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THARAKA NITHI COUNTY BUSINESS STRATEGY

Constructive engagement for improved service delivery in Tharaka Nithi

County

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‘’The Stronghold’’

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Tharaka Nithi County Business Coalition

Compiled by Phelix Rapando

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Kenya National Farmers Federation

P.O Box 43148-00100

Nairobi Kenya

Tel +254-202180608/0202180652

Email: farmers@kenaff.org

Website: www.kenaff.org

All Rights Reserved

A Publication of Kenya National Farmers Federation (KENAFF)

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List of abbreviations

AFC Agricultural finance cooperation

BGAK Banana growers association of Kenya

BMO Business membership organizations

CDF Constituency development fund

ICT Information communication technology

KENAFF Kenya National Farmers Federation

NGO Non-Governmental Organization

PPP- Private Public Partnership

SME Small and Micro Enterprises

TNC Tharaka Nithi County

TVET Technical and Vocational Education Training Institutions

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Table of Contents

List of abbreviations ................................................................................................................... iii

Remarks by the Governor .......................................................................................................... vi

Forward ...................................................................................................................................... viii

Acknowledgments ...................................................................................................................... ix

Introduction .................................................................................................................................. 1

Background of the county Round Tables in Kenya ................................................................ 1

Main objectives of the BMOs Coalitions ................................................................................... 1

Key objectives of Tharaka Nithi county Governor’s Round Table ....................................... 2

Expectation of the Business Community from the Tharaka Nithi county Governor’s

Round Table .................................................................................................................................. 3

PART I............................................................................................................................................ 4

Tharaka Nithi County Fact File .................................................................................................. 4

Demographic Features ................................................................................................................ 5

Part II.............................................................................................................................................. 6

Issues Facing Tharaka Nithi County ......................................................................................... 6

Agricultural Sector. ...................................................................................................................... 6

Investment opportunities in Agriculture ................................................................................. 7

Tourism sector .............................................................................................................................. 8

Investment opportunities in the tourism sector ...................................................................... 9

Trade, Commerce and Industry Sector ................................................................................... 10

Investment opportunities in manufacturing and trade industry ....................................... 11

Transport and infrastructure .................................................................................................... 11

Investment opportunities in infrastructure ............................................................................ 12

Education and youth employment .......................................................................................... 12

Investment opportunities in the education sector................................................................. 13

Health Sector ............................................................................................................................... 13

Investment opportunities in the health sector ....................................................................... 14

Energy and Mining Sector ........................................................................................................ 14

Investment opportunities in Energy and Mining sector ...................................................... 14

PART III ....................................................................................................................................... 16

Proposals on way Forward in Each Sector ............................................................................. 16

Agriculture .................................................................................................................................. 16

Tourism Sector ............................................................................................................................ 16

Infrastructure .............................................................................................................................. 17

Manufacturing, trade and industry ......................................................................................... 17

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Low lying Fruits from the way forward ................................................................................. 18

1.0 Value for Taxes ..................................................................................................................... 18

2.0 Enhancing Agricultural productivity................................................................................ 18

3.0 Creating a business friendly environment ....................................................................... 19

4.0 Tourism sector ...................................................................................................................... 19

5.0 Energy Sector ........................................................................................................................ 19

Conclusion .................................................................................................................................. 20

Reference ..................................................................................................................................... 21

List of BMOs Present ................................................................................................................. 22

Key photographs ........................................................................................................................ 23

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Remarks by the Governor

ensuring consultations and inclusion in decision making especially in matters affecting

business climate. We consider the private sector as a major player in the development of

the county.

My government recognizes the key role that the agricultural sector will play in the

economic growth of the county and to these end, the county in partnership with various

private sector players has initiated agro-based development projects such as Multi-

Billion Muringa Banana Irrigation Project in Maara, Mbogoini Irrigation Projects In

Chuka and the county hasalso Partnered with JICA to help in the development of Ksh

120Million irrigation scheme in Miomponi in Tharaka South sub-county. Value addition

of our agricultural produce remains our main priority as well as revival of collapsed

market centers. Construction of common collection center to serve our farmers is

already in the pipeline of our development plans. The county has put in place plans to

install street lights in all our major towns to enhance security and facilitate a 24hour

economy. We are also in the process of engaging our neighboring counties to enter into

agreements that will facilitate inter-county trade. The county has got the greatest

potential of earning revenue from the tourism, but the main hindrance has always been

inadequate accommodation and recreation facilities.

As a government, it is our objective, in collaboration with the private sector to showcase

Tharaka Nithi County as an investment county to both the local and foreign investors.

Towards this end, my government will create policies and encourage formulation of

laws that are friendly to investment. We plan to host major investment forums to

showcase key investment opportunities within the County.

