Kenya Investment Authority

Invest in
Kenya
KENYA AT A
GLANCE
Parameter
Kenya
S&P rating
B+ (stable)
Moody
B1 (stable)
Fitch
B+ (stable)
Surface Area (inc. water)
580,367 sq km
Population
41.8 Million (2013)
Water body
Official language
English & Kiswahili
National park
Total GDP
USD 55.2 Billion (2013)
City
Av. GDP per capita
USD 1,246 (2013)
Capital City
Av. annual GDP growth
4%
River
Total exports volume
USD 5.8 Billion (2013)
Major road
Total imports volume
USD 16.4 Billion (2013)
Human Development Index
0.52 (2013)
Av. Annual Consumer Price Index
125 (.02)
ii KENINVEST
| In v es t in K en ya
LEGEND
Land
CONTENTS
a | why invest in kenya?
iv — Foreword
v — Preface
15 — Reducing cost of
energy and improving
energy availability
a | why invest in kenya?
08 — East and Central Africa’s Largest Economy
09 — Low Risk Investment Environment
11 — Strategic Geographical Location
12 — Wide Market Access
13 — Political stability and Favourable investment policy
14 — Improving Infrastructure
15 — Reducing cost of energy and improving energy availability
16 — Well Established Private Sector
16 — Large Pool of Labor Force
16 — Vibrant capital markets
17 — Investment Strategy
b | FLAGSHIP PROJECTS
19 — Transport
25 — Energy Flagship Projects
31 — Agriculture
34 — Real Estate
35 — Tourism
38 — Water Supply
39 — Health
40 — Education
41 — Manufacturing
b | FLAGSHIP PROJECTS
35 — Tourism
42 — Summary of KenInvest Services
43 — List of other instutions involved in investment promotion
•
In v es t in K en ya
| KENINVEST iii
Foreword
T
he re-based Gross Domestic Product (GDP) figures of USD
55.2 billion places Kenya as the fifth largest economy in SubSahara Africa and ninth in Africa. Although the economy remains
small by global standards, it is distinguished from those of most of
African countries by the fact that it is one of the most diversified
and advance.
Our economy is built around Agriculture, manufacturing, real estate and services.
Although agriculture remains the mainstay of the economy at 25.3 percent of
GDP, manufacturing contribution to GDP has been increasing significantly
over the years. Manufacturing which has been strong in processing agricultural
products is the second largest contributor to GDP at 13 per cent. Tourism which is
the third largest source of foreign exchange has strong linkages to transport, food
production, retail trade, and entertainment industry. For us Kenyans to achieve
the aspirations of vision 2030, we should keep these inter-sectoral linkages of our
economy in perspective.
Mrs. Anne Kirima Muchoki
CHAIRLADY
I want to assure our investors, both local and foreign, that Kenya is open and
safe for doing business. Our government is implementing measures aimed at
ensuring political and economic stability which are key pillars for long term
prosperity of any country. In addition the government is developing world class
infrastructural projects including transport and power to make our country
more globally competitive.
The Jubilee Government welcomes all investors to our beautiful county, Kenya;
an ideal destination for investment, trade and tourism. To our investors, be
assured that our government will do everything necessary to reap maximum
returns from your investment.
This investment book contains viable investment opportunities and bankable
investment projects for Private Public partnerships (PPPs), concessional projects,
joint ventures and sole entrepreneurship. On behave of all Kenyans, I assure all
investors of necessary government support.
iv KENINVEST
| In v es t in K en ya
Preface
S
ix years ago, Kenya launched her development blue print
Vision 2030 whose aspirations is to make Kenya a globally
competitive nation with a high quality of life for all its citizens
by the year 2030. The economic pillar of the blueprint identifies
several developmental projects whose execution is core to
achievement of the Vision.
We, at Kenya Investment Authority (KenInvest) are expected to play a key role
in accelerating uptake of these projects by investors and to extend achievement
of vision 2030. We need to grow investment as a ratio of GDP from the current
level to at least 32 per cent. As part of our efforts to reach this level, it’s my
pleasure to present to you this investment book.
This handbook presents reasons why you should invest in Kenya, gives you stepby-step on company formation process in Kenya, incentive available and general
investment opportunity. Also, we have highlighted in this investment book key
bankable projects for you the investor. The investment book will be available in
all counties, port of entries, diplomatic missions, trade missions, our partners
and online
Although we act locally, KenInvest is a global agency with considerable
experience in helping both international and local companies to invest in Kenya.
Our range of advisory services, investment information, and project facilitation
services help investor’s open shop smoothly and within the shortest time
possible.
Dr. Moses Ikiara, PhD, MBS
MANAGING DIRECTOR
Talk to us today to find out how we can help your business
•
In v es t in K en ya
| KENINVEST v
Preface
T
he Government of Kenya wish to welcomes all investors to our
beautiful county, Kenya; the ideal destination for investment,
trade and tourism. Investment is crucial for realization of our
Vision 2030 goals. The vision aims at transforming Kenya into a
newly industrializing, middle income country providing a high
quality life to all its citizens by year 2030.
For us to achieve the goals set forth in Kenya Vision 2030 we must promote
private sector participation in the sectors and industries that provide fast
growth and spur value addition. Achievement of the double digit annual growth
rate targeted in Vision 2030 requires investment as a ratio of GDP to reach
to at least 32%. We are already moving well in this direction. Foreign Direct
Investments grew by almost 100% in 2013 to reach USD 514 Million. But we
can and will do much better. Kenya boasts of a number of attractive features,
including a strong strategic location as a gateway to the region, political and
economic stability, a fully liberalized economy, a large domestic market, access
to a skilled human resource pool and advanced infrastructure.
Mrs. Phyllis J. Kandie
CABINET SECRETARY, MINISTRY
OF EAST AFRICAN AFFAIRS,
COMMERCE AND TOURISM
vi KENINVEST
| In v es t in K en ya
We welcome investors from around the world to take advantage of the business
opportunities available in Kenya. I wish to assure all investors, that the
government will do everything necessary to assist you in setting up and doing
business in our country.
Section 1
Why invest
in kenya?
1. East and Central Africa’s
Largest Economy
Kenya is the largest and the most advanced economy in East and Central Africa; with strong growth
prospects supported by an emerging, urban middle class with an increasing appetite for high-value
goods and services.
strong and large regional player
K
enya is the dominant economy in the East
Africa Community, contributing to more
than 40% to the region’s GDP.
2.72%
21.48%
44.1%
The re-based Gross Domestic Product (GDP) places Kenya
as the fifth largest economy in Sub-Sahara Africa and ninth
in Africa. Although the economy remains small by global
standards, it is distinguished from those of most of African
countries by the fact that it is one of the most diversified
and advance.
Growing consumer market
Kenya has the second largest population within the EAC
at ~41.8 MN and is growing at a rate of 2.7% p.a. There is a
rising trend towards urbanisation which is contributing to
an increase in consumer demand for high value goods. This
trend is forecasted to continue, with 50% of the population
expected to live in urban areas by 2050.
33.23%
7.45%
The size of Kenya’s middle class is growing as evidenced by
the growth in its GNI per capita, which has increased at a
CAGR of 2% over the past 10 years.
