WEPIC R EPORT

Unlocking Investment Potential of

Report of the WEPIC Proceedings at the First Western Province Investment Conference held at Masinde Muliro University of Science and Technology (MMUST), Kakamega, 8-9th October, 2009
Compiled by Wycliffe Kigan chabaga Kibisu kabatesi Beatrice Sabana Robert Bwire

Western Province

Unlocking Investment Potential of

Western Province

Table of Contents
1.0 2.0 3.0 Forward Acknowledgement Executive Summary 3.1 Introduction 3.2 Conference Objectives and Goals 3.3 Overview of the Regions potential 3.4 Highlights of the Conference 3.5 Key Recommendations 3.6 Resolutions of the conference

4.0 Official Addresses 4.1 Welcome Address: Kibisu-Kabatesi, Secretary WEPIC. 4.2 Welcome Remarks: Prof. Barasa Wangila, Vice-Chancellor Masinde Muliro University of Science and Technology (MMUST). 4.3 Opening Remarks: Hon. Wycliffe Oparanya, Minister for Economic Development, National Development and Vision 2030; and Chairman of the WEPIC Organizing Committee. 4.4 Opening Address: Rt. Hon. Musalia Mudavadi, Deputy Prime Minister and Minister for Local Government. 4.5 Keynote Address: Rt. Hon. Raila Odinga, Prime Minister of the Republic of Kenya 4.6 Vote of thanks 5.0 An Overview of Western Province 5.1 Situational analysis 5.2 Constituency profiles 5.3 Cultural Impediments to Investment 6.0 Investment Interventions 6.1 How to Create an Enabling Environment: The Case of MMUST. 6.2 Enterprise Culture 6.3 Role of KenInvest 6.4 Investment Opportunities 6.5 Maximizing Opportunities under Vision 2030 6.6 Value-addition 6.7 Diaspora as Key Investors 6.8 Investment Models 6.9 Role of KIE 6.10 Unlocking Investment 6.11 Investment in Information Communication Technology 7.0 Panel Discussions 7.1 Ministers Panel 7.2 Panel for Members of Parliament

8.0 Break Away Group Reports 8.1 Investments in Agricultural and Natural Resources 8.2 Investments in Sugar Industry 8.3 Investments in Education 8.4 Investments Trade and Industry 8.5 Investments in Tourism, Hospitality and Leisure Services 8.6 Investment in Health Services 8.7 Investments in Transport and Communication Infrastructure 8.8 Promotion of Finance services 8.9 Investments in Technology and Innovations 8.10 Local Authorities Facilitation of Investment 8.11 Legal, Constitutional Affairs and Security impacts on Investments

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Unlocking Investment Potential of

Foreword

Western Province
The Western Province Investment Conference (WEPIC) was held at the Masinde Muliro University of Science and Techno

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Acknowledgements
The Western Province Investment Conference (WEPIC) was held at the Masinde Muliro University of Science and

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Unlocking Investment Potential of

Executive Summary
3.0 Introduction

Western Province
The Western Province Investment Conference (WEPIC) was held at the Masinde Muliro University of Science and Technology (MMUST) in Kakamega town on Thursday 8th and Friday 9th October 2009. The conference brought together over 600 participants from Western Province and strategic partners of diverse backgrounds- political, religious, business and community leaders, the private sector; civil society, trade union movement; academia, intelligentsia, professionals, investors, manufacturers, entrepreneurs, bilateral partners and ordinary people to deliberate and decide on the best possible ways forward for investments and economic development of the region. WEPIC had been in incubation for a year (since October 2008) when the idea was floated by the Deputy Prime Minister and Minister for Local Government Hon. Musalia Mudavadi. All Western Province Members of Parliament (MPs) were instrumental in the planning of this conference which culminated in the high powered event at MMUST. A technical team of select professionals from Western Province formed WEPIC organizing committee in partnership with Kenya Investment Authority (KenIvest) and Lake Basin Development Authority (LBDA). WEPIC was officially opened by the Rt. Hon. Prime Minister of Republic of Kenya Raila Odinga and attended by the host, Rt. Hon. Deputy Prime Minister Musalia Mudavadi, Attorney General Amos Wako; and 22 Ministers, Assistant Ministers, MPs from the region and major players in investment arena. The two day event was sponsored by Equity Bank and the Mumias Sugar Company. Co-convenors of the event were KenInvest and LBDA.

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3.1 Overview of the regions potential

Map of the Region

The strategic geographical location of Western Province in East Africa and the Great Lakes Region, offers opportunity to act as a focal point for trade between Kenya, Uganda, Tanzania, Sudan, Rwanda, Burundi, and Democratic Republic of Congo. The region has large demographically well distributed population size which offers a great potential for a consumer market. Fertile agricultural land, a good climate is a potential for agricultural based enterprises and agro-processing.

Potential and Strengths of Western Province Strategic location and gateway to the great Lakes Region Proximity to Uganda, Sudan, DRC, Rwanda and Tanzania through the lake, road and air Large and growing population Gateway for terrestrial fiber optic cables linking Great lakes region to the undersea cables Fertile soils, warm climate and adequate rainfall Regular rainfall, and reliable water sources Numerous unique ecological niches and great cultural diversities Great sporting potential among the youth e.g. National Rugby teams, Volleyball and football teams

Opportunities and benefits Great potential to act as regional hub for communications, transport, trade and agro-processing industry within the GLR and EAC nations. Pricing advantages for goods manufactured in the region compared to Nairobi, because of lower transport costs Significant market for consumer goods and readily available labor for industry. Opportunity for BOPS, e-commerce and internet based business projects. Great potential for high value agro-production for the export market. Potential for bottled water industry and ability to attain MDG goal of clean running water for all. Potential for cultural and eco-tourism Potential for sports tourism and sports industry.

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Unlocking Investment Potential of

3.2 Highlights of the Conference
Hon. Raila Odinga

Western Province
The Prime Minister observed that the region was blessed with a favourable climate, a large pool of an educated labour force and human potential which could be tapped for accelerated growth. He asked participants to shun the culture of Give me Something instead borrow from the Jewish culture where they never say give me but rather say lend me meaning that they will invest what is lent to them, make a profit and refund..

Hon. Musalia Mudavadi

Hon. Musalia told participants that there was no dignity in being poor and worse, being a leader of those who have lost their dignity because of poverty hence the need to liberate people from poverty. Embracing the spirit of entrepreneurship was the way out of poverty, he said.

Hon. Wycliffe Oparanya Prof. Hellen Mwanzi

Take advantage of Flagship Projects of Kenya Vision 2030 in which Western Province has high potential such as power generation in the energy sector, and eco-tourism. She was apprehensive that the little investment done in the region was in form of sentimental (show-off) residential houses or rural homes that were only inhabited on few occasions. She urged a shift to instead construction of rental houses that could fetch long-term returns.

