Homa Bay Investment Conference Report Highlights Opportunities

Homa Bay International
Investment Conference
(HOBIIC, 2016)
POST CONFERENCE REPORT OF INVESTMENT
CONFERENCE HELD ON 18 – 19 FEBRUARY 2016
COUNTY GOVERNMENT
OF HOMA BAY
CONFERENCE REPORT
United Nations Human Settlements Programme
P.O.Box 30030, Nairobi 00100, Kenya;
Tel: +254-20-7623120;
Fax: +254-20-76234266/7 (central ofﬁce)
Infohabitat@unhabitat.org
www.unhabitat.org
www.unhabitat.org

Homa Bay International
Investment Conference
(HOBIIC, 2016)
CONFERENCE REPORT
COUNTY GOVERNMENT
OF HOMA BAY

ii HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
HOBIIC 2016
First published in Nairobi in April 2016 by UN-Habitat.
Copyright © United Nations Human Settlements Programme 2016
Produced by the Housing Unit
United Nations Human Settlements Programme (UN-Habitat)
P. O. Box 30030, 00100 Nairobi GPO KENYA
Tel: 254-020-7623120 (Central Office)
www.unhabitat.org
DISCLAIMER
The designations employed and the presentation of the material in this publication do not imply the
expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning
the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation
of its frontiers of boundaries.
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.
Homa Bay International Investment
Conference (HOBIIC, 2016)
CONFERENCE REPORT

iii
HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
HOBIIC 2016
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
Why Invest In Homa Bay County?.........................................................................................................................7
Overview of the Session..............................................................................................................................................................7
Speakers....................................................................................................................................................................................7
Key Messages from Presentations................................................................................................................................................7
Action Points..............................................................................................................................................................................8
Recommendation........................................................................................................................................................................8
Counties as Frontiers for Investment....................................................................................................................9
Overview of the Session..............................................................................................................................................................9
Key Messages.............................................................................................................................................................................10
Issues Arising from Discussion.....................................................................................................................................................12
Action Points..............................................................................................................................................................................12
Financing for Investment......................................................................................................................................13
Key Messages.............................................................................................................................................................................14
Issues arising from discussions....................................................................................................................................................15
Action Points..............................................................................................................................................................................16
Human Resources for Investment in Homa Bay County........................................................................................17
Key Messages.............................................................................................................................................................................18
Action Points..............................................................................................................................................................................18
Key Messages.............................................................................................................................................................................19
Launch of the Strategic Investment Plan..............................................................................................................19
MoU’s Signed.............................................................................................................................................................................21
Memorandum of Understanding (MoU)................................................................................................................21
A sample of some of the Investors present and their areas of interest............................................................................................23
Conclusion.................................................................................................................................................................................24
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
TABLE OF CONTENTS

iv HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
HOBIIC 2016
ACKNOWLEDGEMENTS
This report has been prepared by PricewaterhouseCoopers in collaboration with CEDIA – Utawala.

v
HOBIIC 2016
AfDB African Development Bank
BRITAM British American Investments Company
CIDP County Integrated Development Plan
CEC County Executive Committee
EPZA Export Processing Zone Authority
SEZ Special Economic Zone
FIRM Financial Inclusion for Rural Enterprises
HOBIIC Homa Bay International Investment
Conference
KAM Kenya Association of Manufacturers
KCB Kenya Commercial Bank
KENINVEST Kenya Investment Authority
KENGEN Kenya Electricity Generating Company
KNCCI Kenya National Chamber of Commerce
and Industry
LAPFUND Local Authorities Provident Fund
LPO Local Purchase Order
MOU Memorandum of Understanding
SACCO Savings and Credit Cooperative
SIP Strategic Investment Plan
USAID United States Agency for International
Development
GLOSSARY

vi HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
HOBIIC 2016
Overview of HOBIIC
The Homa Bay International Investment Conference (HOBIIC)
report gives an overview of the issues discussed at the inaugural
Homa Bay County International Investment Conference whose
theme was “Unveiling the Bay of Investment Opportunities”.
The conference was held at the Homa Bay Tourist Hotel from
18th
– 19th
February 2016.
Conference Objectives
The main objective of the conference was to attract strategic
investors and venture capitalists for selected and prioritized
sector based investment projects. Additionally, the objectives
of the county were;
• To highlight the county’s strategic role in the development
of the Southern Nyanza region as an industrial and trade
hub as well as an emerging tourist destination owing to
its location along the longest shoreline of Lake Victoria.
• To lay a foundation for the county government’s long term
engagement with the private sector and development
partners in the implementation of its Strategic Investment
Plan (SIP 2016-2020).
The projects were drawn from the Homa Bay County Integrated
Development Plan (CIDP 2013-2017) and the county’s Strategic
Investment Plan (SIP 2016 – 2020). The county government
presented 39 projects that have been prioritized for investment,
clustered in three main sectors namely;
EXECUTIVE SUMMARY
Cluster No. of Projects
Infrastructure, renewable energy and ICT 16
Agribusiness,Trade and manufacturing 14
Social Services and Tourism Sector 9

vii
HOBIIC 2016
The conference brought together more than 200 local and
international investors, policy makers, scholars, government
officials, private sector players, economists and the Homa Bay
Diaspora community. Over 30 local and international exhibitors
also participated in the event. The conference held forums
where investment related opportunities were shared through
presentations, thematic discussions and plenary sessions. The
thematic areas covered in this conference were;
• Why invest in Homa Bay County?
• Counties as Frontiers for Investments
• Human Resources for Investment in Homa Bay County
• Launch of Strategic Investment Plan
• Signing of Memoranda of Understanding
Governor Cyprian Awiti and his Deputy, Hamilton Orata attentively follows
proceedings at HOBIIC 2016. © County Government of Homa Bay

