Business Daily
Date: 24.05.2016
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Factories, malls, hotels
give Kisumu County new
buzz as investment zone
BY ANITA CHEPKOECH
For two decades, Kisumu County registered business with ever­growing order books.
a massive economic downturn character­
"We initially started the business to produce
ised by rising poverty and crime levels ow­ our own construction materials, but other com­
ing to the collapse of its mainstay industries.
panies and individuals requested that we supply
From the fall of once vibrant fish and sugar them. We now produce up to 300 tonnes of ballast
processors to the closure of the giant Kisumu alone in a day," the firm's manager Micky Cheni­
Cotton Mills (Kicomi) and the region's economy ati said. The company also makes and supplies
suffered a devastating blow, leaving thousands blocks, culverts and construction poles.
of households highly disadvantaged.
Enhance efficiency
Today, however, there is renewed hope of re­
"This place is conducive and that is why compa­
storing Kisumu's economic and social pride amid
nies are setting up here. In the next five to 10 years,
rising investment in key growth sectors as manu­
this place would be exceptionally an industrial
facturing, real estate and agriculture.
belt," Mr Cheniati added.
On the 41­kilometre highway stretch between
Crown Paints CEO Rakesh Rao, while open­
Kisumu and Awasi on the border with Kericho
ing their Kisumu branch, said it was part of
County alone, about 10 new processing plants
their strategic move to tap into the region's ro­
have been set up including a steel smelting mill,
bust construction industry excited by the high
plastic and mattress factories, three road and
development growth in particularly the real
house construction material processing plants
estate sector.
and a timber treatment facility.
The new plant, with a production capacity of
The Nairobi Securities Exchange (NSE) ­listed
1.3 million litres of paint per month, will serve not
Crown Paints also recently set up its Sh400 mil­
only the larger Western Kenya but also the East
lion plant in the outskirts of Kisumu town in
African countries, Tanzania in particular.
Kisian area, west of the lakeside town towards
"This region produces more than 40 per cent
Maseno, adding to a raft of new investments in­
of the company's sales and establishing a new
cluding hotels and shopping malls.
plant in Kisumu, which is very central regionally,
In the last five years 12 new hotels have come
will enhance efficiency and also improve our sales
up in Kisumu, including the now popular Pine­
and market share," Mr Rakesh said.
cone, Clarice, Acacia Premier, Scottish Tartan,
There is also renewed activity towards the revival
Desert Rose and Sovereign.
of the region's cotton industry including the ongo­
New as well as established supermarket
chains, including Uchumi, Naivas, Ttaiaini and ing search for investors by the county government
Maisha Mart have also taken space in the shop­ and the Industralisation ministry to reopen the
ping malls that have sprouted across Kisumu infamous Kisumu Cotton Mills (Kicomi).
Before its closure in 1999, Kicomi was key to re­
such as Tuff Foam and Lake Basin.
"We have been working hard to woo investors gion's economy, supporting thousands of fanners
and traders in the cotton supply chain.
and some of whom have factories. The good busi­
Its collapse alongside most ginneries in western
ness environment and our proximity to access
Kenya affected nearly 10,000 farmers in Kisumu,
other East African states through roads, air and
Homabay, Migori, Siaya and Busia counties who
water also gives us an upper hand," Governor
are now forced to transport lint to processors in
Jack Ranguma says.
Makueni, hundreds of kilometres away.
Gogni Construction Company that acquired
to set up at least one for the region," Mr Michael
Onyura, a cotton farmer in Nyakach, said.
Beatrice Obara, a farmer who co­ordinates
the collection of the produce, said supplying a
company in Makueni was uneconomical.
"For every three kilos of raw product, only a
kilo of lint is extracted and retained in Makueni
while we bring back the other two as seeds for
replanting. The to­and­fro journeys reduce our
profitability by a large percentage," Mrs Obara
said. The farmers transported about 500,000
kilos of cotton balls to Makueni in 2015 alone
from 300,000 kilos in 2014.
Another giant cotton mill in the region, Rift
Valley Textiles (Rivatex) had also collapsed and
was only recently revived following a takeover
by Moi University in 2007 for an estimated
Sh205 million. A raft of planned road and mari­
time infrastructure upgrades around the lake­
side town are further expected to bolster the
latest resurgence of economic activity.
Trade around the town has over the years
been affected by a number of factors, including
a derelict railway infrastructure and impen­
etrable and stubborn water hyacinth as well
as boundary disputes that have turned Lake
Victoria into a liability.
This situation could change with the
planned construction of a new sea port in
Kisumu and extend a branch of the standard
gauge railway (SGR) line being built from
Mombasa.
The piers in Homa Bay, Mbita and Luanda
K'Otieno are projected to register enhanced
activity when the planed port becomes op­
erational.
Before the collapse of the lake transport,
Homa Bay was the main shipping point for
goods to Tanzania. Vessels from Kisumu
docked in Homa Bay and offloaded cargo
which was then transported via trucks to the
Tanzanian border two hours away.
