HOBIIC 2016 Report
HOBIIC 2016 Report
Investment Conference
(HOBIIC, 2016)
POST CONFERENCE REPORT OF INVESTMENT
CONFERENCE HELD ON 18 – 19 FEBRUARY 2016
CONFERENCE REPORT
CONFERENCE REPORT
COUNTY GOVERNMENT
OF HOMA BAY
HOBIIC 2016
ii HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
CONFERENCE REPORT
DISCLAIMER
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Views expressed in this publication do not necessarily reflect those of the United Nations Human
Settlements Programme, the United Nations, or its Member States.
Excerpts may be reproduced without authorization, on condition that the source is indicated.
HOBIIC 2016
HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE iii
TABLE OF CONTENTS
Acknowledgements............................................................................................................................................... iv
Glossary................................................................................................................................................................. v
Executive Summary............................................................................................................................................... vi
Overview of HOBIIC....................................................................................................................................................................vi
Conference Objectives.................................................................................................................................................................vi
Women in Business................................................................................................................................................ 2
Overview of Session.............................................................................................................................................. 2
Speakers....................................................................................................................................................................................3
Key Messages from Presentations................................................................................................................................................3
Issues Arising from Discussion.....................................................................................................................................................4
Action Points..............................................................................................................................................................................6
APPENDICES....................................................................................................................... 25
Sectoral Break-Away Sessions.............................................................................................................................. 25
Infrastructure, Energy and ICT......................................................................................................................................................25
Key Points/Issues Arising from Discussions....................................................................................................................................25
Action Points..............................................................................................................................................................................26
Agribusiness, Trade and Manufacturing........................................................................................................................................27
Key Points/Issues Arising from Discussion.....................................................................................................................................27
HOBIIC 2016
iv HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
ACKNOWLEDGEMENTS
This report has been prepared by PricewaterhouseCoopers in collaboration with CEDIA – Utawala.
HOBIIC 2016
HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE v
GLOSSARY
AfDB African Development Bank KENINVEST Kenya Investment Authority
BRITAM British American Investments Company KENGEN Kenya Electricity Generating Company
CIDP County Integrated Development Plan KNCCI Kenya National Chamber of Commerce
and Industry
CEC County Executive Committee
LAPFUND Local Authorities Provident Fund
EPZA Export Processing Zone Authority
LPO Local Purchase Order
SEZ Special Economic Zone
MOU Memorandum of Understanding
FIRM Financial Inclusion for Rural Enterprises
SACCO Savings and Credit Cooperative
HOBIIC Homa Bay International Investment
Conference SIP Strategic Investment Plan
KAM Kenya Association of Manufacturers USAID United States Agency for International
Development
KCB Kenya Commercial Bank
HOBIIC 2016
vi HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
EXECUTIVE SUMMARY
Governor Cyprian Awiti and his Deputy, Hamilton Orata attentively follows
proceedings at HOBIIC 2016. © County Government of Homa Bay
The conference brought together more than 200 local and • Why invest in Homa Bay County?
international investors, policy makers, scholars, government
• Counties as Frontiers for Investments
officials, private sector players, economists and the Homa Bay
Diaspora community. Over 30 local and international exhibitors • Human Resources for Investment in Homa Bay County
also participated in the event. The conference held forums
• Launch of Strategic Investment Plan
where investment related opportunities were shared through
presentations, thematic discussions and plenary sessions. The • Signing of Memoranda of Understanding
thematic areas covered in this conference were;
HOBIIC 2016
viii HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
• Women in Business
HOBIIC
CONFERENCE SESSIONS
HOBIIC 2016
2 HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
WOMEN IN BUSINESS
Overview of Session
This session centred on the vast potential and opportunities that women entrepreneurs can take advantage
of to not only invest in the different sectors in the county but also expand their enterprises. The areas of emphasis
included enterprise growth, financial tools, partnerships for competitiveness and networking.
Speakers
Session Facilitator: Professor Jane Konditi
Panelists:
• Hon. Elizabeth Akinyi Manyala – MD, KENSOSUN East • Njagi Mutwiri – Business Manager, Kenya Commercial
Africa and representative of Kayole South Ward, Nairobi Bank, Homa Bay Branch
County
• Dr. Eve Obara – Kenya Literature Bureau
• Gacoki Gacece – USAID Financial Inclusion for Rural Micro-
• Mary Muthoni – Chairperson, Kenya Women in Business
enterprises (FIRM) (Kenya National Chamber of Commerce and Industry)
• Elizabeth Kariuki – USAID Financial Inclusion for Rural
Micro-enterprises (FIRM)
• Networking and advocacy: Women make the largest • Opportunities for women in Homa Bay County
percentage of SME’s in Kenya at 70%. Overall, only 70%
Women in the county have been encouraged to set
of new businesses get to see their third year of operation.
up businesses targeting the education sector such as
There is need promote networking and advocacy among
bookshops and polytechnics.
women to facilitate sharing of knowledge and best
practice. Additionally women in Homa Bay County have
been encouraged to set up business caucuses which shall
be supported by National Business Caucuses.