Comparative GDP, Current USD BN, 2013
Burundi
Tanzania
Kenya
Uganda
Rwanda
8 KENINVEST
| In v es t in K en ya
SOURCE: World Bank
2. Low Risk Investment Environment
Kenya’s investment climate is the strongest in the EAC, with FDI flowing in from emerging
and developed markets and a high volume of multinationals with regional and continent-wide
headquarters in the country
FDI Inflows, USD MN
SOURCE: UNCTAD
514
346%
335
259
115
2009
178
2010
2011
2012
2013
Positive Investor Sentiment
F
DI has been on the rise and is significantly stronger than investment in other
EAC countries. Given its position as the economic, commercial and logistical
hub of East Africa, private equity capital is now flowing into Kenya.
In 2013, Kenya was the top destination for international investors in the Eastern Africa Region after
attracting 12 private equity deals valued at over USD 110.5 million.
“Kenya is developing as the favoured business hub, not only for oil and gas exploration in the sub
region but also for industrial production and transport. The country is set to develop further as a
regional hub for energy, services and manufacturing over the next decade” UNCTAD
In v es t in K en ya
| KENINVEST 9
Positive investor sentiment
recent landmark investments
One of the largest greenfield projects in Africa by Kwale
International Sugar Company for a $200 million sugar
processing facility in Ramisi.
One of the biggest wind projects in Africa, by Harith
General Partners for a $870m wind project in Lake Turkana.
GZI Kenya Limited is setting up a beverage aluminium
can manufacturing plant in Sultan Hamud Kajiado County
with a capacity to produce 1.2 Billion cans a year.
10 KENINVEST
| In v es t in K en ya
3. Strategic
Geographical
Location
K
enya’s geographical location makes the
country ideal for strategic partnerships aimed
at improving regional and global market share.
regional connectivity
international connectivity
Kenyan infrastructure is the gateway to
the vibrant East and Central Africa region
and access to the 138 million population
i.e. Mombasa ports, KE-UG railway.
Jomo Kenyatta International Airport
functions as an effective air hub
between Africa, Europe and Asia.
In v es t in K en ya
| KENINVEST 11
4. Wide Market Access
20% local sales to EAC market
(upon payment of all taxes).
To be increased under SEZs.
eac
K
enya’s membership to regional economic
blocs, coupled with her strategic geographic
position, makes the country the gateway to
the huge EAC and COMESA regional Markets
and beneficiary of several trade preferential
arrangements.
Duty free or Preferential
access to 18 counties
under COMESA FTA &
common market
Duty free access to USA
for 6,000+ products
under AGOA(GSP)
Duty free access to EU market
under Economic Partnership
Agreement (EPA)
comesa
Member Countries: 20
Population: 444 Million
Total GDP: USD 360 Billion
trade preferential treatment
Kenya is a member to several trade arrangements and
beneficiary to trade-enhancing schemes that include the
Africa Growth and Opportunity Act (AGOA), World Trade
Organisation and EAC-EU Trade Agreement.
tripartite (eac-sadc-comesa)
Soon there will be Tripartite Free Trade Area (FTA)
cooperation, a regional bloc of the EAC, COMESA and
SADC nations.
Potential market: 600 Million people!
Strategy:
◼◼ Market Integration
◼◼ Infrastructure development
◼◼ Industrial development
Pillars:
◼◼ Harmonization and improvement of functionality of
regional trade agreements and programs
◼◼ Enhancement of trade
◼◼ Joint planning and implementation of infrastructure
programs
◼◼ Free movement of business persons within the region
12 KENINVEST
| In v es t in K en ya
5. Political stability and
Favourable investment
policy
E
mpowered by a new constitution and administration, the
national and county governments are approaching the private
sector as a central partner in the development and growth of the
Kenyan economy.
A new approach to the
private sector
A New Government
The new Jubilee Administration
regards the private sector as a key
centre of economic and social
development and has signalled this
shift in government’s orientation
through the divestment of its majority
shareholding in state commercial
companies through the Nairobi
Securities Exchange.
Business environment
reforms
Kenya is making efforts to lower the
cost of doing business by conducting
extensive business regulatory reforms
intended to substantially reduce the
number of licensing requirements and
to make the licensing regimes more
transparent and focused on legitimate
regulatory purposes.
Devolution into County Governments
Empowered by the new constitution, devolution offers an
opportunity for investment through localised innovation
with scale through collaboration by building commercial
ecosystems in each county that expand employment
opportunities and empower local communities.
Investor guarantees
Investor guarantees includes;
◼◼ Kenya Constitution guarantees against expropriation of
private property.
◼◼ No exchange controls guarantees on repatriation of
capital, profits and interests.
◼◼ Member of the Multilateral Investment Guarantee
Agency (MIGA)- that insures foreign investments
against non-commercial risks.
◼◼ The country is also a member of the Africa Trade
Insurance Agency (ATIA) which insures investors
against non-commercial risks.
◼◼ Kenya is a member of the International Centre for
Settlement of Investment Disputes (ICSID) which
arbitrates cases between foreign investors and host
governments.
Open market access system
Kenya has fully liberalised its
economy and removed all obstacles
that previously hampered the free
flow of trade and private investment,
such as exchange controls, import
and export licensing, as well as
restrictions on remittances of profits
and dividends.
In v es t in K en ya
| KENINVEST 13
6. Improving Infrastructure
K
enya’s infrastructure landscape is also undergoing
significant transformation as evidenced by commitment of
over USD20 billion towards infrastructure development through
public private partnerships.
Infrastructure Strategy
Increasing investment in
infrastructure under PPP
arrangements
$14.5 BN
Konza Technology City “Silicon City”
IT Hub to be built on 5000 acres of land in
Machakos County.
$5.5 BN
Lamu Port Southern Sudan –
Ethiopia Transport Corridor
Construction of Lamu Port
headquarters is in progress.
$3.6 BN
Standard Gauge Railway
It links Kenya’s Indian Ocean port city of
Mombasa to the capital Nairobi
$654 MN
Jomo Kenyatta International Airport Expansion
Construction of a 178,000sqm facility to
be complete in 2017, complemented by
Nairobi Commuter Rail Service linking
the city centre to the airport.
$366 MN
Mombasa Port Expansion
Harbour channel was deepened
by 15 metres and widened to
500 metres to accommodate
larger vessels.
$360 MN
Thika Superhighway
Construction of the eight-lane
controlled-access 50-km Nairobi–
Thika superhighway was completed in
2012. It has led to emergence of new
businesses, especially in retail and
real estate e.g. creation of three major
malls.
14 KENINVEST
| In v es t in K en ya
7. Reducing cost of energy and
improving energy availability
K
enya is also perfectly positioned to unleash Africa’s power generation capacity
through its focus on green and cost effective sources of energy, set to contribute
to a 5000MW increase in the national power grid.
Power & Energy Strategy
Increasing share of power generated from green and more
cost effective sources, with a target to increase electricity
generation capacity by 5,000MW from the current
1,644MW to 6,700 MW in 40 months.
Key Power Project and Recent Resource
Discoveries
Wind Power Project
300 MW Lake Turkana Wind Power Project valued at USD
823MN.
Water Discovery
Oil Discovery
Discovery of reserves by Tullow oil, estimated to extract as
much as one billion barrels.
Geothermal Power Project
3,000 MW Geothermal Power Project in Baringo valued at
USD135MN.
Coal Power Plant
900 -1,000MW Coal Power Plant in Lamu.