My government recognizes the critical role

that Public Private Sector Engagement will

play in ensuring that Tharaka Nithi County

achieves sustained economic growth. As a

government we are committed to providing

an enabling environment for the growth of

the business sector in the county with

specific emphasis on agriculture and tourism

sectors, which have got the greatest potential

of unlocking the economic potential of the

county. As a government, we are committed

to working closely with the private sector,

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I urge the private sector to invest more in the hospitality industry and as a government

we shall offer the necessary support to ensure the growth of this sector. There are a few

recreational facilities in the county such as Kilimo Talii Resort, Baobab Resort, Transit

Motel, Legacy, Godka, and Kinondoni Lodge which need a face lift to ensure that they

are able to serve our visitors. As a government, it is our objective, in collaboration with

the private sector to utilize the diversity in our culture and showcase Tharaka Nithi

County as a preferred tourist destination. Jointly we will work together with the private

sector to deliver service to our people. It is my conviction that through sustained

dialogue and collaboration with the private sector, my government will transform

Tharaka Nithi County (TNC) into a preferred investment destination for most investors.

Hon. Samuel Mbae Ragwa

Governor of Tharaka Nithi County

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Forward

This business agenda adopts a sectoral approach in the identification of issues of

interest to the business community. Some of the recommendations proposed in the

business agenda cut across different thematic areas while retaining a sectoral focus.The

agenda is divided into three parts. Part 1 gives the background of the County Round

Tables in Kenya and the expectations that were raised from Tharaka Nithi Governor’s

Round Table. Part II contains facts about Tharaka Nithi County and critically looks at

the issues that face various sectors in the County. Part III makes recommendations on

the challenges identified that the county government and the private sector can jointly

address to ensure that Tharaka Nithi County becomes a preferred destination for

investors and delivers on its promise of Poverty alleviation.As the Chairperson of Green

Gold, an organization that strongly believes in agriculture as an avenue that will deliver

Tharaka Nithi county to the promised land of abundance, I share the County

government dream of making Tharaka Nithi county the model destination for any

investor and urge our people in the county to take the lead in participating in the

development initiatives. We have a chance as residents of the county to fully take

charge of our destiny.

Mrs. Catherine Karaikwa

Chairperson Tharaka Green Gold

It is my pleasure to present to you the first edition

of Tharaka Nithi county Business strategy. This

business strategy is a product of interactions

between the business community operating in

Tharaka Nithi County under the auspices of the

Tharaka Nithi Business coalition and the Tharaka

Nithi county Government. Tharaka Nithi Business

strategy is the main tool for Business engagement

for all Business Membership Organizations in

Tharaka Nithi County.

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Acknowledgments

Mercy Mburu, George Wakesho, Reginah Mwihia, and Stellah Nyaga. As the Kenya

National Farmers Federation, we shall continue lobbying and advocating for the

provision of anenabling environment for the business sector to thrive especially the

agricultural sector that has got the greatest potential of unlocking the economic

performance of most counties.My interaction with various Governors has showed me

that most of them have a clear vision on how to make Agriculture an engine for

development in their respective counties. That makes me very hopeful. To take that

forward, we need to create a platform that brings together various BMOs to engage

with county governments on provision of enabling business environment that cuts

across all the sectors.

The agenda benefitted immensely from the review by members of the business

community in Tharaka Nithi County including, The County Ministry of trade, Minister

of Agriculture and the County economic advisor, Tharaka Green Gold, African Harvest,

Banana Growers Association of Kenya (BGAK), professionals of tharaka nithi county

and Tharaka Nithi county Chamber of Commerce among others.

The preparation and publication of this Business strategy would not have been possible

without the financial support of the Business Advocacy Fund (BAF). I especially thank

Mr Clive Davis the BAF fund Manager and Kariuki Waweru for their dedication

towards the project

Dr John K. Mutunga

Chief Executive Officer

Kenya National Farmers Federation

Tharaka Nithi County Business strategy was

prepared from the views and presentations of the

business community from Tharaka Nithi County.

Valuable input and reviews were provided by the

Office of the Governor of Tharaka Nithi County. The

Business strategy was compiled through the

concerted efforts of a dedicated team of my

colleagues at the Kenya National Farmers Federation

(KENAFF) including: Phelix Rapando, Doris Ngure,

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Introduction

Background of the county Round Tables in Kenya

With the concept of devolution firmly enshrined in the constitution of Kenya, 2010, the

private sector reckons the urgent need for reorganizing its advocacy approach to ensure

that devolution works for businesses, without interrupting them or taking away the

gains already from previous business advocacy.

Armed with this realization, and appreciating the importance of the solidarity in

advocacy, Business Membership Organizations (BMOs) jointly organized a national

consultative forum dubbed ‘Ensuring Devolution delivers for the Business: Building

Coalitions in the pursuit of Business Interests’ in April 2013. This national forum

resolved that ‘devolution must not interrupt business; it must deliver for business and

the country at large’.

To ensure that devolution delivers to businesses, the national consultative meeting for

Business Membership Organizations further resolved to adopt a new advocacy strategy

for lobbying county governments. This, the BMOs agreed to formulate clear, structured

and workable ways and channels of engaging county governments to ensure coherence

and consistency in their advocacy. In line with this, BMOs in each county would create

coalitions through which to pursue advocacy in the county governments through well-

organized forums preferably, county Governor’s Round tables. The national meeting

also resolved that BMOs in each region in Kenya would strive towards establishing a

regional Business Agenda to avoid multiple and repetitive encounters with county

leadership. This would in turn ensure coherent and consistent statement on business

issues with a strong united voice.With a united voice, BMOs are able to influence the

kind of regulations that counties develop hence ensuring that devolution does not

interfere with the business environment but instead enhances the growth of the sector.