• Turn-around Time (TAT) for bid bonds by Kenya • The need for the formation of the women caucus in
Commercial Bank (KCB) is too long. the county so that grassroots women also take part
KCB has since centralized bid bond processing by moving Caucuses exist in all the counties hence women are
it to the branches, in turn greatly reducing the turn-around represented at all levels. The Homa Bay county representative
time for bid bonds. to the caucus to the caucus is the late Hon. Monica Amolo.
KNCCI has been devolved and can be accessed at county
• Too many conditionality’s for startups that are
level, therefore participation of women at county level must
interested in accessing credit facilities.
be strengthened.
Currently, financing of start-ups is addressed on a case
The women were advised by KNCCI to select another
by case basis. That is, if a good proposal is submitted and
member to replace the late Hon. Amolo.
the business is determined to be viable then credit can be
extended. Entrepreneurs were advised to consider going • What can county government do to increase
for unsecured loans that have less stringent requirements. the level of awareness and access to tenders by
women?
Alternatively, they can join a SACCO where they can also
borrow at lower interest rates. Although this is a national government function, the county
government guides women in getting tenders in line with
• What does the county government intend to bring
the 30% procurement rule.
to the table so that women entrepreneurs can
access finances?
Speakers
Session Facilitator: Hon. Professor Tom Ogada,
Chairperson, Homa Bay County International Investment
Conference (HOBIIC).
Panelists:
• H.E. Hamilton Orata – Deputy Governor, Homa Bay County
• H.E. Cyprian Awiti – Governor, Homa Bay County
• Kassim Farah – County Commissioner Rt. Hon. Eng. Raila Amolo Odinga, Former Prime Minister of the Republic of
Kenya and CORD Leader unveils the Strategic Investment Plan
(SIP. 2014-2020) at the HOBIIC 2016. © County Government of Homa Bay
• Establishment of a local bank:Working to develop a • Climate: The County enjoys friendly climatic conditions
local bank within the county that will promote access all year round with hospitable, cheerful and welcoming
to financial resources by local investors. people who embrace investment and can be trusted.
Main Enablers • Land: Very rich, fertile, arable good for agribusiness
(Cassava, sweet potato, maize, horticultural produce).
The county government has put in place a number of enablers
that support investment in the county. These are: • Banking infrastructure: Presence of various banks both
local and international, LPO financing – working with banks
• Infrastructure: The roads are motorable for easy transfer to finance you to enable women and youth to do business.
of goods. The recent expansion of the runway to 2.5
kilometres has promoted quick travel, as evidenced by the Action Points
commencement of Fly 540 flights to Homa Bay County. The • Homa Bay County Investment Committee to oversee the
County has plans to develop a cargo port to accommodate implementation of SIP
cargo air transport. The Deputy Governor has been in talks
with KAA on this project. • County Government to identify investors that are interested
in acquiring land for investment in the county and facilitate
• Water: Avail water to all areas in Homa Bay County. It is
them.
a devolved function
• The County Government should push for the upgrading
• Education: Currently the upgrade of Tom Mboya College
of the Kabunde airport to accommodate cargo transport.
to University is ongoing.
H.E Governor Cyprian Awiti with his Kisii counterpart H.E Governor James Ongwae
(center) and Deputy Governor Hamilton Orata. © County Government of Homa Bay
Panellists
• Professor David Sperling – Strathmore Governance Centre • Eric Ochieng’ – Kenya Association of Manufacturers (KAM)
• Professor Mary Kipsat – DVC Academic, Maseno University • Linda Kagota – USAID FIRM
• Sammy Onyango – CEO, Deloitte and Touche’ • Patrick Mwangi – Micro and Small Enterprise Authority
• Barry Patch – Director, PwC • H.E. James Ongwae – Governor, Kisii County
Key Messages
• Importance of Macro and Micro Economic • Strengthening of non-financial indicators: The
Convergence: Investment opportunities and priorities county government should strengthen non-financial
be approached at both micro-level (county and neighbors) indicators such as the dynamic, extra-ordinary, good
and macro-level (regional). The county must position working relations, commitment and solidary of county
itself to compete for investors with other counties in the officials and leverage to create a sustainable environment
region as well as neighboring countries. for investment.