Natural Gas Plant
700-800 MW Natural Gas Fired Plant near Mombasa
through a PPP.
Two new water sources at Turkana Basin and Lotikipi
Basin holding 250bn m³ of water, sufficient to supply Kenya
for 70 years.
In v es t in K en ya
| KENINVEST 15
8. Well Established
Private Sector
9. Large Pool of
Labor Force
K
K
enya’s private sector is very substantial
including a number of foreign investors and
is touted as one of the most resilient in the world.
Key players in voicing private-sector concerns
include: Kenya Private Sector Alliance (KEPSA),
Federation of Kenya Employers (FKE) and the
Kenya Association of Manufacturers (KAM).
enya prides itself in its large pool of highly
educated, skilled and sought after work force
in Africa trained from within the country and
in institutions round the world. It is estimated
that over 55% of the Kenyan population is aged
between 15 and 64. This means therefore that
majority of the population is active and able to
provide labour.
10. Vibrant capital
markets
F
oreign participation in NSE: 54.1% of total
equity turnover (January-June 2014)
16 KENINVEST
| In v es t in K en ya
Investment Strategy
a) PPP Process
01
IDEA
Listed in National Documents
05
02
RECRUITMENT OF INVESTOR
Expression of Interest
Request for Proposal Award
04
FEASIBILITY STAGE
Study
Evaluation
CONCEPT
Approval by PPP Committee
03
RECRUITMENT OF
TRANSACTION ADVISOR
Terms of Reference
Expression of Interest
Request for Proposal Award
In v es t in K en ya
| KENINVEST 17
Section 2
Flagship
projects
Flagship projects
Transport
Lamu Port (LAPSSET- Lamu Port Southern Sudan Ethiopia
Transport Corridor Project)
Promoter: Estimated Investment:
Private sector Participation:
Location: Kenya Ports Authority (KPA)
US$ 664 Million
BOT
Lamu
T
he Project aims to achieve the construction of 3 additional
berths and a draft of 18 meters to accommodate bigger ships
of 100,000 tons and more. The first 3 berths are under construction
through the funding by Government. The port will be linked by Ethiopia and
South Sudan through a road network and a standard gauge railway line via
Garissa, Isiolo, Maralal, Lodwar and Lokichogio.
PROJECT INFORMATION
1. OVERVIEW OF THE PROJECT
SUMMARY /KEY HIGHLIGHTS OF THE PROJECT
INCLUDING A BRIEF DESCRIPTION, ECONOMIC
AND SOCIAL BENEFITS.
One of the flagship infrastructure projects identified by
the Government in the Vision 2030 is development of the
LAPSSET transport corridor. The corridor will link a new
and modern port of Lamu with Garissa, Isiolo, Maralal,
Lodwar and Lokichogio and branch at Isiolo to Moyale at
the border with Ethiopia and proceed to the border with
South Sudan.
Following the hydraulic, bathymetric, geophysical and
geotechnical surveys, an ideal location has been identified
for the development of the new commercial seaport in
Lamu.
The proposed port site at Manda Bay has the capacity
to accommodate 32 Berths in total consisting of the
following: 4 bulk berths, 5 container berths, 21 general
cargo berths and 2 liquid bulk berths. The Lamu Port
Master Plan proposes a phased development of the port
starting with the construction of first three (3) berths to
handle containers, general and bulk cargo. The rate of
developments of other berths will depend on demand.
The construction of the Lamu Port is expected to take 18
years and will be completed by the end of 2030. However,
the construction of the first 3 berths is expected to take
three years from 2014 to 2017.
2. Project Drivers
Need for the project such as Market size, Volume of
market components, etc. (e.g Volume of cargo for Railway
transport or No. of Passengers for an Airport.)
.
◼◼ Infrastructure expansion
◼◼ Strategic geographic location
◼◼ Huge trade volumes and traffic in East Africa
3. Key Challenges
This are the key cost / quality factors determining the success
of the Project. (e.g. Track alignment for railways, land form for
roads.)
◼◼ Resettlement of affected families
◼◼ Availability of funds
In v es t in K en ya
| KENINVEST 19
4. Preliminary design
This includes: Existing facilities and equipment, standards expected, Components of the projects.
The Channel and basin plan is prepared with depths of 18 metres at the Main Channel, 13 metres
at Sub-Channel, 17.5 metres at Manda Pass, and 17.5 metres at the basin of bulk berth, 16 metres at
Container Berth and 12 metres at General Cargo Berths.
Alignment planning and preliminary design of the first three berths have been made at the Island of
Shaka la Paye at 40o 55’ East and 2o 11’ South. It consists of one 100,000 DWT Bulk Berth, one 100,000
DWT Container Berth and one 30,000 DWT General Cargo Berth. The General Cargo Berth will be
designed as a multi-purpose berth or be convertible to a container berth in the next stage.
5. Economic Evaluation
OVERALL EIRR, COMPONENT EIRR, PPP COMPONENT INCOME
The Lamu Port has an Economic Internal Rate of Return (EIRR) of 23.4%, a Benefit/Cost Ratio (B/C)
of 1.73 and a Net Present Value (NPV) of 1,624.5, thereby indicating that this is a viable project.
6. Investment Plan
Level of government involvement and reasons, Level of participation by third parties, PPP mode e.g.
leasing, owning, operations and management, etc.
◼◼ Government involvement: GOK has disbursed KSH3.785Billion to start off the project.
◼◼ Donor financing:suitable funding options will be pursued through willing development partners.
◼◼ Public Private Partnership: An investor can build, operate and transfer the facility at the end of
agreed period.
20 KENINVEST
| In v es t in K en ya
1.2 Nairobi Commuter Rail
Promoter: Estimated Investment: and US$ 70Million Private sector Participation:
Location: Kenya Railways Corporation
US$ 68Million (Private Equity)
(Private Debt)
Concession
Nairobi
T
his project seeks a partner to run the
commuter service of the Nairobi Commuter
Rail and this will include provision of rolling
stock. The government has already invested in the
rehabilitation of the rails. The project will provide for
expanded, safe, affordable and efficient rail commuter
services in Nairobi with the additional benefit of
decongesting the capital city’s roads.
The Economic benefits;
◼◼ Cheaper, modern and efficient transport services
◼◼ Reduced road congestion and commute times
The social benefits;
◼◼ Minimize carbon emissions
◼◼ Improved safety
PROJECT INFORMATION
1. Overview of the Project
Rehabilitation of 100Km of existing rail system in Nairobi.
Construction of 6.5km new track from Embakasi railway
station to Jomo Kenyatta International Airport ( JKIA)
Rehabilitation or construction of stations and other
facilities along the network;
2. Project Drivers
Nairobi population of 3.5 million with 1.5 million
commuters daily
85% of the population use public transport
Nairobi suffers chronic traffic congestion causing a
significant loss of man hours
◼◼ Nairobi-Ruiru 30Km
◼◼ Nairobi- Kikuyu 28km
◼◼ Nairobi-Embakasi village 11 km
◼◼ Nairobi- JKIA 21km
In v es t in K en ya
| KENINVEST 21
1.3 Railway Cities
Promoter: Estimated Investment: Private sector Participation:
Location: Kenya Railways Corporation
US$ 2,150 Million
Joint Venture
Nairobi, Mombasa, and Kisumu
T
his initiative will include the redevelopment 2. Project Drivers
Nairobi the largest city in Kenya and it’s an economic hub
of existing rail stations into mini cities
which include business parks for light
◼◼ Kenya population: 4.1 million
manufacturing, hotels, shopping arcades,
◼◼ Nairobi population: 3.5 million
restaurants and parking garages.