"Cotton is now gaining momentum, but we are
a 26­acre parcel of land around Awasi area for
Mbita and Lunda K'otieno today host regu­
farming far from the market. It is illogical to travel
lar ferry services by private firms and the con­
extraction of rocks for use in its proj ects, says the
across eight counties to have cotton separated from
venture has since morphed into a massive quarry
seeds. We have requested the county government
struction of a new port facility is expected to
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
Business Daily
Date: 24.05.2016
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boost trade in merchandise.
A regional body, the Lake Victoria Basin
Commission (LVBC) — which implements
projects on behalf of the riparian states — has
already kicked­off initiatives to boost trans­
port and trade through the lake.
The Kisumu­based agency is undertaking
two mega projects to improve lake transport
industry and safety of its users.
Among the plans is to have a weather fore­
cast centre and to upgrade the piers to enable
24­hour operations in accordance with the
International Maritime Organisation (IMO)
regulations.
The commission in 2015 received a $450
million (Sh47.4 billion) allocation by the
World Bank to desilt the piers to fit larger ves­
sels and install electronic maps to inform ship
stewards of route safety before planning their
journeys.
new aircraft operators and other businesses like
hotels and restaurants, storage rooms, cargo
warehouses, transit shades, retail outlets and
business centres. The region's limping sugar
factories, which at their peak employed thou­
sands of workers, are also expected to boost the
town's economic fortunes when the ongoing
privatisation plans are concluded.
The government plans to sell a 51 per cent
stake in the five sugar companies to strategic
investors and reserve another 24 per cent for
farmers and employees. The government will
then sell a remaining 25 per cent stake in the
Sony, Chemelil, Nzoia, Muhoroni and Miwani
milling companies in an initial public offering
once the factories are profitable.
Tourist attractions in Kisumu County
include Ndere Island National Park and
Navigation routes
the Kisumu Impala Sanctuary.
"We will also devise new navigation routes
not only from Kisumu to Mwanza and Aru­
sha, but also to landlocked countries which
can be connected by railway systems," said the
outgoing LVBC executive secretary Dr Canisius
Kanangire, adding that the survey and mapping
of the lake are already under way.
"We also have another project to link the
central corridors, including Dar­es­Salaam to
Mwanza, the Northern Corridor from Mombasa
via railway to Kisumu and Entebbe in Uganda,
via the lake, and other states as well."
The town is also looking up to improved air
transport following upgrades on the Kisumu
International Airport.
The national museum, historic sites
such as Songhor Paleontological Site in
Muhoroni, the viewpoints in Nyabon­
do, the Luanda Magere site,
and Kit Mikayi.
Others are recreation­
al sailing and sport fish­
ing on Lake Victoria.
Hotels of a competitive
standard are mainly found in Kisumu City.
These include Kisumu Hotel, Sunset Hotel, Im­
perial hotel, Jumuia Guest House, Great Lakes
Introduction of feeding programmes in
needy institutions
Issuance of sanitary towels among the ado­
lescent school going girls
Recruitment of additional teachers
Establishment of centers of excellence.
Rehabilitation of existing schools.
Establishing ICT labs in identified institu­
tions in all the sub­counties.
Give incentives to potential investors in the
private education sector
SOURCE: LAKE BASIN ECONOMIC
BLUEPRINT
? INDUSTRIAL BELT
Steel smelters,
plastic and
mattress factories,
construction material
manufacturers and
timber treatment
facility dot Kisumu­
Awasi road
Hotel and Lasavana Hotel.
Construction of a 10,000­seat convention
centre on the beach front.
A resort city
Only recently the Kenya Airports Authority
(KAA) commenced a Sh600 million expansion
of the airport runway to 60 metres from the cur­
rent 40 metres, to handle bigger cargo planes
that carry loads of up to 100 tonnes.
"In order for runway to carry bigger aircraft
of 40 tonnes and above, it is being upgraded
from code C to code D. This will also enable us
to accommodate more international aircraft
with wider shoulders and wings stands," Joseph
Okumu, the airport manager, said.
Sugar factories
"Other than being a transit point, Kisumu Air­
port is turning into a business entity meant
to benefit local industries especially the agro­
based," said Mr Okumu.
The expansion has also created a gap for
Preservation of eco­sites
» EDUCATION
Total enrolment in
primary schools in the
county is 236,334 with
a teacher population
of 6,081.
Of the population ­
above 15 years of age
90.8 per cent can read
while 83.4per cent can write.
Total enrolment in secondary schools is
113,314 with a teacher population of 1,647.
The county has two universities: Maseno
and Great Lakes University (Gluk)
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
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A cyclist rides on Kisumu­Busia highway next to the newly built Crown Paints factory, all photos/tom otieno
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
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A worker at
Jumbo Foam
Mattresses
Industries in
Kisumu: The
industries are
steadily growing.
Ipsos Kenya ­ Acorn House,97 James Gichuru Road ­ Lavington ­ Nairobi ­ Kenya
Business Daily
Date: 24.05.2016
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A Toyota Kenya
factory on
Nyamasaria­
Kisian bypass.
The invest­
ments are
expected to
create many
jobs.
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