viii HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
HOBIIC 2016
Topics of discussion held as forum panels addressed the thematic
areas. The forum panel discussions were;
• Women in Business
• Counties as Frontiers for Investment
• Homa Bay Investment Opportunities
• Financing for Investments
• Breaking Barriers to Investment to Counties
The county’s Strategic Investment Plan (SIP 2016 – 2020)
unveiled during the conference, culminated in the signing of
a Memorandum of Understanding (MOU) between a number
of investors and the county government. The conference was
hosted by the County Government of Homa Bay in collaboration
with USAID Financial Inclusion for Rural Microenterprises (FIRM),
the Kenya National Chamber of Commerce and Industry (KNCCI)
and Kenya Investment Authority (KenInvest).
It was co-sponsored and supported by a number of investors
and partners namely PricewaterhouseCoopers (PwC), Strathmore
University, Delloitte & Touche, Kenya Investments Authority,
(KenInvest), Kenya Association of Manufacturers (KAM), Land
O’Lakes Inc., LAPFUND, Madison Insurance and Kenya National,
Chamber of Commerce & Industry (KNCCI). This conference
was preceded by three pre-investment conferences in four
counties namely Mombasa, Kisumu, Nairobi and Homa Bay.
The key messages from the thematic areas and panel forums
as discussed in the conference and action points, are outlined
in this report.
H.E Governor Awiti delivering his speech during the conference.
© County Government of Homa Bay

1
HOBIIC 2016
HOBIIC
CONFERENCE SESSIONS

2 HOMA BAY INTERNATIONAL INVESTMENT CONFERENCE
HOBIIC 2016
Panel of Women discuss investment opportunities.
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.

3
HOBIIC 2016
Speakers
Session Facilitator: Professor Jane Konditi
Panelists:
• Hon. Elizabeth Akinyi Manyala – MD, KENSOSUN East
Africa and representative of Kayole South Ward, Nairobi
County
• Gacoki Gacece – USAID Financial Inclusion for Rural Micro-
enterprises (FIRM)
• Elizabeth Kariuki – USAID Financial Inclusion for Rural
Micro-enterprises (FIRM)
• Njagi Mutwiri – Business Manager, Kenya Commercial
Bank, Homa Bay Branch
• Dr. Eve Obara – Kenya Literature Bureau
• Mary Muthoni – Chairperson, Kenya Women in Business
(Kenya National Chamber of Commerce and Industry)
Key Messages from Presentations
• Enterprise growth: Women must be willing to take
advantage of financial products offered by various
financial institutions to transform their small businesses
into enterprises.
• Partnerships: The county/women in business must use
viable value propositions to attract partners who can
invest in their enterprises. Women have to demonstrate
to partners on the viability of business activities they wish
to be financed, such that the returns outweigh the risks.
• Financial tools: Financial institutions offer different
financial tools for women entrepreneurs can use to
support their enterprises at different levels. Savings and
Credit Cooperative societies (SACCO) were proposed
as ideal financial vehicles through which women can
access financing, due to member driven governance,
and financing of agricultural commodities. SACCO’s also
offer better credit terms than many financial institutions.
Financial tools also available to businesses in Homa Bay
include; LPO financing, invoice discounting, agri-business
loans, SME loans, mortgages, bid-bonds, short-term
accommodation for loans, and tailored accounts.

HOBIIC 2016
• Networking and advocacy: Women make the largest
percentage of SME’s in Kenya at 70%. Overall, only 70%
of new businesses get to see their third year of operation.
There is need promote networking and advocacy among
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.
• Opportunities for women in Homa Bay County
Women in the county have been encouraged to set
up businesses targeting the education sector such as
bookshops and polytechnics.
Main Enablers
• Constitution - The Constitution of Kenya is friendly to
women enterprise.
• KNCCI is devolved hence can be accessed at county level.
The chamber is willing to set up business development
centers to mentor women in the county.
• Ministry of Industry, Investment and Trade, and Homa Bay
County CEC Trade are willing to provide business information
and opportunities to ensure enterprise growth.
Issues Arising from Discussion
A number of issues emerged during the general discussion.
Participants were particularly keen on the question of access
to financing especially for women, the youth and people living
with disability to enable them take up tenders.
Lack of access to information on tenders, stringent requirements
by financial institutions and lack of inclusion of women at the
grass-root level (in business caucuses) were sighted as key issues
that exclude women from shaping investment decisions. The
issues discussed include the following:

5
HOBIIC 2016
• Turn-around Time (TAT) for bid bonds by Kenya
Commercial Bank (KCB) is too long.
KCB has since centralized bid bond processing by moving
it to the branches, in turn greatly reducing the turn-around
time for bid bonds.
• Too many conditionality’s for startups that are
interested in accessing credit facilities.
Currently, financing of start-ups is addressed on a case
by case basis. That is, if a good proposal is submitted and
the business is determined to be viable then credit can be
extended. Entrepreneurs were advised to consider going
for unsecured loans that have less stringent requirements.
Alternatively, they can join a SACCO where they can also
borrow at lower interest rates.
• What does the county government intend to bring
to the table so that women entrepreneurs can
access finances?
Plans are underway to set up Homa Bay SACCO (in
collaboration with USAID FIRM) and in the long-
term developing it into a bank to accommodate more
entrepreneurs especially start-ups.
• The need for the formation of the women caucus in
the county so that grassroots women also take part
Caucuses exist in all the counties hence women are
represented at all levels. The Homa Bay county representative
to the caucus to the caucus is the late Hon. Monica Amolo.
KNCCI has been devolved and can be accessed at county
level, therefore participation of women at county level must
be strengthened.
The women were advised by KNCCI to select another
member to replace the late Hon. Amolo.
• What can county government do to increase
the level of awareness and access to tenders by
women?
Although this is a national government function, the county
government guides women in getting tenders in line with
the 30% procurement rule.

