Kathwana Urban Economic Plan by Tetra Tech International Development Europe

KATHWANA MUNICIPALITY URBAN ECONOMIC PLAN August 2020

The development of the Kathwana Municipality Urban Economic Plan (UEP) has been made possible by funding from the UK government through UKaid’s Sustainable Urban Economic Development Programme (SUED) that is managed by Tetra Tech. This report was developed by Atkins.

&ABBREVIATIONSACRONYMS MREs Meal, Ready to Eat MSW Municipal Solid Waste NAPA National Adaptation Programme of Action NEMA National Environment Management Authority NGO Non-Governmental Organisation NIE National Implementation Entity NMT Non-motorised Transport NRW Non-revenue Water OFP Operational Focal Points PEA Political Economy Analysis PET Polyethylene Terephthalate PPP Public Private Partnership PSG Project Steering Group PSV Public Service Vehicle PV Photovoltaic PWD Persons with Disabilities SBR Sequencing batch reactors SCCF Special Climate Change Fund SIG Special Interest Groups SME Small Medium Enterprise SUED Sustainable Urban Economic Development SWOT Strength Weaknesses Opportunities Threats TBP Technical Briefing Paper TEA DfID Transforming Energy Access programme TGBA Tharaka Goat Breeders Association UDPF Urban Development Policy Framework UEP Urban Economic Plan UHI Urban heating island UHT Ultra-high temperature VCs Value Chain Projects AGPO Access to Government Procurement Opportunities AHP Affordable Housing Programme BOD Biological Oxygen Demand CBD Central Business District CBO Community Based Organisation CEREB Central Region Economic Bloc CIDP County Integrated Development Plan CIP Clean in Place CO County Officer COD Chemical Oxygen Demand DFID Department for International Development UK DR Diagnostics Report EIA Environmental Impact Assessment ESA Environmentally Sensitive Area FAO Food and Agriculture Organisation GCF Green Climate Fund GCP Gross County Product GDP Gross Domestic Product GHG Green House Gas GoK Government of Kenya IFI International Finance Institution KCCA Kampala Capital City Authority KeRRA Kenya Rural Roads Authority KES Kenyan Shilling KIDeP Kenyan Integrated Development Plan KNBS Kenyan National Bureau of Statistics KOM Kick-off Meeting KUSP Kenyan Urban Support Programme LAPSSET Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor LDCF Least Developed Countries Fund

CONTENTS 1 Introduction 12 1.1. Background 12 1.2. Purpose of the plan 12 1.3. Approach 13 1.4. Key principles 16 1.5. Climate change, social exclusion and poverty 17 1.6 Structure of this report 19 Executive Summary 7 2 Kathwana Urban Diagnostics 21 2.1. Study area 21 2.2. Economic planning context 22 2.3. State of Kathwana 24 3 Development Concept 33 3.1. Alignment of the UEP with existing Development Plans 33 3.2. Visioning exercise 34 3.3 Key Components of the Development Concept 35 5 Development Framework 67 5.1. Focus Area 1: Eco-Industrial Park 68 5.2. Focus Area 2: Development Core 87 5.3 Beyond the Focus Areas: Enabling Infrastructure 104 4 Economic Development 39 4.1. Economic Sector Action Plan 39 4.2. Value Chain Projects 50 6 Implementation Plan 123 6.1. Partners & Institutional Structures 123 6.2. Implementation costs and potential funding sources 124 6.3 Funding 139 6.4 Recommendations for Capacity Building 141 6.5 Inclusivity Recommendations 142 6.6 Recommendations for Climate Change and Resilience 143 6.7 Next Steps 143

The diagnostic assessment identified three Key Sectors that Kathwana should prioritise for Value Chain opportunities: › Agriculture and Livestock; › Business, Trade and Commerce; › Emerging Sectors (Agri-processing & Green Sector, Tourism, Education).

Furthermore, increased drought and flooding frequency may greatly impact agricultural yields and town production

There is unreliable water supply to support both population growth and production, whilst irrigated land is limited and not always used for high value crops. There is poor waste management and drainage around the town. The cost of electricity is high and unreliable, where the use of more sustainable and efficient energy sources, including solar and bio fuels, can drive industrial opportunities and support population growth.

EXECUTIVE SUMMARY 7

EXECUTIVE SUMMARY

It will be important to develop sectoral linkages and supply chains across the economic sectors and enable better market access, information and expertise.

The Social Inclusion Study was a key part of the diagnostic, providing recommendations for meeting the aims of the SUED programme - to advance inclusion of PWDs, and Youth. The prioritised projects will embed recommendations for overcoming communication, physical, attitudinal and organisational barriers to inclusion.

WS Atkins International Limited was commissioned to develop the Urban Economic Plan for Kathwana as part of the UK’s Department for International Development Sustainable Urban Economic Development Programme (SUED). The aim of the programme is to support 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.

The purpose of the plan is to: › provide an inclusive economic strategy that can guide future development towards increasing prosperity in Kathwana; › prioritise economic activities and climate resilient infrastructure that can maximise benefits and support the development of a sustainable economic future for Kathwana; bring together stakeholders on deciding the economic future of Kathwana 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 Stakeholders’committed.interests and insights have been considered throughout the development of the UEP.

Section 2 of this document sets out the Diagnostic Assessment of Kathwana, where the social, economic, infrastructure and environmental baseline has provided an understanding of the barriers and drivers to sustainable economic growth. Kathwana has a high reliance on agriculture, though this is a low productivity sector with limited value addition and sectoral linkages which is partly due to a challenging climate with less rainfall in the dryer eastern regions of the county. There is a general lack of skill availability and transfer of knowledge between people, businesses and sectors.

The Diagnostics assessment concludes that for Kathwana being a greenfield development, the three key challenges to be addressed through the UEP are: 1. Low population size; 2. Inadequate economic activities; 3. Infrastructure gaps. Thus, critical for the development of the economy, through these key sectors, will be the improvement of infrastructure particularly in areas affecting production such as irrigation for agriculture, energy for industry and transport access between suppliers and markets.

The Urban Economic Plan (UEP) is an advisory document that builds on existing work and priorities identified under the County Investment Development Plan, the Integrated Strategic Urban Development Plan, and the Urban Development Policy Framework, as well as aligning and complementing work done by other donors. In doing so, it will provide a focused economic strategy for the Municipal Board and Departments to deliver economic development for Kathwana.

Environmental and climate change threats exist, which will increase pressure on ecosystems, potentially worsen water scarcity and raise environmental degradation risks for soil, rivers, water supply, air quality and forested land.

Addressingprocesses. these challenges can enable the town to establish itself as an effective multi-functioning centre, and lay foundations for sustainable economic growth.

Section 3 presents the Development Concept for Kathwana which is the broad framework that helps address development needs in Kathwana and integrates climate resilient infrastructure proposals and value chain projects (VCs) in order to structure, prioritise, and phase urban development in a coherent manner. It is driven by the

8 KATHWANA URBAN ECONOMIC PLAN

Component 3: Housing as a pull factor for Thesemigration.threecomponents are supported by an agricultural collection and aggregation system that integrates emerging economic activity and infrastructure developments with the existing local informal economy of small-scale farming.

Six potential projects were identified in the assessment and in consultation with local stakeholders, by performing most strongly against the project’s evaluation criteria and Kathwana’s established priority criteria - sustainable economic growth, climate resilience, catalytic investment and social inclusion.

Supporting investment in irrigation and expansions in production in a wide range of crops, through stable offtake and Providingpricesa range of shelf-stable foods, enhancing food security Enhancing Kathwana as a market centre

Raising the potential for stock improvements through the link with the Livestock Improvement Centre Supporting investment in fodder production, abattoir and tannery Food Processing

Section 4 sets out the economic development plan for Kathwana Municipality. Action Plans have been developed for each of the key sectors, ›across:Agriculture and Livestock; › Trade and Markets; › Eco-Industries and Manufacturing; › TheseServices.Sector

› A single hub for processing a range of fruit, vegetables and grains, combining common collection, processing, packaging, storage, finance and marketing to produce competitively priced food for consumers and industry; and › Cow and goat milk processing focused on long life products, including UHT milk and cheese. These VC opportunities are presented in Section 4 with detail on: their base assessment, sector supply chain, production potential, demand outlook, prices, location analysis, value chain facility, collection, processing and distribution activities as well as indicative costs, expected revenues and value added, potential partners and an infrastructure and climate change vulnerability assessment. In summary, the two VCs offer the following benefits for Kathwana: Milk Processing

Establishing a food processing hub that could be expanded in line with produce supplies and markets

Estimated that the project will create 60 full-time employees in the first phase, with high potential for employing special interest groups (SIGs) Environmental benefits include support to pastoral farmers, low levels of water usage and low levels of waste or pollutants Supportingproducedforexpansion in milk

All of these opportunities would be suitable for development in Kathwana, however, two priority VC opportunities have been selected to maximise benefits:

Action Plans will complement and provide an enabling environment for the prioritised Value Chain (VC)

Creating up to 200 full-time employees in the first phase, with high potential for employing special interest groups (SIGs) and people with disabilities (PWDs) Reducing post-harvest losses

Component 1: VCs to deliver a critical mass in terms of economic activity to signal growth;

Opportunities.opportunities

Component 2: Inclusive, Climate resilient and sustainable infrastructure proposals to support sustainable growth;

Reducingproductionspoilage and improving product quality

economic vision that has been developed for Kathwana: “To develop Kathwana into an Eco-City, which is driven by agricultural production and value addition, supported by robust urban services and serves as a fully-functioning Capital City for Tharaka Nithi County” Kathwana’s Development Concept is based on three key components responding to the towns key challenges:

EXECUTIVE SUMMARY 9

Section 5 presents the Development Framework, organised around two key focus areas: Eco-Industrial Park and the Development Core area around the market and government offices. A set of projects have been identified across energy, transport, waste and water management. The proposed projects have been assessed against social inclusion potentials and climate vulnerability and a number of adaptation measures have been identified to ensure resilience. Section 6 sets out further considerations for implementation across: partners and institutional structures; funding; capacity building; social inclusion; and climate change resilience. Following the completion of the UEP, during the next phase of the SUED programme, the identified value chain and climate resilient infrastructure projects will be developed further by: › Capacity building specialists to enhance municipal and local capacity to implement the projects and ensure revenue generation; › Investment climate experts to address policy and regulatory constraints; and to develop feasibility studies, businesscases and investment promotion.

10 KATHWANA URBAN ECONOMIC PLAN Figure 5.1 - Focus Areas

1.2

1. INTRODUCTION

1.1 Background

› 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 economic growth in Kathwana as defined by local stakeholders; › Phase 2 - The Diagnostics Phase was developed to provide a comprehensive and wide-ranging assessment of Kathwana’s economy, demographics, infrastructure, environment and climate change risk profile against national and international context; Provides an inclusive economic strategy that can guide future development towards increasing prosperity in Kathwana; Prioritises economic activities and climate resilient infrastructure that can maximise benefits and support the development of a sustainable economic future of Kathwana and introduce international best practice and innovation; Brings together stakeholders on deciding the economic future of Kathwana and implementing it; Identifiesand and prepares value chain projects that can be considered further in terms of their feasibility and bankability before SUED seed financing is committed.

Purpose of the plan

1.3 Approach

Figure 1.1 - Purpose of the plan

INTRODUCTION 12

› Phase 3 - The Technical Briefing Paper set out a development framework for Kathwana and identified, assessed and prioritised economic growth opportunities and their requirements; and › Phase 4 - Development of the Final UEP which sets out in detail economic opportunities and actions and prioritises climate resilient infrastructure projects for implementation. The Kathwana UEP has been developed utilising primary and secondary research and analysis, ranging from the review of local and national strategies and international studies to statistical analyses, focus group discussions with stakeholders and surveys. A key component has been consultation with local stakeholders.

Combining local knowledge and international expertise, the Kathwana Urban Economic Plan:

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 Kathwana. The aim was to enable a collaborative approach between different local stakeholders and the consultant team to assess Kathwana’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:

13 KATHWANA URBAN ECONOMIC PLAN Figure 1.2 - UEP Development Phases Inception Phase Gather throughcommentsinitialstakeholderengagement-KOM Economic International/DemographicandPolicyFrameworkNationaltrends UEP Technical Briefing Phase UEP PhaseDiagnostics Phase Identification of short listed VC opportunities and climate resilient infrastructure Consultation with Municipal Board, Municipality & County officers, Businesses, Special Interest Groups Analysis of Strengths,OpportunitiesWeaknesses,andThreatsofkeyeconomicsectors TransportationInfrastructureandprovisionEnvironmental&Climatechangeriskprofile theSettingprinciplesforthedevelopmentoftheUEP Setting Vision & key sectoreconomicactions Evaluating prioritisingandVCopportunities ClimateDevelopmentFramework&resilientinfrastructure resilientshortlistedrequirementsAssessing&impactofVCopportunitiesEvaluatingclimategreeninfrastructureopportunities opportunitiesValueprojects:Anchorchain

› To ensure that the development of the Urban Economic Plan is inclusive and is undertaken in a manner that fits with Kathwana’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 stakeholders aspirations and gain buy-in from them;

The purpose of stakeholder engagement was to ensure that stakeholders’ interests are taken into consideration throughout development and reflected in the Kathwana Urban Economic Plan. More specifically, the aims were:

› To understand better the interests of specific groups and how the Urban Economic Plan can benefit them; and

›including:Project Steering Group meetings; › Stakeholder workshops; › Formal social consultations; and › Business consultations.

INTRODUCTION 14

A critical process in developing the UEP report has been stakeholder management

The aim is to ensure the PSG is representative of the needs and challenges associated with the town whilst being aligned and familiar with existing County and Municipal policies and regulations.

The PSG was also tasked with arranging meetings and workshops as and when required by the SUED team as part of the overall Programme roll out. The PSG was updated on a weekly basis on progress in the UEP process and the following meetings between the PSG and the SUED team took place.

A Project Steering Group (PSG) was formed to enable the exchange of ideas and information between the Municipal Board and the SUED technical team. The PSG was formed of the following members, including a social inclusion and climate change champion: › Municipal Manager; › CO, Land Physical Planning; › County Engineer; › County Physical Planner; › 2 Municipal Board Members, including the Chairman; › Assistant Director of Trade; › Assistant Director of Waste Management; › Director Budgeting.

› To provide a regular flow of information to and from key stakeholders.

Stakeholder Engagement

Workshop 1 59 Participants; Female: 18, Male: 41 Business Community 16 Civil Society 5 County Government 16 Health 1 Kathwana Municipality 11 Transport 2 Other 8 Workshop 2 38 Participants; Female: 12, Male: 26 Agriculture 3 Business community 6 Civil society 1 County government 15 Kathwana municipality 3 Representatives of Special interest groups 2 Other 8 10 participants took part in both workshops

The PSG under an elected representative also facilitated the dissemination of information on the various components and progress of the UEP and the broader SUED Programme, including liaison with the County Government, the Municipality and the Municipal Board. It includes champions on SUED’s key themes of climate change and social inclusion.

15 KATHWANA URBAN ECONOMIC PLAN Figure 1.4 - Kick-off meeting

Two separate stakeholder workshops were undertaken. In the Kick-off Meeting (KOM), the SUED project and process was presented, initial feedback from stakeholders gathered and key informants identified to lay the foundation for the diagnostics phase. On 26 November 2019, the team collated information from 59 stakeholders in terms of key characteristics, strengths and challenges within Kathwana (captured within the Kathwana Inception Report). Stakeholders included Municipal Board, Municipality and County officers, private sector, civil society groups and non-government organisations and representatives from Special Interest AfterGroups.completion of the Diagnostics Report, the second workshop presented key findings on the status of the local economy, environmental and climate change conditions, infrastructure provision as well as economic sector SWOT analysis. The emerging municipality wide development concept including value chain projects and resilient infrastructure proposals were presented and discussed. A visioning exercise was also conducted to gain consensus across the stakeholder group on the overall vision for the UEP. The social inclusion study was guided by the Program’s need for age, gender, (dis) ability and refugee’s inclusion and the Consultant’s choice of a multi – dimensional approach to Inclusion that covered social, economic and spatial dimensions. The study applied both primary and secondary data collection methods including GeSI – related literature review, key informant interviews, focus group discussions and observation. Seven key informant interviews and two focus group discussions were conducted, which together with thorough literature review resulted in identification of socially excluded groups and development of inclusion interventions for this UEP. A comprehensive business consultation was undertaken to understand how Kathwana’s businesses operate and their views on future growth opportunities and constraints. 42 businesses in and around Kathwana, including those owned by SIGs were consulted by means of qualitative interviews supported by a detailed questionnaire. - PSG and Atkins SUED team in Kathwana

Figure 1.3

Resilience: The prioritised projects will have to be resilient against shifts in the economy both for domestic and international markets as applicable to remain competitive. They will also need to be adaptive to potential climate change impacts, while ensuring technological advancement can be introduced where possible.

Socially inclusive: The UEP will need to be socially inclusive through a thorough understanding of who lives and works in Kitui and how all groups, including women, people living with disabilities and youth, can be engaged moving forward.

INTRODUCTION 16

While these principles are closely linked and overlap in their definition, each one of them emphasises a different aspect that is not fully captured by the others. Thus, it is important that all four principles are embedded and balanced in the UEP and its implementation. In addition to these principles, it is critical to ensure the UEP develops the competitiveness of the town. At its core the UEP seeks to create employment opportunities accessible to all and set out economic measures and supporting actions and projects that can help directly or indirectly lift local population out of poverty whilst supporting crucial livelihoods such as the informal sector. All proposed projects ( VCs and infrastructure projects) contained within the UEP have been screened and refined for their contribution to improving livelihoods by considering: availability; accessibility; affordability; acceptability; and adaptability,

aim to create market driven growth and build resilience. The Atkins SUED Team has defined these principles as:

Resilient Resource Efﬁcient Socially Inclusive Sustainable Resilient › Shifts in the economy › Adaptive infrastructure to climate change › Smart Solutions Resource Efficient › Circular economy and zero waste › Water and energy management › Rural - urban linkages Socially Inclusive › Socio-economic trends › Vulnerable groups › Immigration/migration Sustainable › Low carbon development › Green energy › Green infrastructure Figure 1.5 - SUED principles 1.4 Key principles The development of the UEP and identification and prioritisation of proposed projects are grounded on key principles that support the

Resource efficient: The projects will need to be resource efficient promoting minimisation of waste (or zero waste where possible) and optimising the use of water and energy.

Sustainable: The UEP promotes green infrastructure and minimisation of environmental impacts. Programme’s

1.5

Utilise existing resources and comparative advantages; Successful cities should make the most of the assets and resources they already have, rather than trying to attract new types of industries that are not necessarily adapted. There is not a silver-bullet policy to improve competitiveness. Improve institutions and regulations; Poor institutions and high levels of corruption are likely to hinder firms’ development as these factors create uncertainty about public services delivery, efficiency and costs.

Increasing resilience of current and future livelihoods and infrastructure is key to poverty reduction and has been addressed systematically throughout the UEP to avoid creating polarisation and further exclusion.

At the time of preparing this UEP the Covid-19 pandemic had taken the whole world by surprise disrupting societies and economies. The impacts (both health and economic) have been felt across different geographies and locally in Kathwana. While governments are trying to address current challenges, this pandemic has brought to the fore the need to understand better the nexus between vulnerable groups, livelihoods and shocks from critical events such as climate change, where vulnerabilities are enhanced in combination. Climate change is a serious risk to livelihoods and poverty reduction efforts, and it is imperative to understand exposure, vulnerabilities and build resilience into future projects through appropriate adaptation measures.

Access to basic services including water availability and provision can be disrupted negatively affecting particularly poorer and excluded groups including posing a risk to food security. Limited access to credit and financial resources and reduced social safety nets critically reduce their ability to recover from disasters such as floods or droughts. Adaptation measures need to be appropriate to support income security and ensure the inclusion of marginalised groups, and not to reinforce and exacerbate existing inequality and vulnerabilities.

The impact of climate change is felt hardest by the poor and marginalised groups, as limited access to credit and financial resources and social safety nets reduce the ability to recover from disasters such as floods or droughts. Approximately 80% of the county is reliant on agriculture as a livelihood, with agro-pastoral systems dominant in the hotter, drier lowlands around Kathwana. The vast majority of farmers are small-scale, and around 30% have no formal land title1. The high proportion of livelihoods reliant on variable rainfall means that poverty in the county is intrinsically linked with climate, and vulnerability to climate change is high.

17 KATHWANA URBAN ECONOMIC PLAN across special interest groups as well as the low-income groups, the urban poor and informal sector. The aim is to minimise inequalities and improve access to jobs opportunities for optimum benefits to the Socialcommunity.exclusion makes it difficult to achieve social objectives, such as reducing poverty, due to often hidden barriers in reaching those who are socially marginalised. Exclusion also causes conflict, and it is almost impossible to achieve economic gains in conflict environments. Persons with Disability (PWDs) and Youth in Kathwana face challenges that are either caused by or lead to exclusion, and recommendations for their inclusion are fully integrated in the UEP. People who are excluded are not ‘just like’ the rest of the poor, only poorer. They are also disadvantaged by who they are or where they live, and as a result are locked out of the benefits of development.

In addition to these principles, it is critical to ensure the UEP develops the competitiveness of the Municipality to promote and sustain economic growth.

Climate change, social exclusion and poverty

Livelihoods, most often in the informal sector, that are reliant on being able to trade every day are also more vulnerable to disruption, be it a pandemic, or a hydrometeorological disaster and need to be considered in the development of the UEP.

Focus on the basics › Health; › Basic education; and › Infrastructure. 1 CGIAR (2018) Climate Change Risk Profile Tharaka Nithi County Research from the World Bank shows that statistically, for cities with low levels of industrialisation and productivity, good institutions, social infrastructure (such as education and health) and basic physical infrastructures are the key determinants for success. Develop a coordinated and comprehensive growth strategy; Achieving competitiveness requires improvements on a range of very different aspects, and there is a risk that decisions are taken individually with little considerations for how they interact. Instead, decisions should be coordinated around overarching goals (e.g., transport strategy should reflect and respond to strategies relating to poverty, skills and employment) and they should also be comprehensive (e.g., sectoral strategies should examine and target every step of the supply chain, not just the sector itself).

Poor and marginalised groups are disproportionately affected by the impacts of climate change. Livelihoods, most often in the informal sector, that are reliant on being able to trade every day are more vulnerable to disruption, be it a pandemic, or an environmental disaster.

INTRODUCTION 18

Additionally, the youth make up more than 30% of the migrants and refugees’ population who are likely disproportionately affected due to limited movement and fewer employment opportunities occasioned by the pandemic.

Women are also the majority of frontline health workforce and caregivers and therefore at higher risk. Cultural factors may restrict women’s access to information and services, and some women may be particularly affected e.g. older women living alone, and isolation may lead to an increased risk of violence in the home.

Persons with disability have been left without vital support and advocacy due to social distancing. Majority of PWDs in SUED Municipalities operate small businesses in market centres, which have been adversely affected therefore experience livelihood loss. For PWDs that rely on their hands for walking and are sole bread winners, the question of not touching surfaces is not applicable and they therefore are at high risk of being infected with COVID-19.

› Emphasising the need for adaptive, urban integrated plans to ensure sustainable urban development and infrastructure provision including

The COVID 19 outbreak has affected people differently based on their age, gender, (dis) ability, sexual orientation, health status, migrant status, ethnicity among other aspects.

1.6 Covid 19 impacts and lessons In Kenya, the impact of Covid-19 has been real and devastating. The pandemic has significantly impacted all aspects of life such as health, institutional revenues and livelihoods. › COVID-19 has hit the most vulnerable the hardest, particularly the densely populated informal settlements and slums, as well as other people lacking access to adequate housing and basic services; › The informal economy employing about 70% of Kenyans has been drastically affected as lockdowns and curfews were introduced to curb the transmission of the virus. Low wage earners have been qually hit hard because they rely onthe informal sector and daily wages. Often they lack the option to work from home as they are mostly in the service industries and more exposed to the virus. Despite the low wages, some have also received pay cuts, and some lost their jobs all together. There has been loss of revenue due to reduced activities in other sectors like industry, commerce and hospitality with the effects felt throughout their supply chains; › Travel restrictions have led to a sharp and substantial fall in demand for movement and subsequent impacts on supply chains; › Road freight and logistics have been interrupted as long-distance truck drivers are suspected to be a major source of imported infections and transmission. This has had implications for trade and cross-border activities. Goods take longer to reach destinations. For perishable agricultural commodities, post-harvest loses become rampant; › Kenya is the world’s number 2 exporter of tea and world’s number 4 exporter in flower and both these critical industries have experienced a negative impact from COVID related restrictions. For instance, tea prices declined by 18% year-over-year in May, reaching the lowest point since 2014 and fresh cut flower sales declined by about 40% in March versus the previous month; › Disruptions in global supply chains have also led to shortages or delays for critical inputs for agriculture ultimately disrupting production and food supply and manufacturing, leading to price increases; › Increased awareness of hygiene signifies increased demand for limited resources like water as well as increased demand for disinfectant used hand cleaning and sanitisation with additional costs to society, particularly where access is not straightforward. Additionally, generated greywater from washing points can become public health/ environmental nuisance if appropriate infrastructure to handle or dispose such greywaters is not put in place immediately.

It will be important to draw lessons from the current crisis to inform long term planning and ensure resilience is embedded in the proposed projects under this UEP. This is an opportunity to get insights into a future fully fledged climate change crisis and Municipalities have a critical role to play in addressing these challenges. Some initial key lessons include:

Young people are already among the most affected by the socio-economic impacts of COVID-19. In addition to loosing employment, closure of businesses, and keeping away from schools and universities, the youth are also at high risk of increased anxiety and mental health problems.

Naturally, crises exacerbate existing gender inequalities, exclusion and discriminative practices, and the vulnerable groups are highly likely to be more adversely affected by the outbreak and the consequences of the Emergingresponse.evidence on the impact of COVID-19 suggests that women’s economic and productive lives has been affected disproportionately in comparison to men. This is because women earn less, save less, and are more likely to be employed in the informal sector. Their capacity to absorb economic shocks is therefore less than that of men.

Street Families are highly exposed to the danger of the virus because they lack shelter. Many of them rely on market centres where they ferry goods for a wage, and with the closure of markets they lost livelihoods.

Young women and girls are also at high risk of many forms of domestic and genderbased violence during the pandemic.