Prof. Makhanu

In his concluding remarks, Prof. Makhanu pointed out that MMUST had demonstrated creating and availing, and also increasing investment opportunities in Western province by directly injecting of a bout Ksh750million in various sectors. As a result many investors such as banks, super markets, hardware and hotels of individual investors were trooping into Kakamega. Unfortunately, the opportunities and advantages are not being used by the local investors.

Hon. Otuoma

Hon Otuoma profiled a fisheries programme where Ksh192 million has been allocated to 24 constituencies in the province, of which Ksh 120 million were subsidies to farmers for contraction of 4,800 fish ponds; Ksh45.5 million as seed funding for purchase of production inputs to the 4,800 farmers who will be selected and Ksh26.5 million for GIS mapping of suitable sites, training and extension. These will place 357 acres under fish farming(0.3% of the potential) .The province will have a Tilapia production capacity of 1,800 tones valued at Ksh250 million shillings when the project is up running

Hon. Amos Wako (Attorney General)

Hon. Amos Wako told the conference that the CDF fund was governed by a parliamentary Act and that CDF funds can only be used for investment purpose if Parliament amended the Act. He urged MPS from the region to take leadership in pushing for such an amendment. He cautioned participants to be wise in their business decision citing Mumias shares sold to farmers in the region, at very competitive prices but farmers sold them at throw away prices, giving up their opportunity to own the company.

Eunice Khalwali Miima (Ag. PS. Ministry of Tourism)

Ms. Miima the Ministry was promoting the Western Kenya Tourism Circuit and was in dire need of partners willing to invest in accommodation facilities, food outlets, gaming and sports, and transport services. The region should wake up to the reality that the tourism sector was largely owed and driven by private sector

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and the government role is limited to the regulation and facilitative function. Investors in the tourism sector enjoy incentives such as exception from import duties and value added tax on equipment for hotel construction and refurbishment including essential hotel utilities and equipment

James Mwangi MD, Equity Bank

Mr. Mwangi stated that, Equity Bank had taken special interest in Western province by opening 10 branches. He said 60% of the staff working in the new branches will come from the region. The bank will support; fisheries, cereal and dairy farming, tobacco and sorghum farming in the region. The bank will support 2 best students in each district of Western Province where Equity Bank has a branch to pursue secondary education.

Susan Kikwai, MD, Kenya Investment Authority

She observed that the strategic location and proximity of the province to Lake Victoria and both the Eldoret and Kisumu International Airports can accelerate growth in the region if the potential is exploited. She noted that falling under the Lake Basin Commission; the province has the potential of accessing a market of over 30 million people. (The Lake Basin Commission has an area covering parts of Kenya, Uganda, Tanzania and the Great Lakes Region countries with a total population of 224 million). Investment potential exists in the establishment of: Cold storage facilities for agricultural produce, dairy products and fish products; Inland Ports at Busia and Malaba for clearing of goods.

Joseph Khaemba, MD, Lake Basin

Mr. Khaemba said LBDA had already mapped the regions potential investment areas in terms of location, and investment participation at local, cross-regional and national levels. Poultry was identified as an area of great potential as the region has many urban areas and major towns that have ready market for eggs and poultry products. Agro-processing and value addition in horticulture has potential for wealth creation since the region produces many agricultural produce such as Simsim, Soya beans, Cassava and other vegetables

Pricilla Onacha (Chairperson, KIE)

Ms. Onacha told the conference that in the last 3 years, KIE has invested Ksh.26 million to 143 beneficiaries in the province. KIE in collaboration with the Ministry of Trade and UNDP have established a District Business Solution Centre in Bungoma to act as a one-stop-shop for SME growth needs. The same will be replicated in all the Proposed Constituency Industrial Development centers (CIDCs) countrywide (as part of the Economic Stimulus package).

Members of Parliament

???????????????????? No notes.

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Unlocking Investment Potential of

A. Access to credit and investment finance

Western Province
3.3 Key Recommendations of the conference

Relevant authorities and agencies such as KEN-INVEST, the Ministry of Trade and Industry, microfinance institutions, should undertake regular training programmers and disseminate information on how to access finance and investment opportunities, to local entrepreneurs at the location and constituency levels. Banking and finance institutions should tailor their services and terms to suit the needs of the region. Residents of the region should learn to pool resources, to form large capital bases for borrowing and investing locally and nationally. Local entrepreneurs, professional associations, SACCOS and communities should take advantage of opportunities offered by mortgage agencies such a s National Housing Corporation, Shelter Afrique and Housing Finance Company of Kenya to invest in real estate in Major towns such as Busia, Malaba, Bungoma, Mumias, Webuye, Kakamega and Kitale. Residents and entrepreneurs in the region should pool resources and create medium size financial institutions that are relevant and sensitive to the needs of the region. Financial institutions are encouraged to increase access to their services through expansion in the region. Parents, leaders, educational institutions, professionals and the communities in the region, are obligated to instill and inculcate an enterprise culture among the youth. Each constituency in the region should establish an investment committee to explore how to promote a culture of enterprise and growth of investments in the constituency. Communities in the region should promote a culture of saving and the use of savings as capital for investment. Each constituency should convene annual investment forums to review investment issues and to create links with regional and national developments. Residents should take advantage of the government privatization program, to invest in companies in the region and elsewhere slated for privatization such as Golf Hotel, Nzoia Sugar Company, and others. National institutions mandated to promote enterprise and local investments such as, the Kenya Investment Authority, the Export Promotion Council, Entrepreneurs in the region should learn to start small and grow their businesses through gradual investment. Communities of the region should learn to maximize the use and gains from their assets such as buildings and land, to generate streams of income.

B. Enterprise development and wealth creation

C. Promoting trade and commerce

Inland dry ports should be established at Busia and Malaba, to take advantage of the growing regional trade and abundant labour in the province. Export Processing Zones should be established at the border of Busia and Malaba towns to take advantage of the proximity of the region to regional markets in Uganda, DRC, Sudan and Rwanda. This will further create job opportunities. Residents and entrepreneurs in the region should take advantage of the strategic location of the province and intensify utilization of International Airports in Eldoret and Kisumu to export produce from the region.

D. Creating a healthy environment for investment

The Ministry of Local Government should streamline the issuing of business licenses and reduce the

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number of licenses required to conduct business in local authorities. Procedures for obtaining business licenses should be simplified and made more efficient. Residents of the region, should exploit investment opportunities in the Agricultural sector especially ; food processing, cereals production, root crop production such sweet potato and cassava; Bee keeping; Horticultural crops e.g. Groundnuts, Mangoes, Water melon, Passion fruits, Avocado and Bananas; Dairy farming; Animal skins and Hides, and Composting of organic manure. Institutions concerned with the development and promotion of improved crop varieties such as KARI and HCDA should intensify research and promotion of high value crops at constituency level in the region. The Ministry of Agriculture and co-operatives should support local farmers in each constituency, to pull resources and form co-operatives and to buy farm inputs in bulk at wholesale prices. Farmers in the region should give priority to the adoption and production of early maturing varieties, of high value horticultural crops and cereals as opposed to slow growing and unproductive traditional varieties. Stalled agriculture projects such as Sangallo artificial breeding project, Emuhaya dairy, Kitinda dairy and Ikolomani Heifer project should be revived Promote greenhouse farming projects, and other small-scale high value crop and livestock production among youths, who do not have access to much land. Farmers in the region should be facilitated to visit regions that have successful agribusiness enterprises such as the Rift Valley, Central Province and Eastern Province.