HOBIIC 2016
• Can the county government enter into an MOU
financial institutions/partners like Uwezo and
Youth fund to facilitate access to financing for
women and youth to enable them to be part of
the 30% procurement rule?
The establishment of SACCOs is expected to address
financing constraints faced by women to a larger extent.
A proposal can also be done to the Council of Governors
to work on MOU’s that will facilitate access to financing
by women and youth.
• A majority of the deaf people in the county are
challenged in establishing businesses and this is
further compounded by communication barrier.
Can the communication barrier be eliminated to
incorporate such special persons in development
matters?
This question was not responded to.
Action Points
• The Homa Bay County Government officials need to work
closely with KNCCI to set up a business development training
center in the county that will promote networking and
advocacy for women entrepreneurs.
• There is need to create awareness and education among
women on the various financial tools that are available and
the institutions that can accommodate their financial needs.
• Engage USAID FIRM for the formation of a Sacco and
mobilize the community to embrace it as their own
• County officials to follow up on the election of the next
representative to the caucus.
• The County Government to oversee the formation/
establishment of a local bank in collaboration with Deloitte
and Touché.

7
HOBIIC 2016
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
Overview of the Session
This session sought to unpack the various investment
opportunities presented at different levels, the factors that
favour investment in the county as well as give a highlight of the
enablers for investment identified by the County Government.
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
WHY INVEST IN HOMA BAY COUNTY?
Key Messages from Presentations
Homa Bay County presented a number of factors that favour
investment. They include the following:
• Security: The County has robust security which is an
enabler for investment/entrepreneurship to thrive.
• Availability of government land: The County
Government will facilitate and fast-track process to
enable investors to acquire/obtain land.
• Tax relief: The County Government will work with
national government to ensure that all the investors
are subjected to fair taxation such as rebates etc.
• Friendly legislation by the County Assembly:
The county assembly is working on policies and other
legislation that favour investment in the county.

HOBIIC 2016
• Establishment of a local bank:Working to develop a
local bank within the county that will promote access
to financial resources by local investors.
• Climate: The County enjoys friendly climatic conditions
all year round with hospitable, cheerful and welcoming
people who embrace investment and can be trusted.
Main Enablers
The county government has put in place a number of enablers
that support investment in the county. These are:
• Infrastructure: The roads are motorable for easy transfer
of goods. The recent expansion of the runway to 2.5
kilometres has promoted quick travel, as evidenced by the
commencement of Fly 540 flights to Homa Bay County. The
County has plans to develop a cargo port to accommodate
cargo air transport. The Deputy Governor has been in talks
with KAA on this project.
• Water: Avail water to all areas in Homa Bay County. It is
a devolved function
• Education: Currently the upgrade of Tom Mboya College
to University is ongoing.
• Healthcare: Improving the referral hospital to become a level
5 hospital, ensuring all sub-county hospitals are upgraded
to level 4 so that residents can access to quality health care.
• Energy: Working on reducing the number of power
blackouts. County government in talks with KETRACO
to put up a66KVA sub-station which shall increase the
quality and quantity of electricity transmission in the county.
The County is seeking investors to generate power which
can be in addition to supplying energy needs for the County,
sold to the grid.
• Land: Very rich, fertile, arable good for agribusiness
(Cassava, sweet potato, maize, horticultural produce).
• Banking infrastructure: Presence of various banks both
local and international, LPO financing – working with banks
to finance you to enable women and youth to do business.
Action Points
• Homa Bay County Investment Committee to oversee the
implementation of SIP
• County Government to identify investors that are interested
in acquiring land for investment in the county and facilitate
them.
• The County Government should push for the upgrading
of the Kabunde airport to accommodate cargo transport.
Recommendation
The County Government has been urged to continue follow
up with KETRACO on the setting up of a power substation
that will ease blackouts frequently experienced in the county.
Additionally, the County Assembly should pass policies and other
legislation that favour investment in the county. Hastening the
establishment of a local (community) bank is expected to be a
key agenda for the county.

9
HOBIIC 2016
Overview of the Session
The devolved government presents a shift in accountability. Consequently, investment opportunities are no
longer in major cities but in every level within the counties. Panellists gave insight on the shift in development
priorities at county level as well as how and why the county government must secure its investment potential
for its posterity.
Session Facilitator: Dr. Bob Arunga
COUNTIES AS FRONTIERS FOR INVESTMENT
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

HOBIIC 2016
Panellists
• Professor David Sperling – Strathmore Governance Centre
• Professor Mary Kipsat – DVC Academic, Maseno University
• Sammy Onyango – CEO, Deloitte and Touche’
• Barry Patch – Director, PwC
• Eric Ochieng’ – Kenya Association of Manufacturers (KAM)
• Linda Kagota – USAID FIRM
• Patrick Mwangi – Micro and Small Enterprise Authority
• H.E. James Ongwae – Governor, Kisii County
Key Messages
• Importance of Macro and Micro Economic
Convergence: Investment opportunities and priorities
be approached at both micro-level (county and neighbors)
and macro-level (regional). The county must position
itself to compete for investors with other counties in the
region as well as neighboring countries.
• Impact Investing: Investors employing 5 – 10 people
must be embraced and amalgamate the benefits. Impact
investing should be encouraged especially at micro-
level for investment opportunities of approximately USD
20,000 where investors make profit while having a deep
social impact to improve the lives of the community. The
county must align its development priorities to investment
priorities.
• Strengthening of non-financial indicators: The
county government should strengthen non-financial
indicators such as the dynamic, extra-ordinary, good
working relations, commitment and solidary of county
officials and leverage to create a sustainable environment
for investment.
• Developing Education to Improve the County’s
Human Capital: Education will help improve human
capital in addition to opening up opportunities for
investment through public private partnerships for projects
such as construction of hostels and staff housing among
other things.