› Appendix B - Technical Briefing Paper

› Appendix C - Kathwana Social Inclusion Study

› Prioritising policies to confront spatial, social and economic exclusion with the aim of cushioning the vulnerable in the face of another shock;

› Strengthening preparedness and emergency response capacity is critical. This means better preparedness in terms of financing, service delivery and business continuity including budgeting for future crises, emergency operations centers, capacity building, drills, and human resources redeployment plans;

19 KATHWANA URBAN ECONOMIC PLAN adequate housing that allows for shielding of vulnerable groups and isolation for patients; › Redefining green spaces and the way city centres are designed for business;

It captures the process followed from identification to assessment of growth opportunities for Kathwana and provides recommendations on those with the greatest potential to maximise benefits and be developed further. The contents of this report will form the backbone of the UEP;

› Appendix D - Climate Vulnerability Assessment Has been undertaken to outline the climate vulnerability context for the selected infrastructure projects to be developed in Kathwana. The Climate Vulnerability Assessment will complement associated pre-feasibility and feasibility study.

› Section 4 set outs the Urban Economic Development Plan. Each of the three key sectors is presented with a summary of its SWOT analysis and a Sector Action Plan. The identified Value Chain projects are then set out in detail;

› Section 2 provides a summary of key findings from the Diagnostics Report which forms the basis for the development of the UEP. Summaries of the demographic and economic profiles and the infrastructure and environmental assessments are presented. The section details the key challenges and drivers for growth, identifying Kathwana’s key sectors;

› Targeting women and girls in all efforts.

Following this introduction, the report is structured as follows:

› Section 5 outlines the Development Framework and supporting climate resilient infrastructure projects that have been identified for enabling urban and economic growth within Kathwana;

It will be vital to apply intentionally gender lenses to the design of social assistance programmes and economic stimulus programmes to achieve greater opportunities, social protection and meaningful impact; › Ensuring resilient supply chains for agricultural and manufacturing sectors focusing on local inputs to ensure food security and safeguard export-oriented products;

The report is supported by a series of appendices, in which:

The purpose of the report is to assess the current position of the economy and state of infrastructure, alongside the regional, national and international context, before the consideration of emerging economic growth opportunities and infrastructure needs;

› Appendix A - Kathwana Diagnostic Report

› Improving marketing efficiency through adoption of innovative processes that connect buyers and sellers. This may include adoption of technology to promote marketing and information sharing, formalising product delivery services etc; › Leveraging information technology (IT) systems to better match the required transport demand with excess supply in real time and provide travel pattern visibility, helping passenger and logistics operations become nimbler considering a quickly evolving context; › Making sure public awareness campaigns is consistently available to all in a format and language understandable to all. 1.7 Structure of this Report

› Section 3 introduces the Kathwana’s development concept and how it aligns to existing plans. It is supported by the economic vision developed by the local stakeholders;

› Section 6 presents a range of implementation considerations to support the next stages of the SUED Programme.

This study was a key part of the diagnostic process and engaged with special interest groups through interviews and focus group discussions. The study identified the groups that are excluded in socio-economic activities in Kathwana and explored how and why they are excluded. The Study made a series of recommendations for the SUED programme to ensure inclusion and to address the multiple barriers (communication, physical, attitudinal and organisational) that these groups face;

D472 D473 C92 C92 Open MarketAir Live -HeadquartersCountryTharakaMarketStockRetailShopsNithiKathwana ConservationArea To Chuka To Embu To Meru500 1000m0 Source: Atkins, 2019

Figure 2.1 - Location and Study Area of Kathwana D473 B6 KanthanjeKamonka Mutino Kathwana Municipalit y Chiakagira Igambang`ombeWard Ward B Class Road C Class Road D Class MunicipalRoadMarket

KATHWANA URBAN DIAGNOSTICS Before any proposed interventions are developed it is important to understand the local development context and potential opportunities and barriers to growth. The town’s assessment has been undertaken in the UEP diagnostic process, as presented in Appendix A. The diagnostics phase was a critical process to establish a foundation for identifying solutions that can deliver economic, social and environmental benefits. This section provides a summary of the diagnostic report’s assessment of: › Kathwana’s planning and regional context, its socio-economic profile, with urban and economic conditions and trends; › The state of existing infrastructure; › Environmental and climate risks. 2.1 The geographical focus of the Diagnostic Report is Kathwana Municipality and where applicable Tharaka Nithi County always in relation to its wider regional context of the Central Region Economic Bloc (CEREB). Since 2018, Kathwana Municipality is the new county headquarters of Tharaka Nithi County, located centrally in Kenya, approximately 175km north-east of Nairobi. Tharaka Nithi lies in the foothills of Mount Kenya and is one of the smallest counties in Kenya. It is situated to the eastern part Centre of the Central Region Economic Bloc, alongside Embu, Kiambu, Kirinyaga, Laikipia, Meru, Murang’a, Nakuru, Nyandarua, Nyeri. Kathwana Municipality covers a mostly rural area of 332km2. Around the town’s market centre with new government offices, an area of 15km2 has been designated as Central Business District and is intended to be the starting point for urban development in Kathwana.

KATHWANA URBAN DIAGNOSTICS 21

County Governments Act No. 17 of 2012 (revised 2017) Urban Areas and Cities Act (2011) Physical Planning Act No. 6 of 1996 (revised 2012) Kenya Vision 2030 National Spatial Plan (NSP) Kenya Green Growth Strategy

2.2 Planning context Kathwana Town is generally characterised by an anticipation of urban and economic growth. While it is today, mainly a rural area, it is aspiring to grow into an urban centre with administrative, residential, commercial, and industrial functions.

Kathwana Municipality Integrated Development Plan 2019-2024 Urban Development Policy Framework 2018-2030 Kathwana’s Priorities Serve as a fully functioning head quarter to Tharaka Nithi County Economic and Urban Growth Sufﬁcient infrastructure provision and robust services to cater for growing population National Polices and Strategies Kenya Constitution 2010 (Chapters 5 & 12)

Figure 2.2 - Location and Study Area of Kathwana

Local Plans Tharaka Nithi County Integrated Development Plan

International Trends Population Growth and 4thDigitalisationClimateResourceUrbanisationDepletionChangeandtheIndustrialRevolution

22 KATHWANA URBAN ECONOMIC PLAN

Figure 2.3 - Regional Context

5 Kathwana Municipality, UDPF (2019) Kathwana has a marginalised location within the CEREB based on ecology, level of urbanisation and road connectivity.

Regional Context Since Kathwana is in the very early stages of development, the town itself needs to be analysed against the wider region in order to develop a comprehensive diagnostic on its potentials and constraints for growth. Kathwana is located within the Central Kenya Economic Bloc (CEREB) and has a somehwat marginalised location within it based on ecology, level ofurbanisation and road connectivity2 3. CEREB’s area has a total population of approximately 10.6 million and 3.3 million households, this reflects a significant, potential customer base and workforce, where this makes up nearly a quarter of Kenyas population. Tharaka Nithi, however, reflects only 6% of CEREBs total population, with the smallest CEREB’s county population. CEREB is the centre of agricultural activity in Kenya. It contributes nearly a quarter of Kenya’s output. The area around Mount Kenya and the area south/south-west closer to Nairobi (especially Nakuru and Kiambu) are more fertile for agricultural production, have higher rates of urbanisation and better road connectivity4 The most important urban centres around Kathwana, namely Meru, Chuka and Embu are all located on a key transport link (B6) which connects them to the Trans-African Highway linking Addis in the north and 2 KNBS, Kenya Population and Housing Census: Volume I (2019) 3 Kathwana Municipality, UDPF (2019) 4 KNBS, Gross County Product Report (2019) Nairobi in the South providing accessibility to local and regional markets. While the CEREB is mostly a highly productive, fertile and urbanised region, Kathwana itself is located in the dryer and less urbanised area. One of the reasons why Kathwana was chosen to be the headquarter, is its central location within the County anticipating that the development of Kathwana as an urban centre will spur physical and socio-economic development in the eastern, more marginalised, dryer and less well-connected areas of the County (Tharaka)5

KATHWANA URBAN DIAGNOSTICS 23

34kmChuka65kmMeru 67kmEmbu 175kmNairobi B9 B7 B6B5 B4 A 104 A2 A3 B3 C65C66 A2 ArushaNairobi Addis Kathwana ChukaMeru Embu

> 80 40-5050-6565-80HumidSub-humidSemi-humidSemi-humid to semi-arid 25-40 Semi-arid 15-25 Arid < 15 Very arid Nairobi Kathwana > 80 40-5050-6565-80HumidSub-humidSemi-humidSemi-humid to semi-arid 25-40 Semi-arid 15-25 Arid < 15 Very arid Nairobi Kathwana

24 KATHWANA URBAN ECONOMIC PLAN Figure 2.4 - Regional Context State of Kathwana

2.2.1 Town Character Kathwana has a dominantly rural character with most of its land being used for agricultural purposes. Across the Municipality agricultural and residential functions are combined in dispersed semipermanent homesteads. As typical for a rural area, density in Kathwana is relatively low at 154 persons per km2. Kathwana has recently started to serve administrative functions as County headquarter for Tharaka Nithi. The County government has partly moved to Kathwana and further offices and residential units for County staff are planned/under Currently,construction.there is only little commercial activity in Kathwana mainly focused in Kajuki, Materi and Chiakariga. The largest commercial area is located within the area of the CBD with its periodic open-air market surrounded by small-scale retail business, gastronomy and repair shops. An upgrade of the market infrastructure has been planned. In reference to the provisions as per the Urban Areas and Cities (Amendment) Act of 2019 for urban centres with municipal status, Kathwana is characterised by a lack of community facilities. Beyond basic education and health services, the town lacks libraries, higher education or training institutions, sport and cultural facilities, event and assembly spaces, cemeteries etc6. Recently, however, the private Komarock hospital has opened close to the town centre and Chuka University has bought a plot of land to develop a remote campus. Land ownership Most land in Kathwana is held under freehold tenure (80%), while only 20% is held under customary land rights. Public tenure comprises forests, hills, rivers and mining areas. Land has been set aside for public facilities, which include the national government prison, solid waste management sites and airstrips among others. Notably, the prevailing private ownership of land poses planning challenges because of the absolute ownership rights held by individuals. In anticipation of urban growth, land value prices have risen. Land, especially in the CBD area, is being sub-divided and sold in small plots, which leads to land fragmentation to uneconomically small sizes. This process can cause challenges for Kathwana’s growth as future infrastructure developments need large connected plots. To address this issue, the Development Control Guidelines provided in Kathwana’s UDPF allocate land for infrastructure and specific land uses and set plot ratios for different uses to guide land management in the Municipality7 Housing In most rural areas vernacular houses, mudwalled or wooden structures with earth or 6 Kathwana Municipality, UDPF (2019) 7 Kathwana Municipality, UDPF (2019) Nairobi Kathwana

Fewer than 10 people/km2 10 to 50 people/km2 50 to 200 people/km2 200 to 500 people/km2 500 to 1,000 people/km2 More than 1,000 people/km2 Kenya Fewer than 10 people/km2 10 to 50 people/km2 50 to 200 people/km2 200 to 500 people/km2 500 to 1,000 people/km2 More than 1,000 people/km2 Kenya Nairobi

KenyaKathwana

Kathwana Municipality has an estimated population of 64,444 with a higher than average share of people aged 65 and over, and a higher than average share of retirees and homemakers.

Turkana Mandera Wajir Marsabit Tana-River Samburu Kwale West-Pokot Isiolo Makueni Kitui Busia Garissa Kilif Elgeyo-Marakwet Baringo Kisii Bomet Nyamira Taita-Taveta Migori Kakamega Homa-Bay Laikipia Bungoma Machakos Trans-Nzoia Tharaka-Nithi Narok Nandi Kisumu Kericho Vihiga Nyandarua Siaya Kajiado Embu Mombasa Uasin-Gishu Nakuru Murang’a Lamu Meru Nyeri Kirinyaga Kiambu Nairobi Nakuru Kiambu Meru Bomet Kakamega Muranga Nandi Uasin-gishu Nyamira Baringo Siaya Busia Kitui Kirinyaga Embu NithiTharaka Laikipia Wajir PokotWest RiverTana Marsabit Mandera Nairobi Mombasa100%90%80%70%60%50%40%30%20%350,000300,000250,000200,000150,000100,00050,0000

As of November 2019, a plot (4 acres) had been identified by the Municipality for the development of affordable housing near Mutaranga (north-east of the CBD) which is planned to be supported by the National Government’s Kenya Affordable Housing Programme. The site is located on a steep hill which could cause challenges for construction and is not in walking distance to the County Government offices and market.

Source: KNBS, Socio Economic Atlas of Kenya 2nd Edition, 2009 data (2016)

› Construction of buildings that are inaccessible by PWDs due to lack of elevators and/or ramps; › Lack of provision of PWDs sanitary facilities such as toilets; › Lack of planning to have sign language interpreters in engagement forums where the deaf would participate thus excluding them; › School head teachers refusal to admit PWDs in their schools because they feel the special needs children will lower their mean score; › Community stigmatises PWDs and their families viewing them as cursed thus some parents hide their disabled children due to community stigma. On the other hand, youth exclusion in Kathwana Municipality was reported to take the following forms: › Lack of involvement of youth in information sharing thus locking them out of knowledge and opportunities that exist in the County; Figure 2.5 - Share of population under the poverty line, 2009

2.2.2 Socio-Economic Profile Demographics

KATHWANA URBAN DIAGNOSTICS 25 cement floors are predominant while homes in more urbanised settings often have stone walls with corrugated iron sheets for roofing or tiling. The UDPF establishes a baseline of housing provision for the Municipality indicating a housing demand of 12,379 in 2019 and 15,041 in 2033 and implying an average unit size of 192.7m2. To prevent the development of informal settlements in Kathwana, the UDPF allocates 42.54% of land in the CBD for residential use at varying Housingdensities.isakeycomponent of Tharaka Nithi’s vision (“To be the leading provider of efficient and cost-effective infrastructure facilities and services in roads, housing, transport and public works in Kenya”).

The share of the population living under the poverty line, is lower than the national Asaverage.partof the Gender and Social Inclusion Assessment Youth and PWDs have been identified as groups that are historically excluded in Kathwana’s development PWDsprocess.exclusion in Kathwana Municipality was reported to take the following forms:

26 KATHWANA URBAN ECONOMIC PLAN

Opportunities (AGPO) policy tailored to give youth, women and PWDs opportunities with government tenders; › Processes that perpetuate exclusion in Kathwana include unconscious bias where youth and PWDs are excluded in decision making and development activities as they are viewed as young and inexperienced or unable to work respectively; corruption characterized by lack of implementation of pro-poor policies; and exclusive infrastructure designs that physically lock out PWDs out of vital spaces and basic services. The impact of social exclusion on youth and PWDs in Kathwana has been challenges that are either caused by or lead to exclusion. These challenges include lack of inclusive, productivity-enabling infrastructure, high incidence of youth unemployment, substance abuse by the youth, limited access to capital, complete lack of involvement in decision making and inadequate allocation of resources to deal with the special needs of FindingsPWDs.of the social inclusion study indicate that both groups are able and willing to fully participate in the VC Projects proposed for Kathwana. However, they reported that factors that are likely to limit their participation are lack of information about what is required for them to participate, lack of capital, lack of inclusive infrastructure and unfairness in allocation of opportunities that come with the project. Youth and PWDs’ social, economic and spatial inclusion proposals are recommended in section 5 of this report.

The State of Business in Kathwana

We conducted interviews with business owners in and around Kathwana (including businesses run by those representing excluded groups) to better understand the business environment in the town. At the centre of Kathwana’s business activities is the weekly open air market with regional importance. It hosts traders from several counties beyond Tharaka Nithi, the market represents a hub of regional trade networks across Meru, Kitui, Isiolo and Embu.

School headteachers refusal to admit PWDs in their schools because they feel the special needs children will lower their mean score. Community stigmatises PWDs and their families viewing them as cursed thus some parents hide their disabled children due to community stigma. › Lack of employment due to the many years of experience required by employers yet the youth might have just completed school. This leads to frustration, idleness and vices such as substance abuse; › Lack of implementation of the Access to Government Procurement

Kathwana’s businesses are typically small, reflecting the small economy and population, and mostly sell to individual customers or small retailers who then sell in the regional markets including Kathwana market. Some local businesses sold to distributors in nearby towns, Mombasa and Nairobi. Products such as tamarind, tea, coffee and goat are being sold to brokers who then sell the product on other regional markets or at auctions in Nairobi or Mombasa for international exports. This means higher values and value addition is happening outside of Kathwana and the County, with Kathwana’s produce being better utilised by those with market expertise and linkages Economic Profile Tharaka Nithi’s economy is one of the smallest in Kenya ranking 36 of the 47 counties. It contributes just 0.8% of national GDP. Recently however, it Construction of buildings that are inaccessible by PWDs due to lack of elevators and/or ramps.

Lack of provision of PWDs sanitary facilities such as toilets. Lack of planning to have sign language interpreters in engagement forums where the deaf would participate thus excluding them.

9 Tharaka Nithi County Government, CIDP (2018)

experienced strong growth with an average annual growth rate of over 8% from 2014-2017, which was above the 5.6% national average7 The Municipality Kathwana is in the lower ecological zone where it is dryer and the conditions are less favourable for growing cash crops. The area is more suitable for livestock activities and thus activity revolves around trading this livestock. Despite agriculture being the main economic activity of Tharaka Nithi, its output ranks poorly against that of other counties in Kenya, contributing towards just 4% of the CEREB’s agricultural output. There is limited industrial and manufacturing activity in Kathwana. The Municipality has a large informal economy with 86.6% of population working in the informal sector and is relatively dependant on the public sector compared to the national average. This activity is currently concentrated in Chuka but will slowly transfer to Kathwana due to its new County headquarters status8 Although almost all of the activity in Kathwana is informal in nature the activities which are most important include small scale agriculture where spare land which isn’t used for food consumption is used to grow crops to be traded with neighbours or on markets. Much of the activity in agriculture is restricted by the unpredictable climate and mainly consists of farmers trying their hands in the cultivation of maize, beans and millet whenever there are signs of rains. Trading on Kathwana market is also another key informal activity, however many of the traders come with produce from outside of the Municipality to sell here. Transportation Figure 2.7 - Tharaka Nithi Sector GCP Breakdown

KATHWANA URBAN DIAGNOSTICS 27

7 Tharaka Nithi County Government, CIDP (2018) 8 SUED (2019) Political Economy Analysis (PEA) for Kathwana Municipality

such as Matatu and Boda Boda is also a key source of informal income for the Youth in Kathwana. Beyond these main activities there is also some small-scale unorganised mining activity and Jua Kali producers who practice crafts such as joinery, welding, carpentry, tailoring etc9 During the business consultations, where the majority of people interviewed were in the informal sector, almost every person reported that lack of access to finance was a key barrier to progress. The informal nature of these businesses prevents them from accessing finance and growing their business beyond informal status. Although the majority of activity in Kathwana is informal there are some great examples where entrepreneurially minded informal workers have gained access to finance and guidance on value addition and formalised their activity to benefit groups in society. The Kithangani Women Group, has 30 members and started the group with KES 200,000 capital to create a supply chain where they grow, brush and weave their sisal to make a good profit. These crops are also highly resilient to drought, pests and are low maintenance10. Sweet n’ Dried is another successful enterprise which dries and processes fruit which would have otherwise been spoiled and the company has now attained machinery and employs 20 women. Among these are also hotel and shop owners and larger scale more organised farming.

12%servicesandhospitalityRetail,Constructionandlogistics8%otherTechnicalservices8%

10 The free library (no date) Article: Women groups thread cash from sisal in Tharaka Nithi. Available at: https://www.thefreelibrary.com/Women+groups+thread+cash+from+sisal+in+Tharaka+Nithi-a0596621485Source:KNBS(2019)Gross County Product report

Tharaka

Nithi Sector BreakdownGCP Agriculture56.9% 0.1%Manufacturing1%andMiningUtilities

servicesPublic13%

Nakuru KiambuNyandarua Meru Bomet Kakamega Muranga NandiKisiiNyeriNyeriNarokElgeyo-Marakwet Uasin-gishuBayHome NyamiraKericho Baringo SiayaKisumuMachakos Busia KituiMakueniTrans-Nzoia KirinyagaTurkana Embu NithiTharaka LaikipiaKiliﬁKwaleMigori ajirWVihiga PokotestWTavetaTaita RiveranaTLamu MarsabitGarissa ManderaKajiado Samburu Nairobi Isiolo Mombasa 350,000300,000250,000200,000150,000100,00050,0000

Source: KNBS, Gross County Product Report (2019) Figure 2.5 - Agriculture GCP - county contributions (in KES)

4%Agriculture is the main sector in TNC but contributes only of populationKathwana’sworks in of manufacturing and industry PWDs and Youth are identiﬁed as excluded groups of the agriculturalCEREB’soutput

the informal sector Lack

28 KATHWANA URBAN ECONOMIC PLAN Source: KNBS, Gross County Product Report (2019) Figure 2.8 - Kathwana Statistics 15 4 perpersonskm2 Density in Kathwana is relatively low at populationKathwana’s64,444of is older than national average TNC’s0.8%economy contributes but (2014-2017)grows of national GDP > 8% annually 86.6%

Figure 2.10 - Ecological zones

2.2.4

Insufficient intake, need to increase resilience to extreme weather events and high river flows and be attentive to upstream catchment land use and management which affects downstream water quality and quantity; Lack of storage infrastructure; Lack of sufficient sewerage system; Lack of irrigation infrastructure. Energy Unreliable energy supply and poor connectivity to the energy grid especially in rural areas; Insufficient use of renewable energy sources; Lack of street lighting in most parts of the municipality. Transport Lack of walking, cycling and public transport Poorinfrastructure;roadsconditions.

Lower Midland Zone Upper Midland Zone Intermediate Lowland Zone KathwanaOthers Kenya

CounTharaka-Nithity

Source: Mburu, S. W., Koskey, G., Kimiti, J. M., Ombori, O., Maingi, J. M. and Njeru, E. M., Agrobiodiversity Conservation Enhances Food Security in Subsistence-based Farming Systems of Eastern Kenya (2016)

The intermediate lowlands zones to the east covers most of Kathwana’s territory.

It is the driest zone out of the three and agri-pastoralism is common.

Environment and Climate Change Risk

Lower Midland Zone Upper Midland Zone Intermediate Lowland Zone KathwanaOthers Kenya CounTharaka-Nithity Lower Midland Zone Upper Midland Zone Intermediate Lowland Zone KathwanaOthers Kenya

› The upper midland zone, closer to Chuka in the western part, which has adequate rainfall for agriculture.

Solid Waste Minimal existing waste collection system; Waste dumpsites and incineration site within Tharaka Nithi are not equipped, lack of weighbridges and proper sorting facilities; Limited reuse and recycling.

The topography of the County slopes towards the east from Mount Kenya and ending at the lowlands in Tharaka and Kathwana Municipality. The County has several hills and forests gazetted by the National government or managed by the Municipality as conservation areas, which support a rich biodiversity. Kathwana Municipality stretches across three ecological zones (see Figure 2-10):

›

Figure 2.9 - Infrastructure Gaps in Kathwana Water

KATHWANA URBAN DIAGNOSTICS 29

The lower midland zones, which covers a narrow strip between midland and lowland zone, which receives less rainfall and is suitable to mixed farming and rain-fed crops.

11 The Municipality of Kathwana Integrated Development Plan 2019-2024

12 CGIAR (2018) Climate Change Risk Profile Tharaka Nithi County

13 Wainright, C.M. et al. (2019) ‘Eastern African Paradox’ rainfall decline intense Long Rains. Climate and Atmospheric Science 2:34

Kathwana is a new municipality and therefore has significant infrastructure gaps across all sectors in comparison to other urban centres in the region. The currently small local population poses challenges to infrastructure investment. Hence, an incremental approach to infrastructure upgrading and development is suggested that allows population, economic activity and service provision to develop hand in hand. (See figure 2.9).

CounTharaka-Nithity

2.2.3 Infrastructure Provision

The sector is also source of livelihood for Kathwana’s Youth, which face significant income reductions due to sharp declines in Thedemand.lackof adequate water supply and sanitation in Kathwana poses challenges to increased needs for hygiene during the pandemic to prevent contracting the virus after physical contact with people and surfaces. In Tharaka Nithi the County Government has started to develop isolation centres, setting aside 300 isolation beds in anticipation of widespread of Covid-19 as it picks in August/September. The government made efforts to continuously provide information and public information as well as face masks and enforcing social distance measures.

14 CMIP5 climate model projections accessed through the e Climate Explorer.

Diagnostics Conclusion: Drivers and Barriers for Growth To promote diverse economic development within an attractive investment and business environment, Kathwana must focus on its key economic sectors and competitive advantages that can support growth within the Municipality, and throughout the County. The economic profile supported by business consultations, identifies Agriculture and Livestock as well as Market and Trade as key existing sectors. Agri-processing is an emerging industry with a small existing base in Kathwana. Under potential sectors tourism and education are discussed which do not exist yet. Based on comprehensive analysis of the strengths, weaknesses, opportunities and threats of each sector, key barriers to and drivers for growth were identified. Barriers for Growth Overall, to meet projected demand, Kathwana needs to upgrade existing infrastructure and commit to new projects to support economic growth and development. An incremental approach to infrastructure development will need to be considered to appropriately phase infrastructure provision with population growth. The current infrastructure provision provides a key barrier to growth across Covid 19 in Kathwana Trade in Kathwana was heavily disrupted by social distancing measures affecting especially small-scale informal farmers and traders. In Kathwana the main market and goat markets are closed, and trading activity schedule altered to 7 days a week to avoid congestion. Much of the produce sold on markets is brought in from other counties. These traders have not been able to sell on Kathwana’s markets as a result of travel restrictions which has limited supply and activity on the markets. In Kathwana public transport relies heavily on boda boda and matatus, which make social distancing difficult.