The BMOs need to identify key issues that affect their specific sector and approach the

authorities with a united voice. For a long time, governments have used divide and rule

method in tackling issues affecting various sector especially in situations where BMOs

are not united.

Main objectives of the BMOs Coalitions

To create a platform for advocacy to deal with business issues in the counties

through frequent dialogue and engagement mechanisms;

To better place the business community so as to influence county governments

on business climate issues

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To establish a platform for expanding trade and investment framework in each

county.

To provide stakeholders with an opportunity to critically participate in the

governance and growth of the county as contemplated by chapter eleven of the

constitution.

Key objectives of Tharaka Nithi county Governor’s Round Table

To lay a foundation for the formation of Tharaka Nithi county Business Coalition

to advance county Business Agenda;

To create a platform for advocacy of business related issues in Tharaka Nithi

County through frequent dialogue and engagement mechanisms with Tharaka

Nithi County Government;

To ensure Business Community in Tharaka Nithi County will be better placed to

influence the county leadership towards the creation of business friendly

environment;

To establish a platform for expanding agribusiness, trade and investment

framework in Tharaka Nithi County;

To provide the stakeholders in Tharaka Nithi County with an opportunity to

critically participate in the governance and growth of their county;

To identify key flagship projects to grow the local economy and align it to Kenya

vision 2030

To discuss incentives that can be extended to local and foreign investors in the

county by the county government.

Tharaka Nithi county Governor’s Round table was attended by among others the

county Governor Samuel Mbae Ragwa, county Minister of trade, county Minister of

Agriculture, , Chief officer: agriculture, County Economic Advisor, Tharaka Nithi

chamber of commerce and industry, BMOs in the county and many non -affiliated

business people. The business people from the county were urged by the Governor to

invest more in the hospitality industry as the county was short of hotels that could

accommodate visitors. Farmers were also urged to form farmer groups to strengthen

their bargaining power in the liberalized market.

Issues affecting the Business community in the county, opportunities for investment in

the county and governance issues were explored through presentations by both the

business community and the county leadership.

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The issues focused on the following areas:

1. Agri-business

2. Infrastructure

3. Tourism

4. Education and youth employment-empowerment programs

5. Trade, commerce & industry

6. Energy and mining.

7. ICT

Expectation of the Business Community from the Tharaka Nithi county Governor’s

Round Table

That following the first round table in Tharaka Nithi county, a foundation for a

lasting relationship between the business community and the county

government will have been established, and that going forward, the Tharaka

Nithi county business community would form a county coalition as a forum for

active engagement with the county government during the 2013-2017 tenure.

That the Tharaka Nithi County Business Coalition will co-ordinate and support

efforts by the entire business community in Tharaka Nithi county to influence

the county government to implement business-friendly regulations that

encourage investment, thus making Tharaka Nithi county the most competitive

county in Kenya.

That the issues identified in this Business Agenda will inform the development

of the county integrated plan and a checklist of actionable issues by the Tharaka

Nithi county Government for the next five years.

Despite the fact that some of the issues identified in this Business Agenda will

evolve, with some being addressed within one year from the date of this

Business Agenda or even shorter period, it is the expectation of the business

community in Tharaka Nithi county that the county government will use this

Business Agenda as reference document in developing Tharaka Nithi county

integrated plan as contemplated by the county government Act.

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PART I

Tharaka Nithi County Fact File

Tharaka Nithi County is located in the former Eastern Province of Kenya; it

borders Meru County to the North and North East, Kitui County to the East and

South East, Embu County to the South and South West. It covers an area of

approximately 2638.8 Km 2.

The county has three constituencies namely, Maara, Tharaka and

Chuka/igambang’ombe. The sub-counties are further divided into 15 wards

The county is the home of the tallest tree in Africa approximately 84m and have

rich cultural heritage which among others is friendly, easy to adapt to and

hospitable, it’s also in this county that access to the mount Kenya( second gate) is

located, 23km from Chogoria town

High unemployment rate among the youth in the county has been blamed on

apathy. The youth canprovide investors with apool of well-educated cheap

labour.

The county government and the private sector intend to empower youth through

introduction of tertiary institutions fees subsidy and skills transfer based value

addition agro-industries.

The county is well known for its ability to produce good quality sorghum which

earns the county residents sustained income. EABL is one of the major markets

for sorghum from the county.

The lower Tharaka area also borders the Meru National park and has high

potential for eco/cultural tourism. Kijege and Ntugi Hills, have a well-known

history as a stopover points for migration of highland Bantus (Meru, Kikuyu,

Embu). Hence it is a reference point for historians

The existence viable cooperatives, societies, and self-help groups involved in

various economic activities of dairy, coffee, tea, grains, fish farming, beef,

horticultural farming, craft and trading brought together will form one of the

biggest economic jump starts for the county.