11
HOBIIC 2016
• Competitiveness through the Development of
an Economic Bloc: The Lake Region Economic Bloc
(LREB) needs to synergize its strengths in order to avoid
duplication of functions and open up the 13 counties
to the entire region.
• Creating an enabling investment environment:
The County should work towards securing the efforts
made in wooing investors during the investment
conference by making them viable and begin working
on implementation.
• Skills Development: Skills development is crucial in
ensuring that the problem of skills mismatch is solved.
• Cottage Industry: Kisii County has embarked on
developing cottage industries, leveraging on experiences
of countries such as India where cottage industries were
a key driver for economic growth. The amalgamation
of investors allows for the potential to develop these
industries.
• Development of financial feasibility studies for
small businesses targeting local entrepreneurs.:
Strathmore’s Utawalla and CediA Africa worked out
and presented Cost Benefit Analyses for the following
projects:
1. Green House Farming
2. Sourcing and Retailing of Agricultural Produce
3. Peanut Butter processing plant
4. Oluch Kimira Irrigated Farming
5. Establishment of Livestock Marketing yards
6. Agricultural Derivatives Projects
7. Value Addition & Incubation centers
8. Provision of Clean Water and Sanitation Facilities in
the Markets
9. Establishment of Waste Collection, Treatment &
Recycling Unit
10. Establishment of Affordable Market Structures
11. Fish Solar Dryers
12. Solar Powered Fish Cooling Plant
13. Ornamental Fishing
14. Provision of Ambulance Services
15. Establishment of Dental & Eye Clinics
16. Community Revolving Loan Fund
17. Mobile Money/Bank Agencies
18. Construction of Tourism Information /centers
19. Establishment of Home stay Tourist/guest facilities
Action point: Create forums for youths and women
entrepreneurs where these opportunities for investments
are presented and taken up.

HOBIIC 2016
Issues Arising from Discussion
Conference participants were mainly concerned with the role
of various bodies in fostering investment and consequently
development in the county.
Of main concern was the role of the county government in
ensuring research is acceptable to the community, the role of
investors in Tom Mboya University and the role of the local
community in steering the investment agenda.
• What is the role of the county government in ensuring
that research is acceptable in communities?
Research is vital component to any activity. There can be
no development witho ut research. There is need for
research in every area. Academic institutions can help in
research.
• How can investors get involved in Tom Mboya
University?
The process of getting a charter for the university is on
course.
• What is the role of the local community in the
investment?
The involvement of the local community is crucial to
investment. The local community must be engaged.
Action Points
County government officials should leverage good will by
working closely with investors to provide information and other
support needed. Kenya Association of Manufacturers (KAM) is
willing to partner with the county government and organize
youths in every sector to have the right skilled workforce for
specific sectors through partnerships with organizations like
Kenya Industrial Research Development Institute to ensure
skills are harnessed.

13
HOBIIC 2016
The purpose of this session was to highlight to investors to the various financing options that they can take
advantage of especially with regard to establishment of industries. The panellists also explored the potential
for Export Processing Zones (EPZ), free trade zones and Special Economic Zones (SEZ) in Homa Bay County and
how investors can take advantage of the same. The issue of project feasibility and the importance of having
appropriate policies, laws and institutions was also discussed.
Session Chair: Professor Jane Konditi
FINANCING FOR INVESTMENT
H.E Governor Awiti with hotel investor Jerry Ndong’

HOBIIC 2016
Panellists
• Dr. David Maasai – Industrial Development Bank (IDB)
• John Akara – Export Processing Zone Authority (EPZA)
• Joseph Oguta – Djibouti Free Zone
• Prof. Wainaina Gituro – Vision 2030
• Dr. Moses Ikiara – Kenya Investment Authority (KenInvest)
• Hezekiah Okeyo – Vision 2030, Representing PS Ministry
of Industry, Investment and Trade
• John Oyioro – Kenya Revenue Authority (KRA), Western
Region
Key Messages
• Financial partners: Investors can take advantage of
services offered by financial partners like Industrial
Development Bank (IDB) that finance industrial capital of
between Kshs. 1 million and Kshs. 200 million to promote
industrialization. In return, investors enjoy concessional
rates, depending on the risk profile as well as long tenure/
credit period of 7 to 10 years. IDB is keen on financing
the establishment of the cotton ginnery.
• Establishment of Export Processing Zones: The County
can process goods for exports with the establishment of
export processing zones. Negotiations are underway to
have an export processing zone in Homa Bay County
especially for the establishment of the cotton industrial
park. EPZA Want to come to Homa Bay and establish
partnership with Homa Bay and wider lake region.
Recently established an office in Kisumu. Negotiations
almost complete on Export Processing Zone, particularly
for the Cotton Processing Park – (can get cotton from
Uganda and Tanzania) and food processing.
• Potential Areas for free trade zones : The county
has potential for establishment of free trade zones in
the following areas:
• Light industry
• Logistics, Warehousing and Transporting
• Horticulture and Processing of horticultural products
• Vision 2030 is signing an MOU with the county to
concentrate on cotton, animal feeds and fish.
• Resources: Among the best resources that investors
must take advantage of are; time, capital of the people of
Homa Bay, Private Public Partnerships and Private-Private
Partnerships. The youth are in integral part of investment
hence must be addressed and the corruption trend.
Investors must be keen on ensuring that their industries
are compliant to the environmental address climate
change. The economic fundamentals for investment
in the county are strong i.e. competitive return on