E. Agricultural production

F. Value Addition

High priority should be given to promoting investments in small and medium value adding processing industries, of agricultural produce to reduce losses incurred by the sale of raw products. Residents should invest in value adding industries such as fruit processing and packaging; grain milling and packaging; dairy processing, Leather production, food oil production and processing, honey refining and packaging; mineral water bottling. Tax incentives should be provided to promote value-addition of sugarcane by-products, such as news print paper, charcoal briquettes, ethanol from bagasse and pure water. The sugar industry and local entrepreneurs should invest in sugar-related high value products, such as industrial sugar. The Ministry of industry should promote establishment of a confectionery industry in the region... Farmers in each district of the region, should pool resources to establish bulk grain handling, milling, packaging and storage facilities for the local and export market. Potential exists in the development cold storage facilities for milk, fish and horticultural produce.

G. Education and development of the human potential

To discourage idleness, leaders should provide visionary leadership and encourage youth to utilize knowledge gained from tertiary institutions, and financial support from micro-finance, to engage in productive small enterprises. Residents should invest in the establishment of professional and vocational training institutions to build much needed skills of young people in the region and reduce the export of educational financial incomes to Nairobi. The region should tap on its immense sporting potential and invest in sports academies for girls and boys to develop excellence and professionalism, in all areas of sports. The creative potential of schools in arts, music and dance should be tapped and converted into an income and employment generating industry for the region.

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Unlocking Investment Potential of

H. Infrastructure development I. Application of ICT

Western Province

Diversify production of energy in the region by utilizing available renewable resources such as rivers, bagasse from sugar industry, bio fuel form plants and animals-review the power purchase agreement: co generation of electricity Priority should be given to the development of feeder roads and access roads to the region. Entrepreneurs and residents of the region should take advantage of the huge potential offered by the terrestrial fiber optic cable linking Kenya to the Great lakes region to establish ICT based business solutions, internet marketing and Business process outsourcing ventures. ICT literacy should be promoted at all levels to act as a primary driving force of enterprise growth in the province. Each constituency in collaboration with the ICT-Board and the Ministry of Education should establish at least two ICT literacy centers. KEN-INVEST should conduct training for local entrepreneurs on the benefits of ICT in business. Leaders from the region should support the development of Molino University for Science and Technology into a center of excellence in ICT research and technology development. Institutions of higher learning in the region should introduce professional studies in ICT application to take advantage of the regions human resource potential. KEN-INVEST, ICT Board and KIRDI should promote the establishment of call centers and BPOs in the region to take advantage of the human resource potential and excellent English language accents. An ICT Think Tank should be established to review and propose viable options for the application of ICT in the region.

Leadership quality

Leaders in the region should an example by leading through vision as opposed to spending most of their resources and efforts on their political survival, at the expense of unity and economic growth of their constituencies and the region. The spirit of togetherness portrayed at the WEPIC forum should be the basis of future action to promote investments in the region.

Development of Health Services

Enterprising medical professionals and residents should capitalize on the great demand for health services and establish private hospitals, health centers, clinics and medical laboratory services. The government should establish referral health hospitals in the region.

Transport and Communication

Residents of the region should pool resources and invest to meet the huge demand in the goods and passenger transport sector. Sugar cane farmers should form investment groups and purchase tractors through financial institutions to transport sugarcane. Investment should be made in a bicycle and motorcycle assembly plant in the region. A regional airport should be developed at Kakamega. Lake Victoria should be exploited as a cost effective transportation and trading link between Kenya, Uganda and Tanzania. A medium landing port for lake steamers should be developed at Port Victoria or Sio-Port in Samia. Entrepreneurs should exploit the demand for accommodation and invest in quality medium and large size

7.5 Tourism and Hospitality Services

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hotels, conference facilities and guest houses. The Kenya Tourism Board should build the capacity of local entrepreneurs to invest in scenic and cultural tourism taking advantages of the regions potential.

Resolutions of the Conference

After deliberations at the conference the participants resolved to liberate the people of the province out of poverty. The conference resolved that: WEPIC shall be an annual event to be held every October. WEPIC structures shall be formalized with the current organizing committee as Interim Officials. WEPIC Interim Officials shall develop an Investment Plan of Action for purposes of spearheading investments to be released as part of the Conference Report. WEPIC shall be the Consultative forum on investment and shall formalize identification and establishment of potential investment vehicles for the region. WEPIC shall offer effective social and economic leadership both at constituency and regional levels. Promote the creation of constituency investment committees and investment Forums. Promote Western Kenya as a prime investment hub in the country. Encourage financial independence and entrepreneurship culture among the people through training and awareness creation. Mobilize resources to foster and effectively institutionalize the spirit of philanthropy and corporate social responsibility. Political affiliation shall play no role in the activities of WEPIC.

Emphasized need for provinces leaders to break cycle of poverty

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Unlocking Investment Potential of

The Western Kenya Investment Conference
3.0 Opening Addresses 3.1 Welcome Address by Kibisu Kabatesi, Secretary WEPIC

Western Province
3.3 Opening Remarks by Minister of State for Economic Planning, National Development and Vision 2030, Hon. Wycliffe Ambetsa Oparanya

Mr. Kabatesi thanked the participants for turning up in large numbers to the inaugural and historic conference on investment in western province. He said that the conference was looking forward to open and constructive contributions from the participants. While recounting the organizing history of the Conference, he expressed gratitude to the role played by Members of Parliament from the region. While paying tribute to the Prime Minister for his presence at the conference, Kabatesi introduced the various categories of participants saying they were a good sample of the provinces leadership. He noted that the broad aim of the conference was to encourage local investment in the opportunities that exist in the region by individual entrepreneurs, partnerships among local investors and partnership with external investors. He appealed for commitment, dedication and patients since WEPIC was a process of economic empowerment that could take long to realize.

Hon. Oparanya observed that the conference was a vehicle for the people of Western Province to achieve vision 2030. The minister was thankful to the Prime Minister for encouraging such events as WEPIC to be held in various parts of the country to deliberate economic issues affecting the local people.