The County has a bi-modal rainfall regime, with the Long Rains from March-May, and the Short Rains from Oct-Dec. Although rainfall reaches 2,200mm in Mount Kenya Forest, the area around Kathwana receives significantly less at 500-750mm of rainfall, and is a semi-arid zone11, and temperatures in the lowlands range between 22°c to 36°c. Trends in the County show increases in maximum temperatures and the number of extremely hot days and nights, both of which are expected to continue in the future. There are no clear trends in annual rainfall, however, rainfall during the long rains from March-May has decreased, and become less reliable, while rainfall in the short rains from Oct-Dec has increased12,13 Climate models are clear that there will be increases in average, minimum, and maximum temperatures, under all future climate scenarios, however, there is uncertainty over changes in rainfall for the County. It is possible that there may be increases in the total annual precipitation, however, climate projections show that earlier cessation Long Rains is likely increasing the length of the June-Sep dry season, while rainfall in the Oct-Dec rainy season may increase14. There are also plausible climate futures in which hotter, drier conditions may occur in Tharaka Nithi (see Appendix 4 for further details), and it is clear that variability in rainfall will remain, and an intensification of rainfall is likely.

Chuka University and Tharaka Nithi University Colleges have also stepped in to make, buy and provide hand sanitisers, soaps, water, masks and other apparatus for residents in Tharaka Nithi. In Kathwana a food security programme for the vulnerable groups was launched targeting 3,000 households. There is an opportunity to employ youths through the Government’s National Hygiene programme, Kazi Mtaani to fix some of the urban planning shortfalls such as providing drainage, access paths, collection of wastes etc. Towns such as Kathwana will be able to employ an average of 2,500 youths through this programme.

30 KATHWANA URBAN ECONOMIC PLAN

As such the key climate risks for Kathwana include drought, temperature extremes, wildfire, and floods.

Kathwana will need to address the basis for creating competitiveness as a location. In relation to neighbouring urban centres, such as Chuka, Meru and Embu, the town is lacking a strategic competitive advantage that would attract businesses, industries, investors, residents, consumers, and visitors to the

KATHWANA URBAN DIAGNOSTICS 31 all sectors. Critical for the development of the economy will be the improvement of the infrastructure within and outside of the town, particularly in areas affecting production such as irrigation for agriculture. Significant development across the town will not realise potential benefits without the presence of climate resilient and inclusive infrastructure, capable of overcoming the current issues of poor connectivity, power supply, resource use, waste management and unavailability of PWDs-friendly infrastructure.

The Municipality is located within an economic growth area. Even though, Tharaka Nithi’s economy is small, it has recently experienced economic growth rates above the national average. For Kathwana to follow the same trajectory, it needs to establish linkages to the economic activities that are driving the County’s economic growth. It will thus be important to improve access to regional supply chains across the economic sectors as well as improving market access and market information and expertise in the county.

Kathwana’s aspiration to become a centre for value addition is aligned with national and regional strategies, which allow for vertical integration and cooperation across governments and horizontal integration within and across sectors. Due to its delineation as County headquarters, Kathwana expects population growth and has developed a strong narrative around its vision to become a lively urban centre with a strong economy. This has started to draw in investment, such as the development of Komarock hospital, and has led to the rapid increase of land values. However, it has also started a process of land speculation which can lead to fragmentation of land causing challenges to infrastructure development. Expectations need to be managed realistically to draw in investment but at the same time minimise the risks related to speculative urbanisation. There is strong political will and leadership to drive urban economic growth in Kathwana. The Municipality has developed a comprehensive urban development policy framework that will help manage and control urban growth in a way that maximises the economic benefits associated with urbanisation. The Municipal Board has an important role to play, to be responsive and to appropriately coordinate the available opportunities. The Municipal Board should use the UEP as an advisory document to leverage investment and drive forward identified actions that are owned by the appropriate stakeholders.

Drivers for Growth

CurrentlyMunicipality.thepopulation is small with low densities. The Municipality is lacking higher education facilities and training institutions to develop its workforce. This makes Kathwana neither an attractive location for business to relocate nor an ideal target for public or private investments as financial sustainability of infrastructure developments is difficult to achieve. Additionally, the lack of funding at the Municipality level and the lack of access to finance on the business or individual level is a key barrier of growth. While the existing economy is mainly based on agricultural production, Kathwana does not present an enabling environment for the sector without limitation. The availability of rivers and land makes the area conducive for agricultural production, however, the climate is challenging with lower, less reliable, poorly distributed rainfall and higher temperatures especially in the dryer eastern parts. Due to the lack of irrigation infrastructure farmers are heavily affected by extreme temperatures and droughts, which the area is moderately prone to experience. Agricultural outputs are thus volatile keeping farmers from re-investing and restraining growth. Hence, the sector has not yet modernised and consists mostly of home-based production. Linkages to agricultural value addition as well as access to markets are minimal. While Kathwana is known for its market centre, residents have reported to not sell at the market. Agro-processing facilities are limited and the poor road conditions make transportation from farm to market costly. The UEP will need to consider how linkages between these sectors can be improved.

The three key challenges to be addressed through the UEP in Kathwana are:Greenfield Development Being a new town comes with specific challenges. Growth is currently constrained by significant infrastructure gaps across all sectors along with lack of housing, a small local population and skilled workforce and limited manufacturing and industrial activity. Private land ownership and land fragmentation poses challenges to coordinated urban planning. There is also a lack of a clear strategic competitive advantage over existing urban centres in the wider area and the CEREB, such as Chuka, Meru or Embu. Nonetheless, Kathwana is generally well suited for a greenfield development due to the designation as County headquarters, the existing vibrant market centre, areas of undeveloped land and initial significant infrastructure construction to lay the basis for a future town (e.g. the water treatment plant to be completed in 2020 and a roads program through KUSP). As a green field development, it offers opportunities to direct urban development towards the SUED principles of sustainability, social inclusion, resilience and resource efficiency and thereby make Kathwana a more attractive place to live and work and a forerunner for green growth development in Kenya.

InadequatepopulationLowsizeInfrastructuregapseconomicactivities

32 KATHWANA URBAN ECONOMIC PLAN

The Economic Development Plan consists of economic sector action plans which will support the Municipal Board and the Municipality to deliver a more cohesive, holistic and sustainable economic future for Kathwana and a number of potential value chain projects which act as anchor projects for economic growth in the town.

› The Affordable Housing proposal is developed in more detail forming part of the Development Core Area around the market centre with the aim to attract residents to Kathwana.

Economic Sector Action Plan & Value Chain Project Opportunities Development Framework & Priority Infrastructure Projects

The Development Framework consists of a spatial action plan with a focus on two key development areas and prioritises key climate resilient infrastructure projects that will be required to support economic growth.

The UEP sets out an economic vision which gives direction to the economic and urban development of the Municipality.

3.1 Alignment of the UEP with existing Development Plans

For the short- and medium-term, the UEP development concept contributes to the ISUDP objectives by introducing more focused sequencing and integration of priority VCs and infrastructure projects and to the UDPF by focusing on the initial phases of development. It looks at how urban development can kick-start and be managed in the most resource efficient, sustainable, socially inclusive and resilient way. Since Kathwana was declared the new County headquarters for Tharaka Nithi in 2018, the move of County administrative activity to the town has sparked an initial phase of urban growth in the immediate surroundings of the government offices and the market, which will be the point of departure for the UEP’s development concept. Additionally, the investment proposals outlined in the Kathwana Investment Attraction Plan were considered with three of the proposals being incorporated and developed further in the UEP:

Vision Objectives&

With a vision to become “a vibrant city east of Mount Kenya, to drive sustainable regional growth and transform the county into a haven for value addition” in the next 100 years, the UDPF is set out to frame Kathwana’s urban growth in the long-term.

Tourism and hospitality, the additional key themes of the investment plan are discussed within the sector action plan in section 4.1.

The model for development in Kathwana is founded on the UEP principles set out in Section 1 and has been developed in collaboration with Kathwana’s stakeholders. It aims to strengthen the town’s economic position based on its competitive and comparative advantages while taking a citizen-centred approach to green growth and sustainable investment.

Next to the UEP, Kathwana’s most important planning documents at municipality scale are the Municipality Integrated Development Plan (ISUDP) and the Urban Development Policy Framework (UDPF) supported by the Kathwana Investment Attraction Plan. Within the ISUDP, a range of programmes and projects are identified with an implementation target between 2019-2024 (refer to section 3 of the Diagnostics Report). In its UDPF, Kathwana has outlined a comprehensive spatial plan for the Municipal and CBD area, and set detailed development control guidelines.

DEVELOPMENT CONCEPT 34

› The proposal for the Eco-Industrial Park is taken forward as one of the focus areas of the UEP’s development framework and the VCs present options for kick-starting economic activity in the park; › The Renewable Energy project is taken forward as one of the infrastructure proposals supporting the Eco-Industrial Park with the recommendation to focus on Solar Power and explore potentials for revenue generation;

3. DEVELOPMENT CONCEPT

15 After the workshop presentation stakeholders were asked to write down what they perceive as Kathwana’s vision. As prompts a list of buzz words was presented including the following: Eco-city, Sustainability, Agriculture and Agro-processing, Haven for value addition, Trade centre, Regional hub, Smart city, County capital city, Service centre, Socially Inclusive, Climate Change. The concepts were presented in local language › Robust services; › Education Hub; › Commercial Hub; › Water and Rivers. The outcomes of this discussion were narrowed down and agreed with stakeholders to the following vision statement: “To develop Kathwana into an Eco-City, which is driven by agricultural production and value addition, supported by robust urban services and serves as a fully-functioning Capital City for Tharaka Nithi County”.

Case Study: Green City Kigali, Rwanda

3.2 Visioning exercise

35 KATHWANA URBAN ECONOMIC PLAN

› The Government in Rwanda is supporting the development of an Eco-city near Kigali to take pressure off the highly populated capital city; › Green City Kigali project is expected to serve as an urban development model that links affordable housing with climate change adaptation and mitigation measures and sets standards for similar sustainable urban developments in Rwanda; › Due to the alignment of the key principle of sustainability with national policy agenda such as the National Strategy for Transformation and global commitments such as the SDG’s and the Paris Agreement, the Green City Kigali is suited for a funding mix based on national government funds (e.g. Environment and Climate Change Investment Fund; FONERWA), and international finance institutions / donors (e.g. German Cooperation, Green Finance Fund).

Part of the UEP process is developing an economic vision statement for Kathwana. This is complementary to the vision developed as part of the UDPF and more suited to the scope (short/medium-term) and focus (economic activity) of the UEP.

In the visioning exercise at the stakeholder workshop on 2 March 2020, the following elements were identified as most important for setting the direction for Kathwana’s economic growth15: › Eco-city principles; › Haven for agricultural production and value addition; › Capital City for the County;

3.3 Key Components of the Development Concept Under the umbrella of the eco-city approach, the development concept addresses the three key challenges outlined above; small population size, lack of economic activities, and infrastructure gaps in an integrated approach.

The eco-city concept is a loosely defined term, describing cities that function on the basis of preserving environmental assets, using resources efficiently and adapting to and mitigating climate change. With a policy shift towards sustainable development and green growth in many African countries, including Kenya, the focus on environmental sustainability, resource efficiency and climate change mitigation and adaptation has also found its way into urban development. As outlined in the conclusions of the diagnostics chapter, being a greenfield development comes with the opportunity to direct development coherently towards a shared vision. The eco-city concept as an anchor for strategic development in Kathwana allows to organise proposals under a coherent theme and helps to set priorities amongst a diverse field of options. The eco-city concept supports the integration of VCs and infrastructure proposals under a common theme and allows to link urbanisation and agricultural production and processing. While still being a fairly new approach, the concept of eco-cities has gained popularity across the continent. Examples include Zenata in Morocco, Ville Verte Mohammed in Egypt, BuraNest in Ethiopia, and Green City Kigali, Rwanda. Giving urban growth in Kathwana clear direction that resonates with the green agenda of international treaties and organisations such as Paris Agreement, SDGs, New Urban Agenda as well as national policy can be a vehicle to attract external funding to Kathwana.

› Infrastructure development needs to be tailored to the evolving situation in Kathwana. It is not planned for an existing population (demand driven) but for an anticipated future population that is expected to grow gradually at a 3% annual growth rate . The key theme for infrastructure development is hence incremental development and upgrade in line with the growth of population and economic activity to maximise economic and social benefits. Phasing of this incremental development to optimise efficiencies and minimise costs is the key challenge;

Component 2: Climate resilient and sustainable infrastructure proposals to support sustainable growth

› Infrastructure design needs to be inclusive- Inclusive design will create safe and accessible environments for all members of the community. While access can be made fairly easily in most cases, the emphasis typically being to provide step-free, level physical access, delivering genuine inclusive design requires creation of the best design possible for all intended users across a wide range of abilities, age groups and backgrounds. For Kathwana, the goal is to provide intuitive and usable design proposals across the water, sanitation, transport, waste management and urbanism areas so as to serve everyone and increase general community benefits. Housing as a pull factor for migration VCs to deliver a critical mass in terms of economic activity to signal growth climateInclusive,resilient and sustainable infrastructureproposals

Component 1: VCs to deliver a critical mass in terms of economic activity to signal growth Critical to the successful delivery of the SUED programme is the identification of potential value chain projects that can promote economic growth in Kathwana, create inclusive employment, support sustainable urbanisation and attract funding including seed financing. Six value chain projects were identified and assessed against a list of set criteria and two are outlined in more detail in the following section. These are considered as having the most potential within Kathwana to act as anchor projects for the development of Kathwana’s key economic sectors focusing on their competitive and comparative advantages.

To enable the establishment of Kathwana as a key economic growth hub within and beyond the county and to support the growth of a local urban population and economy, key infrastructure provision needs to be put in Infrastructureplace.proposals are focusing on incremental development and environmental sustainability:

› Directed at achieving the vision of becoming an eco-city, all infrastructure developments should be aimed at maximising environmental efficiency. This includes the following elements: carbonneutrality, resource efficiency, circular systems, climate change mitigation and adaptation, disaster resilience;

Section 4 presents eco-city design principles that turn the abstract concept into a guiding tool for urban development planning in Kathwana beyond the SUED programme.

DEVELOPMENT CONCEPT 36

› Poor market visibility and access; › High prices of farm inputs like fertilisers; › High cost of transport; › Unstable income which makes reinvestment difficult; › Poor access to financing facilities. A Produce Collection Aggregation model is proposed to efficiently integrate existing economic activity into the proposed value chain opportunities. ‘Aggregation’ refers to the process of bringing together farm products in one place to enable economies of scale in processing, storage and transportation. The produce collection model describes deliberate organization of small-scale farmers to reduce the costs associated with accessing markets, farm inputs, market information and new technologies.

The Produce Collection system supports the agri-processing VCs presented in section 4 and is outlined from an infrastructure requirement perspective in section 5 under the Eco-Industrial Park.

The model will have three components: farmers, physical space and supporting technology Organizing small-scale farmers will involve identifying farmers supplying the needed products and aggregating their details onto a technology platform to create visibility on performance of each farmer with regards to supplies. The other component is the collection centre which will provide the physical place where agricultural products are aggregated from farmers for selling purposes. Here, the produce is received, weighted, recorded, graded, aggregated and dispatched to other retailers or warehouse. Additionally, they could be designed as marketplaces to allow for co-location of various farm input suppliers thus aiding reducing the cost of transport for farmers. Lastly, the technology which will support information flow from farmers to suppliers and suppliers to farmers including pricing data, training and financing information. It will also support data driven solutions and enhance farmers’ access to financing and input credit.

› Availability of low cost of farm inputs.

› Sale visibility / access to financial facilities, such as credits;

The more government staff starts working from Kathwana, the more the demand for housing will increase. Today, most county staff already working in Kathwana live in Chuka or surrounding settlements due to a lack of housing provision in Kathwana itself. Similarly, the development of value chain projects will create employment opportunities and thus draw in workers to live in Kathwana. While in the medium-term, Kathwana will offer a range of housing types for its diverse population including different professions, age and income groups, affordable housing is appropriate for early stage housing development. It offers the opportunity to take part in the Government of Kenya (GoK) Affordable Housing Programme (AHP) as part of the GoK’s commitment to deliver economic development across the country. Since the programme subsidises the development of bulk infrastructure for identified sites for affordable housing, the AHP supports urban growth beyond the scope of housing. Integration of economic activity in Kathwana Despite being a greenfield development, Kathwana is not being built on a blank page. When building a new town, it is important to integrate urban growth with existing population and local economy. As outlined in the diagnostics chapter, most of the economic activity in Kathwana is widely dispersed small scale agricultural farming. The farmers are poorly organised around input and output markets and other agricultural services like warehousing and transportation and as a result face the following challenges:

37 KATHWANA URBAN ECONOMIC PLAN Component 3: Housing as a pull factor for migration

› Improving access to market - collection centres will provide closer market links; this will save time for farmers. The time saved could be translated to productivity time in the farm or with family;

The produce collection aggregation model will directly benefit the farmers’ livelihood by:

› Price visibility / market information;

The CEKEB region contains Kenya’s 3 largest agricultural producers of Nakuru, Nyandarua and Kiambu, where their GCP output together makes up 23% of the national total17. Tharaka Nithi contributes a modest 4% to the CEKEB’s agricultural output.

ECONOMIC

Just one farm-produce aggregator, a collection and warehousing model facility 17 KNBS, GCP Product, 2019

This section sets out the economic development plan for Kathwana by setting out specific development recommendations for Kathwana’s key sectors of Agriculture and Livestock, Markets and Trade, EcoIndustries and Manufacturing and services. The section then presents the prioritised VCs of milk and food processing in detail.

Milk marketing key income source for Kathwana residents Almost impossible for most of Kathwana’s farmers to access finance

Presence of regional corridors that connect Kathwana with other local, regional, national and international markets

Lack of extension services, capacity building and training institutions relevant to the sector

Strengths Weaknesses

4.1.1 Agriculture and Livestock Agriculture is one of Kenya’s Big 4 sectoral priorities, with a crucial role in Vision 2030 development programme accounting for approximately 25% of annual GDP with a further 25% through the supply chains. Agriculture accounts for 70% of informal employment in rural areas11.

ECONOMIC DEVELOPMENT 39

4.1 Economic Sector Action Plan Four key sectors have been identified for further assessment, these sectors have been divided into existing and emerging sectors, the Economic Development Plan has formulated Action Plans for each sector. These are premised on the SWOT analysis that was part of the Diagnostics Reporting stage (Appendix A). Summaries of the SWOTs are presented below for each sector (with strengths, weaknesses and challenges). These Action Plans have been informed through the SUED business consultation exercise (Section 2.3.2), local workshops with stakeholders and data analysis.

Lacks a comparative advantage Water resources available, though there is limited existing irrigation infrastructure Poor post-harvest practices with limited agri-processing and storage facilities

DEVELOPMENTStrengthsandweaknesses

- agriculture and livestock sector

Economic activity in Kathwana is almost completely agriculture and livestock based, the majority of residents are small scale farmers. The average holding size is only 4.8 hectares, farmers grow crops mainly for their own family consumption, usually spare land is used for the production of small volumes of cash crops and food crop surpluses are sold. The agricultural sector is disjointed, with little irrigation and many different products. Some of the more commonly produced crops in Kathwana are maize, beans, cowpeas, sorghum, green grams, millet, pigeon peas. Challenges Kathwana and the county land beyond the foot of Mount Kenya are restricted by a climate and soils which aren't conducive for growing non climate resilient produce, a situation set to become more challenging with climate change. Kathwana is highly exposed to risks of wildfires, moderately exposed to extreme rainfall events causing flooding or droughts as well as extreme temperature events. The agriculture sector in general is becoming more vulnerable with the impacts of population growth and climate changing bringing unprecedented challenges to the sector, this year alone Kenya’s agriculture sector has had to face locust swarms, climate change impacts and the Covid-19 pandemic. Table 4.1Agriculture and Livestock Sector Action Plan presents some of the potential actions that will aid transformation in the sector as well as potentially better protect it from future climate threats.

Established reputation for livestock (goats) Weak rural road linkages to farmers

Almost all of Kathwana’s current population engage in some form of agricultural activity

› Sustainably planned community boreholes. These can be implemented quickly, considering groundwater availability.

18 Farming First,Why Increasing Smallholder Resilience Starts with Soils, 2018. Available at: why-increasing-smallholder-resilience-starts-with-soils/https://farmingfirst.org/2018/05/ Livestock Sector Plan

Table 4.1 - Agriculture and

Aims Action How to deliver

Promoting these interventions through farmer groups encourages greater inclusivity. Organisations such as USAID Kenya Integrated Water Sanitation and Hygiene Project and Kenya’s Drylands Development Programme are implementing these measures across Kenya.

› Expand use of soil conservation techniques. The Livelihoods Fund focuses on land restoration to increase food security and preserve water resources18 (Vi Agroforestry & Brookside);

A more livestockagricultureresilientandsector climateKathwana’sand soils aren't conducive for growing non climate change.withbecomeclimateproduce,resilientaswillharsherclimate

Action

40 KATHWANA URBAN ECONOMIC PLAN

Reliable, inclusive water source for farmers Kathwana needs to develop a plan for water management, which considers climate change risks, impact of upstream catchment activities on water quantity and quality and the sector’s requirements and aligns the Municipality’s water supply needs. The water infrastructure proformas contained within the Development Framework provide more information. Some potential additional inclusive, household level interventions the plan could consider include:

› Lining and expansion of existing small-scale water pans;

ECONOMIC DEVELOPMENT 41

Educate and encourage farmers to grow climate resilient crops (in Kathwana these include sorghum, sisal, croton, sunflower seeds, tamarind, soya beans and green grams), use sustainable farming practices such as agroforestry and using sustainable inputs (e.g. natural fertilisers), and organic farming and encourage innovative uses of produce through collaborations with:

Introduce and subsidise technology that helps farmers to better store and process produce - such as Gunia bags. High costs usually prevent farmers from adopting technology.

A feed mill which takes bi-products from agri-processing to make a blended animal feed is proposed as a non-priority value chain

Aims Action How to deliver

Ensure that the climate resilient crops, farming methods and technologies recommended are affordable and do not increase inequality between farmers.

Theopportunity.Sidaicooperative a success elsewhere in Kenya, is a livestock cooperative which offers some of these measures to farmers with financial constraints, through attaining funding from donors. This gives them the flexibility to provide livestock products at a low price22

Measures to improve resilience of the livestock sector have been detailed in the milk processing value chain which has been designed to increase the resilience of livestock farmers to climate change.

20 The Ministry of Agriculture, Livestock and Fisheries (MoALF), Tharaka Nithi Climate Risk Profile, 2017

› The VC projects will help to stimulate demand and provide farmers with a consistent market for these projects.

› Igambang’ombe multi-purpose cooperative, and others in the county;

› Contract farming, where the market is guaranteed farmers are more willing to venture in non-food crops. East African Breweries have established an agreement for sorghum production with Tharaka Nithi’s farmers21;

› Availing insurance services encourages farmers to adopt resilient crops through reducing the risk to farmers. Index-based, and microinsurance products, have been successfully trialled as adaptation measures for farmers;

21 Business Daily,Tharaka-Nithi, EABL pact to boost farmers’ sorghum earnings, 2020. Available at: news/counties/TharakaNithi-EABL-pact-to-boost-farmers-sorghum/4003142-5595738-giqt5o/index.htmlhttps://www.businessdailyafrica.com/

Encourage Farmers to use more resilient farming methods and diversify farms with resilient crops. Agriculture experts from the International Maize and Wheat Improvement Centre (CIMMYT) have called for an intensive scale-up of climate-resilient seeds and climate-smart innovations, including drought-tolerant seeds and soil and water conservation practices in Eastern Africa19. Nationally there is a clear demand present for climate resilient Organisationscrops: (BIDCO, FAO) have already tried to encourage growing more resilient crops such as sisal and soya beans in Kathwana. However, small land priority is given to food crops for consumption. Production of non-food crops in places like Kathwana is common with Early Adaptors (trend setters).

› NGOs – Various NGOs and development partners such as USAID/KAVES, RIDEP, GRADIF-Kenya, Caritas, KMD and KALRO provide seeds, climate information, and extension services to farmers on input utilisation, good agronomic practices, and storage20

19 International Maize Improvement Consortium for Africa, International Maize Improvement Consortium for Africa ramps up seed innovations, 2019. Available at: https://www.cimmyt.org/news/international-maize-improvement-consortium-forafrica-ramps-up-seed-innovations/

22 Available at: http://www.sidai.com/index.php/about-us/what-we-do) (https://www.farmafrica.org/kenya/sidai

Farmers need guaranteed demand to take the leap to new more resilient crops. This can be helped through:

› Local educational institutions including: TVETs; Chuka University (offers agriculture courses and encourages application of learnings across the county); and Meru University of Science & Technology and The University of Embu;

It will be essential that the Directorate of Cooperative Development23 in Tharaka Nithi focus their efforts to develop a strong network of cooperatives to serve its informal sector. Key to a cooperative’s success are management, finance and member participation. Governments can regulate; however, NGO championing of cooperatives has a higher success rate.

42 KATHWANA URBAN ECONOMIC PLAN

Help farmers unlock finance: Business consultations highlighted that Kathwana’s informal workers, particularly small-scale farmers, youths and PWDs, did not have the collateral for a loan from a financial institution. Additionally, the costs associated with travelling to Chuka to apply for a loan were high.

The agriculture collection network is detailed in the Development Framework and the transport proformas. Through collecting farmers' produce and providing consistent demand and prices for their produce provides stability for the farmer and reduces the transportation costs and the exploitation of farmers. The Twiga model found that farmers were enabled to invest more time and money into their farms increasing their Increasingoutputs.the

output of Kathwana’s small scale farmers will not only help to improve their livelihood but also help towards poverty alleviation in Kathwana.

Increase the number of cooperatives and the capacity of the existing cooperative.

These workers need a financial safety net, some potential measures that may fit the needs of Kathwana are:

› The Food and Agriculture Organisation (FAO) supported cooperatives in Niger by providing secure warehouses for local farmers to store end-of-season surplus. The cooperatives and financial institution retain a storage facility key each, who then negotiate loans for the farmers24.

Cooperatives and farmers organisations provide many services to the informal sector that the private sector fails to.

Support the vehicles of change in Kathwana Kathwana has just one farm-produce aggregator, a collection and warehousing facility, the Igambang’ombe Multipurpose Co-operative Society.