Tharaka-Nithi County is strategically located making it suitable for investment

and distribution of goods and services within Kenya.

85% of the county population is involved in agricultural production, though

most of the farmers do not specialize in production making access to lucrative

markets impossible.

The county has got the potential of attracting large number of tourists’ dues to its

hospitable people and various tourist attraction sites such as the presence of

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elephant maternity sites at Gituri Kia Njimi in Gitombani and Gaketha catchment

area in Mitheru.

The productivity level of Tea, coffee, bananas, beans and maize is high in the

upper zone of the county while the productivity of green grams, millet, sorghum

and black beans is high in the lower zone of the county.

Demographic Features

The county has an estimated population of 365,330 with 48% of the

population being male and 52% being female.

The county’s climatic temperature ranges from a minimum of 11 to a

maximum of 25.9.The rainfall ranges from 200mm to 800mm per annum

The county has 451 EDCE centres, 471 primary schools and 111 secondary

schools. There are five youth polytechnics and five training institutions

spread across the county. The county has one full-fledged university

namely Chuka University while Kenya Methodist University has

established a satellite campus at Marimanti.

Majority of the county population is literate with only 16.9% of the

population completely illiterate.

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PART II

Issues Facing Tharaka Nithi County

Agricultural Sector.

Agriculture is one of the major economic activities in Tharaka Nithi County. The sector

comprises of tea, green grams, sorghum, coffee, Bananas, Mangoes, millet,macadamia

and livestock production that include, dairy, beef, sheep, goats and fish. At the moment,

80% of the county land mass can be said to arable. The rest of the land mass is

composed of dry semi-arid flat land with scattered hills and dry valleys. The county has

more agricultural land but most of it remains underutilized due to low adoption of

modern agricultural practices.

The agricultural sector in Tharaka Nithi County is however faced with numerous

challenges. The most notable is high cost of farm inputs, low agricultural

mechanization, inadequate market information and marketing skills among farmers

and these has hampered the expansion of the produce markets, lack of specialization

among farmers that has made bulking of produce from the county difficult. It has also

exposed farmers to exploitation by middlemen and brokers; rampant tree felling that

has an effect on climate change, lack of education among farmers on the best

agricultural practices to be applied to ensure maximum productivity and low adoption

of improved agricultural technology among the farmers. The low involvement of youth

in agriculture has also had an effect on agricultural productivity.Most of the market

centers such as Mitheru, Karaa, Kabeche,Ciakanyinga,Nguruki,Mwiria, ( include

markets katunga, mkothima among others that used to serve as market outlets for

farmers have since collapsed due to poor infrastructure. Chogoria,marimanti and

Chuka remain as the only main market centers that serve the entire county. Tea and

coffee sector have greatly been affected due to delayed payments to farmers and most

farmers have switched to banana, sorghum, green gram and dairy farming. The county

government plans to promote fish farming by setting up a fish factory at Tunyai, agro-

based development projects like National Irrigation Board Multi-Billions Muringa

Banana Irrigation Project in Maara, Mbogoini Irrigation Projects In Chuka and the

county has Partnered with JICA to help in the development of Ksh 120Million irrigation

scheme in Miomponi in Tharaka South sub-county.The areas are some of the driest

parts in the county and the irrigation scheme would go a long way in helping farmers

boost food production. To ensure that more youth are involvement is more gainful

economic activities, there is need for the private sector and the county government to

initiate the process of organizing them into groups and provide them with incentives

which can enable them start dairy, poultry, fish farming or horticulture production.

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Investment opportunities in Agriculture

Investment in cheap simple farm machineries such as tractors, milking machines,

zero tillage machines and chauffeurs cutters, and green house farming.

Private consultancies service to educate farmers on modern farming

technologies.

Processing of animal feeds within the county as the county is endowed with

much food stalk residues.

Investment in the construction of bio-gas plants

Establishment in business advisory services in each sub-county to equip farmers

with agri-business skills.

Investment into organic coffee farming, processing and marketing.

With more farmers venturing into banana production, Tissue Culture Banana

(TCB) production is a viable lucrative business in the county.

The youth have an opportunity to engage in fish farming since there will be

ready market once the construction of a fish factory at Tunyai is completed.

Investment in the provision of farm inputs

Investment in the development of common collection center which can provide

ware house receipt system at a fee to farmers

Invest in tissue culture banana nurseries to promote banana production

Promotion of one village one product concept to increase productivity hence

easy marketing.

Setting up of a commodity exchange center where farmers can get information

on marketing.

With so many lenders putting so many checks and conditional ties to the farmers

due to high risk nature of agricultural activities micro lending remains a good

business

Devolving the supply of government subsidy fertilizer to sub-county and ward

level for easy access by smallholder farmers.

Setting up a farmers training center where farmers can be trained on modern

methods of agricultural production to improve productivity

Successful farmers can set up model farms to act as learning centers for other

farmers at a fee.