3.4 Opening Address by Deputy Prime Minister, Rt. Hon. Musalia Mudavadi,

3.2 Welcome Remarks by Prof. Barasa Wangila Vice Chancellor Masinde Muliro University of Science and Technology (MMUST)

The Vice Chancellor said that the University was happy to host the conference and noted that the Visit by the Prime Minister to the University was an honour. The Vice Chancellor said that MMUST was a young institution faced with challenges of growing up; particularly inadequate amenities for its students and staffs. He observed that there was a serious housing and transport problem; and that these were opportunities for investment.

In his address to the conference, Rt. Hon. Deputy Prime Minister, Musalia Mudavadi reiterated the purpose of the conference as being to find out where and how people of Western Province themselves could invest in economic activities such as agriculture and horticulture: manufacturing; transport; banking; tourism; energy; trade and commerce; fisheries; education and ICT. He pointed out that the conference was as a result of a consultative process by all MPs of the region united in finding ways to liberate their people from poverty. He said that the reason the MPs had come together as leaders was because their pride as leaders had been hurt; the fact that they always lead the poor. Hon. Musalia told participants that there was no dignity in being poor and worse, being a leader of those who have lost their dignity because of poverty. Hence the need to liberate people from poverty. Embracing the spirit of entrepreneurship was the way out of poverty, he said. He further observed that the entrepreneurship spirit begins when we shun the culture of dependency instead save and invest the little we get and do things for ourselves. He encouraged participants to take loans, invest wisely and create wealth noting that one cannot create wealth if he or she fears loans. That if you dont owe

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anyone, the likelihood is you will remain poor since nothing will propel you to prosperity. Hon. Musalia called for urgent work on the Kisumu-Webuye-Kitale highway to facilitate goods and services. He called on the people to take advantage of the new Kisumu International Airport by investing in ventures such as horticulture.

3.5 Keynote Address by Prime Minister, Raila Odinga

In the keynote address to the conference, the Rt. Hon. Prime Minister for the Republic of Kenya, Raila Odinga said that he was proud of the people of Western Province for their desire to rid themselves of poverty and that he was happy to be part of the launch of a process of economic emancipation of the people of the region. He noted that the event was the first ever high level investment conference in the province whose objective was a blue print for the development of investment in Western Province. He was pleased that the event was held at Masinde Muliro University of Science and Technology, an institution named after a great nationalist whose role in Kenyas struggle for political freedom cannot be gainsaid. Masinde Muliro was a pioneer of investment. It was therefore befitting to make history with WEPIC, said the PM. Hon. Raila said that the government no longer involves itself in investments but only facilitates and therefore people themselves should initiate investment in their regions if they are to prosper. He challenged participants to abandon the culture of dependency and culture of overspending especially on funeral ceremonies where large sums of money are spend on feasting or on transporting the dead in the name of culture. He instead asked the people of the region to save and borrow money from banks in order to invest and create wealth for themselves through entrepreneurship. He adviced the people not to solely look at civil service as a potential employer but look unto themselves as potential employers too. The Prime Minister asked participants to shun the culture of Give me Something instead borrow from the Jewish culture where they never say give me rather say lend me

meaning that they will invest, make a return and refund. He asked the community to mobilize resources and invest in upcoming sugar sector privatization and also sale of Golf Hotel among other government privatizations. The Prime Minister observed that the region was blessed with good climate and amble rainfall. These, coupled with adequate and educated labour pool and a hardworking populace, the region had a potential for accelerated growth. He was gratified to note that the conference was a partnership between the community and investment partners- KenInvest and LBDA who the PM noted could advice on investment potential, strategies and partnership.

3.6 Vote of Thanks

In a vote of thanks, Minister for Housing, Hon. Soita Shitanda thanked the Prime Minister for gracing the occasion and welcomed him to tour the region and encourage the people to invest. Hon. Soita also thanked all stakeholders who took time to be part of the conference. He thanked all the dignitaries, fellow MPs and participants for attending the historic occasion. The minister was grateful to Equity Bank and Mumias sugar company for sponsoring the event. He also thanked KenInvest and LBDA for their role in making the occasion a success and looked forward to other cooperates in partnering with WEPIC.

Embracing spirit of entrepreneurship is way out of poverty Mudavadi

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Unlocking Investment Potential of

4.0 An Overview of Western Province 4.1 Situational Analysis: Addressing Impediments to Investment in Western Province by Prof. Wafula Masai
Prof Masai presented an overview of economic activities and a SWOT analysis of the investment environment in the province. He identified position, large population and fertile agricultural soil as the major strength of the province. The strategic geographical location in East Africa offers opportunity to trade not only with other parts of the country but also Uganda, Tanzania, Sudan, Rwanda, Burundi, and Democratic Republic of Congo. The large population size which is demographically well distributed and rapidly growing implies a large potential consumer market. Fertile agricultural land, a good climate is a potential for production of a wide range of food and cash crops and of livestock. Other strengths of the province include vast natural resources such as forests, rivers and minerals, a reasonably well educated and receptive population; and a well- developed trade and distribution network of wholesalers and retailers. Weaknesses of the province include retrogressive values, poverty and poor infrastructure. Much of the population of the region (56%) lives below poverty line and can hardly raise capital for meaningful investment and wealth creation. Retrogressive values include negative attitude toward business or self-employment; dependence, superstitions and beliefs; and inappropriate life philosophies. Poor work ethics reflect an absence of enterprise spirit; lack of the do-it-yourself culture, lack of self-confidence, and lack of networking capabilities. The rate of dependency is high. This hinders those employed from saving and creating capital for investments as they can hardly save for investment. The region has poor infrastructure (roads, water and sanitation, and energy supply). Access to the outside market is therefore impeded or expensive thus reducing the profit margin from produce as a result of transport costs.

Western Province
Opportunities identified include a projected economic recovery related opportunities and emerging East African community market, COMESA, Africa Growth and Opportunity Act (AGOA). Threats identified include uneven competition and exploitation by middlemen, natural calamities, a dynamic and fast paced global environment, rapid technological changes, brain drain and inadequate recurrent and development funding.