• Impact Investing: Investors employing 5 – 10 people • Developing Education to Improve the County’s
must be embraced and amalgamate the benefits. Impact Human Capital: Education will help improve human
investing should be encouraged especially at micro- capital in addition to opening up opportunities for
level for investment opportunities of approximately USD investment through public private partnerships for projects
20,000 where investors make profit while having a deep such as construction of hostels and staff housing among
social impact to improve the lives of the community. The other things.
county must align its development priorities to investment
priorities.
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HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE 11
Panellists
• Dr. David Maasai – Industrial Development Bank (IDB) • Dr. Moses Ikiara – Kenya Investment Authority (KenInvest)
• John Akara – Export Processing Zone Authority (EPZA) • Hezekiah Okeyo – Vision 2030, Representing PS Ministry
of Industry, Investment and Trade
• Joseph Oguta – Djibouti Free Zone
• John Oyioro – Kenya Revenue Authority (KRA), Western
• Prof. Wainaina Gituro – Vision 2030
Region
Key Messages
• Financial partners: Investors can take advantage of • Potential Areas for free trade zones : The county
services offered by financial partners like Industrial has potential for establishment of free trade zones in
Development Bank (IDB) that finance industrial capital of the following areas:
between Kshs. 1 million and Kshs. 200 million to promote
• Light industry
industrialization. In return, investors enjoy concessional
rates, depending on the risk profile as well as long tenure/ • Logistics, Warehousing and Transporting
credit period of 7 to 10 years. IDB is keen on financing
• Horticulture and Processing of horticultural products
the establishment of the cotton ginnery.
• Vision 2030 is signing an MOU with the county to
• Establishment of Export Processing Zones: The County concentrate on cotton, animal feeds and fish.
can process goods for exports with the establishment of
• Resources: Among the best resources that investors
export processing zones. Negotiations are underway to
must take advantage of are; time, capital of the people of
have an export processing zone in Homa Bay County
Homa Bay, Private Public Partnerships and Private-Private
especially for the establishment of the cotton industrial
Partnerships. The youth are in integral part of investment
park. EPZA Want to come to Homa Bay and establish
hence must be addressed and the corruption trend.
partnership with Homa Bay and wider lake region.
Investors must be keen on ensuring that their industries
Recently established an office in Kisumu. Negotiations
are compliant to the environmental address climate
almost complete on Export Processing Zone, particularly
change. The economic fundamentals for investment
for the Cotton Processing Park – (can get cotton from
in the county are strong i.e. competitive return on
Uganda and Tanzania) and food processing.
HOBIIC 2016
HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE 15
investment, big growing market that includes the East • Project Feasibility
Africa Community (EAC) customs territory, COMESA,
Financing is not a challenge rather, getting a good
SADC tripartite arrangement, AGOA, US and EU market
bankable ideas is. Ensure projects are properly packaged.
and other bilateral arrangements.
Project feasibility and project structuring is key in addition
• Special Economic Zones (SEZ) to good governance, infrastructure, policy, low production
cost and quality human resource.
• Location, best human resource, introduced special
economic zones. • Enabling environment through policy, laws and
institutions
• Homa Bay can explore/set up three parks – cotton,
animal feeds and fish processing. Free zones, industrial Policies, laws and institutions must be right otherwise
parks and tourist and recreational zones. Counties investing in the county will be hostile. Ministry of
identify land, Cabinet secretary gazettes, V.A.T zero Industrialization collaborate with government agencies
rated. Bringing donors/development donor group, to ensure conducive environment. Bringing in donors
bring consultants to plan. (Trade and Private Sector Donor Group which is a group
10 Donor organizations) shall help in the planning of
• The county have a role to identify land where the
the zones.
zones can be. Once the land is gazetted the benefits
associated with these zones take effect.
• Groundnuts are grown in the county on a large scale. The community is engaged through the county government,
Is it possible that they are also considered in term of as the elected representative of the people of Homa Bay
processing? County.
Key Messages
• African Development Bank Investment: The • Enabling Legislative Environment for
African Development Bank is investing in four Investment: The County Assembly is
main areas: working towards friendly legislative issues to
investment. Economic potential of the county
1. Energy: Has been a problem but now is
is immense.
becoming a thing of the past. Focusing on
last man connectivity. All sub-counties covered. • Political risk: Young, educated and suave
Phase one will be rolled out in June leadership in the county. Plans will not be
reversed because of emergence of political risk.
2. Roads: Isebania- Kisii-Ahero linkages and
Oyugis-Kendu-Suneka road. • Alignment of Country and Investor
3. Water: Kimira Oluch- Free gravitational flowing Objectives: There is a milestone of what
water good for rice, horticulture, vegetables is going through the region in investment.
Interest of investors must be aligned to interest
4. Skills: Problem of skill mismatch. Addressing
of country. The county government should
middle level skills. Supplying infrastructure
remove unnecessary licensing especially for jua
and equipment
kali traders. A review of regulations should be
done to enable young people hoping to earn
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MoU’s Signed
Conclusion
The conference concluded on the 19th of February with the signing of Memorandums of Understanding.
