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County governments team up to woo more investors

Saturday July 25 2015
county govs

Coast governors (from left) Hassan Joho of Mombasa, Salim Mvurya of Kwale, Amason Kingi of Kilifi, Issa Timamy of Lamu and Taita Taveta's John Mruttu during the signing of a Jumuiya ya Kaunti za Pwani MoU at the Technical University of Mombasa on January 5, 2015. PHOTO | KEVIN ODIT |

After two years in existence, Kenya’s county governments are increasingly forming economic blocs to attract more investors.

The consortiums are being formed by virtue of the counties having similar cross-cutting economic challenges, economic opportunities, development programmes as well as cultural linkages.

The trend started in April when three counties from Lake Victoria Basin teamed up for economic development through targeted joint investments.

In June, the seven counties from Rift Valley followed suit. The latest was the signing of a co-operation agreement by the six counties in the Coastal region to form the Jumuiya ya Kaunti za Pwani (the community of counties from the Coast).

According to Ndung’u Wainaina, executive director of International Centre for Policy and Conflict, apart from forming groups to lobby for their economic interests at the national level, the counties also hope to merge their regulatory frameworks since investors are looking at one-stop shops with a sizeable population, strong purchasing power and adequate infrastructure.

Mr Wainaina argued that even though they remain lobby groups with no legal standing, these units could become more powerful as they grow economically to the point that they could influence national politics through voting patterns in the future.

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The view is supported by the chairman of the Commission on Administrative Justice, Otiende Amolo, who said that while it is a good idea for counties sharing geographical regions and cultural links to co-operate, their approach so far gives the impression of a political agenda rather than the desire to be economically competitive.

On its part, the Lake Region Economic Blueprint has identified seven strategic intervention areas, namely: Agriculture, tourism, education, health, ICT, financial services and infrastructure.

The bloc’s priority areas include establishing a fish processing plant, a cotton ginnery, a regional bank and developing legislation to govern inter-county trade.

The counties under the bloc are Kisumu, Siaya, Bungoma, Busia, Homa Bay, Kakamega, Kisii,  Migori, Nyamira, Vihiga, Bomet, Trans Nzoia and Kericho.

The Rift Valley counties came together to address common challenges such as border conflicts and cattle rustling that scare away investors. But the focus will be on tourism, with emphasis on lakes and river basins that can be harnessed for irrigation in counties like West Pokot, Elgeyo Marakwet, Trans Nzoia, Baringo, Turkana, Uasin Gishu and Nandi.

The sectors identified for co-operation for Jumuiya ya Kaunti za Pwani include wildlife and tourism, banking, agriculture, development and exploitation of natural resources like mining, water and land.

According to Mombasa County Deputy Governor, Hazel Katana, the counties will be lobbying to benefit directly from the resources in the region such as the port of Mombasa, the vast Tsavo East and West National Parks and the Indian Ocean resources that are currently under the national government.

The counties comprising Jumuiya are Taita Taveta, Mombasa, Kwale, Kilifi, Lamu and Tana River.

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