› Teach farmers best financial practices, such as saving, borrowing against your savings and insuring against losses;

› Solidarity Fund for Development’, a model promoted by an NGO (INADES) allows farmers access to finance if production is ‘stabilised’ and farmers yields are guaranteed. The agriculture collection network can offer a similar financial model where it records the quantities of produce farmers bring to the collection centre. This system also incentivises farmers not to sell to middlemen for quick liquidity;

23 Tharaka Nithi county council, Tharaka Nithi County Cooperative Societies Bill, 2015 24 The World Bank, Growing Africa: unlocking the potential of Agribusiness, 2013

Aims Action How to deliver Increase small scale agricultural and outputlivestock

Partly due to the CEKEB region’s extensive agricultural production, the role of trade is significant in providing the markets for local producers and in facilitating the linkages for produce to move around Kenya. These markets provide both local and regional consumers, wholesalers and specialist buyers for national, and even international markets. Other than agriculture Kathwana’s markets are its other main economic activity. Within the Kathwana municipality there are key market centres including: Kathwana, Kajuki, Materi, Chiakariga, Kaanwa, Itugururu and Tunyai. On market days the town transforms with traders and buyers flowing in from other towns and counties, attracting over 3,000 people. Many people benefit from Kathwana market but only a small amount of what is sold on the market is from Kathwana, there is an opportunity to retain and enhance the benefits of the market to Kathwana. There are also a series of more permanent and self-employed small traders in Kathwana, covering local services such as butchers, hairdressers and plumbers, and some undertakings light industrial activity. Challenges The current market design is not resilient to shocks and stresses with relation to the weather and as has recently been exposed shocks relating to pandemics. Nor is the market inclusive, the design excludes PWDs and does not provide inclusive sanitation facilities.

There is a developing ‘ecosystem of trade’ in Kathwana Insufficient clean water supply Kathwana has designed a new market structure Lack of utilities in the market Market isn’t big enough for growing number of Lackingtradersshelter to protect people and produce from Businessesweatheroften exploited by middlemen who offer instant payment to their suppliers Inadequate security

4.1.2 Markets and Trade

Strengths and weaknesses - markets and trade sector Strengths Weaknesses Market strategically located along IshiaraMeru road Not a lot of what is sold on the market is grown in Kathwana Market is already established, with a reputation for selling goats Non-market days low population/little activity

ECONOMIC DEVELOPMENT 43

› Reliable clean water supply –The new market should supply clean water to serve the market at full capacity (improvement in water distribution and storage is detailed in the water and sanitation proformas);

Traders and locals need to be consulted and included in the design process of a new market to better understand what they need and want from a new market. The new market design25 is a similar to Chuka market, consultations with traders in Chuka market could help preempt some of the potential issues and improvements.

Aims Action How to deliver

› Storage: Dry storage would help improve the security of the market and cold storage may be a longer-term measure to improve supply chains.

Make it easier for market.benefitentrepreneursresidentsKathwana’sandtofromthe

› Produce can be stored for longer and sold for longer after the harvest seasons;

Measures that can come after the initial construction:

Improved drainage to avoid flooding during heavy rainfall events

› Parking interventions to reduce congestion in the urban core are detailed in the transportations proformas.

› Inclusive sanitary facilities at the market (details provided in the water and sanitation proformas);

› Inclusive and accessible design, such as integrating ramps and well-designed pathways and accessible toilets;

› A responsible market waste disposal system which makes segregation compulsory at the market, this would integrate into two of the waste proformas: integrated waste collection system and the new waste management site;

44 KATHWANA URBAN ECONOMIC PLAN

To consider before the market’s construction:

› Higher quality produce;

25 Tharaka Nithi County, Proposed Kathwana Modern Market design doc, 2019 Table 4.2 - Markets and Trade Sector Action Plan

More local produce sold at the market, this means that less business leaks out of Kathwana. Currently much of the benefits from Kathwana’s markets are felt by producers from other counties. The agricultural collection network will facilitate more coordinated collection and selling of produce from Kathwana:

› Lighting inside the market, this will allow for the market to operate safely later into the day;

The new market design provides an affordable structure with shades from weather, and access to energy and water. There is room however to consider how the design can be more resilient, inclusive, hygienic and safe.

› Adapt the market design for greater resilience in case of an event similar to the COVID-19 epidemic;

› Street lighting, which is included in the new market design, will allow for the market to open up at night, resulting in more activity. The energy proforma has already identified and detailed this need;

› Produce will have lower costs associated with them as a result will be more competitive on the market;

› Sellers will have a better understanding of markets;

› Produce processed, as a result of the proposed VCs, (fruit, vegetables and milk) could be sold on markets after processing for greater Betterprofits.ties between Kathwana’s farmers and its markets will include those who are currently excluded from the markets economic activity and contribute to poverty alleviation.

placewithreputableAttractive,marketasenseofandidentity Place making and a market design that allows the market to operate inclusively, safely, hygienically and resiliently. Business consultations revealed that the current market structure is not resilient to flooding nor is it equipped to respond to shocks such as Covid 19. The structure is also lacking basic amenities such as toilets, access to energy and lighting. There is a real opportunity for Kathwana to affordably integrate these changes and build a reputation as an inclusive, resilient, eco-city of Kenya.

Poor WIFI hard to connect with overseas buyers

4.1.3

ECONOMIC DEVELOPMENT 45

County is endowed with agricultural produce for processing Competition with established agri-processing sites in the economic bloc

Risk of droughts and flooding effects reliability of supply of agricultural products

Challenges Given that the majority of activity in this sector is predicted to be agro-processing, the supply chains for the sector are particularly vulnerable. Agricultural inputs are becoming more vulnerable with the impacts of population growth and climate change bringing unprecedented challenges to the agriculture sector.

Strengths Weaknesses

Eco Industries Manufacturingand

Presence of regional corridors that connect Kathwana with other local, regional, national and international markets

Skilled Jua Kali base including artisans of woodwork, metal work, upholstery, furniture making, windows, doors No existing skilled labour pool CEKEB is the main agricultural producing bloc in Kenya and there is a lack of agri-processing

Given the identified VCs for food and milk processing and the focus area plans for an eco-industrial plan Kathwana’s Eco industries and manufacturing sector is predicted to grow significantly in the coming years. The following SWOT and Action Plan sets out current limitations within the sector and potential to develop it.

Some existing light industrial activity Lack of specialisation among farmers which makes bulking of produce difficult

Strengths and weaknesses - eco industries and manufacturing sector

There is significant emphasis in developing agri-processing nationally, with the aim to create 200,000 new jobs and to triple production, with the higher values on the global market a key incentive. Kenya’s Agricultural Sector Transformation and Growth Strategy (ASTGS) aims to increase the contribution of agri-processing to GDP by 50%. The CEKEB bloc itself has some notable examples including tea, coffee, rice and dairy. Within the County there is a small base of existing industries with agri-processing as the main activity, a coffee processing plant, a tea processing plant. There is some existing light industrial activity in Kathwana, mainly serving locals as self-employment and with small town centre premises. These activities include carpentry, motor vehicle mechanics, tailoring, repairing electronics, plumbing, metal fabricators and cobblers, with the market largely being as local and county services. The activity that does exist, such as Sweet n’ Driedparticularly successful in the sector despite the many infrastructure, financial and supply chain constraints.

Supporting aspects of industry such as marketing, logistics, supply chain links and management are very limited

Middlemen often take supply with the offer low and often unfair prices, but instant liquidity

Insufficient energy and water infrastructure

Eco-Industries and Manufacturing Sector Action Plan

Protect and engage existing food processing activity in and around Kathwana

26 UNIDO, World Bank & GIZ, International framework for eco-industrial parks, 2017 27 http://www.gearbox.co.ke/ 28 Ellen Macarthur Foundation, Case Study:Kalundborg Symbiosis Effective industrial symbiosis, available at: https://www.ellenmacarthurfoundation.org/case-studies/effective-industrial-symbiosis

Women, PWDs, and youths often don’t have access to the same opportunities This plan should focus on: › Learning from existing agri processing in the county - Sweet n’ dried have set a great example training up an almost wholly female workforce; › Plan to encourage youth employment in the sector. Refer to key documentation which identify youth sensitive approaches to creating employment in agri-food value chains29, 30;

29 OECD, The Future of Rural Youth, 2018 30 CTA, Technical brief Creating jobs for rural youth in agricultural value chains, 2018

› Include flexible spaces and equipment in the industrial park for businesses to use as needed;

The concept of an eco-industrial park has been framed in Kathwana’s Investment Plan. With a new eco industrial park will come impacts to local smaller businesses already operating in the processing market such as Sweet n’ Dried. These businesses in part inspired and justified the proposed VC and therefore need to be protected and integrated as best as they possibly can into the development.

› Shared space and equipment for makers to use periodically in the eco-industrial park, this has the potential to facilitate cooperation and knowledge sharing. Inspiration can be drawn from Kenya’s first makerspace in Nairobi, Gearbox27;

Potential interventions include:

46 KATHWANA URBAN ECONOMIC PLAN Table 4.3 -

The sector must be inclusive from the offset.

› Diverse production to ensure sustainability of the facility; › Involvement of SMEs in the supply chains;

Aims Action How to deliver Develop a plan for development,industrialKathwana’s including assessmentanof how the industriesKathwana’sbeconsiderationsthethetheconsideringAsindustrialframeworkthetheparkeco-industrialwillmeetcriteriaofInternationalforeco-parks26wellasallaspectsofframeworkfollowingwillapriorityforeco-sector.

The agricultural produce collection network will need to create a reliable stream of inputs. These will primarily be locally sourced materials and produce to ensure resilience of the sector and less reliance on imported products. The park could also take inspiration from the industrial symbiosis model used at Kalundborg where exchanges of energy, water and materials in closed loops could shift Kathwana’s eco industrial park towards a more circular economy.

The business surveys with existing agro-processing businesses in the County highlighted that a consistent supply of inputs as a barrier to growth of their businesses.

A strategic plan for continuous inputs for agri-processing

› Processing SMEs in the county will be an asset for knowledge sharing.

› Set target participation rates for female, PWD, young persons and other SIGs. The Access to Government Procurement Opportunities (AGPO) program is a good example of govt efforts at inclusion of women, youth & PWDs.

Maximise andlabour/inputslocalusedselllocally Use local materials and skills for packaging and marketing. Develop 'Kathwana Brand'

Aims Action How to deliver

Maximise use of local labour through training and input provision. Potential interventions include:

The cooperative interviewed in the business survey highlighted that packaging is very expensive since the ban on plastic bags.

› Banana leaves and sisal are commonly used for sustainable packaging and grow in the county31. There is also growing demand for sustainable packaging globally. Clustering of businesses at the park-level also enables added-value services to be offered at reasonable prices32

ECONOMIC DEVELOPMENT 47

› Facilitating connections to higher education institutions TVETs in the County and nearby Universities offer relevant courses including: Chuka university, Meru University of Science and Technology, the TEVET Presbyterian Technical College Rubate. Muraga Technical Training Institute.

› Vocation training centre (TVET) within the eco-industrial park (recommended in Kathwana’s investment plan);

31 Available at: https://www.thefreelibrary.com/Women+groups+thread+cash+from+sisal+in+Tharaka+Nithi-a0596621485

32 UNIDO, World Bank & GIZ, International framework for eco-industrial parks, 2017

Source train and provide inputs for local labour to work in the emerging Kithanganisector.Women’s group who successfully grow, decorate and weave their sisal, highlighted a need for decorticating machinery and a factory.Kithangani Women’s group who successfully grow, process (brush), decorate and weave their sisal, highlighted a need for decorticating machinery and a factory. Kithangani Women’s group who successfully grow, brush, decorate and weave their sisal, highlighted a need for decorticating machinery and a factory.

4.1.4 Services

Kenya’s key documents recognise the important role that trade in services is poised to play in overall development of the economy. The service sector makes up 60% of GDP and is comprised of tourism; transport and communications; trade and related services; and financial and business services. Communications is Kenya’s 5th highest value service export33. Kenya is already exporting ICT services, it is among the few African countries that is exporting software development services to global technology firms (USA, India, South Africa, Spain, Germany). Kathwana’s service sector is a clean slate, there is next to no existing activity in the sector. There is currently a private hospital, a handful of hotels and some civil services. The potential of this sector relies heavily on the transition of the County government workers moving their base from Chuka to Kathwana, from this there is potential for supporting services to move into ConsultationsKathwana.withthe County government revealed that they have aspirations to develop a service sector in Kathwana which will attract professionals to live and work in the town. Some of the potential service sector offerings that have been considered for Kathwana include: Hospitals and medical tourism, Information Communication Technology (ICT), banks and supporting services for the County government, the knowledge sector and Hospitality (hotels, restaurants and bars).

The following SWOT and Action Plan sets out current limitations within the sector and potential to develop it. Challenges The main challenge for Kathwana will be attracting new businesses and workers to invest and live in Kathwana, although businesses have been speculatively buying land in Kathwana unlocking investment will be difficult. Development concept components one and three both aim to unlock this activity in Kathwana, below builds on how Kathwana can build a service sector.

Strengths Weaknesses Kathwana is now where the county council base themselves, and therefore the administrative centre of the county Not enough amenities to attract people to come and stay in Kathwana

Insufficient financial institutions in Kathwana Currently little to no service sector Kathwana isn’t bound by the traditional problems of a more densely populated and more urban market town Poor WIFI Lack of supporting infrastructure Small existing labour pool in the knowledge Hotelssector in Kathwana mentioned the unreliable clean water supply and no grid electricity as key Achallengeslotofspeculative buying has created a bubble of expectation with rising land prices

Strengths and weaknesses - services 33 UN, International Trade Statistic data, 2018.

48 KATHWANA URBAN ECONOMIC PLAN

Two phase plan for Kathwana’s service sector:

› Pedestrian priority routes. Pathways, ramps, crossings, footbridges and cycle lanes can unlock opportunities for marginalised communities and facilitate more attractive ways of getting around for visitors/residents/workers;

Tharaka Nithi County council envision Kathwana to have a booming services sector where professionals can work, live and play.

› Incorporate street features on critical urban roads to improve road safety and mobility;

› Streetlights along key pedestrian routes between the market, shops, workplaces and residential areas have the potential to open up places at night and improve safety.

34 UN Habitat lecture series, Transforming cities with transit, 2016.Available https://www.youtube.com/watch?v=rgd8tWIMhbs&list=PLTQZbEc6Bv5-Hja_AppdM6gkXp98C01Ca&index=9at:

Kathwana’s Urban Development Planning Framework states that 'The Municipality of Kathwana envisions a compact urban centre that is creative, liveable, green, efficient, competitive and inclusive.'

Phase one's focus is to maximise the number of civil servants moving to Kathwana. This should focus on provision of supporting services to include e-financial institutions, everyday life services (e.g. eateries, places to socialise), schools, hospitals and WIFI.

› Upgrade the Chuka - Kathwana road (C384);

Phase two’s focus is attracting more supporting service sector activities to Kathwana on the back of the civil services needs and the VCs. This could include IT services, marketing, training and conference tourism. This plan would fully realise the journey, opportunities and barriers for Kathwana to become a centre for services which could include for example: ICT services, tourism related services, university campuses and workplaces.

ECONOMIC DEVELOPMENT 49 Table 4.4 - Services Sector Action Plan Aims Action How to deliver direction,Establish a plan, and serviceKathwana’smarketsector

Encourage more traffic Kathwana.through Make Kathwana more accessible on foot and via public transport Business consultations with matatu representatives highlighted that there were three key issues with accessibility of Kathwana via matatu, The Chuka –Kathwana road is dangerous, new roads lack safety measures, and there isn’t an appropriate place to stop in Kathwana. The following transport proformas aim to improve urban mobility and transform Kathwana into a ‘place to be, rather than a place to pass through’34:

› A bus park and a plan for transit-oriented development around it.

The urban design section of the UEP proposes:

Identifying the UEP value chain opportunities for Kathwana was a four-stage process:

› Diagnostic alignment: the long list was assessed against the SWOT analysis and other factors identified in the Diagnostics stage. The resulting list was presented to and discussed with stakeholders;

› Evaluation: the SUED evaluation framework used to sift the opportunities, including criteria for the SUED principles (included within Appendix B). The PSG, the Municipal Board and other stakeholders identified the relative importance of each criteria for Kathwana, to provide weightings for final evaluation and identification;

More information on the process and the 6 short-listed VCs is in the technical briefing paper appended to this document.

Two value chain projects, milk processing and food processing hub, have been selected due to their ability to catalyse the industrial sector within Kathwana. These would make effective and sustainable use of the existing base of small-scale farmers in the area and have the potential to link up with existing processing enterprises (Sweet’ n Dry) to grow the sector. Beyond these two VCs, there is a key synergy in gradually implementing the remaining VCs creating a circular economy of produce to and from farmers, supported by an efficient transport and collection system. While not being a priority VC the agri-produce collection system forms a key element of integrating the different parts of the UEP and is presented in detail in section 5 under focus area one. These VCs have been assessed against climate resilience and inclusion, whilst they are suitable initial projects to spur further growth given their competitive advantage for Kathwana and within the agri-processing sector. 4.2.1 Milk processing

This Value Chain project is for a milk processing facility that would focus on long life products, including UHT milk and cheese. The facility would process both goat and cow milk. The key outcomes of this VC would include:

› UEP selection: 6 short-listed VCs were further assessed in detail, including their costs and revenues, competitiveness and land and infrastructure requirements, utilising the wider SUED assessments.

35 Tharaka Nithi County Statistical Abstract and CIDP 2018-22

› Tharaka Nithi CIDP: increased yields and production are identified in the plan Figure 4.1 - Selected VCs and Evaluation Criteria

Value Chain Projects

50 KATHWANA URBAN ECONOMIC PLAN

4.2

› Supporting investment in fodder production, abattoir and tannery. Base assessment Small-scale dairy farming is widespread throughout the County. In general, cow milk production is located in the western (upper) half of the County, while dairy goat production is in the central and eastern (lower) half. This reflects the more arid nature of the lower parts of the County. Milk production volumes are substantial and have been increasing, with cow milk volumes rising from around 50,000 litres to 80,000 litres per day from 2014 to 201834 . Despite these volumes, there is no commercial-scale dairy in the County, and chilled product is trucked out to processors in the region. The County Government is working on expanding the dairy sector, through a combination of improved livestock and increases in dairy goats and cows. Milk collection volumes are forecast to double by 2022 under the current CIDP. There is then potential for a milk processing facility in the DevelopmentCounty. of the milk value chain is supported by:

› Creating direct employment of 60 full-time employees in the first phase, with high potential for employing special interest groups (SIGs) and people with disabilities (PWDs);

› Providing a stable offtake and prices for farmers; › Supporting for expansion in milk production; › Building on the established milk production and collection; › Reducing spoilage and improving product quality; › Raising the potential for stock improvements through the link with the Livestock Improvement Centre.

› Long-list process: an extensive list of economic opportunities, reflecting government policies, VC studies, exports and imports assessment, inputs requirement, outputs and processes, linkages with key policies and programmes, and market linkages;

› New Kenya Cooperative Creameries have their cooling stations well to the south in Githumu and Kangema, Kiambu County, also mainly serving the Nairobi market.

The cow dairy sector is in a similar position with no secure offtake for the planned increased output volumes, and the key processors too far from Kathwana to offer good prices once transport costs are netted out:

Sector supply chain

› Mount Kenya Milk are located in Meru, taking milk from the surrounding county.

Production potential Milk production in Tharaka Nithi is expected to rise significantly over the next few years, in response to a range of measures adopted by the County Government under the current CIDP.

ECONOMIC DEVELOPMENT 51 together with the need for processing capacity;

Local

› Brookside processing facility is located in Ruiri to serve the Nairobi market.

Regional/nationalmarketsmarkets

Traders Depots

Currently both cow and goat milk is brought into Chuka and other towns, for chilling and consolidation of volumes. While some of the milk is sold locally, most is trucked to the major processing outside of the County. There is little value added, with no production of cheese or fermented products, and no consumer packaging of fresh or UHT milk. The transport of milk from farms to consolidation points is mainly by boda boda and small vehicles, and the milk is not refrigerated. This leads to spoilage during hot weather and significant wastage.

Goat milk production in the County is currently quite low (estimated at 500 to 1,000 litres per day in 2018) but is expected to more than double by 2022. As part of a stock improvement program the County Government are supplying 800 Toggenburg dairy goats to farmers, which alone could produce 1,500 to 2,200 litres per day.

Currently, goat (and to a lesser extent Cow) yields are low. The average yield from goats in the County is under 2 litres/head/day, supply chain

Rawmilkcold Bulk raw cold milk Farms

Cow milk production is planned to double from 80,000 litres per day in 2018 to 160,000 litres per day by 2023, in response to improvements in stock, general husbandry, and an expansion in zero grazing dairy farming.

› Vision 2030 strategic plan: the Ministry of Agriculture, Livestock and Fisheries’ plan supports livestock improvements to achieve higher yields, together with additional processing facilities including export capacity.

For example, currently the production of goat milk exceeds purchases, with the only trader in the region (located in Chuka) taking 200 litres per day, while Tharaka Goat Breeders Association (TGBA) production reaches 500 litres per day.

Figure 4.2 - Existing

The dairy milk sector in Kathwana and the surrounding region is constrained by the lack of processing capacity and off-take.

› Big Four Agenda: prioritises the manufacturing sector which covers all areas of agri-processing, including dairy;

To meet the needs of the local market, and build resilience into the VC’s supply chains, the project would focus on products with a long shelf life, specifically UHT milks and cheese.

Goat milk demand in international markets has been rising steadily in recent years. A key driver behind this growth is demand for goat milk for infants and for goat milk formulae (powder for infants).

This would comprise daily collections from established pick-up points, within an easy walking distance for farmers. Collections would be by small-refrigerated trucks, allowing milk to be chilled from the point of collection. Demand outlook The key markets for the milk processing facility, are the local and regional markets for cow milk, and the regional and export markets for goat milk and cheese.

The goat milk sector generally offers higher margins than cow milk. However, the goat milk supplies in Tharaka Nithi are currently too low to support a dedicated commercialscale processing facility. As a result, the VC will process both goat and cow milk.

Figure 4.3 - Future supply chain processingMilkcentre nationalRegional/marketsExportmarkets

marketsLocalTraders Farms Depots Rawmilkcold Bulk raw cold milk cheeseandpacksUHT

52 KATHWANA URBAN ECONOMIC PLAN

Goat milking is generally small scale and labour intensive (unlike dairy cow farming in overseas markets). As a result, Kenya’s cost base can be competitive.

37 Kenya Dairy Board, June 2019.

Wholesale prices for UHT milk are around KES 70 per litre for cow milk and KES 165 per litre for goat. Bulk cheese prices are around KES 1,600 per kilo.

Cow milk prices paid by the two dominant domestic processors in January 2020 (Brookside Dairy and New Kenya Cooperative Creameries) were around KES 33 to KES 35 per litre. This is up from KES 25 to KES 29 per litre at the end of 2019.

The local market for cow’s milk and products is also strong. Kenya reportedly has the highest milk demand in Africa, with annual production 5.2 billion litres (all consumed in the Country) and an estimated 100 million litre per year deficit37.

To improve the quality of supplies and secure volumes for the facilities, the VC would include a scheduled milk collection.

Overall, the value of the global goat milk market is estimated at $8.5 billion in 2018 and is expected to rise by an average of 3.8% per year for the next five years. This is driven in part by demand for goat milk powder, which is forecast to grow by an average of 9% per year from 2018 to 202436.

The domestic market has been growing by over 5% per year and this is expected to continue, driven by growing urban demand.

36 Business Wire, February 2019.

but with the introduction of Toggenburgs and improved management, yields are expected to reach 4 litres per day.

Prices Goat milk prices are substantially higher than those for cow milk, and generally the prices are less volatile. Goat milk is sold by farmers at KES 80 to KES 100 per litre.

StorageFilteringreceptionandchillingTesting&distribution Production flow

UHT milk Heat(0.5lCoolingtreatmentPacking&1.0l)

ECONOMIC DEVELOPMENT 53 Cheese Pasteurisation & Acidification-chillingcoagulationSeparation&shapingRipeningPacking

As well as export markets there is also a market nationally. Shorter supply chains are also less prone to disruption, and do not require brokers and middlemen. For cow milk and products, the local and regional markets would be targeted. Milk

It is anticipated that at full capacity, 80% of deliveries would be made by truck, generating up to 10 deliveries per day (allowing for reserve capacity in the trucks). There would then be some 25 to 30 boda boda deliveries per day. With relatively small markets in Kenya for goat cheese and other goat milk products, export markets would be targeted. The target market for goat milk and products would be Europe, where there is strong stable demand for milk and cheese. The bulk volume sector in Europe is dominated by the intensive goat dairy industry in the Netherlands38, and as a result prices can be relatively low. However, the output from the Kathwana facility would be marketed as artisanal products, competing with the small-scale producers in southern Europe. There is also potential for exporting goat milk to Asian markets, specifically Japan, Malaysia and Singapore, where goat milk is fed to infants.

Figure 4.4 -

Cheese production would be focused on a feta style cheese which can be produced from both goat milk or a mix of goat and cow milk, and can be packed to have a long shelf life. All milk would be heat treated: either pasteurised or UHT. For flash pasteurisation milk is heated to 72ºC for 15 seconds, while for UHT (ultra-high temperature) sterilisation (UHT) the milk is heated to 135ºC for 1-2 seconds. The UHT milk would then be cooled and bottled in consumer packs. Cheese would be produced from pasteurised milk. Once cooled, rennet is added to coagulate the curds, which are then separated and pressed into shape.

The facility requires a site of some 1,000 m2, which would include around 600 m2 of light industrial style buildings, with the remaining area required for deliveries and dispatch. Good road access is required for deliveries and dispatch of milk and products, as well as Therepersonnel.maybe some potential for sharing the collection and dispatch network with the agri-processing hub VC.

Value chain Facility

This Value Chain opportunity is for a facility to process goat and cow milk into long-life milk (UHT) and cheese, packaged for Theconsumers.keyactivities for the facility comprise: › Collection; › Sterilising; › Production (cheese); › Packing; › Dispatch. Collection The collection system would comprise a combination of boda boda and small trucks (with 1-ton refrigeration capacity) bringing the milk to the facility. Small groups of farmers would carry their milk to a single location, for pick-up by boda boda. The boda bodas would carry up to 50 litres at a time and take the milk to a truck pick-up point or directly to the processing facility (depending on the distance and road network). The collection system is linked to the energy proposal Solar refrigeration systems, which outlines the detail on the cooling system. This approach reflects the existing system for deliveries into Chuka, whereby TGBA members have their milk collected by boda boda. Processing The plant would focus on the production of long-life products, in particular UHT milk and cheese, both packaged for consumers.