◼◼ Nairobi population growth: 3.5% per annum
PROJECT INFORMATION
1. Overview of the Project
◼◼ Number of daily commuters: 1.5 million per day
The project involves development of the real estate around
the Nairobi (200acres), Mombasa (110acres) and Kisumu
(75acres) stations into modern state of the art termini with
current world technology with central boarding facilities
to all the towns in Kenya.
Mombasa second largest city in Kenya and its tourism and
maritime hub
On this land it is proposed to develop starred hotels,
conference facilities, office parks, commercial and retail
buildings, parking silos, entertainment and recreation
areas.
◼◼ Growth rate of automobile registration: 3%
The Economic benefits;
◼◼ Regeneration of under-utilized land in the cities
◼◼ Support to tourism
◼◼ Increased conference capacity and office with modern
facilities in the cities that will attract conference and
leisure tourism
The social benefits;
◼◼ Increased employment
◼◼ Environmental improvement
22 KENINVEST
| In v es t in K en ya
◼◼ Tourist per annum: 1.5 million
◼◼ Mombasa population; 500,000
Kisumu is the third largest city in Kenya
◼◼ Is at the shores of Lake Victoria and is the centre of East
Africa Community
3. Key Challenges
Administrative issues in terms of land. People have
encroached and would need to be evicted before the
investor comes in.
1.4
Thika Toll Road
Promoter: Estimated Investment: Private sector Participation:
Location: Kenya National Highways Authority (KeNHA)
US$ 56 Million
Concession
Nairobi - Thika Highway
T
he highway serves numerous large Commercial and Industrial enterprises and
rapidly growing real estate zone. The 52 km long high capacity expressway is part of the
International Trunk Road linking Kenya to Southern Africa through Tanzania and Northern Africa
through Ethiopia. It connects high potential industrial and commercial centers in Central parts of
Kenya to the regional highway backbone (Northern Corridor), Kenya’s International Airport, and
three (3) major city arterial roads. The highway will enable smooth dispersal of traffic within the
greater Nairobi metropolitan area.
1.5
Dry Port at Voi
Promoter: Estimated Investment: Private sector Participation: Location: Kenya Railways Authority
US$ 120.6Million
PPP
Voi
A
n inland intermodal terminal directly connected by rail to the sea port and will
operate as a centre for transshipment of sea cargo to inland destinations. In
addition this port would also include storage, maintenance for road, railcargo carriers and customs
clearance services.
1.6
Mombasa 2nd Container Terminal
Promoter: Estimated Investment: Private sector Participation: Location: Kenya Ports Authority
US$ 330.1Million
PPP
Mombasa
D
evelopment of a new container terminal at the port of Mombasa on an area of
100 hectares at the western side of the existing Kipevu Oil Terminal to create
an additional capacity of 1.2million TEU.
In v es t in K en ya
| KENINVEST 23
1.7
Multi Storey Terminal at Likoni
Promoter: Estimated Investment
Private sector Participation: Location: Kenya Ferry Services Limited
US$ 31Million
PPP
Mombasa
D
evelopment of a multi-storey terminal on 1.6Ha in Mombasa to provide
a modern ferry terminal, parking, bus terminal as well as a variety of
commercial services to maximize revenue potential of the site.
Coming Soon Projects
Project
Promoter
Development and Management of In-flight Catering
Kitchen at JKIA
Kenya Airports Authority
PPP Structure for Food Courts at JKIA
Kenya Airports Authority
O&M of JKIA Terminal 2 (Greenfield Terminal)
Kenya Airports Authority
Conversion of Berths 11-14into Container Terminals
Kenya Ports Authority
Kisumu Lake Port
Kenya Ports Authority
Integrated Marine Transport System(IMTS)
Kenya Ferry Services Limited
O&M of Nairobi Southern Bypass
Kenya National Highways Authority
2nd Nyali Bridge
Kenya National Highways Authority
O&M of Nairobi-Thika Road
Kenya National Highways Authority
Dualling of Nairobi-Nakuru Road
Kenya National Highways Authority
Dualling of Nairobi-Mombasa Highway
Kenya National Highways Authority
Government Flying School
Kenya National Highways Authority
24 KENINVEST
| In v es t in K en ya
2.
Energy Flagship Projects
2.1
Mombasa Petroleum Trading Hub
Promoter:
National Oil Corporation (NOCK)
Estimated Investment: US $500 Million
Private sector Participation: Joint Venture
Location:Mombasa
T
he Trading hub will be a modern petroleum terminal comprising of two
offshore petroleum jetties with one dedicated to loading/offloading of crude
oil and black fuels. The other dedicated to refined products. A modern Greenfield
petroleum tank farm with a design capacity of 800,000MT is to be developed
in phases from an initial minimum capacity of 300,000 MT. The project aims at
improving supply security and reducing the cost of supply
PROJECT INFORMATION
1. Overview of the Project
Summary /Key highlights of the project including a brief description, economic and social benefits.
Mombasa port is the primary entry port for petroleum imports entering into the East Africa
including Kenya, South Sudan, Eastern Congo, Rwanda, Burundi, and Northwestern Tanzania. With
petroleum being the most widely used modern energy source for all of East Africa, the importance
of the port can not be gainsaid. However while the economies of East Africa have doubled or eve
tripled their GDPs over the last three decades, there has been no significant investment in petroleum
importation and storage infrastructure at the port. In addition with the growing interest in
petroleum exploration in East Africa as a result of the recent high profile discoveries, there is need
for East Africa to begin preparing for success by setting up the infrastructure necessary to take the
discoveries to the market.
The Mombasa Petroleum Trading hub shall be a modern petroleum terminal comprising:
◼◼ Two offshore petroleum jetties (single buoy moorings)with one dedicated to loading/offloading of
crude oil and black fuels and the other to refined products
◼◼ The jetties will allow discharge by crude carriers of up to VLCC capacity and product carriers of
up to 120,000 DWT
◼◼ A modern Greenfield petroleum tank farm with a design capacity of 800,000MT to be developed
in phases from an initial minimum capacity of 300,000MT
The objective shall be to address the present constraints faced at the port of Mombasa but also set
up the infrastructure necessary to position the Kenyan coast as a petroleum trading hub to serve the
Eastern Africa, the East coast of Africa and ultimately serve as an important supply point for cargoes
destined for South East Asia
The completion and commissioning date of this project is set to be in early 2015.
In v es t in K en ya
| KENINVEST 25
2. Project Drivers
3. Key Challenges
Need for the project such as Market size, Volume of
market components, etc. (e.g Volume of cargo for Railway
transport or No. of Passengers for an Airport.)
This are the key cost / quality factors determining the
success of the Project. (e.g. Track alignment for railways,
land form for roads.)
◼◼ Due to the present constraints in importing petroleum
through the port of Mombas, Kenya is estimated to incur
demurrage costs of USD 100M per annum due to delays
in discharging oil tankers calling at the port.
COST
◼◼ It has been estimated that by 2030, petroleum
consumption will have risen from 4 million metric tons
currently to above 12 million metric tons.