15
HOBIIC 2016
investment, big growing market that includes the East
Africa Community (EAC) customs territory, COMESA,
SADC tripartite arrangement, AGOA, US and EU market
and other bilateral arrangements.
• Special Economic Zones (SEZ)
• Location, best human resource, introduced special
economic zones.
• Homa Bay can explore/set up three parks – cotton,
animal feeds and fish processing. Free zones, industrial
parks and tourist and recreational zones. Counties
identify land, Cabinet secretary gazettes, V.A.T zero
rated. Bringing donors/development donor group,
bring consultants to plan.
• The county have a role to identify land where the
zones can be. Once the land is gazetted the benefits
associated with these zones take effect.
• Project Feasibility
Financing is not a challenge rather, getting a good
bankable ideas is. Ensure projects are properly packaged.
Project feasibility and project structuring is key in addition
to good governance, infrastructure, policy, low production
cost and quality human resource.
• Enabling environment through policy, laws and
institutions
Policies, laws and institutions must be right otherwise
investing in the county will be hostile. Ministry of
Industrialization collaborate with government agencies
to ensure conducive environment. Bringing in donors
(Trade and Private Sector Donor Group which is a group
10 Donor organizations) shall help in the planning of
the zones.
Issues arising from discussions
Panellists were engaged on a number of issues key among them
processing of groundnuts, taxation and skills development.
• Groundnuts are grown in the county on a large scale.
Is it possible that they are also considered in term of
processing?
Groundnut processing will be considered and should be
included in CIDP.
• How is the community engaged in the investment/
partnership arrangement?
The community is engaged through the county government,
as the elected representative of the people of Homa Bay
County.

HOBIIC 2016
• Does export to East African countries qualify? What
is the process timeline and requirements for SEZ’s?
SEZs have access to local, regional and international markets
while EPZ processes products that are entirely for export.
KRA taxing is zero-rated – Currently, this is done on a
case by case basis. Opening a one-stop shop for investors,
Institutions serving investors for smooth coordination.
• Does county have plans to develop skills?
The county is working in collaboration with the Export
Promotion Council (EPC) to nurture skills.
• Why are taxes imposed on people living with disability
who are business owners and employees?
The law has a number of incentives and exceptions for
employees and businesses of living with disabilities.
• When filling returns online, the KRA system freezes
(malfunctions) resulting in penalties. What can KRA
do to address this?
In terms of taxation, it is important to know that it is the
responsibility of taxpayers to manage tax matters. KRA has a
role to administer. KRA offers taxpayer education. Opening
support centers in Homa Bay County i.e. Oyugis, Homabay
and Mbita. Information is available on the website. Filing
season begins on 1st
January to 30th
June of every year.
You need to file early to avoid congestion. Employers to
provide P9 on time. Going forward, a Huduma Centre
will be opened soon in Homa Bay to enhance smooth
coordination.
• Withholding taxes for business inputs (e.g. machinery)
All inputs are deductible. 6%
Action Points
• The County Government should identify land where the
export processing zones can be set up and ensure that it
is gazetted.
• The establishment of three parks – cotton, animal feeds
and fish processing should be initiated
• The County should spearhead opening a one-stop shop
for investors, institutions serving investors for smooth
coordination with support from KenInvest.
Exhibitors during the conference.

17
HOBIIC 2016
Fly540 exhibitors during the Investment conference.
This session’s discussion focussed on the importance of human resource production in line with the County’s
plans on expansion of its labour force. There is sufficient manpower to support all projects.
Session Chair: Hon. Pharesh Ratego
HUMAN RESOURCES FOR
INVESTMENT IN HOMA BAY COUNTY

HOBIIC 2016
Panellists
• Hon. Naphtaly Matta – CEC Tourism and Social
Services
• Professor Stephen Agong – Vice Chancellor, Jaramogi
Oginga Odinga University
• Professor Tom Ogada – Agribusiness, Trade and
Manufacturing
Key Messages
• Tom Mboya University Campus:Tom Mboya University
offers courses that enhance skills that are relevant to
different sectors at different levels such as marine and
lake resource studies. Several alumni work in county
government. Research and innovation addressing needs
of community needs to be done by the University.
• Outreach & Mentoring: Universities are carrying out
analysis of skills, participating in curriculum development
in order to provide necessary human capital.University
students will also be awarded industrial placements.
• Enabling investment through a strong manpower
base: Strong manpower base required for investments
to thrive. The knowledge economy must address
fundamentals. Primary school, secondary and post-
secondary schools must offer curricula that address the
needs of the labour market. Furthermore, education
must be affordable through all levels.
• Virtual Learning: Virtual learning programs should be
embraced to reduce the cost of university education,
widen access, improve equity and sustain high quality
standards by emphasizing key areas of professional
development. The capacity to drive growth is key.
• Curriculum Reforms: Competence based curriculum is
what is needed. HB Devolved youth polytechnic, map all
youth poly and relate to industries.
Action Points
• Map all youth polytechnics and relate their courses to
industries to ensure effective skills matching.
• Identify opportunities to mentor young ones to align their
skills to the needs of the labour market.