4.1 Constituency profiles

Kwendo Opanga presented constituency profiles for each of the 27 constituencies of Western Province. It was noted that in spite of being endowed with good climate, amble rainfall and highly productive land, Western Province is always in perpetual poverty and remains one of the poorest regions of our country. According to figures provided by the presenter and according to the 1999 census, the population of the region stood at 3.27 million. 1.99 million were classified as poor. According to data from the poverty reduction strategy paper, the region has 52 percent food poverty and an overall poverty level of between 48 and 67 percent. The data further shows that educational and agricultural standards are on decline as is access to health, water and infrastructure development. In response to the presentation the presentation participants while concurring with the presenter on the perpetual poverty in the region queried the accuracy of the figures presented. In particular, Prof. George Eshiwani questioned the validity of the figures presented. Information obtained from the KNBS Constituency Report on Well-being in Kenya- a report based on Kenya integrated Household budget survey-2005-2006, more than half of the provinces population of 4.3 million is currently living in poverty. In spite of decline in incidence of poverty from 60.8 in 1999 to 53.1 percent in 2005/2006, majority of households in the province remain some of the poorest in the country. Among the constituencies, poverty incidence ranges from 36.0 percent in Bumula to 71.1 percent in Butula constituency. 24 constituencies in Western Province contrib-

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ESSENTIAL FACTS ON WESTERN PROVINCE

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Unlocking Investment Potential of

ESSENTIAL FACTS ON WESTERN PROVINCE

Western Province

ute almost 14 percent to the national poverty. Of the 24 constituencies 5 constituencies have a poverty incidence of above 60 percent. With an estimated 2.3 million poor people, 47 percent of the poor are concentrated in one-third(8) of the 24 constituencies, namely: Lurambi(5.3%), Kimilili(7.1%), Lugari(5.8%), Sirisia(5.5%), Webuye(5.2%), Nambale( 6.3%) and Amagoro(6.4%). In the province, close to 312,000 people were added to the ranks of the poor between 1999 and 2005/6. Poverty is strongly associated insecurity and strife and the above figures imply that the province may further deteriorate in poverty rising to despair, social ills and insecurity. Participants were unanimous that chronic poverty paints a negative picture of the provinces professionals and political leaders. The societies educate and invest in its people so as to find solution to its problems. The responsibility on solutions to societal problems rests on the educated members of the society and those given responsibility to lead them. The responsibility requires insight and prudence in articulating these problems. As evidenced by enthusiastic participants at the conference, the people of Western province are

eager for a new beginning in wealth creation, robust growth, prosperity and liberation from poverty.

4.1 Cultural Impediments to Investment in Western Province by Prof. Hellen Mwanzi

5.0 Although culture in general has served the people of the region well in terms of rule of law and family cohesion, Prof. Mwanzi noted that there are some specific cultures that are hindering investment in the region. She in particular identified social activities such as rites-circumcision, weddings and funerals that take heavy expenditure at the expanse of saving and investment. She observed that the people of the region have developed a culture of dependence on hand-outs from working relatives instead of working to meet their various need. This attitude does not encourage savings and investment those working must feed the handout culture. 6.0 She noted that farm work has great potential of creating wealth but people from the region have contempt for such work. They

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would rather live in urban areas where they do casual jobs for meager wages so long as they are regarded as employed. She also noted that beliefs and superstitions were hindering people from investing and urged the people to discard retrogressive cultures and beliefs. 7.0 She was apprehensive that that the little investment done in the region was in form of sentimental (show-off) residential houses or rural homes that were only inhabited on few occasions. She urged a shift to instead construction of rental houses that could fetch long term returns.

5.0 Investment Interventions 5.1 How to create an enabling environment for investment: Example of higher education as a catalyst by Prof. End Sibilike K. Makhanu. DVC (Administration and Finance), MMUST

and saloon at 22 percent; Accommodation and related services at 17%; Food, fruits and farm produce 16% and internship and entertainment at 12% and 10% respectively. Other items include education equipment at 8%, transport at 8% and stationary at 7%. These items create various opportunities in which the locals can tap into. For Example, Accommodation needs there are about creates business opportunities in which locals could invest in buying land and constructing hostels, houses for staffs and shopping malls for businesses. Currently the 20 private hostels in Kakamega are not enough while staffs face an acute shortage of houses to rent. There are therefore begging investment opportunities not only in MMUST environs but in constituent colleges of Ebunangwe in Emuhaya and Sangalo in Bungoma. In his concluding remarks, Prof. Makhanu pointed out that MMUST had demonstrated

Prof Makhanu in his presentation described investment as a function of demand for goods and services. He pointed that an investor needs to be assured of profitable returns before putting resources into any venture- something MMUST, being part of higher education had done for the locals. Prof. Makhanu noted that the establishment of the university and its subsequent continued expansion in the town, and in Bungoma and Emuhaya, had created enormous opportunities for various investments. The VC demonstrated how MMUST had spurred development in the otherwise docile town of Kakamega. He cited the areas of housing, food, banking, hospitality, health, recreation and accommodation, transport and construction. The professor noted that as a result of rapid and continued expansion, the university was experiencing an acute shortage of hostels and houses for students, teaching and non-teaching staffs as well as business people. He told participants of investment opportunities that exist by relating the typical characteristics of spending by MMUST students whereby Ksh1, 250,000,000 is spent annually. Items with highest proportionate spending were; personal effects such as toiletry, cloths,

ESSENTIAL FACTS ON WESTERN PROVINCE

creating and availing, and also increasing investment opportunities in Western province by directly injecting of a bout Ksh 750million in various sectors. As a result many investors such as banks, super markets, hardware and hotels of individual investors were trooping into Kakamega. Unfortunately, the opportunities and advantages are not being used by the local investors.

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Western Province
youth. Ms. Sabana noted that enterprise culture starts with personal behavior where individuals begin to be creative in solving their problems. Individuals begin to identify situations that may provide opportunities to create wealth. They take advantage of problems and find ways of making money by creatively or innovatively providing solutions that will require people to buy their solution. For example, an enterprising individual who comes across a heap of scrap metal will see an opportunity to make money while one with no enterprise orientation will see the heap as a problem. Unfortunately, the people in the province have a negative view of money and wealth. She said it is time for re-orientation of children and the youth about honest wealth creation rather than the habit of demonizing riches by communities, the school system and the Church. Hence an encouraging climate for enterprise requires supportive social relationships and networks such as family and an environment that is conducive for enterprise such as incentive systems, enterprising neighborhood and places. Therefore Parents, professionals and the community have a duty of instilling and inculcating enterprise culture. This she said can be done through encouraging both the youth and the old to pursue or venture into businesses. She further noted that in the event of failure of business people should be encouraged to pick up and move on, that failure in business is acceptable and can provide an opportunity to learn. People should marshal resources- personal strength (Can do attitude), networking and adaptability so as to forge a head in business. People should be encouraged to take risks and also to admire success and not to treat money success with suspicion as it is with majority of people of Western Province. Ms Sabana said that efforts need to be dedicated to exploiting unmet needs with special interest of valueadded exports of goods and services in the region. She said ICT literacy at all levels can be a driving force in enhancing robust entrepreneurship growth in the province.

5.2 Enterprise culture: The key to economic regeneration of Western Kenyans are province-Presentation by Beatrice faced with Sabana unprecedented
social change

An enterprising individual who comes across a heap of scrap metal will see an opportunity to make money while one with no enterprise orientation will see the heap as a problem. Beatrice Sabana, an entrepreneurship development and microfinance consultant, noted that Kenyan were faced with unprecedented social change which has brought about great levels of uncertainty needing a refocus on how we earn our living. The refocus should be on innovative ways of earning a living i.e. entrepreneurship. Entrepreneurship culture should be inculcated to inspire and awaken enterprise culture among the people of Western Province more so the

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5.3 Unlocking the investment potential of Western Province by Dr. James Mwangi (MD, Equity Bank)

distributed to farmers in readiness for a partnership in two Avocado extraction factories in two years time.