◼◼ By 2030 it is also estimated that the larger Eastern
Africa including landlocked countries of Malawi and
Zambia which are served through Dar es Salaam will
be consuming approximately 40 million MT of oil
annually.
◼◼ East Africa must also begin putting up the infrastructure
to take the recent oil discoveries to the market
26 KENINVEST
| In v es t in K en ya
The project is expected to cost in excess of USD 500M thus
while the project has an ROI of above 15%, competitive
financing terms must be provided in order to realize
commensurate returns for the investors.
PIRACY
The threat of piracy can be a challenge to realizing
improved tanker traffic into the East African coast however
concerted international efforts to fight piracy in the Indian
Ocean as well as improving governance in Somali are
expected to mitigate this challenge.
2.2
635MW Geothermal Olkaria Pipeline
Promoter:
Estimated Investment: Private sector Participation: Location:
Kenya Electricity Generating Company(KenGen)
US $1716.77 Million
Joint Venture
Olkaria Field, Naivasha
K
enGen has been granted the license by the Government of Kenya to develop the
Olkaria field, which has an estimated resource potential of about 1200MW, of
which 204.8MW already developed, and an additional 280MW is at the construction
stage. The balance resource is estimated at about 635MW is currently under a feasibility study
which was scheduled to be completed by the end of June 2012.
The project will have beneficial impacts in the form of
increased national power generation capacity significantly
and the consequent wider economic effects that will follow.
The development could bring local employment benefits
and skills development directly through the provision of
construction and operational jobs, and indirectly through
the attraction of investment into the area.
PROJECT INFORMATION
1. Overview of the Project
SUMMARY /KEY HIGHLIGHTS OF THE PROJECT INCLUDING A
BRIEF DESCRIPTION, ECONOMIC AND SOCIAL BENEFITS
KenGen has been granted the license by the Government of
Kenya to develop the Olkaria field, which has an estimated
resource potential of about 1200MW, of which 204.8MW
already developed, and an additional 280MW is at the
construction stage. The balance resource is estimated at
about 635MW is currently under a feasibility study which
was scheduled to be completed by the end of June 2012.
SOCIO ECONOMIC BENEFITS OF THE PROJECT
The Olkaria field is located in the Hell’s Gate Park and the
area is basically a game park reserve. There will therefore
be no relocation or any human settlement. Peaceful coexistence with the wild animal has been ensured in the
previous geothermal development at the area.
The project will have beneficial impacts in the form of
increased national power generation capacity significantly
and the consequent wider economic effects that will follow.
The development could bring local employment benefits
and skills development directly through the provision of
construction and operational jobs, and indirectly through
the attraction of investment into the area.
2. Project Drivers
Need for the project such as Market size, Volume of market
components, etc.
◼◼ Power supply shortfalls
◼◼ Growth in demand for power due to increased
connections in urban and rural areas
◼◼ Need for development of green renewable energy
◼◼ The Geothermal project pipeline has been identified
as cheapest option compared to the other modes of
generation, in addition to the huge resource potential
estimated at about 10,000MW.
3. Key Challenges
These are the key cost / quality factors determining the
success of the Project. (e.g. Track alignment for railways,
land form for roads.)
◼◼ Availability of finance for capacity expansion
◼◼ High capital requirements
In v es t in K en ya
| KENINVEST 27
2.3 Liquefied Natural Gas (LNG) storage and Regasification facility
with associated power generation
Promoter: Ministry of Energy
Estimated Investment:
USD 685Million
Private sector Participation: 30 year concession for the LNG facility and a 20
year Power purchase agreement for a Build Own Operate plant with additional time for
decommissioning and land restoration
Location: Dongo Kundu, Mombasa
T
he project has two components. One component involves the establishment of
a jetty, storage and the re-gasification facilities. The other component will be
the development of power generation plant through a partnership between KenGen
and the private sector.
2.4
980MW Coal Plant
Promoter:
Estimated Investment: Private sector Participation: Location: Ministry of Energy
Not Yet Determined
Build Own Operate
Investor Determined
G
eneration of 980MW of power by IPPs for 20 to 25 years. Selection of an
Independent Power Producer(IPP) is currently underway.
2.5
Arror Multipurpose Dam
Promoter:
Kerio Valley Development Authority
Estimated Investment: US $302.48 Million
Private sector Participation: Joint Venture
Location:Kapsowar Town
Hydropower Generation- Proposed to generate 60MW hydropower using waters of Arror River.
Agricultural Development- Irrigation of 2500Ha for crop production on the Kerio Valley floor.
Conservation Programme- conservation, rehabilitation and protection of the environment along
Arror. Capacities build communities on Natural Resource Management
28 KENINVEST
| In v es t in K en ya
2.6
Magwagwa Multipurpose Dam
Promoter:
Lake Basin Development Authority
Estimated Investment: US $979.8 Million
Private sector Participation: Joint Venture
Location:Magwagwa
M
agwagwa Multipurpose Dam Project comprises the construction of a 95m
high and 450m long concrete faced rock fill dam with a design total output
of 120MW and an annual energy production of 510GWh/y. It also comprises a reservoir
with a maximum capacity of 445*10,000,000 cubic meters expected to supply water to 19 service
centers starting with Magwagwa town and also provide water for irrigation and fisheries.
Coming Soon Projects
Project
Promoter
Kiambere-Solar Energy Development
Tana & Athi Rivers Water
Development Authority
2x 100MW Menengai Phase I-I
Geothermal Development
Corporation (GDC)
100 MW Wind Energy – Isiolo
Kenya Electricity Generating
Company
800MW Menengai Phase 2
Geothermal Development Company
800MW Bogoria-Silali Phase 1
Geothermal Development Company
Offshore Jetty
National Oil Corporation of Kenya
300MW Geothermal Plant
Geothermal Development Company
In v es t in K en ya
| KENINVEST 29
30 KENINVEST
| In v es t in K en ya
Flagship projects
Agriculture
3.1
Tana Delta Irrigation Sugar Project
Promoter:
Estimated Investment: Private sector Participation: Location:
Tana & Athi Water Rivers Development Authority
US $120.402 Million
Joint Venture
Garsen County, 100km North of Malindi
D
evelopment of 20,000 Ha of sugar fields and construction of 10,000 capacity sugar processing
plant and installation of a 34 MW cogeneration power plant and installation of ethanol plant
with capacity of 75,000 ltrs/day.
B. PROJECT INFORMATION
1. Overview of the Project
SUMMARY /KEY HIGHLIGHTS OF THE PROJECT
INCLUDING A BRIEF DESCRIPTION, ECONOMIC
AND SOCIAL BENEFITS.
◼◼ Construct more health facilities in the region
TANA DELTA INTEGRATED SUGAR PROJECT
Tana and Athi Rivers Development(TARDA), in planned
private joint venture, are proposing to put up this project
located in Garsen County, Coast Province about 100km
north of Malindi. “TISP” is rather flat and located at the
lower end of the Tana River. It forms part of the Delta
covering 20.000ha.
◼◼ Promote environment conservation by enhancing more
tree seedlings.
◼◼ Improved incomes and livelihoods through wealth and
employment creation
◼◼ Enhance food security
3. Key Challenges
2. Project Drivers
Need for the project such as Market size, Volume of
market components, etc. (e.g Volume of cargo for Railway
transport or No. of Passengers for an Airport.)