Location specific analysis

The conversion ratio of milk to cheese is around 10 to 1, with 10 litres of milk producing 1 kg of cheese. Distribution and sales The milk would be delivered to the plant by a combination of refrigerated trucks (with a 1-ton capacity) and boda boda (carry up to 50 litres per trip). 38 Miller and Lu (2019) Current status of global dairy goat production: an overview, Asian-Australasian Journal of Animal Sciences, 2019.

The total investment required is estimated at KES 180 to KES 200 million. Over one third the investment costs are for machinery and vehicles, with around 20% for buildings and site preparation, some 15% covers working capital and the remainder for training and marketing. Operating costs Total operating costs are expected to approach KES 150 million by 2025, with around 70% of the costs covering the purchase of milk.

› 3,000 litres per day: Processed milk in consumer packs (UHT) The hourly capacity for reception, filtering and chilling will be 1,000 litres, with the UHT and pasteurisation capacity at 1,000 litres per hour. The capacity could be readily increased as supplies and markets are developed.

Capacity At full capacity it is expected that the facility could process 5,000 litres per day, split equally between goat and cow milk. The volumes would be processed as ›follows:2,000 litres per day: Cheese (producing 200kg per day)

Human resources: › Head count of 60 in total; › Monthly salaries of KES 12,500 to KES 20,000 depending on skills; › Additional employment costs of 25% of salary. Raw materials: › Average purchase price of milk is KES 30 per litre for cow milk and KES 80 per litre for goat, including collection from the scheduled pick-up points; › Packaging costs are estimated at averaging KES 10 per litre/kilo of production (based on mix of Tetra Pak, bags and wrap. Other opex: › Covers utilities, transport costs, maintenance of machines and vehicles, marketing, etc. Revenues

54 KATHWANA URBAN ECONOMIC PLAN

It is assumed that the plant would operate 7 days per week.

Annual revenues are estimated to reach KES 211 million by 2025, based on average sales prices of: › KES 70 per litre for UHT cow milk; › KES 165 per litre for UHT goat milk; › KES 1,600 per kg for feta-style cheese in consumer packs. Value added The value added (calculated as sales revenues less the cost of milk and other inputs) is estimated at the equivalent of KES 53 per litre of milk purchased, around 46% of average sales price.

Indicative costs and revenues

The economics for this VC have been based on the production of two standard commodity products, namely UHT milk and feta-style cheese in consumer packs.

Investment

Once milk supplies and production at the VC are established, there is potential to raise value-added by developing a range of other products, such as kefir, specialist goat cheeses, creams and dairy spreads. Such products should be developed in partnership with key retailers, either in Kenya or export markets.

Potential Cooperativespartners

Operating

Recommendations for enabling business environment and/or other catalysts

1501209060300

Climate Resilience for Milk Processing

To succeed, this VC is dependent on good supplies of quality milk. The VC then needs to work closely with dairy cooperatives, such as the Tharaka Goat Breeders Association. Distributors

The sustainability of the milk processing plant is dependent on being able to access

Table 4.5 - Value added KES per litre milk equivalent Purchase price 55 Other inputs 8 Value added 53 Sales price 116 Utilities 15 Manpower 16 Packaging 14 Milk purchase 100 Figure 4.5 - costs 2025

millionKES

The VC should work closely with a Kenyan distributor for delivering UHT milk into the local market. For the export market, a large European retailer is required as they can provide inputs on product development and packaging, as well as volume offtake and logistical support. Premium price products

Adaptation measures The focus on goat milk rather than cow milk is an important adaptation measure, as goats are more tolerant of high temperatures than dairy cows. In addition, three other SUED infrastructure projects work to increase the resilience of this project:

› Road upgrades to roads throughout the county will improve drainage and reduce the amount of time that it is not possible to access markets and milk spoils.

› The implementation of the solar refrigeration project will provide cooling facilities that will allow milk to be stored and help farmers to adapt to increased temperature extremes.

› Drought tolerate fodder crops such as Napier grass and its use for rangeland regeneration through soil stabilisation and reduction of soil erosion on slopes › Shaded enclosures on farms to reduce heat stress › Water harvesting for livestock › Access to seasonal forecasts and 10-day weather forecasts.

ECONOMIC DEVELOPMENT 55 a consistent volume of good quality milk. In order to ensure its long-term viability, this project will embed climate resilience across all aspects of the value chain, from production to transport to processing. In doing so it will increase the resilience of livestock farmers in the County, and, by reducing losses and providing access to a stable market for their produce, it will contribute to poverty alleviation. The combination of hotter temperatures and more variable rainfall means that moisture stress is likely to increase and as such drought risk may increase, this is detailed in the diagnostic report. The major climate risks for milk production relate to water stress, and increases in temperature, which reduce pasture availability and quality, lead to poor condition of the animals, and ultimately lower milk production39. Animals that are stressed and in poor condition are also more susceptible to disease. Postproduction losses occur due to milk spoilage, which is greatest in periods of high temperatures, or when farmers are unable to access markets, which is common during periods of heavy rainfall, when roads become inaccessible due to flooding and poor drainage.

It is suggested that a component of this project focuses on adaptation measures for goat milk producers, to reduce losses from drought and extreme temperatures. These adaptation measures could include:

The design of the processing plant itself will consider increases in maximum temperatures and their effect on thermal comfort and the operation and maintenance of machinery. A combination of correct siting of the plant, and on-site drainage will minimise flood risk.

› The agricultural collection network could also be used to ensure a consistent supply of milk to the processing plant, and thus reduce wastage.

› Investing in animal health issues (pest and disease prevention and control) In the longer-term it may be possible to introduce more drought and heat-tolerant breeds of goat, however, heat tolerant breeds tend to bring lower yields, this requires strong buy-in from local livestock farmers, and can encounter significant social and cultural barriers, which need longer-term engagement to overcome.

Overall, there is a clear climate resilience rationale to the project, which clearly addresses climate risks, and increases the resilience of farmers in a semi-arid area.

39 Joy, A. et al. (2020) Resilience of small ruminants to climate change. Animals 10: 867

The quantity of water required (high, low and medium requirements depending on the design of the plant) are shown in Table 4.6 below for each product produced.

Figure 4.7 - Flow diagram for processes occurring at a cheese plant where C cleaning and sanitisation solutions, CW cooling water, W water wash

for processes occurring at a fluid milk production plant Source:

The Kenya Practice Manual for water supply assumes consumption rates of 25 litres/ day/head for administrative offices. Double this has been assumed for industries such as milk processing where employees need to wash regularly for hygiene reasons. Therefore, if the plant has 60 employees 3m3/day will be required for staff. This amounts to a total water requirement for the milk processing unit of 5.5m3/day for a water efficient plant. If the plant is water efficient then the required volume should be available from public water supply once the new water treatment plant comes online (planned for April 2020). However, infrastructure (l/day)Milk day)(lCheeseofmilk/ Total (l/day)requiredWater Total (m3/day)requiredWater of 0.5 0.5 2,500 2.5 1.3 5.7 2.6 18.5 44,800 53.1 4.6Data taken from : Envorwise, Benchmarking water use in dairies, 2007, http://www.wrap.org.uk/sites/files/wrap/EN740_final.pdf 4.6 Flow diagram Atkins Source: Atkins

› Water for employees - toilets and domestic water for drinking and washing; and 10 show the main areas in the process where water is needed.

› Cooling water for cooling tower, water softener, boiler, back washing of filters and air compressor;

› Sanitary water for cleaning of process equipment;

Med

Milk receipt standardisationandCoagulation ExtractionPasteurisationofWhey Addition of startedPackagingculture C CW W Milk pre-treatmentreceipt,andstandardisationDeorderisation PasteurisationStoragetank HomogenisationPackaging C CWW Figure

There are three main water requirements for the processing plant:

producedproduct 3000 2000 Water required / litre of milk Low

Infrastructure Assessment Water

The quantity of water required Source

56 KATHWANA URBAN ECONOMIC PLAN Figure 4.7 - Flow diagram for processes occurring at a cheese plant

Figure 4.6 - Flow diagram for processes occurring at a fluid milk production plant where C cleaning and sanitisation solutions, CW cooling water, W water wash.

15,300 17.8 Max

Table

ECONOMIC DEVELOPMENT 57 investments such as piped network extensions and pre-treatment before use in the milk processing plant will be needed. It would also be prudent to include a storage facility to ensure continuity of operation if there are issues with the public water supply. If high level of iron is present in the water supply this will need to be removed as while not damaging to health can impact the quality of the dairy produce. Water quality will need to be monitored continuously.

The following issues should be considered during the decision-making process:

Battery storage should also be included, with a capacity of around 160kWh suitable to provide a level of business continuity.

Wastewater would need to be treated on site as there is no public facility in Kathwana. Dairy wastewater treatment plants often use an SBR system for aerobic treatment, due to its effluent flexibility and loading capability. Effluents would need to be treated to the Kenyan standards for discharge. Solid waste management It has been estimated that milk processing will lead to very little in the way of solid waste generation. Generally, solid wastes will only be generated by the workforce and through product packaging – plastic, cardboard, paper, etc. and a high proportion of this material could be readily recycled. Assuming a seven-day a week operation, and each worker generating 0.25 kg per day it is estimated that around 105 kg of municipal type waste will be generated per week (5,460 kg per annum).

› The project site would be located within the Semi-Arid Zone (Drought Resistance farming, irrigation and grazing lands), which is a conducive location for a project of this nature, as investing in goats is considered a simple way to boost climate resilience for farmers in a Semi-Arid Zone.

› Considerations should be given to methods that can be utilised in regulating the increment to goat numbers in the area. This is to control potential overgrazing.

In order to save water, a ‘Clean in Place (CIP)’ system may be used. A CIP system automates washing of processing equipment recirculate the cleaning solution through a series of holding tanks and associated pumps and piping to allow the reuse of chemicals and water, thereby reducing water and chemical consumption. Grey water could be reused for flushing toilets. Wastewater Grey water such as cooling water, boiler water, back washing of filters and air compressor water, should be of a quality that can be discharged without any treatment into storm water drains or recycled in the plant for flushing toilets or Cleaningirrigation.water from the dairy industry generally has fats, lactose, whey proteins and nutrients which increase the biological oxygen demand (BOD) of the wastewater. Wastewater will also contain detergents and sanitising agents which are a result of the cleaning process which increases the concentration of chemical oxygen demand (COD). Water used for cleaning of equipment (CIP) is classed as industrial wastewater. This type of generated effluent is highly unstable in nature and should be mixed with other cleaning water to dilute it.

Additionally, good housekeeping and operations will help to mitigate against wastes from the packaging processes. Energy infrastructure General power and lighting demand for the buildings, process and refrigeration load could be in the region of 140-160kW depending on the type and efficiency of equipment installed. The facility will have a dedicated 11/0.4kV transformer. Although the demand is fairly low, it is a possibility that there will not be enough spare capacity in the local system. As the grid can be unreliable, solar PV should be installed on both the building roof and in the grounds.

An appropriate system would generate about 40kW. This output will be reduced during cloud cover and at night, so the grid supply will still be used, however, PV will offset a lot of the cost of grid electricity.

› Measures should be considered to manage wastewater pollutants from dairy production.

Inclusion and community benefits focus The milk processing project is well aligned with both County and National development plans for the agriculture sector. It will contribute directly towards Tharaka Nithi CIDP’s goal of increasing yields and production and increasing milk processing capacity; as well as the Big Four Agenda and Vision 2030’s aims of: prioritising the manufacturing sector which covers all areas of agri processing, including dairy and improving export capacity.

The environmental benefits of this project include support to pastoral farmers, low levels of water usage and low levels of waste or pollutants produced (wastewater from washing down equipment’s and spoilt products). An Environmental Impact Assessment (EIA) is required to ensure the development does not cause detrimental effects to the environment.

› Can the number of goats and cattle required be met without an expansion of grazing lands into Environmentally Sensitive Areas (ESA). As an expansion of grazing land into ESA would affect the current biodiversity and potentially aid desertification.

Environmental impact (including pollutants)

As the milk and associated product making process has very limited waste output, waste to energy processing is not a viable proposition. High efficiency motors drives and refrigeration equipment should be installed throughout to ensure the power demand is at the lower end of projections.

Some could be easily managed/ recycled locally within Kathwana and the remaining may require further treatment or disposal in Chuka. Waste bins should be placed throughout the facility, to ensure all staff have somewhere to dispose of their waste.

› The Programme should define a specific percentage of the project’s employment and capacity development opportunities that should go to women, youth and Persons with Disability. Recent research shows that leading dairy processors in Kenya are unlikely to have gender and inclusiveness policies guiding both their milk supply and employment strategies, with a recent assessment reporting a high maleto-female ratio (8:2) in employment opportunities in three sampled processors in Kenya40. Having a targeted guiding inclusion threshold for economic and capacity development will ensure this is achieved as what gets measured gets done.

› Grains  producing flours, bran, grits, etc;

› Process waste  using processing waste from above to make animal feeds. 40 Gerald Katothya. 2017.Gender assessment of dairy value chains: evidence from Kenya, Rome, FAO. 41 Kathwana PWDs FGD. 10/12/2019, Kathwana Youth FGD.10/12/2019

4.2.2 Food processing hub

This Value Chain project is for a single hub for processing a range of fruit, vegetables and grains, combining common collection, processing, packaging, storage, finance and marketing to produce competitively priced food for consumers and industry. The processing would centre around the production of dehydrated, shelf-stable foodstuffs. The initial phase would focus on single product foods (e.g. root and grain flours, dried fruit, etc.), expanding into the production of mixed food products (e.g. noodles, soups, snacks, MREs, sauces, etc.) in the second phase.

58 KATHWANA URBAN ECONOMIC PLAN

It is also estimated this project will create the direct employment of 60 full-time employees in phase one, with high potential for employing special interest groups (SIGs) i.e. youth, women and Persons with Disability, thus contributing to household income security and poverty reduction. In addition to its contribution to the livelihoods of the many people engaged throughout the value chain, the project will also positively impact the nutritional wellbeing of the community.

› Selling the business case of inclusive value chains to the value chain stakeholders - In most cases, milk processors, supermarkets and hotels play the lead role in this value chain. Raising their awareness through arguments on the business and human case of supporting women’s, PWD’s and youth’s participation in the milk processing chain can yield self-sustaining inclusivity impacts. An example of this could be including inclusivity targets as part of the minimum requirements for recruiting milk supply bases (POs).

Base assessment Most of Kathwana’s farmers producing small volumes of crops for sale, the costs of getting produce to market can be high. However, in combination, the small-scale farmers of Tharaka Nithi produce commercial-scale volumes of a range of produce:

› Root crops  producing flours, dehydrated flakes, chips, etc; › Fruit and vegetables  producing dehydrated segments, flakes, etc;

The key outcomes would include: › Reducing post-harvest losses; › Establishing a food processing hub that could be expanded in line with produce supplies and markets; › Providing a range of shelf-stable foods, enhancing food security; › Enhancing Kathwana as a market centre; › Creating direct employment of up to 200 full-time employees in the first phase, with high potential for employing special interest groups (SIGs) and people with disabilities (PWDs); › Supporting investment in irrigation and expansions in production in a wide range of crops, through stable offtake and prices.

› In the long term, should the project go for introduction of more drought and heat-tolerant breeds of goat, and/or advanced climate adaptation technologies, there will be need to mitigate against unaffordability, a factor likely to create polarisation and exclusion of some farmers through for example provision of subsidised access to adaptation interventions through partnerships with government organisations like KALRO.

› The project to develop ways of improving finance access for smallholder participants of all gender, age groups and (dis)ability across the value chain. This could be for instance through facilitating linkages with pro-women, pro-youth and pro-PWDs micro-credit Programmes or Organisations that can support SIGs’ investments in the value chain41. Youth and Persons with Disability contacted reported lack of capital as one of the main hindrances to their participation in this value chain.

There is then potential to establish an agriculture processing hub in Kathwana. To maximise the competitive potential of such a hub, it would combine four interrelated processing activities in the first phase:

› Grains 250,000 tonnes per year › Legumes 350,000 tonnes per year › vegetablesRoot 17,000 tonnes per year › Horticulture 2,600 hectares under cultivation

For inclusivity and maximum benefits to the community however, the following is recommended:

› Processing Primaryoutput Secondary output Collection Washing Peeling Drying Grinding Packing Flour Chips Flakes Noodles Snacks SaucesandSoup foodsBaby packsRation Other/mixed Sweet potato                Cassava                Irish potato                Yam                Cocoyam                Maize            Beans            Peas            Millet            Sorghum            Tomato           Mango           Banana            Paw-Paw           Kale            Spinach            Leaf amaranth            Onion            Chilli           Squash            Figure 4.8 - Common processing across range of produce

Development of the food processing hub value chain is supported by:

› Tharaka Nithi CIDP: the CIDP has a strong focus on industrialisation through agri-processing and value addition, and identifies the need for additional storage and processing facilities to reduce postharvest losses;

ECONOMIC DEVELOPMENT 59

› Big Four Agenda: prioritises the manufacturing sector which covers all areas of agri-processing; › Vision 2030 strategic plan: the Ministry of Agriculture, Livestock and Fisheries’ plan targets improving food security through a range of measures including additional storage and processing to reduce post-harvest losses. Target produce A range of roots, grains, fruits and horticultural crops have been identified for processing in the hub. With a focus on producing a range of flours and dehydrated food products, there are many common processes (see Figure 4.8).

These activities have elements of common processing and product handling, that would benefit from a single integrated plant. In particular, the facility would be supported by a common produce collection network (similar to that operated by Twiga) that would minimise transportation costs and improve product handling and quality from farm to fork. In the second phase, once produce supplies and primary processing is secure, the hub would expand into production of consumer foodstuffs such as noodles, snacks, soup and sauces, baby foods, ration packs and other mixed dried food preparations.

The focus on producing dried foodstuffs reduces the cost of transporting goods to the final markets and provides an element of resilience in the logistics chain. Furthermore, it builds on the model established successfully by Sweet N Drytaking it to the next level.

› Horticultural land under irrigation from 7,000 to 12,000 hectares Together with targeted reductions in postharvest losses through improved handling and storage, total usable produce in the County could rise by 50% to 100% during the plan period. Demand outlook Products from the processing hub will be targeted at local and national markets (all the grain flours, some root flours and dried fruit and vegetables, and all of the animal feeds), with the remainder targeted at export markets. Significant demand growth is expected in all of the target markets. Demand for basic dried foodstuffs (grain flour, root flour and dried fruit and vegetables) in Kenya is strong, with growth being driven by rising incomes and Demandpopulation.foranimal feed is expected to grow substantially, with increased use of zero grazing for both meat and dairy cattle, and intensive chicken rearing. The FAO forecast the population of cattle and chicken to increase by 94% and 375% respectively, between 2015 and 205042. This relates to a 20% year-on-year rise in chicken feed requirements. While the expected growth in cattle numbers averages only 1.6% per year, this is against of backdrop of a need to reduce range grazing.

The processing hub targets a wide range of agricultural produce. Current production volumes are more than sufficient to support the hub, and harvests are expected to rise significantly over the next few years. Total output across the target produce is over 600,000 tonnes per year. While much of this produce is for own consumption, the surplus should be more than sufficient to supply the processing hub with its baseline capacity of 25,000 tonnes per year. Furthermore, there is potential to source produce from the wider region, including northern Kitui and Tana River, Embu and Meru Tharakacounties.NithiCounty’s agricultural production is operating well below its potential. This has been recognised by the County Government, and the 2018-22 CIDP has programs for expanding production in a number of areas. For example, plans include increasing: › Maize yield from 15 to 35 bags per hectare › Sorghum and millet yields from 15 to 20 bags per hectare › Pulses yields from 10 to 15 bags per hectare

The international markets for root flours and dehydrated fruit and vegetables is experiencing rapid growth, not least driven by concerns over the Corona virus and food security. The global market for dried fruits and vegetables is forecast to rise from just under $40 billion in 2018 to over $60 billion in 202443, driven by increased demand from the food processing industry for ingredients, as well as final consumers.

Cleaningpeelingand Storage silosCold storage hoppersStorage Blanching DryingCleaningslicingand Milling Grinding/slicing MixingDrying Sifting Drying GrindingBagging Bagging Bagging PelletiseBagging Root crops Animal feedFruit vegetablesand Grains Figure 4.9 - Agri-processing activity flows 42 Africa Sustainable Livestock Report, FAO, 2019 43 Global Freeze Dried Fruit and Vegetable Market, Global Market Insights, 2020

Production potential

60 KATHWANA URBAN ECONOMIC PLAN

Distribution and sales

There are common elements in the processing of all the products, with the key activities comprising collection, pre-process produce storage, preparation, grinding and drying, bagging, finished product storage and dispatch (see Figure 4.9).

The initial financial assessment is based on benchmark products for each of the process areas in order to identify the average purchase price, processed product sales price and magnitude of the value added. The benchmark products are cassava for root crop processing, mango for fruit and vegetable processing and sorghum for grain milling.

› Monthly salaries of KES 12,500 to KES 20,000 depending on skills;

Operating costs Total annual operating costs are estimated at around KES 763 million by 2025, with some 81% of costs being for produce purchases.

The total land required for the processing hub is around 5,000m2, comprising 1,500m2 of light industrial style buildings, 1,500m2 of covered working areas, and the rest for external storage, loading and unloading, etc.

ECONOMIC DEVELOPMENT 61

The processing hub would sell basic produce into the local market (e.g. grain flours and animal feeds), while many of the other products would be targeted for both local markets and export (e.g. dried greens, root and flours).

Indicative costs and revenues Investment

Value chain opportunity

The total investment required is estimated at KES 550 to KES 580 million. Around one third of this amount is for working capital, with a similar share for buildings and site development. The cost of the vehicle fleet accounts for 14% of capex, with machinery and equipment around 16%. Other capital costs cover initial training and marketing.

Human resources:

› Head count of 200 in total for the first phase of primary processing and collection; › A further 150 jobs to be developed in subsequent phases for secondary processing and support services;

Location specific analysis

The smaller vehicles would be used for collecting produce, while the large trucks would be for a mix of collection from the consolidation points and hauling finished products to Nairobi or other major markets.

The collection system is outlined in detail in transport proposal Product Collection Centres and supporting Infrastructures. Processing capacity The capacities for each of the primary production areas in the processing hub have been set with reference to the availability of produce in the County as well as volumes required to attain good economies of scale. The target for gross primary processing capacity is 25,000 tonnes of inputs per year, or 21,000 tonnes per year when in-house food processing waste streams are netted out (see Table 4.7).

8007006005004003002001000 Utilities 62 Manpower 50 Packaging 31 Produce purchased 620 millionKES Table 4.7 - Primary capacity Figure 4.10 - Operating costs 2025

Inputs Output areaProcess Tonnes/Yr Products Tonnes/Yr Root crops 5,000 Flour 1,400 materialFeed 1,000 Fruit & veg 5,000 produceDried 750 materialFeed 1,000 Grains 10,000 Flour 8,000 materialFeed 2,000 Feed streamsIn-housemill 4,000 Animalfeeds 4,500 Additionalvarious 1,000 inputsGross 25,000 outputNet 14,650 There are also several common services, including agri-finance / sharecropping, and produce collection. Collection Produce from the farms would be picked up from collection points across the County according to a regular schedule. Where practical, produce could be collected directly from farms. The agri-produce collection system would be designed to be flexible and take a range of produce (grains, root, etc.) in the same truck. For the preliminary financial assessment, a fleet of vehicles comprising 8 small trucks (1 tonne vans or 3.5 tonne) and two large trucks (20 tonne) has been costed.

› Additional employment costs of 25% of salary.

The average value added across the full range of products (revenues less produce costs and packaging) is around KES 28,000 per tonne, against average revenues of KES 54,000 per tonne.

› Road upgrades to tarmac roads throughout the county will improve drainage, and reduce the amount of time that roads are unpassable and produce cannot reach the plant. This will significantly reduce post-harvest losses for farmers, thus improving livelihoods and reducing poverty.

› The agricultural collection network will also increase resilience to extreme events that could reduce access from farms to the plant.

62 KATHWANA URBAN ECONOMIC PLAN

With the need to dispatch up to 60 tonnes of finished products per day, much of which will be targeted at local and regional markets, a good local distribution partner is required. There are a number of companies that could provide this service, with a promising target being Betta Grains of Nairobi, as they have a good fit with the product range.

A wide range of additional adaptation measures are considered in the sector action plans. The design of the processing plant itself will take into account increases in maximum temperatures and their effect

› The solar powered irrigation project will help to increase farmers' responsiveness to drought, and as such increases the resilience of the bottling and processing plant.

Revenues Annual revenues are estimated to reach around KES 1,000 million by 2025, based on average benchmark sales prices of: KES 48,000 per tonne for cassava flour (KES 48 per kg); KES 500,000 per tonne for dried mango (KES 500 per kg); KES 53,000 per tonne for sorghum flour (KES 53 per kg); KES 30,000 per tonne for animal feeds (KES 750 per 25kg sack).

› Benchmark purchase prices of KES 10,000 per tonne for cassava, KES 50,000 per tonne for mango and KES 30,000 for sorghum; › Packaging costs are estimated at averaging KES 10 per kg bag for dried roots and flours, dried fruit and vegetables (including cartons), and KES 20 per 25kg sack for bulk milled products and animal feeds.

Potential partners Existing processors

› Covers utilities, transport costs, maintenance of machines and vehicles, marketing, etc.

For the first stage of development, a technical partner is not necessary. However, for the development of mixed food products (e.g. noodles, soups, snacks, MREs, sauces, etc.) a link to an experienced producer will be advantageous. A leading operator in this area is Ingredion of the USA. They are experienced in processing grains, fruit and vegetables, as well as bi-products from processing. Ingredion established one of their 28 Idea Lab innovation centres in Nairobi in 2018 and have good links with the Kenyan and international markets.

The primary inputs include mango, tomato and tamarind, but a wide range of fruits can also be used. The variety of inputs that can be used creates a good level of redundancy, with the processing plant able to switch between different varieties depending on conditions. However, in a drought year yields will decrease across the board, leaving the food processing plant moderately sensitive to climate change.

The success of this Value Chain opportunity is dependent on establishing good working relationships with farmers to ensure stable supplies of quality produce. In addition, good partners for distribution and development of food products are needed. The impact of this Value Chain opportunity extends beyond the direct employment of up to 200 people at the facility. The purchase of grains, fruits and vegetables across the County could secure incomes for over 3,000 farmers.

The sector action plan states the importance of collaborating with Kathwana’s existing businesses in the sector.

