The Lake Region Economic Blueprint A better life The Lake Region Economic Blueprint A better life Supported by: Figure 1: Counties of the Lake Region Contents Acronyms and Abbreviations Executive Summary 6 1 Introduction 10 1.1 Vision 2030 and Development 10 1.2 The Lake Basin Economic Blueprint (LREB) 11 1.3 Approach and Methodology of the Blueprint 12 1.4 Structure of the Blueprint 12 2 Key Features of the Lake Region 13 2.1 Physical Features of the Lake Region 13 2.2 Demographic Features 13 2.3 Socioeconomic Features of the Lake Region 13 2.4 Spotlight on Opportunities in the Lake Region 14 3 Productive Sectors: Agriculture and Tourism 16 3.1 Agriculture 16 3.1.1 The State of Agriculture in the Lake Region 16 3.1.2 Key Agricultural Challenges in the Lake Region 20 3.1.3 Economic Opportunities in the Agriculture Sector 21 3.1.4 Resource Mobilization Strategy 26 3.1.5 Socioeconomic Impact of the Agricultural Sector 26 3.2 Tourism 27 3.2.1 The State of the Western Kenya Tourism Circuit 27 3.2.2 Current Attractions 28 3.2.3 Opportunities and Prospective Projects for Tourism in the Lake Region 32 3.2.4 Key Challenges in the Tourism Sector 36 3.2.5 Resource Mobilization Strategy 37 3.2.6 Socioeconomic Impact of the Tourism Sector 37 4 Social Sectors: Education and Health 38 4.1 Education 38 4.1.1 The State of Education in the Lake Region 38 4.1.2 Key Education Challenges in the Lake Region 40 4.1.3 Opportunities for Investment in Education 41 4.1.4 Education Interventions 44 4.1.5 Socioeconomic Impact of Interventions in Education 45 4.2 Health 46 4.2.1 The State of the Health Sector in the Lake Region 46 4.2.2 Key Health Challenges Facing the Lake Region 48 4.2.3 Opportunities to expand Quality Health care Services 49 4.2.4 Socioeconomic impact of the Health Sector 53 5 Enabling Sectors: Financial Services, ICT and Infrastructure 54 5.1 Financial Services 54 5.1.1 The State of Financial Services in the Lake Region 54 5.1.2 Proposed Flagship Project: Creation of Regional Bank 55 5.1.3 Resource Mobilization Strategy 55 5.1.4 Socioeconomic Impact of Financial Services 56 5.2 Information and Communication Technologies 56 5.2.1 The State of the ICT Sector in the Lake Region 56 5.2.2 Economic Opportunities in the ICT Sector 57 5.2.3 Proposed Projects 59 5.2.4 Resource Mobilization Strategy 60 5.2.5 Socioeconomic Impact of the ICT sector 60 5.3 Infrastructure 60 5.3.1 State of Infrastructure in the Lake Region 62 5.3.2 Challenges in infrastructure in the Lake Region 63 5.3.3 Summary of Infrastructure Sector Investment Opportunities per Region 63 5.3.4 Key Interventions 67 6 Cross Cutting Themes 68 6.1 Women and Girls 68 6.1.1 Women in Agriculture 68 6.1.2 Women and Girls in Tourism 68 6.1.3 Education Status of Women and Girls 68 6.1.4 Health Status of Women and Girls 69 6.1.5 Women’s Access to Financial Services 69 6.1.6 Women, girls and ICT 69 6.1.7 Interventions Targeting Women and Girls 69 6.2 Youth 71 6.2.1 Youth and Agriculture 71 6.2.2 Youth and Tourism 71 6.2.3 Youth and Education 71 6.2.4 Youth and Health 72 6.2.5 Youth and Financial Services 72 6.2.6 Youth and ICT 72 6.2.7 Interventions Targeting the Youth 73 6.3 Persons with Disability (PWDS) 74 6.3.1 Persons with Disability and Agriculture 74 6.3.2 Persons with Disability and Tourism 75 6.3.3 Persons with Disability and Education 75 6.3.4 Persons with Disability and Health 75 6.3.5 Persons with Disability and Financial Services 75 6.3.6 Persons with Disability and ICT 75 6.3.7 Interventions targeting People with Disabilities 76 6.4 The Environment 79 6.4.1 The Environment and Agriculture 79 6.4.2 The Environment and Tourism 79 6.4.3 The Environment and Education 79 6.4.4 The Environment and Health 79 6.4.5 Interventions focused on the Environment 80 7 Key Risks and Mitigation Strategies 81 8 Conclusion 82 9 Addendum 83 10 References 84 Contacts Acronyms and Abbreviations ADSL Asymmetric Digital Subscriber Line AIDS Acquired Immune Deficiency Syndrome CBD Central Business District CBK Central Bank of Kenya CIDP County Integrated Development Plans COMESA Common Market for Eastern and Southern Africa ECDE Early Childhood Education and Development EDGE Enhanced Data Rates for GSM Evolution FTTX Fiber to the X GDP Gross Domestic Product GER Gross Enrolment Ratio GOK Government of Kenya HIV Human Immunodeficiency Virus ICT Information and Communication Technology IDP Internally Displaced Persons IFMIS Integrated Financial management and Information System KARI Kenya Agricultural Research Institute KDHS Kenya Demographic and Health Survey KEMSA Kenya Medical Supplies Authority KIHBS Kenya Integrated Household and Budget Survey KWH Kilowatt Hour LBEBP Lake Basin Regional Economic Blue Print LBR Lake Basin Region LVKTC Lake Victoria Tourism Circuit