Green house farming, drip irrigation, preparation of organic fertilizer and small

scale food processing are good investments opportunity

Value addition of agricultural produce from the county especially Bananas, dairy

products, green grams and coffee for export to neighboring counties and outside

the country

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Investment in the setting up of early warning systems of climate change related

areas

Investment in the provision of Artificial Insemination services (A.I) for improved

animal breeds.

Animal feeds processing.

Dairy farming

Veterinary products and services

Animal breeding

Milk products value addition.

Goat raring and milk processing.

Hide and skins tannery

Ranching

Meat processing

Bones and horns products

Tea growing and processing

Fortified flours milling

Fruits juices and fruits drying.

Peas processing/ Ndegu processing.

Roots crops processing.

Horticultural exports.

Large scale irrigation schemes.

Fish and fish products

Fish ponds and related structures

Beekeeping

Tourism sector

Tourism forms one of the key sectors of development for Tharaka Nithi county and

Kenya as a whole. It is worth noting that vision 2030 identifies tourism as being one of

the six sectors that will drive Kenya towards achieving its economic pillar. The

historical sites, rivers and forests are potential sites for tourism. Sites along the river

Tana are particularly suited for tourism such as the proposed hydroelectric dam at the

confluence of Mutonga and Tana rivers. Another potential site is the Ura falls and

wetland at the confluence of the Ura River and Tana River. The lower Tharaka area also

borders the Meru National park and has high potential for eco/cultural tourism.

The main tourist attractions in Tharaka Nithi County include:

Kibuuka, iruruni and Ikwa waterfalls in Tharaka,

Machui, Ngoko and Mwanyange waterfalls in Chuka Igambang'ombe,

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Kandakame, Munyiithi Katheruka and Mwita waterfalls in Maara,

Mururi Swamp (Devils home), Caves like Inanduru, Kiangati, ithembe and Muka

wa Nkaria at Mutunguruni.

At Ndagani Chuka, there is the tallest tree in Africa called Mutunguru. It is 84

meters tall.

Meru and Mt Kenya National Parks.

The main concerns in the tourism sector are the low numbers of recreational facilities;

low investment in hotels and other accommodation facilities leading to limited bed

capacity, poor state of roads that connect to the main tourism attraction sites and

inadequate trained professionals in the industry. Efforts are being made by the county

government to address the concerns. Tharaka Nithi can attract many tourists if its

leaders can exploit its untapped potential. The region has many natural attractions

and a rich culture. There are great opportunities in the tourism industry with the county

government getting into partnership with a Chinese investor to construct lodges and

hotels on Chogoria-Mt Kenya route. In conjunction with the local forest association and

a Germany investor, the county is constructing a five star Chuka eco-lodge at the former

nithi timber. Local investor have not been left out, as one of the local business man is to

construct a 5 star camp at Ikwa water falls. The county government also plans to

establish the Tharaka Nithi College of hospitality management at Kathwana.

Investment opportunities in the tourism sector

Taking advantage of the hospitable residents of the county and invest in the golf

courses.

Investment in the hotel industry as there are very few hotels in the county

Investment in tour guide industry to take advantage of the many tourist

attraction areas in the county.

Training institutions to offer tourism courses

Development of Eco-lodges and water sports around dams

Cottage industry and art-facts

Mountain climbing and tours.

Camping and events.

Scuba diving.

High altitude training camps

Film making

Modern Theatre

Invest in the improvement of roads that lead to the main tourist attraction areas

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Market the county as a preferred tourist attraction both locally, regionally and

globally

Establish a tourist information center at the county with accurate and up to date

information

Development of Kibuuka falls as a tourism attraction center

Improve under-utilized parks through maintenance of the often unknown tourist

attractions within the county

The lower Tharaka area that borders the Meru conservation area has high

potential for eco/cultural tourism that the county government can develop

Trade, Commerce and Industry Sector

In Tharaka Nithi County, manufacturing sector consist of Agri-processing industries

such as Weru Tea Factory that serve tea farmers in the county, Elins water packaging

factory, Tharaka Nithi coffee millers, Bairunyi honey processors, Muthiru dairy

cooperative, Kaka Maize millers, Mwaka honey processors. The upcoming fish industry

in Tunyai will offer the residents with a great opportunity to engage in fish farming.

There are 6 major banks that have wide branch network in the country which include

Co-operative Bank, Post Bank, Equity Bank, Kenya Commercial Bank, K-Rep bank and

Barclays bank. However there are no established banks in Tharaka with the Co-

operative Bank which provides mobile banking services at Marimanti once in a week. In

addition several established SACCOs, micro finance institutions and mobile money

transfer services especially Mpesa are accessible to many people who have no access to

banking services. Tharaka sub-county also have equity agent, Mkodima Sacco and

Tharaka Nithi Teachers Sacco and Chogoria has Dhamana Sacco, cooperative bank

agent, KCB which is a fully operational branch, equity agent, southern star Sacco and

Agricultural Finance Cooperation (AFC).