Technical and export partner

Raw materials:

Value added

Recommendations for enabling business environment and/or other catalysts

Climate Resilience for Food Processing and Bottling Plant

Rainfall is expected to become more variable, and therefore some uncertainty as to whether overall totals will increase or decrease. The drought tolerance of species such as tamarind however, limits the impact that these changes will have, and therefore the impact is rated as Neutral, and the overall vulnerability of the value chain as Moderate. The sector action plan lists some other climate resilient crops in Kathwana with Therepotential.areseveral linked projects which increase the resilience of the processing and bottling plant:

Local distribution partner

By offering a secure offtake and stable prices, combined with the VC’s agri-finance, the facility would support investment in the sector and increases yields and overall production. Furthermore, the processing hub would be embedded with the farming community, as a customer for fresh produce, but also as a supplier of feeds and finance (see Figure 4.11).

Other opex:

ECONOMIC DEVELOPMENT 63 networkcollectionFarm Roots / Crops Feed Mill Fruit Food Noodles,production:soups,sauces,snacks,MREsetc Fish farming marketsExport Grains Dairy farming Kenya Markets ChickenVegetablesrearing KathwanaAgri-FinanceMarket farminghorticulturalandArable dispatchandSales Packaging PeelingDehydration/grindingMilling Figure 4.11 - Integrated processing hub linked to farming

The following issues should be considered during the decision-making process:

Table 4.8 by process area

Environmental impact (including pollutants) The environmental benefits of this project include low levels of waste or pollutants produced and it could encourage further planting of fruit trees which will bring inherent benefits such as rainfall infiltration, biodiversity, and climate change mitigation through carbon sequestration. An EIA is required, to ensure the development does not cause detrimental effects to the environment.

› The waste from the facility will be predominantly organics (around 1,125 tons per year), which could be dried to be used for animal feed (either delivered to a feed mill or simply milled and bagged for direct use). There will be some packaging waste (cardboard, cartons, glass) that will be aggregated for recycling; Inputs Process area Tonnes/Yrmaterialraw Water 44 m3/t Totalyearwater/ Totaldaywater/ Root crops 5,000 0.01 50 0.1 Fruit & veg 5,000 3 15,000 41.1 Grains 10,000 0.08 800 2.2 Feed mill 5,000 0.01 50 0.1 Gross inputs 25,000 3.1 15,900 43.6 45 Based on 2x 25 l/d/person. 25l/d/person is the value for an administrative worker in the Practice Manual for Water Supply Service in Kenya (Oct 2005).44 Best Available Techniques (BAT) Reference Document for the Food, Drink and Milk Industries (2019)

Solid waste management

The volumes of waste generated from the fruit and vegetable processing industry is typically high, as a percentage of the overall inputs, however it is largely organic and can therefore be processed relatively simply and reused in other industries. Based on the assumption that any of the fruit inputs that are not processed would end up as waste, the estimated waste generated from the facility would be 4.5 tons per day or 1,125 tons per year. This organic waste can either be dried and used as animal feed (either delivered to a feed mill or simply milled and bagged for direct use) or can be composted on site or at the local designated waste segregation area in Kathwana.

There will also be a small proportion of packaging waste (cardboard, cartons, glass) that will be produced at the facility which can be collected separately and taken to the designated local waste segregation area. Based on the assumption that each worker would produce approximately 0.25kg of municipal solid waste per day, through their daily work operations, the total MSW produced at the facility would be 15kg per day or 3,750kg per annum. Waste bins should be placed throughout the facility, to ensure all staff have somewhere to dispose of their waste. Energy infrastructure General power and lighting demand for the buildings and process load could be in the region of 350-380kW depending on the type and efficiency of equipment installed. The main power requirements are for the various size boiling tanks at 288kW. The facility will have a dedicated 11/0.4kV transformer. As the demand is fairly high, it is likely that there will not be enough spare capacity in the local system. As the grid may also be unreliable, solar PV should be installed on the building roof and in the grounds. An appropriate system would generate about 95kW. This output will be reduced during cloud cover and at night, so the grid supply will still be used however PV will offset a lot of the cost of grid electricity.

64 KATHWANA URBAN ECONOMIC PLAN on thermal comfort and the operation and maintenance of machinery. A combination of correct siting of the plant, and onsite drainage will minimise flood risk.

- Required inputs

Infrastructure Assessment Water and wastewater infrastructure Water is used mainly during washing but also during peeling and blanching. Water consumption will vary slightly depending on the processing requirements of the product. In addition, around 3m3/day45 of water would be required for the 60 workers including washing for hygiene purposes. There are opportunities for recycling and the design of the plant should look to do this where possible.

If the plant is water efficient then the required volume should be available from public water supply once the new water treatment plant comes online (planned for April 2020). However, infrastructure investments such as piped network extensions and pre-treatment before use in the processing plant will be needed.

It would also be prudent to include a storage facility to ensure continuity of operation if there are issues with the public water supply. The wastewater generated must be treated onsite and can be discharged into natural systems according to NEMA guidelines or recycled for flushing toilets or washing areas that do not contact food produce.

Battery storage should also be included, with a capacity of around 380kWh suitable to provide a level of business continuity. As the product making process has very limited waste output any type of waste to energy process is not a viable proposition. High efficiency motors and refrigeration equipment should be installed throughout to ensure the demand is at the lower end of projections.

› The project applies a gender, age and (dis)ability lense in allocation of its capacity development and job opportunities. This will promote economic inclusion;

› The food processing hub establishes strong collaboration measures among the various stakeholders in the value chain who will include small holder farmers supplying the produce, collection system players e.g. in transport, agribusinesses stakeholders, consumers as well as regulatory government bodies. This will ensure sustainable returns for the hub, direct and indirect jobs creation, an improved food supply, a strengthened tax base and a lighter environmental footprint of food production and distribution; all of which are key to reducing poverty.

› The anticipated environmental impacts are low in terms of water usage and pollutant discharges;

For inclusivity and maximum benefits to the community, it is recommended that:

The food processing hub will contribute to food security by reducing post-harvest losses and will also significantly improve household income security through creation of direct employment of up to 200 full-time employees in the first phase.

› The food processing centre will provide a stable price for inputs (tomato, tamarind and mango) to farmers and should reduce their losses in terms of spoilt product after harvest;

› Given the level of energy demand (350-380kW) the adoption of PV systems where possible is encouraged;

ECONOMIC DEVELOPMENT 65

› Measures should be considered to ensure ESA are protected from deforestation as land is acquired for growing fruit crops during the expansion phase of the project. Inclusion and community benefits focus

› In the long term, the project’s switch to more drought tolerant produce varieties is carefully assessed against the principles of adaptability and affordability to ensure Kathwana farmers can sustain these;

DEVELOPMENT FRAMEWORK 67

5. DEVELOPMENT FRAMEWORK

To accompany the economic development plan, this chapter brings together climate resilient and inclusive infrastructure and planning proposals that can support economic growth, promote sustainable development across Kathwana Municipality, maximise the impact and tackle the most urgent needs to build resilience. The Development Framework proposals are organised around two key focus areas: › Eco-Industrial Park › Development Core (CBD) In addition, several proposals have been identified to address challenges across the wider area. The proposed projects have been assessed against climate vulnerability and a number of adaptation measures have been identified to ensure resilience. The climate vulnerability assessment report is appended to this report. In alignment with the UEP vision “to develop Kathwana into an Eco-City, which is driven by agricultural production and value addition, supported by robust urban services and serves as a fully-functioning Capital City for Tharaka Nithi County”, the development proposals are guided by the eco-city concept. For each focus area high level principles of ecocity development are identified that relate to the infrastructure proposals. The eco-city design principles are aligned with the more abstract SUED key principles, set out in chapter 1, but serve as a tool to guide urban development in Kathwana beyond the scope of the SUED programme. Areas

Figure 5.1 - Focus

Social inclusion interactions and approach

The proposed development parcels both respond to a modular logic (allowing for flexibility and future proofing) and augment the rational layout with a good variety of land uses that would support more social uses (community and business centres, green open spaces, community facilities) and will make working here more inclusive.

The chosen site is not at risk of river flooding, and as a peri-urban site with green space in the vicinity and is less sensitive to increases in temperature than more central areas. Key considerations will include ensuring adequate access to and from the site, and internally to the site during heavy rain; as such drainage will be incorporated throughout the site, and designed to take into account increase in extreme rainfall events.

This project incorporates the climate change principles by making use of sustainable materials, SuDS systems where applicable and flood risk planning. It will create better, pollution free and green network that could potentially reduce the use of vehicles and allow users to make green choices. The increase in pedestrian and cycling routes can potentially reduce the generation of greenhouse gases thus reducing the adverse effects of climate change.

5.1

Future expansion will see the park extend to the NW and NE along the main avenue. In between, in the central area, there is room for a series of community and business centred facilities - the Civic HUB (HQ block, Transit Hub, Business zones, Sports area and green open spaces) whose aim is to act as a front-end civic area. Once developed, such facilities will contribute further to make the Eco-Industrial park an attractive investment option for both investors and workers.

68 KATHWANA URBAN ECONOMIC PLAN

In future, the central N-S link will connect to the residential area across the D472 Road. Such central boulevard will aim at accommodating a pedestrians and cycle spine and connect the Civic Hub of the Eco-industrial zone to the residential zone neighbourhood centre. This will encourage a more sustainable lifestyle, including walk and cycle to work.

Industrial development is an important driver of economic growth, however, if poorly planned industrial areas can use a great deal of natural resources and severely impact the environment, workers and people living near-by.

Focus Area 1: Eco-Industrial Park

By creating an Eco-Industrial Park in Kathwana, synergies between economic activities can be leveraged through clustering effects while emissions will be lowered and resources managed more efficiently (e.g. with shared facilities) to create a healthier working environment, lower costs and increase business competitiveness.

Appropriate measures such as raised crossings, dropped curbs and other required interventions can be weaved into the proposal from the start. The presence of accessible open space will enhance the quality of day to day life of PWDs without having to travel too far and requiring special assistance. It would be a reliable space for everyone to use.

The proposal can be designed as per standards required for a person with disability.

These revolve around three fundamental pillars and values: Plan, Design & Resilience, Sustainable Infrastructure, Inclusiveness for People. Such values articulate how the Eco-Industrial park is arranged, develops and what uses are the best fit on site.

The wider Kathwana aspiration to be Kenya’s benchmark Eco-city permeates through to the Eco-Industrial Park with the adoption of a series of eight development principles included in the UEP.

The parcel form is informed by land ownership and it aligns to the land use plan provided.

Stage 1 of the Eco-Industrial cluster is split in discreet development blocks revolving around the central community and business zone and a future link connecting the residential zone. Kathwana’s proposed VCs will be the anchor tenants of the Eco-Industrial Park. Occupying Phase 1 of the development, the VCs will be located adjacent to the main road (D472). This will minimise the required enabling works and infrastructure. Initially a small bus station will be set-up to enable ease of access on public transport.

The Eco-Industrial Park at Mwoga close to Kajuki, 9km (15 mins drive) to the west of the CBD, is where the value chain projects will be located. The area was chosen due to the availability of a large plot of public land which allows for future expansion and its proximity to the key road (D472) connecting Kathwana and Chuka. The site is criss-crossed by seasonal rivers and retains to date a good amount of vegetation.

The proposed industrial zone layout fully acknowledges and integrates local natural features such as seasonal streams and topography, setting out, therefore, the blue/green infrastructure network.

Climate change interactions and approach

DEVELOPMENT FRAMEWORK 69 Sub-components Estimated cost Impacts Delivery mechanisms › Masterplan to be developed for the Focus area Eco-Industrial1: Park › Network infrastructure (water, ICT,sanitation,power,SuDS › Blue & InfrastructureGreen › projectsproposedrequiredpremisesinclusive8,122,000,000KESoffortheVC › Private PartnershipPublic › Enhances the local economy with amenitiesandmanufacturing,modernmixed-use › developmentinvestmentforOpportunityimmediateand › Contribute to a developmentterritorialpolycentric › Private investor › Design (DBOM)OperateBuildMaintain › Public authoritiesservice Challenges Addressing Challenges/Gaps Time Frame › May require some land acquisition › Funding › Pre-feasibility study › Site Survey › Appropriate Market Study › Short to Medium term

Figure 5.2 - Concept

The proposed layout of the industrial zone fully acknowledges and integrates local natural features, such as seasonal streams, and topography and makes room for a series of community centred facilities. The aim is to establish this zone as an attractive investment option for both investors and workers.

The plan also makes allowance for both phased future expansion in the designated zones and a link that, in future, will connect to the residential area across the D472 road. Such central pedestrian and cycle spine will link the Civic Hub of the Eco-industrial Park to the residential zone and its neighbourhood centres to the south. This will encourage a more sustainable lifestyle, including walk and cycle to work. Plan of the Park

Eco-Industrial

1. Climate resilience and passive design 2. Shared utilities and logistics

Principle: The clustering of business and industries within the park promotes the shared use of facilities such as warehouses and logistics, training and meeting facilities and parking areas. This allows the park to achieve efficient infrastructure services and economic gains by reducing overhead costs.

Eco-City Principles for the of the Eco-Industrial Park

3. Circular economy and zero-waste 4. Clean production and renewable energy 5. Clean air and low pollution 6. Water management 7. Sustainable transport 8. Local and employment:communityinclusive › Age, gender and sensitive(dis)abilitydesign › parkaccessible,People-centeredsafespaces › Job creation STRUCTUREINFRA PEOPLEPLAN RDESIGN&esilient

Principle: Rethink the waste management system to turn waste into resources. To minimise the generation of waste by reorganising industries in a way that one could use the waste from another as an input into a process or as a source of energy. Sustainable Inclusive

Principle: To foster the implementation of smart technologies to achieve a good and efficient management of the shared facilities, such as providing autonomous public transport for employees along with power and water management systems.

70 KATHWANA URBAN ECONOMIC PLAN

Circular Economy and Zero-Waste

Principle: To promote the design of passive buildings to reduce electrical cooling, heating, ventilation and lighting while guaranteeing comfortable conditions for all users.

Shared Utilities and Logistics

Figure 5.3 - Eco-Industrial Park Design Principles

Development

What does an EcoIndustrial Park look like? How is an Eco-Industrial Park managed? Who is this for?

The development of the Eco-Industrial Park driven by the following design principles.

Climate Resilience and Passive Design

Principle: Promote tailored strategies for the industrial park in order to take advantage of their unique characteristics and to address local climatic conditions, such as reducing urban heating stress or mitigating global climate change effects.

Principle: Foster industries which reduce industrial environmental footprint by minimising waste, through reuse, and emissions, through the use of local renewable energy sources such as solar energy, wind power, biomass, geothermal energy or hydroelectric power.

Principle: Landscape as a key element to help improving the air condition.

› Providing better working and labour conditions; › Fostering gender, age and (dis)ability sensitivity in the Park's operations;

Principle: To support industries which minimise emissions. To design an urban layout which optimises the network infrastructure reducing vehicle movements while promoting walking and cycling and the use of electric vehicles within the industrial park. To encourage sharing facilities resulting in a reduction of private cars usage.

Clean Air and Low Pollution

› Improving occupational health and safety. The infrastructure projects proposed in relation to the Eco-Industrial Park follow these design principles. The icons displayed on each of the pro-forma indicates which principles the project supports.

Clean Production and Renewable Energy

To encourage the use of smart technologies and automation to achieve an efficient use of natural resources and industry outcomes.

To promote sustainable urban water cycles by implementing rainwater collection, storm water retention and harvesting techniques and wastewater recycling

› Creating local jobs;

› Providing better security by embedding security features in the Park's design;

Principle: To promote the use of smart technologies using information to digitalise transport infrastructure allowing the exchange of information in between vehicles, drivers, passengers and transfer hubs. Example of these, are street lights capable of monitoring parking spaces as well as traffic patterns. Local and Inclusive Community Employment

Principle: To enhance the Eco-Industrial Park's social performance by:

Water Principle:Management

To promote an efficient use of water resources, and ensuring good water quality while protecting environmental assets.

› Providing social infrastructure to the workers and community;

DEVELOPMENT FRAMEWORK 71

Sustainable Transport Principle: To promote public transport, cycling and pedestrian circulation instead of vehicular. The urban design needs to focus on improving the public space network with a streetscape which promotes healthy and active lifestyles where operators, visitors and workers are encouraged to walk rather than travel by car.

72 KATHWANA URBAN ECONOMIC PLAN Figure 5.4 - Focus Area 1: Eco-Industrial Park

The new properly engineered landfill will have an appropriate liner for leachate containment and collection as well as a landfill gas capturing system, which can be processed and used as biofuel. Additionally, the site will include a waste management centre with recycling capabilities, reducing the consumption of some raw natural materials (which uses energy, water etc) and moving towards a more circular economy.

a. Social inclusion interactions and approach

These are considered to have positive secondary impacts on the local economy and provide stimulus for local investment.

› Constructing engineered landfill cells and installing lining and landfill gas collection systems within them. This would also include leachate collection and treatment systems;

› Procurement of equipment for the new waste management centre e.g. composters, plastic shredders, cardboard balers, sorting tables and for the landfill e.g. bulldozers, water bowsers and dump trucks.

SUED Principles Climate change interactions and approach

Management: New Waste Management Site 1

There is potential for the site to be small and simplistic initially and incrementally upgraded to manage growing quantities of waste.

A new sanitary landfill is proposed in the Kathwana Municipality Integrated Development Plan (KIDeP) 2019 - 2024, however the UEP is proposing to adopt this to be a central waste sorting and MSW management site, with space for a sanitary landfill. This approach is designed to accommodate the scale of waste generation in Kathwana, whilst maximising the extraction of valuable and recyclable material.

Application of Eco-City Principles

SHARED UTILITIES & LOGISTICS

CIRCULAR ECONOMY & ZERO-WASTE CLEAN AIR & LOW POLLUTION LOCAL & INCLUSIVE COMMUNITY EMPLOYMENT

The design of the site should consider the intensification of rainfall under most climate scenarios, and the potential for extreme rainfall events, and the effect that these could have on stability, drainage and any leakage from the site. The access road will be designed with appropriate drainage features for extreme rainfall events, and a road surface that can withstand high temperatures.

1. The waste sector is formalised so that it can create more jobs. There are organised youth, women and PWD groups in Kathwana that can be engaged in the sector to improve their household income security; 2. The sector adopts use of closed type refuse collection vehicles and appropriate waste containers. This will reduce local environmental impacts and nuisance and improve local residents’ and visitors’ quality of life and city scape.

For inclusivity and to maximise benefits to the local community, it is recommended that:

Commissioning a new waste management site will include:

DEVELOPMENT FRAMEWORK 73 Waste5.1.1

Location: The new sanitary landfill and waste management site will be located in Focus Area 1 (Industrial Zone).

› Other SUED infrastructure: The location of the new landfill requires a well-managed feeder road for transport of waste to and from the site. Collection of biogas for fuel links with SUED Energy Project 2; › Category: Enabling infrastructure.

The existing unmanaged and uncontrolled disposal of waste in Kathwana is inevitably contributing to the town’s GHG emissions through the production of methane from decomposition of waste. Commissioning a new engineered sanitary landfill that is properly managed will help to reduce GHG emissions. Additionally, the capturing of landfill gas for use as biofuel will further reduce the volume of methane that is released into the environment and mitigate climate change effects.

There are minor climate risks to the project, however, these can be managed by undertaking appropriate engineering works and system installations and including simple adaptation measures.

Linkages: › Existing projects/proposals: A new dumpsite is proposed in the Kathwana Municipality Integrated Development Plan (KIDeP) 2019 - 2024, however the UEP proposes a central waste sorting and management site, with space for a landfill;

74 KATHWANA URBAN ECONOMIC PLAN Sub-components Estimated cost Impacts Delivery mechanisms › Construction of new landfillengineeredcells › KES 106m to KES 426m › Funding: IFI/ Donor Finance › Improved ground and water quality around Kathwana › Reduces emissionsmethaneinthelandfill › Improves local air quality › Provides employment › Provision of a sanitary and engineered landfill for future management of residual waste › Extraction of value from waste stream › Reduction deforestationin for fuel (instead biogas generation) › Protects natural resources (water and soil) › Protects public health › Private serviceand/orPartnershipPublic(PPP)privatewasteprovision › Support from NGOs, community groups › Employment and training by privateMunicipalityKathwanaorentity/CBOs › responsibilityMaintenance of Municipality › Use of local SME’s or waste services

Short - Mid-term Case Study Oum Azza Landfill, Meghreb - Morocco

Challenges Addressing Challenges/Gaps Time location of the new landfill will need to consider the future housing developments proposed for the Industrial Zone south of the D472 new dumpsite does not become appropriate surveys and site investigations to ensure good quality of to integrate waste staff (informal or formal) into new landfill site funding for initial equipment/ machinery/ funding for construction of new engineered landfill cells size of the new landfill area (i.e. capacity) volume of waste that is Kathwana of

› Designated

› Ensuring

Frame › Exact

uncontrolled/unmanaged › Undertake

› Obtain

vs.

Sources: The World Bank, Morocco let nothing go to waste, 2016; Country report on the solid waste management in Morocco, 2014

works › Need

Informal sector waste collectors who were originally working at the Akreuch dumpsite were organised into a cooperative called Attawafouk, supported by the World Bank. The cooperative consists of 176 employees, 22 of whom are women. These employees are organised into teams that pick out different types of recyclables from the conveyor belt. Each employee is paid the same monthly salary of ~2,600 Dirhams per month, receives formal training, professional equipment, protective clothing, health insurance, access to a bank account and a low mortgage rate. Selected employees also receive vocational and career development via established diplomas in waste management. The cooperative plays a strong role in the management of waste, governing whom the recyclables are sold to and at what price. The private operator funded the initial machines however, the landfill now turns over more than 460,000 Euros per year from recycling, from which the cooperative have been able to buy more equipment. The Oum Azza landfill also derives value from the large organic waste stream (60%) but capturing the biogas from waste decomposition and converting it to electricity at a nearby cement factory furnace, for onward sale onto the national electricity grid.

the landfill ›

engineering › Obtain

produced in

After the Akreuch dumpsite near Rabat, Morocco became uncontrolled and overcapacity, polluting local groundwater and rivers, it was closed, and a new sanitary landfill commissioned a few kilometres away. Oum Azza landfill was developed with the assistance from the World Bank but is managed by private landfill operator Pizzorno. It receives waste that is collected from 13 communes in the region and has an annual capacity of 850,000 tonnes. Oum Azza is exemplary for this region, where waste is seen as a resource rather than trash, combining recycling with the generation of value chains, and jobs. There is an organised system at the landfill, integrated with waste collection. Waste is shovelled onto a metal conveyor belt and spread evenly over a drum, where biomass is separated from the rest. Residual waste feeds into further conveyor belts where it is sorted manually. Valuable waste streams such as cardboard, bottles, plastic, foil, metals.

and lifetime

There is an opportunity to create more jobs within a formalised waste sector which can include PWDs, women, and youth groups. This type of project does not necessarily require manual or physical labour along all sections of the value chain and incorporates a wide variety of skills such as identification of valuable waste streams, engagement with local social enterprises, market trading, business and financial strategy associated with each product. It also has the opportunity to engage existing informal waste pickers from low income/rural areas and pay them for the products they bring to the waste management site.

Location: Solid waste up-cycling will primarily take place in Focus Area 1 (Industrial Zone), however it can be linked to marketable products being sold in the market areas of the CBD.

SUED Principles a. Climate change interactions and approach This project encourages the concept of a circular economy whereby products are kept in their lifecycle for as long as practicably possible in order to minimise the use of natural materials/resources and the production of waste and reduce the pollution and CO2 emissions associated with this. Additionally, solid waste up-cycling stops products from becoming waste and being disposed of in landfill, which reduces the total volume of waste going to landfill and offsets the GHG emissions and environmental issues associated with Plasticthis.waste in the roads/ streets also causes blockages to the drainage system inducing flooding. Removal of this waste from the roads for use as a valuable product would reduce impacts of flooding.

CIRCULAR ECONOMY & ZERO-WASTE

Solid waste up-cycling will involve the following steps: 1. Setting up social enterprises/ engaging with existing social enterprises led by the community/ SIGs; 2. Preparation of waste materials: a. Manually sorting through the dry mixed recyclables which are brought to the waste management site (these should already be separated from residual and organic waste) b. Baling/shredding pelletising of these waste streams into a more useable format

DEVELOPMENT FRAMEWORK 75 Waste5.1.2 Management: Solid Waste Up-cycling 2 Application of Eco-City Principles

CLEAN AIR & LOW POLLUTION LOCAL & INCLUSIVE COMMUNITY EMPLOYMENT

› Other SUED infrastructure: New Solid Waste Management Site;

3. Sale of up-cycled products. There is an opportunity to engage with existing established social enterprises in Kenya e.g. Mr Green Africa.

b. Social inclusion interactions and approach

› Category: Operational infrastructure.

As part of Kathwana’s vision to become an eco-city, solid waste up-cycling is proposed. This involves turning valuable waste streams that have been segregated from the total MSW (e.g. PET, aluminium cans, cartons, newspapers) into marketable and resalable products. This integrates Projects 1 and 2 which include MSW being segregated at source by residents of Kathwana, as well as sorting/ segregating taking place at the new waste management site.

Linkages: › Which existing projects: This is a new project, however, is based on zero-waste social enterprises already being undertaken in the town (Sweet N’ Dried Enterprise);

Mr Green Africa is an example of the same social enterprise in Kenya. Cyrus 45, Nigeria Cyrus 45 is a brand founded by entrepreneur Olabanke Banjo, whereby old disused tyres are turned into useable furniture. Tyres are sourced from local refuse sites/ landfills or purchased from car garages and up-cycled into artistic furniture. Cyrus 45’s advertising and trading is largely done via social media, whereby marketing is free.

Sources: Quartz Africa, ‘The Lagos entrepreneurs championing recycling as a way of life’, 2019; Financial Times, ‘Nigerian designers put urban waste to sustainable use’, 2018.