MT Metric Tonnes MTP Medium Term Implementation Plan NER Net Enrolment Rate NGO Non-Governmental Association PGA Professional Golfers Association PPP Public Private Partnership SACCO Savings and Credit Cooperatives SADC Southern African Development Community SONY South Nyanza Sugar Company TTC Teachers Training College UNDP United Nations Development Programme Executive summary Kenya Vision 2030 is the country’s blueprint that charts Nzoia, Mt. Elgon etc. the strategic priorities and interventions for development • Shared values i.e. economic growth as a vital between 2008 and 2030 for the country. It aims to Development Imperative to support the ailing social transform Kenya into an industrializing, ‘middle-income sectors such as Education, Health etc. country providing a high quality life to all its citizens by the year 2030’ (Kenya Vision 2020, 2007). The Vision The Lake Region is one of the most densely populated is based on three pillars: the economic, the social and regions of Kenya with over 10 million people which the political. The economic pillar aims to improve constitute about 25% of the population in Kenya. the prosperity of all Kenyans through an economic This Economic Blueprint presents the socioeconomic development programme, covering all the regions of aspirations of 10 counties in the Lake Basin Region Kenya, aiming to achieve an average Gross Domestic and seeks to boldly secure and shape the region’s Product (GDP) growth rate of 10per cent per annum destiny. This Economic Blueprint is designed to guide from 2012 onwards. The social pillar seeks to build a development efforts by leveraging existing assets, just and cohesive society where social equity is prevalent addressing constraints and defining key steps that in a clean and secure environment. The political pillar leaders and citizens of the region can take to transform aims to realize a democratic political system founded the shared vision of prosperity into reality. on issue-based politics that respects the rule of law and protects the rights and freedoms of every individual in The counties that constitute the Lake Region in this Kenyan society. The Kenya Vision 2030 is planned to be blueprint are Bungoma, Busia, Homa Bay, Kakamega, implemented in successive five-year Medium-Term Plans, Kisii, Kisumu, Migori, Nyamira, Siaya and Vihiga. They the first of which covered the period 2008- 2012. The not only have similar ecological zones and natural second Medium-Term Plan covers the period 2013-2017 resources, they have analogous cultural histories that and has already been launched. date back to historical migrations and trading routes. Thus a partnership between the counties is both Why a Regional Blueprint? essential and timely and creates a practical framework The promulgation of the Constitution 2010 brought through which county government efforts can be previously non-existent opportunities for regional pooled to harness the abundant natural resources, build growth closer to Kenyan citizens by introducing a on existing strengths and address challenges. devolved system of government that brings decision- making structures and processes closer to the people. The Evolution of the Lake Region Economic Within the devolved structure, Kenyans can more Blueprint (LREB) actively participate in the planning and implementation The LREB has been developed with the support of of development plans for their region. However, the Deloitte East Africa and Ford Foundation in partnership main drawback of devolution is that often counties with the county governments of the aforementioned are too small a unit to leverage economies of scale 10 counties. During the process of developing the often unable to tap into a robust pool of skilled Blueprint, seven (7) strategic intervention areas emerged labour or funding options required to catalyse positive as follows: change within a given jurisdiction. The Economic • Productive Sectors: Agriculture and Tourism Blueprint for the Lake Basin Region was born out of • Social Sectors: Education and Health; the understanding that strategic connections between • Enablers: ICT, Financial Services and Infrastructure counties with shared interests seated in a desire for mutual benefit can be an effective and intelligent The process of developing the blueprint consisted of means of increasing the possibility of creating notable rigorous consultative activities in which Deloitte teams development impact across several counties. Additional visited all 10 counties and met with county governments reasons for a regional Blueprint are: and the citizenry to collect the data herein. The process • Access to New & Expanded Markets also drew on the County Integrated Development Plans • Economies of Scale e.g.