Equity Bank will support 2 best students in each district of Western Province where Equity Bank has a branch to pursue secondary education.

In his introduction the MD noted that Equity Bank aims to transform the lives and livelihoods of the Kenyan people socially and economically by availing them modern, inclusive financial services that maximize their opportunities. The MD outlined various forms of investments that included; Trade premises kiosks, retail shops, wholesale trade outlets Income generating assets lease/operating assets matatus Development of assets-planting coffee, tea, sugarcane, tobacco Increasing working capital-cereal/livestock farming Acquisition of assets farms, plots/homes, businesses Development or start ups Acquisition of businesses Social Investment-Education, health

5.3 A globally competitive and prosperous western province: Maximizing opportunities under Vision 2030 by Dr. Wahome Gakuru

Savings:

The biggest form of financing investments is sacrificing present consumption, converting the same into investments. Propensity to consume versus propensity to save. The MD presented a profile on Equity Bank and why the bank had taken special interest in Western province by opening 10 branches. He said 60% of the staffs working in the new branches will come from the locale. The bank will also support; fisheries, cereal and dairy farming, tobacco and sorghum farming. Beside, the bank will support 2 best students in each district of Western Province where Equity Bank has a branch to pursue secondary education. The bank had also supplied 1000 Avocado seedlings each to the 27 constituencies to be

Dr. Wahome explained the current economic situation in the country and poor the performance of Western Province in the national economy and growth. Key sectors identified as having greatest potential in the next 5 years and which the province can venture into included; Tourism/Hospitality,/Travel, Agriculture, Wholesale and retail, Manufacturing, BPO( bio fuel, petroleum and mining), exports to Uganda and Sudan, Education, Infrastructure, ecosystems and financial. In Agriculture for example, agro processing can be undertaken where value-addition is done on produce rather than exporting in raw form. Dr Wahome also highlighted areas requiring policies intervention to unlock investment potential of the province as macroeconomic, political governance, legal systems and social conditions. Some of the drawbacks to investment by people of Western Province include: Incorrect beliefs about how money is obtained One attitude is that money is got from being hired for a job disconnected from any actual value that the job may create Another attitude is that money is something you get as a hand-out from someone who is lucky to be more fortunate than you Reality is money comes from creation and exchange of value Money is viewed as a tool for making a statement through acquisition of things car, TV, furniture, clothes etc. Money should be viewed as a tool for creating wealth through asset acquisition or enterprise creation

Attitudes towards the uses of money

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He identified major strength and opportunities for western province as follows;
Strengths of Western Kenya Very large population Larger economy than many African countries High population density Fertile soils, warm climate and plentiful rainfall Heavy rainfall, streams, and rivers Kakamega Forest and Kaimosi Forest Investment potential exists in the establishment a Honey value addition and packaging plant Over 22 sub ethnic groups cultural diversity Proximity to Uganda & S Sudan provides a large export market Success of Kenyan rugby team dominated by individuals from Western Kenya Success of womens volleyball with a strong western Kenya representation Large manufacturers e.g. Mumias Sugar, Nzoia Sugar, PanPaper

Western Province
Benefits/ Opportunity Significant potential scale in serving local region Potential for the level of economic diversity found in any nation Low cost of transporting goods to local markets Achieve self-sufficiency in food production Achieve clean running water for all Tourism

Cultural tourism Pricing advantages compared to Nairobi manufacturers & producers because of lower transport costs Develop sport further to create greater publicity for the region; Sports Tourism Develop sport further to create greater publicity for the region; Sports Tourism Build ecosystems that transform the communities e.g. through local sourcing

Attitudes towards Small Business

A white-collar job is viewed as the ideal outcome of education People who have been unemployed for a long time will continue to classify themselves as job seekers even though there is no realistic possibility of a job anytime soon Micro-enterprise is usually taken up as a very last option when all else has failed Micro-enterprise needs to be viewed as a better opportunity than many jobs that pay minimum wage

Perceived Barriers to Starting Small Business

The notion that capital (or something beyond their reach) is the biggest barrier to starting a business Train people to go into enterprise using the resources they currently have in hand their skills, the family land, their contacts etc.

creation in the region. He cautioned that dependence on subsistence crop production especially maize, the unpredictable weather patterns and poor marketing strategies were constrains that offered opportunity to venture into other alternative wealth creating activities. The proposed investment programs that can do well in Western Province include tourism, agri-business and agri-export processing zones and livestock and meat processing. In tourism investment can be in high value tourist cottages, 1 & 2 star hotels, restaurants and highway motels. Other potential investments in tourism in the region include guest houses and boutique, honeymooner cottages, experiential cultural tourism and tour operations. He noted that these investments could be done individually or through community, and small-level participation.

5.4 IP&MD- Investment models for Western Province by Ken Manyala (GM, KenInvest)
Mr. Manyala identified tourism, manufacturing, agriculture and livestock, ICT and business processing, financial sector and wholesale and retail as sectors that could realize wealth

5.5 Investment opportunities at regional and constituency level by Joseph Khaemba (MD LBDA)

Mr. Khaemba identified seven potential areas of local investment in western province Dairy produce; Poultry; Agro-processing and value addition; sugarcane production; fisheries development; hydropower generation and; cultural and ecotourism.

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It was noted that dairy industry had previously been doing well in the region citing Kitinda Dairy in Bungoma and artificial insemination services of the past but the industry had so far collapsed. Poultry was identified as an area of great potential as the region has many urban areas and bordering major towns that have ready market for eggs and chickens. Agro-processing and value addition in horticulture has potential for wealth creation since the region produces many agricultural produce such as Simsim, Soya beans, Cassava and other vegetables. Other potential areas identified were, sugarcane production in Busia; fisheries (ponds) development- possible in all constituencies because of adequate water; hydro-power generation along the many rivers in the region, and ecotourism. He said LBDA had already mapped the regions potential investment areas in terms of location, and investment participation (local, cross-regional and national). He was of the view that communities start and own hydropower and irrigation projects. Regarding ecotourism Mr. Khaemba said that people should invest in accommodation and conference facilities to capitalize on the anticipated tourism boom in the region and neighbouring Kisumu. He proposed that people invest in developing home stays, camps and picnic sites that tourists prefer to expensive hotels.

farmers who will be selected and Ksh26.5 million for GIS mapping of suitable sites, training and extension. These will place 357 acres under fish farming(0.3% of the potential) .The province will have a Tilapia production capacity of 1,800 tones valued at Ksh250 million shillings when the project is up running. This move will create 4,800 direct rural jobs and it will generate an initial annual feed demand of Ksh106 million shillings. Initial demand for Tilapia seed will be Ksh4.3 million with a market value of Ksh12 to Ksh21 million rises in subsequent years. The minister observed that if aquaculture is fully exploited in the region it has the potential of creating over 140,000 direct and indirect jobs. There will be annual fish feed demand of over 400,000 tons that people could invest in. For investment, farmers can establish seed multiplication centers as distribution points to tap into a projected over Ksh.1billion shilling seed demand. He proposed that academic and research institutions in the region establish Tilapia breeding center to supply the anticipated demand of seeds.