76 KATHWANA URBAN ECONOMIC PLAN Sub-components Estimated cost Impacts Delivery mechanisms › Setting up new social existingengagemententerprises/with › Plastic recycling unit › Plastic pelletiser › Plastic/carton shredder › Cardboard baler › Aluminium can shredder › KES 1,066,000 › KES 3,200,000 › KES 190,000 › KES 1.1m › KES 350,000 › KES 1.3m › Funding: initial IFI/ FinanceDonor › aspects:generatingRevenue valuable waste streams to metals,segregatedbee.g.plastic › Reduces the volume onreducingupmaterialofendingaswaste,impactslandfill › Increased socialengagementsectorinemploymentformalthewastethroughwithenterprises › Increased recyclingonawarenesspublicwasteand › communityEngages and private sector › Turns waste into a economyofcomponentpositivethetown’s › Higher recyclingcanmaterialsqualitywhichbesoldtobrokers › Introduction of Private PartnershipPublic(PPP) and / or private service contracts into waste collection effort › Support from NGOs, community groups, › Use of local SME’s for waste services Challenges Addressing Challenges/Gaps Time Frame › Potential socialresistancecompetition/fromexistingenterprisesinKenya › Funding to start up-cycling social enterprises › Need to understand which type of products will be marketable/valuable › Long term - ongoing

Case Studies: Greenhill Recycling, Lagos - Nigeria Greenhill Recycling is a Social Enterprise addressing the poverty and unemployment crisis in Nigeria, using recyclable waste as the currency of exchange. Households, especially in indigent communities are given the opportunity to exchange their recyclable waste (e.g. plastic beverage and water bottles, broken chairs, buckets and bowls, water sachets), aluminium cans, old corrugated cartons and office paper for redeemable Green points. These Green points can be exchanged for items of value such as groceries, pay utility bills or provide school supplies for children. The company also offers door-to-door collection of waste. Greenhill add value to the recovered recyclable wastes, by sorting (taking off labels and caps from plastic bottles) and baling. Baled materials are sold, to be used as raw material input for the manufacture of new products, such as polyester fibre, floor carpets, aluminium, ingots, tissue paper, new plastic products, etc.

CIRCULAR ECONOMY & ZERO-WASTE CLEAN AIR & LOW POLLUTION LOCAL & INCLUSIVE COMMUNITY EMPLOYMENT CLEAN PRODUCTION & RENEWABLE ENERGY

The construction of the building itself should take into account increases in maximum temperatures in Kathwana, designing to ensure that it does not exceed thermal comfort limits for workers, either through active or passive cooling.

Typically, the gathering of firewood for use in domestic cooking is undertaken by women.

SUED Principles a. Climate change interactions and approach This project has a net positive effect on climate change mitigation in terms converting methane emissions that would have been released through the natural decomposition of landfill waste into less harmful carbon dioxide through the combustion process whilst cooking.

Linkages: This project is linked to the Municipality’s project to create a new landfill outside of Kathwana and also to Waste Project 2 proposed under SUED. This covers the development of the new waste management site.

Kathwana currently has no landfill facilities in or near the town. The Municipality has plans to commission a new sanitary landfill remote from the town and send all of its waste to the new facility. The new landfill will be properly engineered with leachate and gas collection systems (as per the NEMA National Solid Waste Management Strategy for Kenya), which presents an opportunity to cap the landfill site at the appropriate time and capture the landfill biogas that is generated. Normally landfill biogas is captured and fed into a gas engine where it is turned into electricity. However as the new landfill might be remote from any demand a better use for landfill gas would be to bottle it and sell it to domestic consumers to use for cooking. Currently the majority of Kathwana residents use either kerosene or wood/ charcoal fuels. Switching to cleaner burning landfill gas would provide key benefits such as improved health through the reduction of indoor air pollution and reduced deforestation. This also supports DFID’s TEA program.

› Set up of a customer sales system. The key in making this proposal successful is to minimise the cost of the biogas to ensure it can be afforded by most of the local residents. The two main components for achieving this are the bottling facility and the sales system. Modular containerised bottling facilities are available which will minimise set-up costs. For customer sales, there has been a wave of recent innovation in the customer participation model, led by Twiga Foods, E-gas and Koko, who are referred to in the case studies.

b. Social inclusion interactions and approach

There are minor climate risks to this project, which could be well addressed by ensuring that changes in heat stress are accounted for in the design of the building.

Landfill Biogas for Cooking 3

› Treatment of the landfill site to capture the landfill gas;

The risks to the project from climate change relate to the construction and operation of the bottling plant. The project will be located next to the proposed new landfill site which will be located in the eco-industrial park, but the exact site has not yet been selected.

Site selection should carefully assess drainage and flood risk, and ensure that it is located away from steep slopes if possible. Risk from bush fires should be considered as part of the design and layout of the eco-industrial park as a whole.

It is a time-consuming task that normally needs to occur daily. Compressed gas or liquid fuels that could replace wood fuels typically last many days in typical domestic canisters.

DEVELOPMENT FRAMEWORK 77 Energy:5.1.3

› A gas bottling facility with storage;

Application of Eco-City Principles

This project has three proposed components:

Location: The project is proposed to be located adjacent to the new landfill when it is established.

Replacing the use of wood with a less polluting alternative that lasts longer, will allow women to undertake other activities such as running a business with the time that would previously have been taken in collecting firewood.

78 KATHWANA URBAN ECONOMIC PLAN Sub-components Estimated cost Impacts Delivery mechanisms › Detailed study of landfill to determine initial waste volumes and potential biogas outputs › Initial program design (incl. operation plan, financial model)customermodelling,service › Initial technical design, › Social environmentaland analysis › Development implementationof plan (incl. deployment)procurement, › Detailed operation plan (incl. revenue collection, maintenance etc.) › KES 3m feasibilityinitialstudy › KES system)upcylinders,procurementof(constructioncostsinitial25-50mstart-upfacility,ofset-ofpayment › IFI/ privatedonor/finance › Reduction emissionsgreenhouseingas › Extraction of value from waste stream › Reduction in health kerosenewood/charcoal/byairimprovedthroughincidentsindoorqualityreplacing › Reduction deforestationin › Partnering coordinateMunicipalitywithtoand plan activities › Partnering solutionsandappropriatetosolutionlocal/regionalwithprovidersdeterminetechnicalcommercial › Maintenancecapacity operationensureprogrammebuildingtocontinuedofsystems Challenges Addressing Challenges/Gaps Time Frame › Coordinating with Municipality program for new landfill › Development of financial case to ensure program is affordable for residents and therefore ultimately sustainable › Finding a developer/operatorsuitable › Funding › Knowledge on program and intentions of new landfill facility › Mid-to Long term, › Dependent establishmentonof new landfill relocation Case Study Koko Networks, Kenya Koko fuel was officially launched in May 2019 by Koko Networks. Koko fuel is a liquid bioethanol that is being marketed as a replacement in Kenyan homes for firewood and charcoal. Koko Networks has set up a distribution network comprising 700 outlets across Kenya. To obtain fuel, customers must use ‘smart cans’ that they buy in advance from one of the outlets via M-Pesa and a specialised burner adapted for the liquid fuel. The outlets use ATM style fuel dispensers that people use in conjunction with their smart cans. People also pay for the fuel via M-Pesa. Payment services, maintenance of the ATMs, monitoring of stocks and other provisioning services are all carried out remotely on a purpose built platform. Use of technology, limiting product distribution to the outlets (and not to the customers’ premises) and deploying reusable containers all help to minimise Koko Networks costs and make the offering cheap enough for people to afford.

The initial proposal is to develop a solar PV site with a capacity of 6 to 8MW, incorporating energy storage, and with the potential to expand further in the future when required. It will potentially split into two parts, where one part serves the eco-industrial park directly, and the second part connects into the distribution network to serve Kathwana in general. It will require between 21 and 28 hectares.

CLEAN AIR & LOW POLLUTION

CLIMATE RESILIENCE & PASSIVE DESIGN SHARED UTILITIES & LOGISTICS CLEAN PRODUCTION & RENEWABLE ENERGY

This project has several proposed components:

This project will provide a significant amount of renewable energy to support the development and the Municipality’s aspiration to become an eco-city.

› Deployment plan - upskilling of local marginalised groups to work as contractors

› A feasibility study to determine preferred potential locations, required size including phasing, technical arrangements including preferred technology, and local network connections, commercial arrangement options;

Currently the Municipality has very limited energy infrastructure that will not support it’s development plans.

› Procurement route - best options or engagement with solution providers/contractors

Location: The project will be located within the eco- industrial park.

Solar potential in Kathwana is good, and climate change will not affect the viability of the PV plant. The feasibility study to determine locations will consider flood risk as a factor in choosing the site. Under some plausible climate futures there may be hotter, drier conditions that potentially could increase dust, and require more regular cleaning and maintenance. This can be managed adaptively by updating the maintenance plan as Therequired.procurement plan should specify the need for equipment that is designed to maintain efficiency under high temperatures above 35°c.

This project will have an indirect effect on improving social conditions. By improving the provision and resilience of power in Kathwana the project contributes to reducing power outages which will in turn promote improved commercial activity, improved ability to deliver services and education, and improved safety at night. There is also the potential for the creation of jobs, some of which could be targeted at employing youths through a technology upskilling program.

b. Social inclusion interactions and approach

DEVELOPMENT FRAMEWORK 79 Energy:5.1.4

› Development of maintenance plan, focussing on upskilling of local marginalised groups to work as maintenance staff.

› Outline design of solar park; › Development of procurement and deployment plan. This will include:

Utility Scale Renewable Energy Project 4

SUED Principles a. Climate change interactions and approach The development of a solar PV plant will provide the Municipality with a consistent supply of clean energy that otherwise would have been produced from fossil fuels, thus directly contributing to lowering Kathwana’s greenhouse gas emissions, and highlighting its development as an eco-city.

Application of Eco-City Principles

Linkages: This is an enabler to all of the proposed value propositions but in particular the eco-industrial park.

80 KATHWANA URBAN ECONOMIC PLAN

Case MalindiStudySolar

The power station has created 250 direct jobs during construction, comprising 200 unskilled jobs and 50 skilled jobs. For the unskilled jobs, Globeleq have created a capacity building program to train unemployed locals to fill these positions. This project will also support a further 5,600 jobs in the wider economy.

Power Station, Kenya46

Sub-components Estimated cost Impacts Delivery mechanisms › Complete initial feasibility study and outline design › Development of procurement and deployment plan › Maintenance plan › KES 15m to complete study /design › KES 850m - 1.1bn installationcompleteto › Reliable, resilient and green energy supply for the town › Partner with energyandcoordinateparkeco-industrialthedevelopertoactivitiesdeveloptheproposition › Partnering with renewable solutionsprocurementdeterminespecialiststechnologyenergyto › Maintenancecapacity operationensureprogrammebuildingtocontinuedofsystems Challenges Addressing Challenges/Gaps Time Frame › Developing a suitable proposition and ensuring participation from suitable solar solution providers › Confirmation of location, details of KPLC, other sector stakeholder development plans › Short term

46 CDC and Globeleq to develop dollar power plant in Malindi, accessed 20th June https://www.cdcgroup.com/en/news-insight/news/cdc-and-globeleq-to-develop-solar-power-plant-in-south-east-kenya/2020

Globeleq and CDC are developing a 50MW solar power plant approximately 50km west of Malindi, costing KES 6.6bn. It will provide power directly into the national grid under a 20 year power purchase agreement with KPLC. It is expected though that most of the power will be consumed locally as this area has limited current energy supply, an increasing demand and expanding population. The plant will cover 182.5 hectares.

The proposed Eco-Industrial Park is approximately 9 km from Kathwana CBD, along the Kathwana - Chuka C384 (or former D472) road as shown in Figure 5.5 opposite. Except for the C384 road, the industrial cluster Eco-Industrial Park lacks defined access roads to ease the flow goods, especially heavy goods vehicles (HGV) accessing the industrial area.

SUED Principles a. Climate Change Interactions and approach

SUSTAINABLETRANSPORT LOCAL & INCLUSIVE COMMUNITY EMPLOYMENT

Linkages: The project is linked to the Eco-Industrial Park under Focus Area 1. It will support all the value chains and infrastructure projects located within the park.

DEVELOPMENT FRAMEWORK 81 Transport:5.1.5 Industrial Access Roads Upgrade: Opening and Upgrading of Industrial Access Roads 5 Application of Eco-City Principles

b. Social Inclusion interactions and approach

The upgrading of the road from earth to bitumen will provide a much more resilient road surface, and significantly reduce disruption due to surface water flooding, and road surface deterioration in adverse weather. As extreme rainfall events are expected to increase, upgrading the road surface, and including storm drainage, which is designed to accommodate larger rainfall events, will significantly increase the resilience of the road, which will contribute to increasing the resilience of the Eco-Industrial Park.

Figure 5.5 - Eco-Industrial Park location and existing access links

To support access within this area, the road alignments need to be determined and then developed to provide all weather access with NMT facilities and storm drain provisions.

This project targets to improve a total of 3.9km of road, provide non-motorised facilities i.e. walkways and cycleways, storm water drains and a bridge across the river channel to the north of the industrial site.

Location: The project will be in industrial area focus point.

This project will improve access to the Eco-Industrial Park. By providing NMT facilities, walking and cycling mode, it will be providing an affordable, safe mode of transport for all workers and visitors to the industrial area. The walkways will significantly improve PWDs’ safety.

Case Study City of Seattle, USA

The Seattle Right of-Way Improvements Manual provides design guidance, standards and processes to property owners, developers and architects on how to design, build and manage the right of way. The manual defines an industrial access as roads or streets adjacent to industrial and manufacturing land uses. It emphasises that industrial access roads, serving as connections to regional transport facilities should be designed to allow for turning of large vehicles. In addition, the street may provide opportunities for parking of trucks or staging of equipment. Further, if cycling options have been proposed in the master plan, parking and other curb space demands from the adjacent land uses must be taken into consideration.

ROW should have:

82 KATHWANA URBAN ECONOMIC PLAN Sub-components Estimated cost Impacts Delivery mechanisms › Upgrade of 3.9km of road from earth to bitumen › Provide storm drains along the roads › NMT facilities provision i.e. cycleways and walkways › Construction of a bridge › Capex KES3.9kmupgradingofofroad177m › OpexAnnualof the bitumen road KES 18m › Capex of the storm drainage KES 278m › Annual Opex of storm drainage KES 28m › Capex walkwaysof KEScyclewaysand177m › Annual Opex of walkways KEScyclewaysand18m › Capex of the KESbridge250m › Annual Opex of the bridge KES 25m › Eased access to the Kathwana and clusterindustrial › Better and safer pedestrian access › Improved land value › Partnering through Kenya TharakainAuthorityRuralthroughGovernmentNationaltheKenyaRoads(KeRRA)PartnershipwithNithiCounty › Partnering with Tharaka Nithi County to provide the Safety and NMT facilities Challenges Addressing Challenges/Gaps Time Frame › Increased air and noise pollution due to increased vehicular volumes › Funding › Pre-feasibility and feasibility studies › Traffic impact understanding due to this new road › Immediate term › Essential infrastructureenablingdevelopment

1. Greening - street trees, permeable pavement, landscaping, rain garden; 2. Pedestrians - pedestrian zone should be 6’ wide. Signals at pedestrian crossing are a must; 3. Cycling - protected cycling facilities should be provided; 4. Freight - allow for heavy vehicle turning. Transit - Supply per the demand in the Eco-Industrial Park.

Source: https://streetsillustrated.seattle.gov/https-streetsillustrated-seattle-gov-wp-content-uploads-2019-12-streettyperelationships-movementplacev4-jpg/industrial-access/

Developing the collection centre will help with reducing the vehicular trips made to markets, consequently reducing the vehicular kilometre travel. This would positively impact on the fuel efficiency and air quality. In addition, as extreme weather conditions are expected to increase, the collection centre will need to be designed to accommodate the changing climate conditions, especially temperature and rainfall events. The design will provide for solar energy use, and onsite water harvesting and treatment considerations.

Application of Eco-City Principles Kathwana’s agriculture sector is dominated by small-scale farmers who are dispersed across the region. These farmers are rarely organised around input or output markets and other agricultural services such as transport and warehousing. Presently, Kathwana has only one farm-produce aggregator, a collection and warehousing model facility, the Igambang’ombe Multipurpose Co-operative Society, that aggregates grains from their farmers and sell to millers and supermarkets. The rest of the farmers sell their farm produces individually to brokers or the existing markets. The lack of organisation leads to poor market visibility, increased transport and cost of goods for the small-scale farmers. To reduce these costs, aggregation of farms and farms produces through a collection network could aid reduction of the associated costs and provide a platform for farmers to thrive. This project seeks to develop “farm to market” linkages by developing farm-gate aggregation facilities to optimise product aggregation and reduce the cost of goods, especially post-harvest losses for small-scale farmers. The project will develop two physical collection centres, one in Marimanti (35km to the east) and the other in Chuka (25km to the west) as shown in figure 5.6, and will be fitted with sorting, storage facilities, parking, loading and unloading zones to facilitate aggregation, storage and co-packing of farm produce. It will also establish a feeder road access to farms and villages to ease ferrying of farm produce by backloading boda boda and small trucks to the aggregation centre, and supportive regional links to ease transport to the Eco-Industrial Park.

Location: The project will cover the Municipality and County Linkages: The project is linked to the food processing value chain projects. It will support the food processing hub with sourcing, sorting, storage and transportation of the raw materials for production processing from different small-holder farms.

SUSTAINABLETRANSPORT LOCAL & INCLUSIVE COMMUNITY EMPLOYMENT SHARED UTILITIES & LOGISTICS

SUED Principles a. Climate Change Interactions and approach

By improving the flow of farm goods to the food and milk processing value chain projects, the project reduces spoilage and post-harvest losses, which will be exacerbated by increases in extreme weather events. As such this project helps to increase the resilience of farmers to climate change, and forms part of a suite of projects that helps to increase the resilience of the value chain projects by ensuring regular supply of raw materials.

Figure 5.6 - Proposed Sites for Collection Centres

Transport:5.1.6

Product Collection Centres and Supporting Infrastructures

DEVELOPMENT FRAMEWORK 83

Location of collection centres close to farmers, especially the small-scale farmers, who are mainly women, will provide a ready market close to them, and as a result, free up time to engage in other socio-economic activities. In addition, the collection centres will provide employment opportunities in grading and sorting operations, in their nature these operations would target women living in proximity to the collection centre or the many unemployed youth in the Municipality. Further, in produce aggregation, adoption of the boda boda mode, would offer employment to youths who are the majority in the sector. unloading KESCentresCollection400,000 Tharaka

Case TwigaStudyFoods

Sub-components Estimated cost Impacts Delivery mechanisms › Develop a collection centre fitted with sorting, storage, loading and

and parking facilities › Capex of the 2 KESCentresCollection4m › Annual Opex of the

› Reduced logistics costs of sourcing outputs farmerssmall-scalefrom › Improve quality, through sorting and storing › Reduced postharvest losses › toincreasedthroughproductivityImprovedaccessinformation › Partnering with Tharaka Nithi County for the delivery of the collection centres › Partnering PartnersDevelopmentwithlikeDfID for delivery of collection centres › Partnering with existing providers like Twiga Foods Limited › Grading of feeder roads could be done by

84 KATHWANA URBAN ECONOMIC PLAN

Limited Collection Centre, Kenya Twiga Foods Collection Centre is an aggregation point for all produce Twiga harvests from the farms around a given area. The centre is a shaded facility fitted with a 40ft container for storage of crates and produce, a cemented space for sorting and grading, office space, parking spaces, and utilities such as power, water and ablution blocks as shown below. The facility has enough parking to accommodate parking for boda bodas, small vans and tractors, that bring produce from farm as well as heavy goods vehicle turning. It is from the collection centre, that produces are then loaded into a heavy goods vehicle (40ft) and transported to Twiga’s Warehouse Facility in Nairobi for storage, further sorting and dispatch to the local vendors.

Nithi County annual allocation Challenges Addressing Challenges/Gaps Time Frame › Funding › Organisational structure and management › Pre-feasibility and feasibility studies › Location - Allocation analysis › Immediate term › Essential infrastructureenablingdevelopment

b. Social Inclusion interactions and approach

Linkages: This links with the proposed establishment of a Milk Processing Hub, which is one of the selected Value Chain propositions, and to Transport Project 7, which aims to develop two super hubs and reliable transport infrastructure between the local hubs, the super hubs and the Milk Processing Hub in Kathwana.

Modular solar powered refrigeration systems or cold stores are becoming popular in small farming communities where grid electricity is not available or expensive. Cold stores can extend the shelf life of perishable food, including milk, by between 2 and 21 days, which reduces post harvest losses by up to 80% and can allow small farmers to increase their income by 25%. They work on a subscription model where farmers pay a flat daily rate for each crate of food they store. Some providers use mobile apps to communicate to farmers about the availability of space in the store and to process payments. The revenue created goes towards maintenance of the facility and employment of a facility manager. Many providers target job creation for women. This project will provide two different types of solar powered refrigeration systems. The first will be a number of small systems (half to full size shipping container) that will act as hubs to local farmers who currently have no access to a cold store and therefore lose part or all of their product due to spoilage. This is particularly aimed at milk producers, who are vulnerable to loss of product and make up a significant proportion of the farmers in the Kathwana area, but all farmers can use the facilities whether they are linked to the value propositions or not. The second will be two larger super hub storage facilities. These form part of a wider proposition as part of Transport Project 7, where these hubs will act as initial quality control points for all of the produce that feeds the value propositions. One will be located to the east of Kathwana, and one to the west. As larger facilities they will likely require both solar power and grid connections to provide both capacity and resilience.

This project has several proposed components:

› Preparation of designs for solar refrigeration systems as well as a procurement and deployment plan;

› Capacity building with selected locals to ensure maintenance and operation of systems.

Location: The project will aim to assist micro, small and medium sized milk and vegetable farms in rural areas surrounding Kathwana where provision of refrigeration services is currently expensive or non-existent for the farmers. Two super hubs will be established with one to the east of Kathwana and one to the west, as defined in Transport Project 7.

As both extreme, and average, temperatures in Kathwana have increased, and will continue to do so under all emissions scenarios, the incidence of high temperatures causing produce and milk to spoil is likely to increase. Providing a refrigeration solution that is powered by renewable energy, and targets small-scale farmers will help increase the resilience of these farmers to climate change, and as such strengthen their livelihoods. This project forms part of the climate resilience measures for both the food and milk processing projects.

b. Social inclusion interactions and approach

SUED Principles a. Climate change interactions and approach

CLIMATE RESILIENCE & PASSIVE DESIGN SHARED UTILITIES & LOGISTICS CLEAN PRODUCTION & RENEWABLE ENERGY

LOCAL & INCLUSIVE COMMUNITY EMPLOYMENT

DEVELOPMENT FRAMEWORK 85 Energy:5.1.7 Solar Refrigeration Systems Application of Eco-City Principles

CLEAN AIR & LOW POLLUTION

Agriculture is a key component of Kenya’s gross domestic product, contributing over quarter directly and another quarter indirectly. It also employs more than 40% of Kenya’s population and more than 70% of its rural population47. Improving the financial sustainability of agriculture could provide significant improvements to the livelihoods of the local agriculture community and an expanding sector could lead to increased employment opportunities across the community which is key to improving household income security and poverty reduction. 47 FAO Kenya at a glance, accessed 12th June 2020 http://www.fao.org/kenya/fao-in-kenya/kenya-at-a-glance/en/

This project contributes to both climate change and social inclusion objectives. The project targets smallholder farmers who currently suffer losses in potential earnings, and adverse effects on their livelihoods, from spoilage of produce and milk before it can reach market.

› A baselining exercise to determine the number, size and location of arable farms and livestock holdings producing milk, the current status of their storage facilities and their refrigeration needs, and their current produce sales practices;

› Establishment of the location and of the two super hub facilities;

› Establishment of the towns and villages that would benefit from a small solar refrigeration system, including the optimum size of the facility;

› Deployment of systems to selected agricultural holdings;

86 KATHWANA URBAN ECONOMIC PLAN Sub-components Estimated cost Impacts Delivery mechanisms › Mapping of ownership of all local livestock holdings and their product storagestatusdistributionmappingoutputs,ofcurrenthubsandoftheirproductfacilities › Establishment of needs for solar refrigeration systems › Preparation of design brief for refrigeration systems › Development of procurement and deployment plan › Maintenance plan Benchmark: › KES 750k per local system, KES 3m per hub system Actual: › KES twoKES15based11.25monmaxsystemsand6mforhubs › Funding installation)(eqpt, › financeIFI/donor › spoilageReduced of produce leading to revenueshigher for small farmers › foropportunitiesEmploymentwomen › Partner with regional/ county government to activitiescoordinate › Partner with organisationsagri/livestocklocal › Partnering with local solution specialists to deploymentappropriatedetermine › Maintenancecapacity operationensureprogrammebuildingtocontinuedofsystems › Maintenanceresponsibility of individual farmers Challenges Addressing Challenges/Gaps Time Frame › Obtaining comprehensive data on current situation › Funding › No knowledge of current situation › Short to Mid-term

Contained Energy successfully developed and deployed stand-alone, off-grid, 100% solar-powered cold storage facilities with thermal energy storage technology in combination with ultra-efficient compressor packages. The 20 cubic metre unit was designed to keep 500 kg of fish at -2ºC, with the capacity of adding and cooling 200 kg of ‘un-iced’ fish per day (for a total cooling load of 30 kWh per day). It is powered by a 6.4 kW solar array backed up by a relatively small 10 kWh lead acid battery bank. The unique feature of the system is that it deploys a large volume of Phase Change Material in the ceiling, capable of storing and releasing 15 kWh of cooling capacity at -4ºC. This thermal energy storage technology allows the compressor package to do most of its ‘cooling work’ during the day, when the solar power is available, saving a substantially larger quantity of battery storage that would otherwise be required. The cold storage helps local fishermen to keep their catch fresh for longer once they’ve returned from fishing.

Case Study

Solar Cold Stores in Wakatobi and Pacitan, Indonesia

Focus Area 2: Development Core

The Development Core within the CBD is the area around the market and government offices where initial growth is already starting to take place. Focused urban development in this area will turn into the integrated town centre of Kathwana and give it a unique urban character. The boundary of the Development Core is not to be understood as a fixed border for development but rather as a roughly defined area of concentrated development that can be expanded outwards as the town grows. The perception of a city is mostly given by the images that visitors and residents alike retain when using and visiting it. The arrival experience, the ease of movement and security, cleanliness, quality, space of the public realm and good quality architecture are all elements concurring to deliver a good urban environment that stimulates repeat visits and creates a good “economic milieu” for investment and business. Urbanism projects are multidisciplinary and integrate a wide range of diverse inputs into a strong, coordinated vision that underpins development. In Kathwana, urban growth has started to set off around the market area and the new government offices. The following proposals for Focus Area 2 aim at enhancing the urban environment and being catalysers for the first phase of urban growth of the town centre.