19
HOBIIC 2016
The Strategic Investment Plan (SIP) 2014-2020, outlines the investment priorities for the county and was unveiled
during the conference. The plan, is an outcome of expansive, detailed and focused stakeholder engagements
that received significant technical and financial support from USAID/FIRM. The Strategic Investment Plan serves
as a roadmap that will help the county identify external and internal resources available in the county and
priority areas where the resources need to be deployed. Ultimately, the plan is crucial in helping to align the
interests of investors to the economic development agenda of the county.
LAUNCH OF THE STRATEGIC
INVESTMENT PLAN
• African Development Bank Investment: The
African Development Bank is investing in four
main areas:
1. Energy: Has been a problem but now is
becoming a thing of the past. Focusing on
last man connectivity. All sub-counties covered.
Phase one will be rolled out in June
2. Roads: Isebania- Kisii-Ahero linkages and
Oyugis-Kendu-Suneka road.
3. Water: Kimira Oluch- Free gravitational flowing
water good for rice, horticulture, vegetables
4. Skills: Problem of skill mismatch. Addressing
middle level skills. Supplying infrastructure
and equipment
• Enabling Legislative Environment for
Investment: The County Assembly is
working towards friendly legislative issues to
investment. Economic potential of the county
is immense.
• Political risk: Young, educated and suave
leadership in the county. Plans will not be
reversed because of emergence of political risk.
• Alignment of Country and Investor
Objectives: There is a milestone of what
is going through the region in investment.
Interest of investors must be aligned to interest
of country. The county government should
remove unnecessary licensing especially for jua
kali traders. A review of regulations should be
done to enable young people hoping to earn
Key Messages

HOBIIC 2016
from agribusiness. Allow businesses to compete on a
level playing field. There is need to create synergies,
harness power of economic blocks and regions to work
together. County assemblies must work to remove
impediments and promote people to break cycle of
poverty. Upward social mobility should be priority of
country.
• Devolution: Devolution must succeed. Budget should not
finance duplication of functions. Sharpen focus on investing
in your, sharpen education, invest in value addition. The
national government should see county government as
partners of development
Enablers in Homa Bay County
• Human resource – Home to depth and serious human
resource.
• The three pillars of investment in Homa Bay County are:
1. Economic Pillar: Agribusiness, tourism, Energy. There
is land, sand, solar energy, beaches, etc.
2. Social Development Pillar: Water, health, education,
etc.
3. Political Pillar: Good working relationship for service
delivery to people of Kenya. Political risk is zero.

21
HOBIIC 2016
The conference was successful in presenting a number of Memorandums of Understanding that had been
signed between Homa Bay County and prospective investors. Some of the projects for which MOU’s have
been signed are in addition to the projects that were highlighted at the conference itself. The MOU’s signed
are summarized in the table below:
MEMORANDUM OF UNDERSTANDING (MOU)
MoU’s Signed
MEMORANDUM OF UNDERSTANDINGS SIGNED WITH INVESTORS
DURING AND AFTER THE CONFERENCE
COMPANY COUNTRY BUSINESS AMOUNT IN US$ REMARKS
DEPARTMENT OF ENERGY AND NATURAL RESOURCES
1. Rift Valley Resource & Exploration Kenya Cement Production 200,000,000 MoU signed
2. Quaint Energy Ltd USA Solar Energy, Nyakwere 80,000,000 MoU signed
3.Africa Energy Development corporation Canada Solar Energy Kabondo 60,000,000 MoU signed
4. Solar stream Ltd China Solar Energy Rusinga 60,000,000 MoU signed
5. Global Alliance USA inc (GAUSA) South Africa Waste to Energy 50,000,00 MoU signed
Sub-Total 450,000,000
DEPARTMENT OF AGRICULTURE, LIVESTOCK AND FISHERIES
6.Victory Farms UK Cage fishing 1,000,000 MoU signed
7. Lake View Fisheries Limited Kenya Cage Fishing 4,000,000 MoU signed
8.Thikaways Limited Germany Biomass Energy 53,000,000 MoU signed
Sub-Total 58,000,000

HOBIIC 2016
DEPARTMENT OF TRADE, INDUSTRIALIZATION, INVESTMENT AND COOPERATIVES
9. Pieter Van Der Merwe Family Trust South Africa Maize Processing Factory 300,000 MoU being pursued
10. De Beby Green Ventures Capital Limited Kenya Cotton Ginning Factory 400,000 MoU being pursued
11. FlexCat Norway Boat building factory 1,000,000 MoU being pursued
12.Tatar Foods Private Limited INDIA Agro Food Park 3,000,000 MoU signed
13. Kamtech Associates PVT Limited INDIA Leather Industrial Park 10,000,000 MoU signed
14. MTR Export INDIA Used Tyre and Oil Processing Factory 1,000,000 MoU signed
15. Khandelwal Properties and Construction INDIA Stone crushing and ballast making factory 2,000,000 MoU signed
16. Federation of Rajastahan Trade and Industry INDIA Spinning and garment factories 5,000,000 MoU signed
17. Kantech Associates PVT Limited INDIA Animal feeds Factory 500,000 MoU signed
Sub-total 23,200,000
DEPARTMENT OF EDUCATION AND ICT
18. Petken Limited Kenya Automation of Revenue Collection 99,000 MoU Signed
19. Sonyaco Limited Kenya Hostels 350 capacity for Tom Mboya
University College (own land)
260,000 MoU Signed
20. Business Insights Solutions Limited Kenya Hostel 200 capacity for Tom Mboya
University College (Own Land)
21,000.00 MoU being finalized
21. Dream Homes Inc. Kenya/USA Hostels, 5,000 capacity (6 No. by 5 Storey
Hostel Units) for Tom Mboya University
College (within the University Premises)
38,500,000 MoU being finalized
22. Goldmeir Beauty Clinic & Hair Dressing Kenya Hairdressing & Beauty College in Homa
Bay Town
31,000.00 MoU being finalized
23. Save The Destitute CBO Kenya Improvement of Asego Hill Nursery School
to the Status of a Model ECDE Center
5,000 MoU being finalized
24. Saun Enterprises Kenya Improving Glad Toto Day Care Center as a
Model ECDE School
5,000 MoU being finalized
Sub-Total 38,921,000
DEPARTMENT OF TRANSPORT AND INFRASTRUCTURE
25.Wilken Airlines Kenya Airport Hotel 400,000 MoU being pursued
26.Wilken airlines Kenya Aviation Training School 300,000 MoU being pursued
Sub-total 700,000
GRAND TOTAL, US$ 570,121,000
GRAND TOTAL, in billion Kshs 58.2

