a total of USD 500M. Of this, the County expects to access USD. 100 Million from its development budget allocations ( ), local revenue collection and other sources to manage enabling project feasibility studies, designs and governance. The County Government is seeking USD.400 Million from national government, international and local development partners. Of classified hotels, there are five 3-star hotels, three 2-stars and one 4-star with bed capacity of 70. The total number of unclassified hotels is 52 with over 1,890 bed capacity. There are opportunities for setting up the following projects in the County to take advantage of the high interest tourists have for the County;
14 14 Man Eaters-Voi Convention Center A hotel development with conference capacity & similar bed capacity. Location near the Voi River at Man Eaters. Status. Feasibility to be developed upon agreement with stakeholders by November Upcoming Investment Projects Under Public Private Partnership Five Star Exclusive Hotel at Lake Challa A 500 bed luxurious hotel development at Lake Challa, a crater lake with amazing views which also doubles up as a bio-diversity centre. Status. Feasibility to be developed upon agreement with stakeholders by November Eco-tourism lodges in the group ranches Establishment of and running of eco-lodges in some of the 28 ranches in the County with bed capacity of 20 and above. Status. Feasibility to be developed upon agreement with stakeholders by November Livestock Sector Ranching and Abattoir Project Establishment of an abattoir to cater for the 28 ranches covering some 1.4 million acres (22% of the land) and holding some 179,864 heads of cattle, 480,125 goats and 55,540 sheep for exporting of meat products to the Middle East and the EU. Status. Feasibility to be developed upon agreement with stakeholders by November 2014.
15 Milk Cooling /Pasteurizing Plant Setting up of milk cooling and pasteurizing plant to process dairy products. Status. Feasibility to be developed upon agreement with stakeholders by November Letters of Intent are invited. Energy Sector Wind Energy Project Investing in the energy sector by putting up a wind farm in the County to generate wind energy and sell to the national grid. Studies done have shown a huge potential for the development of a wind farm in the Tsavo East area. Status. Data available on suitable locations and land acquisition. Letters of Intent are invited. Industrialization Dry Port Project Establishing a dry port that will decongest Mombasa while leveraging the Standard Gauge rail and Voi Taveta modernized infrastructure to serve importing clients in Taveta and northern Tanzania. The County will offer 500 acres at Gimba for initial phase of container terminal this project. Status. County Government negotiating commitment of 500 Acres allocation by November Letters of Intent are invited. Education Sector University Hostels TTUC requires an extra 8,000 accommodation spaces and supporting student facilities by This will allow for expansion of the University and its proposed campuses. Status. Discussions welcome with University Management.
16 16 Office of the Governor P.O. Box Wundanyi , Visit. Invest.Transform
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