5.7 Diaspora as Key investors by Shabanji Opukah

5.6 Investment opportunities in the fisheries sector in Western Province by Hon. Dr. Paul Otuoma (Minister for Fisheries Development)

Hon. Otuoma presented a profile of the fishing industry where he cited the success story of the Indonesian fish industry. He proposed a replica in Kenya and more so Western Province that enjoys adequate water. He said that there was overwhelming demand for fish, hence the investment opportunity in the fish industry. and He profiled a programme where Ksh192 million has been allocated to 24 constituencies in the province of which Ksh 120 million were subsidies to farmers for contraction of 4,800 fish ponds; Ksh45.5 million as seed funding for purchase of production inputs to the 4,800

Mr. Shabanji noted that there were many sons and daughters from the province living and working abroad and were potential investors to the province. He noted that despite the recent economic down turn globally; the Diaspora should be encouraged to invest in the emerging opportunities such as Real estate, stock market, agriculture and horticulture, Exports and imports and tourism and travel. He observed that remittances from the provinces Diaspora run into millions of shillings but the money is consumed inappropriately instead of being invested.

5.8 Mumias Sugar Companyopportunities in the 21st century/ Value addition by Evans Kidero (MD Mumias Sugar Company)

In his presentation the MD noted that despite challenges facing the sugar sector such as full liberalization, COMESA 2012, high taxation,

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low crushing capacity, low productivity at farm and factory level; and high cost of inputs, the sugar industry has a bright future if investment in put into it. The MD pointed areas such as, Sugar fortification, Bottled water, Cane juice and other sweeteners that are good for value additions opportunities. Other potential areas for investment in the sugar industry and that are already running include electricity from bagasse, biofuel-ethanol and animal feeds from molasses and fertilizer from filter mud. Mr. Kidero said the company encouraged procurement from the local community but noted that the people lacked capacity. He called for local investment in transport to take advantage of business at Mumias.

Western Province
issues a general authority, which enables the investor to commence immediate implementation of the investment while obtaining the required licenses. Investors in tourism sector enjoy certain incentives-exception from import duties and value added tax on the following items and equipment for hotel construction and refurbishment; washing machines; kitchenware; cookers; fridges and freezers; air conditioner systems; cutlery; television sets; carpets; furniture; linen and curtains.

5.10 The role of KenInvest in Investment Facilitation by Ms. Susan Kikwai (MD KenInvest)

5.9 Tourism Investment Opportunities in Western Province by Mrs. Eunice Khalwali Miima (Ag PS Ministry of Tourism)

He profiled a programme where Ksh192 million has been allocated to 24 constituencies in the province of which Ksh 120 million were subsidies to farmers for contraction of 4,800 fish ponds; Ksh45.5 million as seed funding for purchase of production inputs to the 4,800 farmers who will be selected and Ksh26.5 million for GIS mapping of suitable sites, training and extension. These will place 357 acres under fish farming(0.3% of the potential) .The province will have a Tilapia production capacity of 1,800 tones valued at Ksh250 million shillings when the project is up running. She further noted that tourism businesses Investments could also be in form of financial assets such as shares and other short term instruments or in patents and trademarks. She said that the region should wake up to the reality that the tourism sector was largely owed and driven by private sector and hence the government role is limited to the regulation and facilitative function. Ms. Miima urged prospective investors to familiarize themselves with laws concerning tourism. She told the conference that a prospective investor should obtain a number of approved registrations. The Kenya Investment Authority,

The Managing Director outlined the investment potential of Western Province and specific areas KenInvest can facilitate in exploitation. She observed that the strategic location and proximity of the province to Lake Victoria and both the Eldoret and Kisumu International Airports can accelerate growth in the region if the potential is exploited. She noted that falling under the Lake Basin Commission; the province has the potential of accessing a market of over 30 million people. (The Lake Basin Commission has an area covering parts of Kenya, Uganda, Tanzania and the Great Lakes Region countries with a total population of 224 million). Potential areas that can be exploited include; Development of cold storage facilities: This will improve incomes for farmers. For example milk or fish can be kept fresh for prolonged periods and can possibly fetch better prices in times of scarcity. Cold storage also enables value addition. The value added produce and products can then be exported through Eldoret and Kisumu airports. Development of an Inland port: This will enable handling and clearing of goods in the border towns of Malaba and Busia thus creating employment to the local population. Establishment of Free zones at the border towns: This will enable stocking of goods in bulk for export and value addition. This will further create job opportunities.

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Development of cold storage facilities will improve income for farmers

In her closing remarks the MD stated that KenInvest was willing to help entrepreneurs from the region as they venture into business in terms of market research, planning, investment promotion and facilitation among other entrepreneurship related issues.

5.11 Kenya Industrial Estate KIE by Pricilla Onacha (Chairperson, KIE)

Ms. Onacha told the conference that in the last 3 years, KIE has invested Ksh.26 million to 143 beneficiaries in the province. KIE in collaboration with the Ministry of Trade and UNDP have established a District Business Solution Centre in Bungoma to act as a one-stop-shop for SME growth needs. The same will be replicated in all the Proposed Constituency Industrial Development centers (CIDCs) countrywide (as part

of the Economic Stimulus package). Areas identified with SME potential include; Mini Creameries to process milk into yogurt and cheese and butter, etc. Horticulture activities such as fruit and vegetable processing and canning Tourism in the indigenous Kakamega forest and its exotic Flora, fauna, the wildlife, physical features) bull fighting and cultural festivals. Other areas with great economic potential are; Establishing tented camps in Kakamega Forest Establishing fish-filleting factories that have cold rooms/storage facilities. Oil processing plants to do value addition to Simsim, Corn and Sunflower grown in the region. Start commercial farming of oil seed crops Cross boarder trading

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Can our people be complled by law to take loans? Question from AG Amos Wako