23
HOBIIC 2016
NAME OF INVESTOR AREA OF INTEREST
Mr Obuya Hotel and Conference Facility
Moez Oliver Solar Stream (40 MW generation plan in Rusinga)
Felix Okello
Wilfred Oguna Representative of Farmers
Ben Odero Agribusiness (Sunflowers in Suba)
Fred Okeyo - Kenya Tourist Board (KTB) Facilitation of private sector investment in tourism in the County
Jonathan Lodompui – Vision 2030
Vision 2030
(Selected 3 out of the 14 areas in agribusiness, trade and manufacturing)
Idd Masoud Vision 2030
David Masai -
Industrial Development Bank(IDB),
Cotton industrial park
Judith Omachar -
Industrial Development Bank(IDB)
Cotton Industrial park
Moses Ikiara KenInvest
Alfred Achar 40 MW plant in Nyakwere
Mary Wangui
Thikaway Investment –
10 MW Biogas Plant in Kobala and Organic Fertilizer production
Catherine Karu
Thikaway Investment –
10 MW Biogas Plant in Kobala and Organic Fertilizer production
Dr.Kenneth Kambona - Development Consultant, Global Alliance
Kenya Plant Health Inspectorate Issuance of certificates for import and export of plant material
James Waweru Cotton Value Chain – Textile Park
William Nyangili - Chair, Micro and Small
Enterprise Sweet Potato Production
Micro and Small Enterprise Sweet Potato Production
Goldmere Akoth Beauty College
Mr Douglas Waste Processing
Ken Obongo Limani Honey and Peanut Butter Processing
A sample of some of the Investors present and their
areas of interest

HOBIIC 2016
John Agan Housing Development
Engineer Matheka Real Estate
Robinson Manguro Architect
Joseph Rehmann -
Victory Fish Farms & Cage Fishing
Fishing Farming and Cage Fishing
Hon. Ochieng – Mbeyo Fish farming in Mfangano Island (Cage Fishing)
Mr Peter Maize and animal feed, and low cost housing
Kevin Mwakesi - Rift Valley Resource and
Exploration
Limestone Mining
Charles Ogada Flexi-Cart and Boat Building factory
Paul Ouma Oil seed value addition
Jack Otana – Lambwe Agribusiness Development
Company
Agribusiness Development
Total 32
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.

25
HOBIIC 2016
APPENDICES
SECTORAL BREAK-AWAY SESSIONS
Infrastructure, Energy and ICT
Session Facilitator: Barry Patch, Director PwC
Companies/Investors Present
• Kenya Power
• Financial Development
• Kengen
• Global Alliance USA (GAUSA)
• Rift Valley Natural Resources Exploration
• Thika Ways Investment
• Solar Stream
• WikiLeaks
• Nakumatt
Key Points/Issues Arising from Discussions
Potential investors in infrastructure, renewable energy
and ICT raised a number of concerns on the place
of SMEs within the mega projects, the continuity of
the investment agenda beyond the conference, the
importance of an integrated physical plan, feasibility
studies for the proposed projects and the place of
consultancies.
• Are there any provisions for small and medium
enterprises within the big projects?
Opportunities for investment are presented at all
levels. It is up to individual investors to determine
the scale of operation depending on their interests.
Off grid generation of power is allowed. Currently,
some of the generation of power is being carried
out on Rusinga Island, taxes are not imposed on
power producers. The county has created business
to business contact so it depends on how investors
approach them.
Kenya Electricity Generating Company (Kengen)
carry out larger generation projects but leave
smaller projects to Independent Power Producers
(IPP’s). Kengen’s areas of interest are in solar power,
hydropower, geothermal and wind energy.

HOBIIC 2016
• There was a proposal for the formation of a body that
can be used steer the process of investment beyond
the investment conference.
There is legislation on the formation of the Homa Bay
Investment Authority for continuity of the process, currently
awaiting to be passed into law by the county assembly.
Investors can use various resources provided by the
government on guidelines or legal aspects in ministry of
energy website. These resources are www.erc.go.ke (Ministry
of Energy) and www.kplc.co.ke (Kenya Power).
• Physical planning – Does the county have an integrated
physical plan to curb haphazard plan? E.g. sewer plan
The development of the integrated physical plan for the
county is underway. The integrated physical plan for Homa
Bay town is also underway.
• There is too much bureaucracy preceding approval
of projects leading to delays in the commencement
of projects.
There are steps to be followed but government will quicken
them. The Ministry of Energy will play role of enabler - work
in collaboration with national government to create a one
stop shop for licensing.
KenInvest – mandated to assist investors to go through
the process of acquiring licenses. Does not charge any fee
for this service.
• Has the county opened up consultancies for local
diaspora to bring in their expertise/add value to
activities at county level?
County government always sources consultancies as per
the Public Procurement and Disposal Act, which states that
consultancies should be tendered. It is free for all.
For those interested in consultancy, continuously check the
website. The county plans to enhance the process through
proper advertising. If consultants have a unique idea, they
are encouraged to consult with the relevant ministry.
• Have any feasibility studies been done on the energy
sector in the county?
Feasibility studies have been done on some areas like
hydropower.
• Do we have a county risk index? Is there a sovereign
guarantee.
This question was not responded to.
Action Points
• Legislation on the formation of the Homa Bay Investment
Authority be passed by the county assembly
• Completion of the development of the integrated
physical plan by the county
• Sensitize investors on the role of KenInvest in acquisition
of licenses
• The integrated physical plan to be shared with investors
upon completion to guide investment activities.