The commerce, trade and industry sector in Tharaka Nithi County face concerns

including low farm productivity that cannot sustain the operation of the agro-

industries, poor infrastructure, unreliable and expensive energy, limited access to

capital for SMEs and Lean extension services. The county government plans to address

the above concerns through mapping of the county on crop production to ensure that

farmers grow crops that are adopted to perform well in specific regions and these will

boost crop productivity hence the growth of the agro-industry, development of

incubation centers in each sub-county, link the business community to both local and

international market and capacity building of business people to empower them with

entrepreneurship skills.

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Investment opportunities in manufacturing and trade industry

Value addition to agricultural products through processing, packaging and

branding of bulk agricultural produce including milk, green grams, millet,

bananas, fruits and local vegetables for local, regional and global markets

Investment in consultancy services in Business Development.

Trade in livestock is yet to be exploited beyond the boundaries yet it is backbone

of dry zone of the region. In achieving Vision 2030, Kenya plans to create at least

10 wholesale hubs, 1,000 – 1,500 Producer Business Groups and build at least 10

‘tier 1’ retail markets. Tharaka Nithi County, with its agricultural potential, can

benefit from these flagship projects

Investment of fully operational bank branches in Tharaka and Chogoria for the

main banks is an investment opportunity that can be pursued.

Fertilizer manufacture.

Plastic manufacture.

Large agro-chem stores.

Ranching

Honey export.

Herbs & medicines.

Basketry

Pottery

Coffee export & value addition

Tea Export & Packaging

Transport and infrastructure

Infrastructure remains as a key priority area to the county government as the county

had been sidelined for long period of time by successive regimes. The county has only

48 kilometers of tarmac road of which 30KM is road along Nairobi-Meru highway and

18km along Ishiara-Kathwana-Marimanti or the Mate road. The other roads are mainly

earth surfaces and impassable especially during the rainy season.. The county’s

maintainable road network covers 29,150 kilometer in Tharaka and 42,940 kilometers in

Maara and Meru South Sub Counties. The county has 152.5 kilometers of bitumen

standard, 36.4 km of gravel surface and 444.3 kilometers of earth surface. The county

government of Tharaka Nithi County in an effort to promote access to markets by

farmers has invested in the rehabilitation of katharaka-ciakanyinga, marima mumbuni

kathwana/ kibugua/kamwimbi, giampampo-mwithenge roads.The ongoing

construction of the Great Falls Dam in Kamanyaki will boost irrigation and tourism

sector in Tharaka Nithi County. The county government allocated a large chunk of its

budget to infrastructure to facilitate the construction of key roads in the county.

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Investment opportunities in infrastructure

Opportunities exist for the county to partner with the private sector in the development

and maintenance of key infrastructure that include:

Development of ICT networks

Roads construction.

Buildings and housing.

Bridges construction

Water schemes

Dams and waterways

Events & amusement parks.

Sanitation infrastructures.

Town planning and allied services.

Revenue collection services.

Bio-waste re-cycling.

Shopping malls.

Management services.

Outdoor advertisements

Street lighting.

Education and youth employment

Education and youth employment remain as critical pillars in the development of the

county.Pre-school enrolment level in the county are higher standing at 63.1% according

to a research by Uwezo Kenya as compared to the national average of 59.5% in the same

year. It is also important to note that school dropout rate has greatly reduced in the

county at 6.0% in 2012 compared to a national average dropout rate of 9.3% in the same

year. Access to information technology in primary schools remains a concern with only

6 out of 100 primary schools having access to computers, with Meru South sub-county

being the most affected region. It is also important to note that the teacher attendance in

the county is high at 89.2% in 2012 compared to the national average of 89.8% in the

same year, reflecting the importance the county has placed on the education sector. The

county has seen a remarkable increase in the number of primary students joining

national schools and universities. Setting up of a bursary fund by the county to help the

needy students will go a long way in promoting access to education. The county has

inadequate relevant technical and vocational education and training (TVET) institutions

focusing on inculcating skills that are relevant to the county specific needs in the

development of agribusiness, tourism and other technical skills. The county

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government plans to introduce tertiary institutions in all the sub-counties to cater for

students who are unable to secure places in universities and other colleges.

Youth employment remains as a great concern in the county. To ensure that the youth

who make up a large majority of the unemployed people in the county are gainfully

involved in the productive economic activities, the county is set to develop a youth

talent center where entrepreneurial skills will be nurtured. Horticulture is also another

area where the county government is targeting to have the youth involved by training

the youth on modern agricultural technologies and supporting access to both local and

outside markets.

Investment opportunities in the education sector

Investment in the development of a farmer training center that will be used by

local farmers to equip them with modern farming technologies

Development of TVETs technical and vocation training institution through PPPs

Investment in tertiary institutions such as polytechnics to cater for the higher

number of students who choose not to pursue higher education.

Investment in the development of ICT infrastructure in both primary and

secondary schools

Opening up of more constituent colleges for universities Chuka University

remains as the only higher institution of learning in the county.