Western Province

5.12 Investment in Information Communication Technology 6.0 Panel Discussions 6.1 Ministers Panel Discussions
Cabinet ministers held a roundtable discussion on various issues raised by the Moderator Kwendo Opanga and the plenary. Those on the panel were Deputy Prime Minister and Minister for Local Government Hon. Musalia Mudavadi; Minister for Housing, Hon. Soita Shitanda; Fisheries Development Minister Hon. Dr. Paul Otuoma; Attorney-General Hon. Amos Wako; Minister for Economic Development, National Planning, and Vision 2030 Hon. Wycliffe Oparanya and Assistant Ministers Hon. George Khaniri, Hon. Manyala Keya, Hon. Alfred Khangati and Hon. Bifwoli Wakoli The major concerns raised by participants at

the ministers panel were in regard to leadership, management of government owned industries in the region, and investment impediments and concerns. On investment the participants wanted to know how the government could help in starting up new industries such as dairy and agri-processing plants in the region and how it can bail out ailing industries and revive collapsed industries such as Pan Paper Mills Company in Webuye town. Participants suggested the use of CDF funds for investment purposes along with other uses. Participants were concerned with poor management of some of the government owned industries in the region saying that there was deliberate mismanagement so that the industries could collapse to pave way for privatization where rich individuals would buy the industries. With regard to starting and conducting businesses in the region participants were concerned at the many license requirements by

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Local Authority councils before one can operate business. The many licenses required was taking away the little profit that could be gotten thus defeating the whole purpose of investment to create wealth. The process of acquiring the licenses was also complicated and discouraged potential investors. Licenses requirement was particularly cited as a major impediment to small-scale trading in many towns in the region. Participants were also concerned at the very poor road infrastructure in the region. The poor state of roads e.g. the main Kisumu-Webuye-Kitale artery has seen sharp rise in costs of transportation due to high maintenance costs. Concerning leadership in the region participants said that elected leaders from the region were more concerned about personal political survival and welfare, at the expense of unity and economic growth of the region. Responding to the issue of government starting up industries in the region Hon. Musalia informed the conference that the government no longer invests and that privatization was an opening for individual or groups to grab the investment opportunities. He pointed out that access to credit was not an impediment in the region but fear of borrowing. He urged the participants to take the advantage of loan facilities the banks are offering. He said that government is reducing its shares in companies it owns so that there is no political or government interference in running of companies. Citing the case of Kenya Airways the he noted that before privatization KQ was performing poorly because of government interference in its business operation but once it was privatized the company began performing well. Regarding the many licenses required for one to start a business the Hon. Musalia who is the Minister for Local Government informed the conference that plans were already at an advance stage to have a single license regime. He said that his ministry had done a pilot audit in 11 municipalities to establish business environment and identify difficulties in doing businesses in the municipalities with a view of improving. Responding to the issue of investment using CDF funds the Hon. Amos Wako told the

conference that the fund was governed by a parliamentary Act and that CDF funds can only be used for investment purpose if Parliament amended the Act. On investment the AG caution participants to be wise in their business decision citing Mumias share sold to farmers at very competitive prices but farmers sold them at a throw away prices giving up their opportunity to own the company. Regarding leadership the AG said that leaders from the region should led by example such as what had just happened at the conference where leaders had come together to address an investment issue. It was observed that Western Province was experiencing serious housing problems. Hon Shitanda informed the conference that the NHC does not have the capacity to build enough houses in the region and that people should take the advantage and venture into real estate.

1.2 Panel for Members of Parliament 7.0 Break Away Group Reports
There were twelve break away discussion groups that discussed actual and potential investments opportunities in specific sectors. The group reports are as follows: Discussants identified six existing investment opportunities in the Agricultural sector; food processing- maize, millet and cassava; Bee keeping; Horticulture- Groundnuts, Avocado and Bananas; Dairy farming; Animal skins and Hides, and Compositing of waste and manure. Challenges to the existing opportunities were identified as high costs of farm inputs; fear of taking risk to invest; high capital base requirement; negative attitude and contempt for farming by the community; unpredictable weather, pests and diseases. On the way forward to overcome the challenges the discussants proposed that farmers pull resources together or form co operatives to buy farm inputs in bulks and at wholesale price rates, asked government to further subsidize farm inputs and an extensive education of farmers on various investment potential through Barazas and ex-

7.1 Agriculture and Natural Resources

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change programmes to other regions that have had successes in agri business. The discussants proposed revival of stalled agriculture projects such as Sangallo artificial breeding project, Emuhaya dairy, Kitinda dairy and Ikolomani Heifer project. The further proposed a Honey value addition and packaging plant and also marketing firms.

Western Province
such as bull fighting and utilization of natural resources. On the way forward discussants proposed capacity building in terms of marketing strategies, tapping into markets outside the region and purchase of assets such as Golf hotel, Tourists hotel Bungoma and Shinyalu forests

7.5 Tourism and Hospitality Services

7.2 Sugar Farming

Discussants identified Jaggery as the main existing investment opportunities in sugarcane farming. Poor infrastructure and high transport costs, poor marketing strategies and delay in payments for sale were cited as challenges to this investment opportunity. Ways to overcome challenges as discussed by the group include; large scale investment, diversify to other economic activities so that families do not entirely depend on sugar farming as an income, buy shares in sugar factories such as Nzioa to have control of the sugar business and lobby for sugar to be classified as a food commodity so there is Tax revision downwards. Proposed viable investments initiatives proposed by discussants for this sector include Electricity generation from bagasse. Early childhood development centers, private primary and secondary schools and tertiary institutions were identified as existing investment opportunities. Discussants proposed more private institution help handle high school enrollment rates. Building more private universities was also proposed. Maize mill, sunflower oil processing, tailoring, and bakeries were identified as existing investment opportunities. Challenges identified include lack of market for products, lack of skills to market products and high costs of production. Potential areas identified for investments were hotel industry, sugar industry, milk and juice processing, leather industry, Honey industry, Paper recycling, Cold storage facilities for farm produce, Bio fuels, Chicken and poultry, Bagasse, transport and Tourism activities

Discussants identified the following as potential areas for investment in the tourism sector; hotel and accommodation; Training for tour guides and hospitality and developments and marketing of sites for tourists visits- Elijah Masinde site, Webuye falls, Chatambe fortress, Mungoma caves in Maragoli hills, the crying stone in Ilesi , Nabongo cultural center and Amahene site in Khwisero. Investment opportunities identified were; Construction of more private hospitals, Training for health personnel, Investments in diagnostic services such as special X-rays and scans, Special laboratory services, Physiotherapy centers, Chemists and pharmacies, gender based centers and recovery centers, health insurance facilities and construction of a referral hospital in the region. It was noted that the existing investments in the health sector in the region were not meeting the health needs of the locals because of poor management or poor funding. Investment opportunities identified were Matatus businesses, sugarcane transportation, road construction companies and goods transportation. The major hindrance to investment in this area was capital. It was suggested that individuals or farmers form groups and take loans to invest in this lucrative sector. For example farmers in the sugar industry can come together and buy tractors and tailors to load and transport their cane to the factory hence cut on transport costs and increase profits. This is possible with loans from banks such as Equity who can make special arrangements with farmers to purchase tractors and trailers at affordable and less cumbersome way.

7.6 Health

7.3 Education

7.8 Transport and Communication

7.4 Trade and Industry

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Unlocking Investment Potential of

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Western Province