This are the key cost / quality factors determining the
success of the Project. (e.g. Track alignment for railways,
land form for roads.)
◼◼ High initial costs of financing the project.
CAPACITY
◼◼ Water supply-boost water supply in the region.
◼◼ Climate change
◼◼ Generation of electricity(34MW)
◼◼ Address the issue of infrastructure in terms of roads and
bridges.
◼◼ Alleviate the education standards by building more
schools
In v es t in K en ya
| KENINVEST 31
3.2
Fish Port Development Project
Promoter:
Estimated Investment:
Private sector Participation: Location:
Coast Development Authority
Not yet Determined
PPP
Kenyan coastline
T
he project is designed to develop a modern equipped fish port along the
Kenyan coastline. It will entail the construction of fish landing site at shoreline,
purchase of cold storage facilities and fishing vessels.
PROJECT INFORMATION
1. Overview of the Project
SUMMARY /KEY HIGHLIGHTS OF THE PROJECT
INCLUDING A BRIEF DESCRIPTION, ECONOMIC
AND SOCIAL BENEFITS.
3. Key Challenges
This are the key cost / quality factors determining the
success of the Project. (e.g. Track alignment for railways,
land form for roads.)
FISH PORT DEVELOPMENT PROJECT
◼◼ Funds to implement the project
The project is designed to develop a modern equipped
fish port along the Kenyan Coastline. This will entail the
construction of fish landing site at shoreline, purchase of
fish and fish products, cold storage facilities with capacity
of about 300 metric tonnes/daily, purchase of 20, 10.67m
fishing vessels with inboard diesel engine crafts with 8.5m3
capacity at project commencement and 50, 7m length
coastal fishing boats with outboard motors and fishing gear
with an estimated production of 750kg/day per boat, 250
days annually.
◼◼ Lack enough technical information in relation to Fish
port development
2. Project Drivers
Need for the project such as Market size, Volume of
market components, etc. (e.g Volume of cargo for Railway
transport or No. of Passengers for an Airport.)
◼◼ The current Marine fisheries production levels stands at
about 8,000 metric tonnes annually.
◼◼ The Marine fisheries potential stands at 260,000 metric
tonnes annually
◼◼ Lack of modern equipped operational fish port in Kenya
◼◼ Approximately 60,000 households in the coastal region
depend on Marine fishing.
32 KENINVEST
| In v es t in K en ya
◼◼ Lack of natural shelter for Fish port development.
Coming Soon Projects
Projects
Promoter
Tana Delta Irrigation Sugar Project
Tana & Athi Water Rivers Development
Authority
Meat Processing Plant
Kerio Valley Development Authority
Fruit Processing Plant
Kerio Valley Development Authority
Modern State-of-the-Art Abattoir
Mandera County Government
Munyu Multipurpose and Greater Kibwezi
Irrigation
Tana & Athi Water Rivers Development
Authority
Tana Delta Irrigation Rice Project
Tana & Athi Water Rivers Development
Authority
Fish Port Development Project
Coast Development Authority
In v es t in K en ya
| KENINVEST 33
Flagship projects
Real Estate
4.1 KONZA CITY TECHNOPOLIS
Promoter:
Private sector Participation: Location:
Konza Technopolis Development Authority
Joint Venture
Malili, Machakos
A
im is to develop an ultra-modern Technopolis City 60km south off Nairobi.
The Konza Technopolis aims to blend a Business Processing Off shoring (BPO)
Park, together with a residential area and a modern Central Business District.
Coming Soon Projects
Projects
Promoter
Civil Servants Housing Project
Ministry of Land, Housing and Urban
Development
34 KENINVEST
| In v es t in K en ya
Flagship projects
Tourism
5.1
Isiolo Resort
Promoter:
Ministry of Tourism
Estimated Investment: USD 184Million
Private sector Participation: Public Private Partnership
Location:Isiolo
T
he project will involve development of a five-star hotel (400 rooms), two three star
hotels (300 rooms), conference facilities, office park and car park for 2000 vehicles.
PROJECT INFORMATION
1. Overview of the Project
SUMMARY /KEY HIGHLIGHTS OF THE PROJECT INCLUDING A
BRIEF DESCRIPTION, ECONOMIC AND SOCIAL BENEFITS.
The main concept of the Resort City Project is to create the
new Tourism Corridor based on group tours using mass
transportation network facilitated by the LAPSSET Corridor.
Isiolo is located at the junction of the LAPSSET Corridor
headed to South Sudan via Lokichokio and Ethiopia via
Moyale. Its location is very unique, because it is the center
of Kenya geopolitically and shall serve as a traffic node.
Moreover, there are many national parks and reserves such
as Samburu, Shaba, Meru, and Mt.Kenya National Park
within a radius of 30km from Isiolo for a one-day trip.
The Isiolo Resort City project is located at the eastern part
of the Central tourism zone and would therefore attract the
international tourists from all over the world and domestic
market. Its estimated that it will carter for the share of total
tourist arrival of the Central region at a rate of 10% or
22,000 in 2020 and 20% or 60,000 in 2030, respectively
Most of the economic benefits will be generated by
multiplier effect of tourism development where it will
impact on other sectors of the economy. The other
expected benefits would be output made due to the input
(investment) of investment cost for physical development
of tourism infrastructure, superstructure and tourism
facilities and output made due to the spending of tourists
such as tourism services including the services provided by
tour operators, transporters, telecommunication providers,
retailers, traders, vendors, farmers, fishermen etc.
Direct expenditure of the tourists is also expected to
benefit the local community and these direct spending by
tourist for purchase of optional tours, tour guide services,
park entrance fees, food and beverages and souvenirs
(handicrafts, local delicacies, wines, tobacco, etc.)
2. Project Drivers
Based on the past record of tourist arrival of Kenya, it can
be projected that the number of total international tourist
arrival will be 2.26 million in 2020 and 3.08 million in
2030.The Isiolo Resort City project is located at the eastern
part of the Central tourism zone. This region accounts for
approximately 10% of the total tourists arrivals. The Isiolo
Resort City would attract the international tourists from
all over the world and domestic market and its share of the
total tourist arrival to Central tourist region would be at
the rate of 10% or 22,000 in 2020 and 20% or 60,000 in
2030, respectively
3. Key Challenges
SUSTAINABLE ENVIRONMENT ORIENTED
TOURISM DEVELOPMENT
The natural and cultural environment constitutes the most
important and major tourism resources and products of the
area where the Resort City is planned to be located. These
kinds of environments natural phenomena are to be dealt
carefully as these are sensitive in nature and need constant
In v es t in K en ya
| KENINVEST 35
care to maintain and preserve them as they are now. The
sustainability of such environment can only be realized not
only by the people through participation of the government
officers in collaboration with conservationists but also
through a well managed organization designed to dedicate
itself to conservation of the environment as well as to make
sure the observation of the public interest.
RESORT CITY DEVELOPMENT GUIDELINES
The proper development guideline shall need to be
established and applied to every development process
aspect of the Resort City to ensure the sustainability of
tourism development in designated area; this will ensure
that pressures on social and economic development such
as the Resort City do not lead to neglect or encroachment
on precious and vulnerable natural resources within the
environment as well as the social environment. This would
eventually result in huge losses of investment and natural
environment in the future.