Health Sector

Tharaka Nithi County has a significant health facilities network. Notable among them

are the over 88 government run health facilities: Sub-District Hospitals, Dispensaries,

Health Centers, Medical Clinics and other private facilities. Among the big hospitals is

the Tharaka District Hospital, Magutuni Hospital, PCEA Chogoria hospital and Chuka

District hospital. The Clive School of Nursing is also found here. The main concerns in

the health sector are lack of modern equipment to address emergency cases. The county

government allocated 27.5% to the health sector which surpassed the international

standards of 15%, in an effort to streamline the health sector in the county. The

purchase of 4 ambulance by the county has been done and these will help in the

transportation of patients when need arises.

The constituency development fund (CDF) saw the establishment of dispensaries across

the county, making it easier for the rural population access health care. Plans are

underway to establish referral hospital. The low number of medical personnel and

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delayed payment of health staff in the county has not made the situation better but

plans are underway to streamline the sector.

The county is laying strategies on elimination of communicable diseases and efforts to

equitable distribution of health services. The county health management team has

managed to mark the national days like world feeding day,breast feeding day,

contraceptive day, malezi bora and global handwashing day.

Investment opportunities in the health sector

County government to partner with the private sector to develop a dialysis unit

in the county.

Modernize the existing health facilities through PPPs to be able to handle

complex cases.

Investment in the provision of medical consultancy services.

Ultramodern medical care Centre.

Diseases diagnostic centers

Ultrasounds and scans centers

Emergency Services

Funeral homes/Morgue services

Private clinics and care centers

Wellness centers and advisory.

Physiotherapy and health living services.

Energy and Mining Sector

Energy is very important when it comes to growth and development of any

county.Rural electrification program has benefited the residents, this is in full support

of the KPLC and REA and the programme to ensure installation is ongoing. There is

need for the county government to negotiate with the national government to ensure

that energy generated from the county also benefits the local residents. The county has

discovered iron ore deposits and these will provide investment opportunities.

Investment opportunities in Energy and Mining sector

There is high potential for hydro-electric power which if well harnessed, could

help light up households, power local agro-industries and sell to the national

grid. Kabiri Micro hydro power project on Tungu River proves this underlying

potential. More potential for the development of micro-hydro -electric power

stations exist in Gikwa; Naka River at Machui falls; Ururuni; Areni; Manyirani;

Ruguti River; Nithi, South Mara and lower Mutonga rivers.

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Investment in bio-gas plants is a viable investment opportunity as most

residents have livestock that can provide raw materials

Investment in assembling of energy efficient jikos

Investment in the use of municipal waste to generate energy

Investment in carbon credit through planting of trees

Investment in solar power especially in the dry parts of the county.

Networks and services

Cables and connectivity.

Computer assembly.

Computer trades and accessories

ICT parks

GPRS & general mapping

Solar farms, Solar panel manufacture and allied products

Wind energy ventures

Micro hydro-power stations.

Bio-gas equipment and support services..

Woodlots/Wood products and bamboo exploit.

Iron ore mining and processing.

Rare earth mining and processing.

Sand harvesting/ tiles and blocks making.

Mica and glass mining and processing.

Quarrying

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PART III

Proposals on way Forward in Each Sector

Agriculture

County government to put in place subsidy schemes to facilitate farmers to

afford necessary farm inputs such as seeds and fertilizer

Farmers need to specialize in crop production and focus on crops that can

perform well in their regions. There is need for the private sector and the county

government to collaborate and ensure that the county is well mapped in-terms of

crop production.

There is need for all NGOs working with farmers to collaborate to avoid

duplication of roles and wastage of resources

The county government in partnership with the private sector to create necessary

agricultural infrastructure such as storage facilities

Improve the dilapidated road network especially feeder roads to facilitate

transport of agricultural produce from the farms to markets

County government facilitate direct market linkages between farmers and

processors e.g. green grams, bananas, mangoes, sorghum and millet

Investment in agro-industries and energy to add value to agricultural produce

produced in the county

Facilitate easy access to government subsidized fertilizer by opening up sub-

county and ward fertilizer collection centers

Mainstream climate change adaptation strategies in the county government

agricultural policies

Partner with neighboring counties and enter into agreements to facilitate inter-

county trade

Market most of the produce produced in the county regionally and globally

Tourism Sector

Provide incentive to local business people to invest in the hotel industry

Develop a robust website to help market the county as a preferred tourist

destination.

County government in collaboration with the business community should work

towards improving transport infrastructure to ease access to the county tourist

attraction points.

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There is need to develop a scheme to allow the local community to partake of the

benefits of the various tourism sites as a way to motivate them to participate in

the county initiative.

Infrastructure

Rehabilitate the collapsed market centers such as mitheru, karaa, Marima,

Ciakanyinga, kirumi, Ikumbo, nguruki, kabeche, Mutindwa, Mwiria markets

among others. to provide market for agricultural produce from the county.

Develop a one stop shop in the county where every agricultural produce in the

county can be found.

Using the PPP model, the county should develop an industrial and agricultural

park in chukka and Tharaka towns.