27
HOBIIC 2016
Agribusiness, Trade and
Manufacturing
Session Facilitator: Dr Kenneth Kambona – Development
and Investment Consultant – DevelopmentShift
Companies/Investors Present
1. James Orengo – Working with small scale farmers
2. Samuel Oswago – Interior Government – Interest in
Agriculture – Sugarcane Industry was not touched on in
the presentation.
3. Phoebe Okoth – Dairy Farmer
4. Joseph Oluta – Ndhiwa Sub-County – Potential Investor
in Abattoir
5. Lakeview Fisheries – Commercial Fish Farming – Cage fishing
6. KEPHIS – Mrs. Lynette Achieng’ Mbeyha
7. Bishop Theresa – Dairy Goat Farming, Poultry Farmer
8. Mr. Smith- Importation of agricultural machines which are
affordable. Looking for land in Homa Bay County to start
a pilot project.
9. Professor Otieno – Professor in Maseno University
10. Moses Ikiara – MD of Kenya Investment Authority
(KENINVEST)
11. Investors in bee keeping and trade
12. Investors in organic farming
13. Investors in passion fruit and avocado farming
14. Investors in French beans processing
15. Investors in Poultry Farming
Key Points/Issues Arising from
Discussion
1. Where should investors take their raw beans for
processing?
Awareness on market linkage should be carried out
Capacity Building in the Agriculture
Sector
Agricultural Activities must be given proper service provision.
The County should consider extension services.
Investors have requested the county government to take care
of capacity building at farmer level which would allow investor
confidence to build.
Organic farming –
Branding Organic Produce
Fruit trees (Oranges) are maturing very early. The investors want
to do grafting along the Lake Victoria shores. As an investor
need irrigation facilities and also need organic shops.
Cotton Sector
Investors need specific details on the cotton value chain and
in particular, on the machinery which is available. Ginnery
machinery to see how the can come in.
Cotton Supplier and Farmer – Market linkages so that the cotton
can be sold. Expertise from an investor on cotton growing

HOBIIC 2016
Dairy Sector
Looking for a machine for milk cooling and packaging – Phoebe
Need a strategic investor to help scale up maize production –
Cultivation and making more
Bee Keeping – Green House Production as well. Need an
irrigation facility.
Brown Sugar Processing – Doing it at large scale – Perception
that this is for change brewing. Need an investor to take the
produced brown sugar to a market
Poultry Keeping – Need a slaughterhouse for poultry and
need market links
Control Striger weeds within county – Bishop Theresa
Build a plant for pineapple processing. Need people to come as
a group – So that demand creation takes place – Moses Ikiara
Need the fish processing plant and need to complete the
value chain –
Need an anchor investor –
Thikaway Investments – Partnership with German Investors
– Will be starting in the next 12 months – Will be making
organic fertilizer
Need to have a network – Mr Smith would like to get to know
the farmers.
Homa Bay County International Investment Conference Analysis of
Expressions of Interest
INVESTOR SUPPLIER FINANCE OTHER
Social Services and Tourism
Tourism:
Takawiri Tourist Lodge & Hotel 1 1
GorMahia Sports Complex 2
GorMahia International Convention Centre 1
Education:
Tom Mboya University Students’ Hostel 2 1 3

29
HOBIIC 2016
Health Services:
County Referral Hospital
Water Services & Environment:
Water Treatment Plant
Rural and Urban Water Supply 1 2
Urban Sanitation project
Environment Management and Conservation:
Sagla® Parks
Forest conservation
Other/Non Specific 3 1 6
Agri-Business,Trade & Manufacturing:
Agriculture, Fisheries & Livestock
Horticultural Crops Production
Mechanization of Rice Production 1
Coffee Milling Plant
Cotton Textile Industrial Cluster 2 1
Poultry Slaughter House
Aquaculture 1
Cage Fishing 1
Fish Processing Plants 1 3
Fish Auction/Processing Centres
Dairy Development Project 1
Trade & Manufacturing:
Feeds Industry
Cassava Processing 1
Pineapple/multi-fruit Processing 2
Kigoto Maize Milling 1 2
Textile and Apparel

HOBIIC 2016
Shopping Complex
Oyugis and Homa Bay Market upgrade
Other/Non-Specific 2 1 8
Infrastructure, ICT and Energy
Infrastructure:
Homa Bay Airport
Water transport
Real Estate 1 1 2
Offices/Commercial
Tom Mboya Admin and Computer Lab 1
University Staff Quarters
Homa Bay County HQ
Energy & Natural Resources:
Solar Power 1
Wind Power 1
Mini Grid Hydro 1
Biomass Energy 3 2 1
Cement Plant 1
Construction Materials 1 2
Housing 1 3
ICT:
Revenue Automation 1 1
Integrated Health Management System
Other/Non-Specific 1 1 2
Notes to the above analysis:
1. A number of forms express interest in more than one project
2. Several forms express a general interest in the sector and have been classified above as “non-specific”
3. Several forms seem to be looking for support from the County and other parties for their own businesses/enterprises rather than interest in
the sectors or projects
4. Some forms are generic or difficult to establish the area of interest and have been classified as non-specific

31
HOBIIC 2016

HOBIIC 2016

Homa Bay Investment Conference Report Highlights Opportunities

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (7)

Ähnlich wie Homa Bay Investment Conference Report Highlights Opportunities

Ähnlich wie Homa Bay Investment Conference Report Highlights Opportunities (6)

Mehr von RICHARDBONYO1

Mehr von RICHARDBONYO1 (6)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

Homa Bay Investment Conference Report Highlights Opportunities