PROMOTION OF RESORT CITY BY INTERNATIONAL
TRAVEL AGENCIES
The role of international travel agents is quite important
in the marketing of tourism project that is going to be
developed on Greenfield. Without a proper involvement
of international travel agents, the Resort City will fail
to penetrate the designated both international market
and local markets. The segmentation of the market
for marketing of the Resort City is quite an important
preparatory process for formulation of development plans
and financial schemes for the resort city. It is suggested
to invite several international class travel agencies and let
them participate in the development planning.
36 KENINVEST
| In v es t in K en ya
4. Investment Plan
Resort city investments will comprise a combination
of both public goods – such as technical infrastructure
(water and sanitation, roads, electricity, ICT etc) – and
private goods, such as hotels, lodges, guest houses and
other recreation and commercial facilities. In the absence
of appropriate incentives, public infrastructure does not
readily attract private finance because it requires large
amounts of capital and typically constitutes sunk costs
with no alternative use. For this reason public sector
funding is usually necessary to kick-start development
but, where the right conditions exist, PPPs provide a
means of attracting private capital. Private goods with a
ready demand, on the other hand, especially where they
generate strong cash flows and competitive rates of return
to investment, are good candidates for private finance.
Investments in the resort city will take this distinction
between public and private goods into account so that
public sector funding will primarily go towards financing
trunk infrastructure. Private funding will finance private
goods but also public goods under PPP arrangements.
PPPs will play a role depending on the market demand for
the facilities offered by the resort city and their ability to
generate cash flows. It is envisaged that land use rights and
the essential trunk infrastructure will be provided by the
public sector to support the resort-oriented residential,
recreational and commercial developments which are
purely initiated by the private sector. The role of the public
sector in this format will be to prepare an implementation
framework, assess project viability including the provision
of essential infrastructure, and solicit private sector
participation to guide the development.
However, feasibility of resort developments can only be
assessed by potential private sector investors with sufficient
expertise and business interest for the development. The
assurance of public sector funding of basic infrastructure,
in addition to assurance of security, will make it attractive
for the private sector to invest.
5. Institutional and legal frameworks
For purpose of regulating the operations of the three
LAPSSET resort cities of Isiolo,Lamu and Turkana, and
the coordination necessary to assure functional linkages,
an overall association for the three resort cities, i.e. Resort
City Association, is recommended to be established
with the key role of coordinating and optimizing the
use of the LAPSSET tourism corridor through joint
capacity development of staffs for resort cities and other
stakeholders in the hospitality industry within the
corridor. A crucial role of the resort city association will be
to develop regulations, norms and benchmarks that seek to
ensure that resort cities maintain international standards
and remain competitive. Moreover, the association will act
as a forum for interacting with the Central Government
(Ministry of Tourism), the County Government and other
local leadership and stakeholders. This is to ensure that
resort cities do not grow as isolated enclaves and that their
full potential both for the investors, the nation and the local
community is realized.
The community-based management association and the
management companies will be represented in the resort
cities association to ensure that key emerging issues are
taken on board by all stakeholders and that decisions
making is inclusive.
5.2 Mombasa International Convention
Center
Promoter:
Tourism Finance Corporation
Estimated Investment: Undisclosed
Private sector Participation: Public Private Partnership
Location:Mombasa
T
he concept entails the development of a
multi-purpose Convention Centre, with a
contemporary design to ensure large event(s) are
successful in Kenya.
The site is located on a rehabilitated quarry within Haller
Park located South of the Bamburi Cement plant along the
Mombasa-Malindi Highway on the Kenyan Coast. A green
star rating would be thus well received in the international
convention market.
Vision 2030 identifies conferences and business tourism
as niche products, which the Government and the private
sector should collaborate in an endeavor to enhance
capacity by investing in and upgrading hotel facilities and
improving transport infrastructure.
Coming Soon Projects
Project
Promoter
Development of Marina at Tourism Finance Corporation
Shimoni
Masinga Dam Ecotourism Tana & Athi Water Rivers
Complex
Development Authority
In v es t in K en ya
| KENINVEST 37
Flagship projects
Water Supply
6.1
Mwache Multipurpose Dam Development Project
Promoter:
Estimated Investment: Private sector Participation: Location:
Coast Development Authority
US $285.04 Million
PPP
Mwache River, Mombasa
C
onstruction of 83.7m high dam, a reservoir capacity of at least
207 million cubic meters, with a production of 47.45MCM/
yr water for domestic use to serve 1,536,000 people and 20,000
livestock.
This will enable production of 51.79MCM/yr water for
irrigation annually to serve an irrigated area of 8,532Ha
land for improved food security.
2. Project Drivers
B. PROJECT INFORMATION
1. Overview of the Project
◼◼ Current water demand in Mombasa and the coastal area
estimated to be about 200,000m3/day against a total
supply of 92,800m3/day.
SUMMARY /KEY HIGHLIGHTS OF THE PROJECT
INCLUDING A BRIEF DESCRIPTION, ECONOMIC
AND SOCIAL BENEFITS.
◼◼ Projected demand for year 2030 on the Mwache River
as; a reservoir capacity of 133million m3. Public water
supplies for a population of approx. 1,536,000 people
and 20,000 livestock, irrigation expansion of up to about
4000 hectares aimed at reducing the existing and rapidly
growing population pressure on rain fed irrigation.
MWACHE MULTIPURPOSE DAM DEVELOPMENT PROJECT
The project entails the construction of 83.7m high dam, a
reservoir capacity of at least 207million cubic metres, with
a production of 47.45MCM/year(130,000m3/day) water
for domestic use to serve 1,536,000 people and 20,000
livestock along Mwache River.
Current water demand in Mombasa and the coastal area
estimated to be about 200,000m3/day against a total supply
of 92,800m3/day.
The project seeks to:
a) Increase access to reliable, affordable and sustainable
water supply to Mombasa town. Presently, Mombasa town
receives its water supply from distant areas. Its main source
of water supply is Mzima spring; situated about 300km
away in the Chyulu Hills.
b) Improvements on the community’s poor state of health,
education, enhanced food production, promotion of
ecotourism, development of the economy and environment
in general.
38 KENINVEST
| In v es t in K en ya
Need for the project such as Market size, Volume of
market components, etc. (e.g Volume of cargo for Railway
transport or No. of Passengers for an Airport.)
◼◼ The last 6km length of the Mwache River is
characterised by deep valley(50-100m deep) with
numerous black rocks, indigenous in origin river bed
making it a perfect site for dam construction.
3. Key Challenges
This are the key cost / quality factors determining the
success of the Project. (e.g. Track alignment for railways,
land form for roads.)
◼◼ Resettlement of the residents for effective project
implementation within the project area.
◼◼ The silt carrying capacity of the river is also quite high.
Keeping in view all the factors, the idea of inter-basin
transfer becomes difficult.
6.2
Lake Challa Water Resources Development Project
Promoter:
Estimated Investment: Private sector Participation: Location:
Coast Development Authority
US $387 Million
PPP
Challa River, Coast
D
evelopment of a multipurpose project to contribute to the increase in production of
water for domestic use, improve on farming produce through irrigation schemes,
domestic and livestock use and fisheries and forestry consumption.