Rehabilitate key feeder roads such as:

Katharaka –kathwana road)

Katharaka /kirumi/ikumbo/kathwana road

Marima /muthambi/kathwana road

keria/magutuni/kaare/kathwana road

Chuka/kanwa/Kathwana road

Ciakariga Marimanti Gatunga/ura gate(to the national park) That link

farmers to markets.

Improving efficiency and effectiveness of the infrastructure development process

at all levels including planning, contracting and construction.

Manufacturing, trade and industry

Sensitize farmers to increase productivity so that the agro-based industries can

be sustained.

There is need for the BMOs in the county to come together and form a strong

association whose mandate would include facilitating awareness among

members on developing business trends.

Improve the critical infrastructure including main roads and rural access roads

and rural electrification to spur small and medium industrial development

Construction of Jua kali shades in sub-counties so that the youth can benefit from

such facilities

There is urgent need for the county to enter service agreement with energy

provider’s in-order to ensure supply of affordable, sufficient, reliable and quality

energy. Investment in alternative sources of energy such as solar power and

wind power is also an option for the county.

Ensure accessible internet access to county citizens and businesses.

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Reduce the cost of setting up industries through ensuring that the charges and

process of licensing should be less tedious and there should be guaranteed

security.

Low lying Fruits from the way forward

1.0 Value for Taxes

The County government of Tharaka Nithi should ensure that residents of Tharaka Nithi

get value for their taxes, Measures such as:

Putting in place a tax collection system that will prevent loss of collected

revenue.

One stop shop for business related information

Ensuring that the locals are given adequate time to scrutinize bills before they are

passed

Devolving the process of licensing businesses to sub-counties to make the

process easier

Locals to be given preference when tendering for county projects

2.0 Enhancing Agricultural productivity

Map out the county to understand the productivity level of the county

Revival of the collapsed markets

Development of cereal bank for farmers

Revival of the tea sector

Improvement of feeder roads to enhance access to market

One village one product concept to encourage agri-business

The county to enter into agreements with companies to ensure that such

companies owner contracts signed with farmers,

The county to facilitate the formation of a cooperative movement that will cater

for the needs of farmers.

Capacity building of farmers on conservation Agriculture

Encourage farmers to form groups for easy access to extension services and

marketing.

Kick start value addition of agricultural produce from the county

County to start a tractor hire program at subsidized price

Investment in the construction of bio-gas plants to provide energy and reduce

environmental degradation.

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3.0 Creating a business friendly environment

Develop a robust website to help market and publicize the county as an ideal

investment destination.

Construction of Jua Kali shades in each sub-county to utilize the available youth

talent.

Development of industrial parks in the key major towns.

The county to set out a development fund that will be loaned to SMEs at

affordable rates to encourage the growth of the sector.

Putting in place flood lights in major towns to encourage a 24hour economy and

boost security.

4.0 Tourism sector

Mapping out of all key tourist attraction sites for easy marketing of the county as

a key tourist attraction county.

Development of a scheme that will enable communities around key tourist sites

to benefit from the revenue collected from the sites.

Investment in the tour guide industry

Improvement of the road networks leading to the major tourist attraction sites

Development of a one stop shop to showcase the rich culture of the people and

other art-facts.

Investment in the hotel and other recreational facilities.

5.0 Energy Sector

Investment in solar and wind power in the dry land parts of the county

Recycling of municipal waste to generate power

Subsidy program that will enable farmers construct bio-gas plants to generate

energy for lighting and cooking and bio-slurry.

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Conclusion

Collaborations and dialogue between any government and the private sector is a critical

factor in ensuring economic growth and development. As such, and recognizing the fact

that there are very few business membership organizations in Tharaka Nithi county,

there is urgent need for the business people in this county to join relevant business

membership organizations to come together and form Tharaka Nithi Business coalition

as a vehicle through which the business community will conduct its business advocacy

with the county government. Such coalitions will be instrumental in ensuring that the

county Government of Tharaka Nithi through the office of the Governor, works closely

with the private sector, thus ensuring consultations and inclusion in decision making.

In the 2013-2017 tenure of the current county leadership, public private dialogue will be

achieved through quarterly round table meetings. Members of the business community

in Tharaka Nithi County who are not members of any BMO are therefore urged to

pursue membership to relevant Organizations to ensure their voice is heard and

strengthen the voice of business advocacy in the county.

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Reference

The constitution of Kenya 2010.

The county government act 2012.

Kenya vision 2030 (Popular version).

http://www.investmentkenya.com.

http://www.knbs.or.ke.

http://www.worldbank.org/en/country/kenya.

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List of BMOs Present

1. Kenya National Farmers Federation (KENAFF).

2. Kenya National Chamber of Commerce and Industry.

3. Agricultural Dector DevelopmentSstrategy Programme (ASDSP).

4. Jua Kali association.

5. Matatu association.

6. Tharaka Green Gold.

7. Professional from Tharaka Nithi County.

8. Banana Growers Association of Kenya (BGAK).

9. African Harvest.

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Key photographs

The governor making his address

Stakeholder from the Tharaka green gold BMO making her contribution