1.3 Approach

WS Atkins International Limited was commissioned to develop the Urban Economic Plan for Malindi Municipality as part of the UK’s Department for International Development Sustainable Urban Economic Development Programme (SUED). The aim of the programme is to support urban and market driven growth in emerging towns and cities in Kenya. Supporting these smaller centres provides an environment to create economic opportunities and job creation in a way that balances growth across the country, develops economic sectors that can contribute towards increasing the national output and provide an incentive for minimising uncontrolled migration. In order to enable the above, the programme will identify climate resilient infrastructure development that responds to the town’s urbanisation pressures and needs.

Combining local knowledge and international expertise, the Malindi Urban Economic Plan: The UEP is an advisory document that builds on existing work and priorities identified under the CIDP and ISUDP, as well as complementing work done by donors and development agencies. In doing so, it will provide a focused infrastructure development and economic strategy for the Municipal Board and Municipal Departments to enable them to deliver sustainable urban and economic development within the Municipality.

Provides an inclusive economic strategy that can guide future development towards increasing prosperity in Malindi;

Prioritises economic activities and climate resilient infrastructure that can maximise benefits and support the development of a sustainable economic future of Malindi and introduce international best practice and innovation;

Brings together stakeholders on deciding the economic future of Malindi and implementing it; and

Identifies and prepares value chain projects that can be considered further in terms of their feasibility and bankability before SUED seed financing is committed.

The approach and methodology have been developed in response to the DFID terms of reference and in consultation with the SUED Team and DFID and has been tailored to consider local conditions in Malindi. The aim was to allow a collaborative approach between different stakeholders and the consultant team to assess Malindi’s economy in a systematic way, develop an agreed economic vision and prioritise actions that will have maximum impact and are ready to attract donor co-financing. The preparation of the UEP comprised four main phases: › Phase 1 - Inception Phase which focused on the Kick off Meeting. The aim was to present the approach of the UEP and capture key opportunities and challenges affecting urban development and economic growth in Malindi as defined by local stakeholders; › Phase 2 - The Diagnostics Phase was developed to provide a comprehensive and wide-ranging assessment of

Malindi’s economy, demographics, infrastructure, environment and climate change risk profile against a local, national and international context; › Phase 3 - The UEP Technical Briefing

Paper identified, assessed and prioritised economic growth opportunities and infrastructure needs and their respective requirements; › Phase 4 - Development of the Final

UEP which sets out in detail economic opportunities and actions and prioritises climate resilient infrastructure projects for implementation. It should be noted that this report is founded on the culmination of the preceding studies and phases which are all appendices to this report.

Figure 2 - UEP Development Phases

Inception Phase

Gather initial comments through stakeholder engagement - KOM

Policy Framework International/ National trends Diagnostics Phase

Economic and Demographic

Infrastructure and Transportation provision

Environmental & Climate change risk profile Analysis of Strengths, Weaknesses, Opportunities and Threats of key economic sectors UEP Technical Briefing Phase UEP Phase

Setting the principles for the development of the UEP

Evaluating and prioritising VC opportunities

Assessing requirements & impact of shortlisted VC opportunities

Evaluating climate resilient green infrastructure opportunities Setting Vision & key economic sector actions

Development Framework & Climate resilient infrastructure

Anchor projects: Value chain opportunities

Identification of VC opportunities and climate resilient infrastructure

Consultation with Municipal Board, Municipality & County officers, Businesses, Special Interest Groups

The Malindi Municipality UEP has been developed utilising primary and secondary research and analysis, ranging from local and national strategies and international studies to statistical analyses, focus discussions with stakeholders and surveys. A key component has been consultation with local stakeholders.

Stakeholder Engagement The purpose of stakeholder engagement was to ensure that stakeholders’ interests are taken into consideration throughout the development of and reflected in the Malindi Municipality Urban Economic Plan. More specifically, the aims were: › To ensure that the development of the Urban Economic Plan is inclusive and is undertaken in a manner that fits with Malindi’s business and community culture; › To ensure that all stakeholders are clear on the purpose, scope, recommendations and outcomes of the

Urban Economic Plan as well as meeting key stakeholder’s aspirations and gain buy-in from them; › To understand better the interests of specific groups and how the Urban

Economic Plan can benefit them, and; › To provide a regular flow of information to and from key stakeholders. A critical process in developing the UEP report has been stakeholder engagement including: › Stakeholder workshops; › Formal social consultations; and › Business consultations.

Three separate workshops were undertaken, including the Kick off Meeting (KOM), to gather feedback from stakeholders throughout the project. The KOM presented the project and process and collated information from over 80 stakeholders in terms of key characteristics, strengths and challenges within Malindi (captured within the Malindi Inception Report). Stakeholders included Municipal Board, Municipality and County officers, private sector, civil society groups and non-government organisations and representatives from Special Interest Groups. The second workshop focused on gathering feedback from the Malindi Municipal Head of Departments on the findings of the diagnostics evaluation, including sectoral SWOTs and identification of emerging economic opportunities. The feedback is in the Diagnostic Report and the UEP Technical Briefing Paper Report appended to this document. The third workshop focused on presenting and reaching consensus with stakeholders on economic opportunities that help leverage investment and support sustainable development in Malindi. The social inclusion study involved primary research, covering interviews with key project informants and focus group discussions, which together resulted in the identification of socially excluded groups and the development of recommendations. Business consultation was undertaken to understand how Malindi’s businesses operate and their views on future growth opportunities and constraints. This consultation, through a detailed questionnaire, covered a range of respondents, including business and community groups that covered numerous enterprises, across Malindi’s main sectors.

Policy and Legal Framework Whilst the UEP is a non-statutory document that is purposed to provide advisory services to the Malindi Municipality, it takes cognisance of the existing policy and legal framework. It builds on policies such as Vision 2030 and the JKP Regional Economic Bloc which seek to promote economic sectors and social cohesion with the potential unlocking the economic growth of Malindi Municipality. Further, it enhances the aspirations captured in the National Spatial Plan (NSP), the CIDP, the Malindi Municipal Charter (MMC), the Malindi Integrated Strategic Urban Development Plan (MISUDP) and the Malindi Spatial Plan (MSP). The rationale of the adopted context-based approach is to ensure that the UEP builds on the existing strengths of the town in order to provide a focused and robust plan that will promote the sustainable urban and economic growth of Malindi Municipality.

Figure 3 - UEP Statutory Context

Policy Framework

› Vision 2030

Legal Framework

› Physical and Land

Use Act, 2009 › Urban Areas and

Cities Act, 2012 › The Land Act, 2012 UEP Spatial Plans

› NSP › CIDP › ISUDP › CIP