Coming Soon Projects
Project
Promoter
Nairobi Bulk Water Supply
Athi Water Services Board
Nandi Forest Multipurpose Dam
Lake Basin Development Authority
Webuye Multipurpose Dam Development
Lake Basin Development Authority
Nairobi Solid Waste Management
Nairobi County Government
Mombasa Solid Waste Management
Mombasa County Government
Nakuru Solid Waste Management
Nakuru County Government
Flagship projects
Health
7.1
300-Bed Hospital at KNH-Private Wing
Promoter:
Kenyatta National Hospital
Estimated Investment: USD 36Million
Private sector Participation: Public Private Partnership
Location:Nairobi
D
evelopment of the first full health PPP project in Kenya to provide local access
to State-of-the-Art specialty care thereby reducing the need to travel. A build-
operate-transfer PPP where the private party finances, constructs, operates and maintains (O&M) the
envisaged seven-storey to house 300-bed hospital building.
In v es t in K en ya
| KENINVEST 39
Coming Soon Projects
Project
Promoter
Equipment Lease and Infrastructure Improvement
Ministry of Health
ICT Services at Kenyatta National Hospital
Ministry of Health
Oxygen Plant
Ministry of Health
Flagship projects
Education
8.1
Moi University Students Hostels
Promoter:
Moi University
Private sector Participation: Build-Operate-Transfer (BOT) PPP Model
Location:Nairobi
C
onstruction of 7 student hostels/blocks to accommodate 9,880 number of
students on a Build-Operate-Transfer (BOT) PPP model.
Coming Soon Projects
Project
Promoter
Embu University College Student Accommodation Hostels
Embu University College
Maseno University Student Accommodation Hostels
Maseno University
Egerton University Student Accommodation Hostels
Egerton University
SEKU Student Accommodation Hostels
SEKU
Kenya School of Government-Embu Accommodation
Hostels
Kenya School of Government-Embu
40 KENINVEST
| In v es t in K en ya
Flagship projects
Manufacturing
9.1
Shimoni Cement Productions
Promoter:
Estimated Investment: Private sector Participation: Location:
Coast Development Authority
USD 249.428Million
FDI, Development Partners, PPP
Shimoni, Kwale District, Coast Province
C
ement production project is planned to be located at Shimoni, Kwale District,
Coast Province nearby a limestone mine and spread limestone deposit. Produced
cement will be for domestic use (Kenyan standard) and export (British Standard).
Coming Soon Projects
Project
Promoter
Flat Glass Production
Coast Development Authority
PROJECT INFORMATION
1. Overview of the Project
SUMMARY /KEY HIGHLIGHTS OF THE PROJECT
INCLUDING A BRIEF DESCRIPTION, ECONOMIC
AND SOCIAL BENEFITS.
SHIMONI CEMENT PRODUCTION PROJECT
Cement production project is planned to be located in
Shimoni, Kwale District, Coast Province, Kenya nearby a
limestone mine and spread limestone deposit.
In relation to the recorded shortages in demand for cement
in Kenya over the years(annual cement consumption in
Kenya was projected to be 4t/year way above national
cement production). Cement plant could be feasible to be
operated at Shimoni and manufacturing 600,000t/year for
domestic and 100,000 for export. This should contribute to
the filling of the current cement demand gap.
430 people and a temporary employment of 200 people
a day at a stage of periodical maintenance is considered
to contribute to employment opportunity and economic
stabilities of Kwale district and the coast region as a whole.
2. Project Drivers
Need for the project such as Market size, Volume of
market components, etc. (e.g Volume of cargo for Railway
transport or No. of Passengers for an Airport.)
◼◼ In relation to the recorded shortages in demand
of cement in Kenya over the years; annual cement
consumption in Kenya was projected to be 4t/year way
above the national cement production.
◼◼ Potential economic growth in Kenya is at a rate of 5% a
year.
◼◼ It is forecasted that future cement demand in Kenya will
develop favourably.
Produced cement will be for domestic use and for export.
Cement for domestic use accords with Kenyan standard
and cement for export accords with British standard in
quality.
3. Key Challenges
The project is intended to contribute to Kenyan balance
of trade through export of the cement besides creating
employment to the locals and generally economic
development of the region. A regular employment of
◼◼ Funds to implement the project
This are the key cost / quality factors determining the
success of the Project. (e.g. Track alignment for railways,
land form for roads.)
◼◼ Land acquisition for the cement raw material extraction.
In v es t in K en ya
| KENINVEST 41
Summary of
KenInvest Services
POLICY
ADVOCACY
AFTER CARE
SERVICES
INVESTMENT
TRACKING
INVESTMENT
PROMOTION
INVESTMENT
FACILITATION
Our Core functions & Services
A) Investment Promotion
Providing information on investment opportunities
or sources of capital; Promoting the opportunities for
investment available in Kenya by organizing forums,
workshops and other marketing initiatives.
B) Investment Facilitation
Investor Tracking and After Care Services; Assisting in
Issuing Investment Certificates; Assisting in obtaining
necessary licenses and permits; and Assisting in obtaining
incentives or exemptions under various Acts of Law and
other regulations.
C) Policy Advocacy
Reviewing the investment environment and making
recommendations to Government and other stakeholders,
with respect to changes that would promote and facilitate
investment, including changes in licensing requirements.
D) Facilitate Joint Venture between Local &
Foreign investors
42 KENINVEST
| In v es t in K en ya
List of other instutions
involved in investment
promotion
Export Processing Zone Authority
Administration Building, Viwanda Road, off Nairobi-Namanga Highway,
Konza Technopolis Development Authority
(KOTDA)
Westlands, Capital West Business Centre 5th Floor,
Athi River, Kenya
Opposite New Rehema House
P.O. Box 50563 - 00200, Nairobi Kenya
P.O. Box 30519 - 00100, Nairobi, Kenya
VoIP Lines:
020-760 60 40/3
Email:[email protected]
Cellphone:
(Safaricom): 0713-051172/3;
www.konzacity.go.ke
(Airtel): 0786-683222/0733-683222
Email:[email protected]
www.epzakenya.com
Export Promotion Council
LAPSSET Corridor Development Authority
(LCDA)
Chester House Building,
P.O. Box 45008 - 00100,
1st and 16th Floor Anniversary Towers, University Way
Koinange Street, Nairobi
P.O. Box 40247 - 00100, GPO
Tel:+254-(0)20-2218968
Nairobi, Kenya
www.lapsset.go.ke
Tel:
+254-20-222 8534-8
www.epckenya.org
Vision 2030 Delivery Secretariat
Kenya Association of Manufacturers
86 Riverside lane, off Riverside drive, Riverside, Nairobi
P.O. Box 30225 - 00100, Nairobi Kenya
Kussco Centre, 2nd Floor, Upper Hill,
Tel:
+254-20-374 6022
P.O. Box 52301 - 00200, Nairobi, Kenya
Fax:
+254-20-216 6658
Tel:
+254-20-272 20 30, +254-20-272 22 004
Cell:
+254-722-201 368 / 734-646 005/4
Fax:
+254-20-809 13 53
www.vision2030.go.ke
Kenya National Chamber of Commerce and
Industry (KNCCI)
Heritan House, Ground Floor, Woodlands Road, Off Argwings Kodhek Road,
Opposite Department of Defence HQs, Hurlingham.
P.O. Box 47024 - 00200, Nairobi Kenya
www.kenyachamber.or.ke
In v es t in K en ya
| KENINVEST 43
44 KENINVEST
| In v es t in K en ya