Further results of investors who registered interest in investing in the County are provided for in the
Appendices below.
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APPENDICES
SECTORAL BREAK-AWAY SESSIONS
Infrastructure, Energy and ICT
Session Facilitator: Barry Patch, Director PwC
Companies/Investors Present
• Are there any provisions for small and medium Kenya Electricity Generating Company (Kengen)
enterprises within the big projects? carry out larger generation projects but leave
Opportunities for investment are presented at all smaller projects to Independent Power Producers
levels. It is up to individual investors to determine (IPP’s). Kengen’s areas of interest are in solar power,
hydropower, geothermal and wind energy.
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• There was a proposal for the formation of a body that • Has the county opened up consultancies for local
can be used steer the process of investment beyond diaspora to bring in their expertise/add value to
the investment conference. activities at county level?
There is legislation on the formation of the Homa Bay County government always sources consultancies as per
Investment Authority for continuity of the process, currently the Public Procurement and Disposal Act, which states that
awaiting to be passed into law by the county assembly. consultancies should be tendered. It is free for all.
Investors can use various resources provided by the For those interested in consultancy, continuously check the
government on guidelines or legal aspects in ministry of website. The county plans to enhance the process through
energy website. These resources are www.erc.go.ke (Ministry proper advertising. If consultants have a unique idea, they
of Energy) and www.kplc.co.ke (Kenya Power). are encouraged to consult with the relevant ministry.
• Physical planning – Does the county have an integrated • Have any feasibility studies been done on the energy
physical plan to curb haphazard plan? E.g. sewer plan sector in the county?
The development of the integrated physical plan for the Feasibility studies have been done on some areas like
county is underway. The integrated physical plan for Homa hydropower.
Bay town is also underway.
• Do we have a county risk index? Is there a sovereign
• There is too much bureaucracy preceding approval guarantee.
of projects leading to delays in the commencement This question was not responded to.
of projects.
There are steps to be followed but government will quicken Action Points
them. The Ministry of Energy will play role of enabler - work • Legislation on the formation of the Homa Bay Investment
in collaboration with national government to create a one Authority be passed by the county assembly
stop shop for licensing.
• Completion of the development of the integrated
KenInvest – mandated to assist investors to go through physical plan by the county
the process of acquiring licenses. Does not charge any fee • Sensitize investors on the role of KenInvest in acquisition
for this service. of licenses
• The integrated physical plan to be shared with investors
upon completion to guide investment activities.
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HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE 27
3. Phoebe Okoth – Dairy Farmer Investors have requested the county government to take care
4. Joseph Oluta – Ndhiwa Sub-County – Potential Investor of capacity building at farmer level which would allow investor
in Abattoir confidence to build.
5. Lakeview Fisheries – Commercial Fish Farming – Cage fishing
Organic farming –
6. KEPHIS – Mrs. Lynette Achieng’ Mbeyha Branding Organic Produce
7. Bishop Theresa – Dairy Goat Farming, Poultry Farmer
Fruit trees (Oranges) are maturing very early. The investors want
8. Mr. Smith- Importation of agricultural machines which are to do grafting along the Lake Victoria shores. As an investor
affordable. Looking for land in Homa Bay County to start need irrigation facilities and also need organic shops.
a pilot project.
9. Professor Otieno – Professor in Maseno University Cotton Sector
10. Moses Ikiara – MD of Kenya Investment Authority Investors need specific details on the cotton value chain and
(KENINVEST) in particular, on the machinery which is available. Ginnery
11. Investors in bee keeping and trade machinery to see how the can come in.
12. Investors in organic farming Cotton Supplier and Farmer – Market linkages so that the cotton
13. Investors in passion fruit and avocado farming can be sold. Expertise from an investor on cotton growing
14. Investors in French beans processing
15. Investors in Poultry Farming
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28 HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
Dairy Sector
Looking for a machine for milk cooling and packaging – Phoebe Build a plant for pineapple processing. Need people to come as
a group – So that demand creation takes place – Moses Ikiara
Need a strategic investor to help scale up maize production –
Cultivation and making more Need the fish processing plant and need to complete the
value chain –
Bee Keeping – Green House Production as well. Need an
irrigation facility. Need an anchor investor –
Brown Sugar Processing – Doing it at large scale – Perception Thikaway Investments – Partnership with German Investors
that this is for change brewing. Need an investor to take the – Will be starting in the next 12 months – Will be making
produced brown sugar to a market organic fertilizer
Poultry Keeping – Need a slaughterhouse for poultry and Need to have a network – Mr Smith would like to get to know
need market links the farmers.
CONFERENCE REPORT