DEVELOPMENT FRAMEWORK 87

Kathwana is an emerging town whose aspiration is to become the leading centre “driving regional development and added value”. It also aims to becoming the sustainability benchmark for modern towns across Kenya. Its location, in a relatively green field area, offers the community the prime opportunity to adopt and implement innovative and sustainable principles right from the outset of such an ambitious development plan. The community aspirations are underpinned by a series of documents and tools including investment strategies, leisure projects and a comprehensive Integrated Development Plan. The UEP has identified an opportunity to contribute and augment the Municipality’s “centenarian” Vision by crafting a series of Eco-City Urban Sustainability Principles to guide urban development. Ranging from the concept of incremental growth and mix of uses through to sustainable mobility and use of resources, these principles are outlined later in this document. The fundamental principle adopted, however, is deeply rooted in the scale, size, mix of use and connection of each single “development cluster” or “node”. When arriving in Kathwana, the visitor is greeted by a local market to the North-East - the commercial hub - and a relatively pristine hill commanding views over the town to the South-West. This is the first comprehensive image of the town. In between, the snaking high-street links to the County Government offices and the hinterland beyond in the direction of Mount Kenya. This route will certainly play a central role in Kathwana’s future. It’s one of the two important town thoroughfares, it brings together up to five rural communities and their schools quietly sitting on the undulating terrain further afield. About 5 minutes-walk (500m) up from the market along the high-street, the second node - the administrative cluster, is emerging. A secondary school and one of the first administrative buildings are being completed.

5.2

The UEP has adopted the local plan directions and integrated the Eco-City Urban Sustainability Principles in a way that high aspirations find an immediate application on the ground and benefit to people’s day-to-day life. Figure 5.7 builds upon the two existing nodes, the market area and the emerging government administrative quarter further along the high street. It introduces green features into the urban fabric, and links the two nodes through a second, pedestrian priority, route or boulevard. The proposed principle reinforces the need for these two clusters to be conceived as “complete neighbourhoods”, namely neighbourhoods where all daily needs can be fulfilled and that accommodate a range of uses, but also where an inclusiveness is the norm with residential housing suitable for all tenures and offering a range of typologies. Each cluster/or node will be distinctive in character and vibrant thanks to the multiple options of use throughout the day.

Green Boulevard connecting Commercial and Administrative Cluster

Furthermore, there is an opportunity to develop a County Government administrative and multi-functional campus centred around a large ceremonial open space to be developed as the northern node to the boulevard link. This can be further enhanced with links down to the waterfront along the northern edges of the campus. All the above contribute to fulfil the vision of an Eco-city as well as that of a town which aims at being a regional and national exemplar of sustainability and innovation. Furthermore, because of the interconnectedness of each node, its variety of uses and the seamless fitting with nature, urban resilience will be deeply rooted in the neighbourhood’s blueprints.

88 KATHWANA URBAN ECONOMIC PLAN

DEVELOPMENT FRAMEWORK 89 Figure 5.7 - Cluster Approach for the Development Core Mixed-Use Commercial Waterfront Development Green Boulevards

Principle: Invest in green and open spaces to increase public safety and quality of life for the community.

and mixed use 2. Climate

5. Clean energy 6. Zero-waste 7. Water management 8. Local and sustainable materials 9. Sustainable transport 10. Inclusive, diverse and healthy communities STRUCTUREINFRA PEOPLEPLAN RDESIGN&esilient Sustainable Inclusive Figure 5.8 - Eco-city Principles

Principle: Decentralise and diversify land uses by creating mixed use districts which become sustainable and self-sufficient neighbourhoods.

3. Flexible design 4. Landscape biodiversityand

Principle: Promote the design of passive buildings and districts to reduce electrical cooling, heating, ventilation and lighting while guaranteeing comfortable conditions for all users.

Principle: Maximise the resilience of the ecosystems through urban landscape mitigating the urban heating stress, using plants for urban cooling and air purification. To increase the number of tree planting to absorb CO2

1. Compact

Urban Design Principles for the Development Core

passive

Principle: Promote tailored strategies for each urban development in order to take advantage of their unique characteristics and to address local climate conditions, such as reducing urban heating island (UHI), and mitigating global climate change effects.

Principle: Provide ways to facilitate management of risks and disaster reduction through smart technologies, inclusive to all, in order to achieve resilient and sustainable developments. Flexible Principle:Design

Foster the design of flexible uses and spaces to create resilient cities to physical, social and economic challenges. Cities are able to face and adapt to local but also global changes and dynamics, such as current social distanced measures due to the Covid 19 pandemic which require a flexible use of space.

How is an Eco-Industrial Park managed? Who is this for?

Principle: Encourage the urban revitalisation and regeneration in favour of the new development. Landscape and Biodiversity

Climate Resilience and Passive Design

The following design principles guide the development of infrastructure proposals and ensure that the Eco-City concept is integrated across projects in different urban sectors.

Compact Urban Form and Mixed Use

What does an EcoIndustrial Park look like?

90 KATHWANA URBAN ECONOMIC PLAN

Principle: Mixed use and compact urban developments will reduce the demand for mobility requirements helping to reduce carbon emissions and from a demographic’s perspective will encourage social integration and diversity. urban form resilience and design

Principle: Promote an efficient use for water resources, such as in drip irrigation, and ensuring good water quality while protecting environmental assets.

Principle: To promote a sustainable and efficient manufacturing and agricultural industry, fostering innovation.

Principle: Promote responsible consumption across the residents.

Clean Principle:Energy

Principle: Promote the use of smart technologies using information to digitalise transport infrastructure allowing the exchange of information in between vehicles, drivers, passengers and transfer hubs optimising traffic flows. Example of these are streetlights capable of monitoring parking spaces as well as traffic patterns.

DEVELOPMENT FRAMEWORK 91

Promote sustainable urban water cycles by implementing rainwater collection, storm water retention, harvesting techniques and wastewater recycling.

Principle: Integrate a diverse range of economic and cultural activities maximising social diversity and interaction of users within each zone. This could be achieved by promoting mixed used districts, which can benefit from 24 hours liveable cycles.

Water Principle:Management

Principle: Measures including recycling, up-cycling and composting waste to produce energy, i.e. Plant and animal waste to produce energy sources, biomass. Special attention and studies needs to be given around the reuse of industrial waste.

Principle: Promote social equity by providing affordable housing.

Local and Sustainable Materials Principle: To encourage the shorten of supply chain by using local materials and food, manufactures' and techniques, activating local economy, minimising transport requirements and promoting the local knowledge and experience.

Principle:Zero-Waste

Smart integrated renewable energy systems should be implemented to achieve an efficient use of natural resources by distributing surpluses based on demand.

Principle: Data driven smart city technologies should be part of the water management strategy improving its resilience.

To utilise local renewable energy sources such as solar energy, wind power, biomass, geothermal energy or hydroelectric power to reduce the demand of fossil fuels.

Principle: Promote the use of smart technologies to achieve healthy and inclusive communities. Examples of these are applications on phones which support people to navigate within cities and buildings, the use of street lighting that can monitor air quality and temperature.

Rethink the waste management system to turn waste into resources.

Sustainable Transport Principle: Promote and prioritise public transport, cycling and pedestrian circulation over vehicular.

Principle: The urban design should focus on improving the public space network and designing cities with a streetscape which promotes healthy and active lifestyles where residents are encouraged to walk rather than travel by car.

Inclusive, Diverse and Healthy Communities

92 KATHWANA URBAN ECONOMIC PLAN Figure 5.9 - Focus Area 2: Development Core

CLIMATE RESILIENCE & PASSIVE DESIGN URBAN COMPACT FORM & MIXED USE

The eco-city principles underpin the need for a range and variety of housing and accommodation options to be provided within a mixed use urban development environment. The provision of such housing opportunities is seen as being a key and integral part of the overall development mix within the proposed urban core area.

A range of housing options targeting lower, middle and higher income families should be considered within the proposed residential mixed use clusters identified in Figure 5.10. These should be supported by a range of community facilities located within the various neighbourhoods and linked to the wider parts of the development core, such as the commercial and administrative/civic zones, as well as the public open spaces and Compactwaterfront.walkable cities with integrated neighbourhoods providing the full range of civic and cultural services, access to education and health facilities, open space and recreation, commercial / retail opportunities are all engendered in the eco-city principles.

At this moment in time it is known that the Municipality has identified land to the north and outside of the development core for affordable housing development, however this dispersed approach to housing provision does not reflect the eco-city principles that need to be implemented. In this regard the UEP encourages the Municipality to pursue an agenda of enabling local landowners within the development core area to enter into the affordable housing programme through partnerships in coordinating and assisting them with the affordable housing application and permitting procedures.

In order to kickstart this process it is proposed that the Municipality pursue the development of affordable housing through the current Government of Kenya Affordable Housing Programme being driven by the State Department for Housing and Urban Development (SDHUD).

DEVELOPMENT FRAMEWORK 93

FLEXIBLEDESIGN LOCAL & MATERIALSSUSTAINABLE INCLUSIVE, DIVERSE & HEALTHY COMMUNITIES

Figure 5.10 - A range of housing options

5.2.1

Affordable Housing Application of Eco-City Principles

The introduction of the supporting infrastructure through roads, water, power and sanitation will provide further baseline infrastructure provision for additional development opportunities to be leveraged.

The current GoK Affordable Housing Programme provides an opportunity to engage in the development of housing and supporting infrastructure within the development core which can be the catalyst to enable and attract the in-migration of people in order to facilitate population growth and boost economic activity.

94 KATHWANA URBAN ECONOMIC PLAN Figure 5.11 - Walkable neighbourhoods and supporting facilities

DEVELOPMENT FRAMEWORK 95

Figure 5.12 - Public open space networkThe affordable housing provision will enhance realisation of key development concept of housing to act as a pull factor for migration into Kathwana. Although, Kathwana is the headquarter of Tharaka Nithi and one of the youngest towns in the country, there is an acute shortage of adequate housing. The gradual emergence of economic and civic activities could be bolstered by having housing that is accessible within the urban core precincts, affordable to all social classes, and adaptable to climatic conditions in Kathwana through built in resilience. At the moment, the majority of people with economic engagement in Kathwana reside outside the town and have to commute on a daily basis. Consequently, this has had an impact on their social and economic situations such as disposable incomes as well as significant environmental impacts. As aforementioned, affordable housing that is appropriately located will lead to an increase in population size, promote economic activities and steadily promote infrastructure provision. It is proposed that affordable housing should be approached from two fronts; government initiative through State Department for Housing and Urban Development (SDHUD) and direct engagement with the private sector based on mutual benefit. Both approaches have the potential to enhance sustainable growth of Kathwana as a true Eco-City. These developments could be phased into medium and long term initiatives to meet the demand as the town’s population grows.

Application of Eco-City Principles

CLIMATE RESILIENCE & PASSIVE DESIGN INCLUSIVE, DIVERSE & HEALTHY COMMUNITIESMANAGEMENTWATER

The project will also train residents and masons in the construction of high quality onsite sanitation facilities and provide good operation and maintenance to help reduce environmental contamination and improve public health.

New Exhauster Services, Public Toilets and Capacity Building on Onsite Sanitation Systems Construction and Maintenance

SUED Principles a. Climate change interactions and approach The project should consider low emission exhauster trucks. The project supports the use of on-site sanitation which uses less water and new public toilets should consider water saving designs, increasing resilience to climate change.

b. Social inclusion interactions and approach

› Be safe and private: clearly marked separately for male,female and PWDs sections with separate entrances and good lighting;

› Have at least one cubicle that is accessible to all users. e.g. wheelchair access and lowered seat and handwashing);

› Cater for menstrual hygiene requirements;

96 KATHWANA URBAN ECONOMIC PLAN Sanitation:5.2.2

› Facilities for care givers and parents such as a family friendly cubical and baby changing station.

Project title Estimated cost Impacts Delivery mechanisms › S2. New exhauster service › S3. New public toilets in the new market › S4. Training tanksmaintenanceconstructiononandofsepticandVIPlatrines › KES 22,022,000 › 15.2mKES › KES 3.1m › Improve safety in faecal managementsludge › Increase access to servicessanitationforall › Raise awareness on safe residentsprocessessanitationamong › Increase access to servicessanitationforall › governmentNGOsgovernments/IFI/CountyandNational › governmentNGOsgovernments/IFI/CountyandNational › governmentNGOsgovernments/IFI/CountyandNational

Linkages: As a new town Kathwana has the opportunity to ensure that sanitation is done properly. This will protect the town from pollution and ensure Kathwana is a clean and desirable place to live. The county will develop a legislation (and enforce its implementation) that ensures that new developments are required to have adequate sanitation facilities.

48 Corburn J and Hildebrand C (2015). Slum sanitation and the social determinants of women’s health in Nairobi, Kenya. Journal of Environmental and Public Health. Vol. 2015. Article ID 209505. Available at doi.org/10.1155/2015/209505

This proposal addressed Kathwana’s sanitation requirements. While the public toilets as well as the exhauster trucks will be based in Kathwana’s centre, the exhauster service as well as on-site sanitation systems will support the town centre as well as the wider Municipality.

Poor access to sanitation disproportionally affects females as it is much easier (although not desirable) and safer for men to urinate outside, men do not need menstrual hygiene facilities, females are often the caregivers for children, the elderly and people with disabilities. Women often experience violence when using an unsafe toilet48. The public toilets under this project should therefore be affordable and accessible for all. This includes:

Location: Public toilets are needed to serve the market and a study should be conducted to understand the sanitation requirements for the rest of the town. The exhauster trucks will be based in Kathwana but will serve residents in and around the Kathwana Municipality.

The project is to procure a new exhauster truck to collect faecal sludge from the township and deliver to the proposed sludge handling facility and to build public toilets that will serve the new market and cater for the needs of all residents including special interest groups.

FLEXIBLEDESIGN INCLUSIVE, DIVERSE & HEALTHY COMMUNITIES

Linkages: The project is linked to the urban development concept under focus 2, urban core development framework aimed to rejuvenate the core, support mixed-use development and improve accessibility and mobility. It will be integrated with the NMT facilities and market area to support foot fall to businesses in the core area.

In Naivasha, Kenya and in Maputo Mozambique, Water and Sanitation for the Urban Poor (WSUP) involved women in the planning, design and siting of public toilets and in the construction, management and maintenance of the services. impact was better WASH services that catered for the needs for women, children and the disabled but also contributed to the empowerment of women as decision makers and members of the works force. 5.13 led construction in Maputo, Mozambique

Challenges

- Women

CLIMATE RESILIENCE & PASSIVE DESIGN URBAN COMPACT FORM & MIXED USE

Addressing Challenges/Gaps Time Frame › Capacity › Funding › Capacity in utility to implement the projects is inadequate and consultants and contractors will be needed › Where the project funds needed are significant, the utility may not be able to internally fund the project › Short term measures like exhauster procurement are achievable immediately but Long term projects may take 2-5 years depending on funds availability › All the above can be classified as Short term achievable soon

SUED Principles a. Climate Change Interactions and approach Improved public transport facilities not only benefit existing users but have the potential to attract new users away from single private car use and reduce the greenhouse gas emissions (GHG) and local air pollution from the transport sector. Drainage features will be designed considering increases in rainfall intensity, thus reducing the likelihood of disruption from surface flooding.

Development of a New Bus Park 2 Application of Eco-City Principles

Figure

SUSTAINABLETRANSPORT Kathwana town lacks essential public service transport facilities like designated bus parks and bus stops. As a result, the public service vehicles such as matatus commonly pick and drop passengers at ad hoc locations along the road and near the market area. Such operations impede the overall flow of traffic, which is a particularly acute problem on market days when traffic volumes are much higher. These informal pick-up and drop-off locations also attract street vending and boda boda parking activity which obstruct the movement of pedestrians and cyclists, forcing them onto the carriageway where they dangerously share space with fast moving vehicles.

This project seeks to develop a bus park facility with waiting areas, retail spaces, wayfinding features, storm drainage and streetlighting features. The project will also be integrated with the NMT facilities and market area to support improved access to the commercial areas in the core area.

Transport:5.2.3

Location: The project will be in Kathwana urban core.

communal

Case AccessibleStudyPublic WSUP (2014) gender-inclusive approach in practice: approach-in-practice-communal-sanitation/https://www.wsup.com/insights/a-gender-inclusive-sanitation

The

Toilets49 49

DEVELOPMENT FRAMEWORK 97

Source:

Case Study New Modern Mbezi Bus Terminal, Dar es Salaam Tanzania

The construction of the upcountry modern bus terminal at Mbezi began in 2019. The preparation of the project took long time due to the various government procedures including land acquisition and compensation. The new terminal is expected to accommodate the inter-city bus services which currently travel through the city centre. The cost of the project is estimated to be US $22m.

new bus park will: enable continued use of matatus for those accessing the market to trade, thus providing income security; enable continued access across groups for economic and social activities, including education, health and town services; support job creation with the capacity for more matatus and routes; support job creation with enhanced new retail space within the bus park area and will be integrated with the walkways in the town, to ensure everyone, including PWDs, will be able to access and use it. Sub-components Estimated cost Impacts Delivery mechanisms › Design & development of bus terminus, with the incorporation of pedestrian facilities, drainage vendingstreetlighting,facilities,andspaces › Capex constructingof of the bus park KES 200m › Annual Opex of the bus park KES 20m › Support future growth and public demandtransportincrease › businessessupportfootfallIncreasedtoadjacent › Increase revenue for busadjacentbusinessestothepark › Increase transporti.e.transportsustainableofoptionspublic › Increase revenue for countyMunicipality/ › Partnering with Tharaka Nithi County Government through the MunicipalityKathwana › Partnering WorldPartnersDevelopmentwithlikeBank › Funding WorldPartnersDevelopmentfromlikeBank Challenges Addressing Challenges/Gaps Time Frame › Will cause disruption to public transit › Upgrade likely to interrupt traffic flow › Funding › Pre-feasibility study › Public consultation › Short term to Medium term › Urban economicproposalsdevelopmentsupportinggrowth

The

98 KATHWANA URBAN ECONOMIC PLAN b. Social Inclusion interactions and approach

Construction Review Online

SUSTAINABLETRANSPORT Kathwana is located at the intersection of two main roads i.e. Ena - Mitunguu (B65, formerly C92) and C383 roads as shown in Figure 5.14 right. C383 is a critical road connecting the market to the retail and administrative spaces in the town but lacks critical urban street features like walkways, public transport facilities and parking management measures to support access to the services and facilitate the efficient flow of traffic within the centre.

Location: The project will be in Kathwana urban core. Linkages: The project is linked to the urban development core. It will contribute to the better, safer and comfortable urban street, and support urban transport for the urban population planned within the urban core.

DEVELOPMENT FRAMEWORK 99 Transport:5.2.4 Incorporation of Street Features on Key Urban Roads 3 Application of Eco-City Principles

This project is intended to improve safety and mobility on this critical urban street by integrating urban street design features like safe walkways, cycling, pedestrian crossings, traffic calming features, vending, green infrastructure and parking. The project intends to incorporate street features on total of 1km of the C383 road.

FLEXIBLEDESIGN INCLUSIVE, DIVERSE & HEALTHY COMMUNITIES

CLIMATE RESILIENCE & PASSIVE DESIGN URBAN COMPACT FORM & MIXED USE

SUED Principles a. Climate Change Interactions and approach The project fits well with the climate change principles by mitigating GHG emissions through the provision of high quality, safe and accessible street environment supported by green infrastructure that encourages walking and cycling and reduces demand for motorised trips. The inclusion of Sustainable Urban Drainage schemes within the green infrastructure zones can also serve to improve drainage and reduce surface water flooding from intense rainfall, while increased green space has a cooling effect that serves to reduce the impact of increases in maximum temperatures.

Figure 5.14 - Major roads in Kathwana Core Area b. Social Inclusion interactions and approach

Everybody, but particularly the elderly children and Persons with Disability can all benefit from good design of pedestrian and street environment. A safe, comfortable and accessible street environment also facilitates basic mobility, affordable transport, access to public transport as well as health and recreation benefits to existing users and encourages new users. Providing safe accessible walkways and safe pedestrian crossings will aid achieve a barrier free environment for all users, especially for these people.

100 KATHWANA URBAN ECONOMIC PLAN Sub-components Estimated cost Impacts Delivery mechanisms › Walkway & Cycling (NMT) provision on both sides along 2km of streets › Drainage facility provision › Traffic measurescalming › Vending activities › Capex constructingof of walkways and cycling lanes KES 45m › Annual Opex of the 4.5mfacilitiesNMTKES › Capex of the drainage KES 63m › Annual Opex of drainage million KES 6.3m › Increased safety and accessibility for withandpedestrianspeoplelivingdisabilities › qualityincreasedurbani.e.infrastructurefromliveabilityImprovedgreenreducedheatandair › livelihoodImproved for street vendors › congestionReduced and air quality › Improved street quality for public transport use with disabilities › Partnering with Tharaka Nithi County Government through the MunicipalityKathwana › Funding ProgrammeKenyaBankPartnersDevelopmentbye.g.WorldthroughtheUrbanSupport(KUSP) Challenges Addressing Challenges/Gaps Time Frame › Increased air and noise pollution due to increased vehicular volumes › Funding › Pre-feasibility and feasibility studies › Public consultation › Short to Medium term › Urban proposalsdevelopmentsupporting the urban core development Case Study

La Jolla Boulevard in San Diego La Jolla Boulevard is an automobile-oriented thoroughfare in Bird Rock, San Diego, California. In 2018 a project was designed to transform a section of it to a pedestrian friendly, neighbourhood centre. The travel lanes were reduced from five to two, added five roundabouts, improved sidewalks, landscaping and increased parking. The street design also included relocation and reconfiguration of bus stops and including new bus pads and benches. The design shortage of parking, lack of public space and financial stagnation of area business. The project total cost was $7.2m and included replacement of sewer mains, planning and engineering. Figure 5.15 - La Jolla Boulevard - Before

DEVELOPMENT FRAMEWORK 101 Figure 5.16 - La Jolla Boulevard - After 1 Figure 5.18 - La Jolla Boulevard Cross Section - Before Figure 5.17 - La Jolla Boulevard - After 2 Figure 5.19 - La Jolla Boulevard Cross Section - After Source: https://www.cnu.org/publicsquare/2018/01/10/road-diet-bridges-barrier-boosts-safety

› Augment to ensure coverage of all main streets, markets and areas of public congregation, and eventually all main public streets as well as proposed areas of development;

This project is intended to improve sustainability in streetlighting service provision by the Municipality. It will have the following additional impacts.

› Review technology choices for lamps in new and existing streetlights;

› Review of current streetlighting plans to ensure coordination with proposed urban development plans;

› Improved security in Kathwana at night;

› Ability for the market areas to work past daylight hours and increase revenue opportunities.

Location: The project will target all areas in Kathwana with an aspiration to provide streetlighting to 100% of public streets.

Increases in extreme temperatures, and potential increases in solar radiation may cause the streetlight assets to decay more rapidly, requiring more regular maintenance. This should be considered when planning operational maintenance for the project.

The purpose of this project is to compliment the current streetlighting program and ensure coverage to all main streets in Kathwana. Additionally, it will review and improve the efficiency of light fittings to reduce energy usage and energy costs, and also review the overall maintenance budgeting and procedures to ensure that all installed streetlighting is adequately maintained to remain operational.

102 KATHWANA URBAN ECONOMIC PLAN 5.2.5

Energy: Streetlighting Application of Eco-City Principles

› Review/update current contractual arrangements between the Municipality and the utility, with the aspiration to improve the economic situation for the Municipality and utility and ensure long term maintenance of installed streetlights.

CLIMATE RESILIENCE & PASSIVE DESIGN URBAN COMPACT FORM & MIXED USE INCLUSIVE, DIVERSE & HEALTHY COMMUNITIES

b. Social inclusion interactions and approach The increase in the provision of streetlighting has a number of positive effects on inclusivity Better streetlighting will improve safety at night, particularly for women and PWDs. And also the potential for the market to operate for longer hours, thus improving the economic outlook for the market traders.

This project has several proposed components:

Linkages: This project will link into existing streetlighting improvements already being implemented by Kathwana Municipality/KPLC. These need to be coordinated with the urban improvements proposed under this project to ensure that any planned works implemented won’t need to be altered subsequently.

SUED Principles a. Climate change interactions and approach The potential to use more efficient light fittings will reduce the use of electricity and therefore reduce greenhouse gas emissions.

Public Lighting Delivery Models - Philippines

DEVELOPMENT FRAMEWORK 103 Sub-components Estimated cost Impacts Delivery mechanisms › Review implementationcurrent plan › Review technicalcommercialcurrentandarrangements › Design study to ensure suitable coverage of target area › Equipment review and selection › Development of new commercial plan maintenance)implementation,deployment,(procurement, Benchmarks: › Solar lighting - KES 150k per pole50 › LED retrofits - KES 40k per fitting51 Cost range: › KES 1-5m per km depending on andtechnologyspacing totalEstimatedcost: › For 20km of roads based partly coverageon to new area, partly on reworking to existing areas; KES 31-60m › Improved safety and security for public › operationalLonger hours at market › MunicipalityfinancesImprovedfor › Partnering coordinateMunicipalitywithtoand plan activities › Partnering technologyappropriatedeterminespecialistsequipmentwithtosolutions › operationensureprogrammecapacityMaintenancebuildingtocontinuedofsystems 50 Africa and solar powered street lights, accessed 29th July https://www.engoplanet.com/single-post/2019/07/22/Africa-and-Solar-powered-Street-lights2019 51 Good practices in city energy efficiency, Los Angeles LED streetlighting retrofit, accessed 6th August 2020 https://www.esmap.org/sites/default/files/esmap-files/LosAngeles_LED_final_edited_11-9-11.pdf Challenges Addressing Challenges/Gaps Time Frame › Achieving buy-in from Municipality, KPLC, KENHA › Detailed implementation schedule › Currently technologyselected › Current Municipality,arrangementscommercialbetweenKPLC,KENHA › Short term to complete coordination, Short-to Mid-term to implementationcomplete

Quezon City had been actively exploring and implementing upgrades to its street lighting system. Many streets and roads were not lit at night, so public safety was an ongoing concern. The Mayor created a Task Force to look at installation, repair and maintenance of streetlighting. This body was charged with overseeing an initiative to expand night-time lighting coverage across the city. QC subsequently embarked on a citywide street lighting program to illuminate 80 percent of the public road network. It involved installing 3,000 new streetlights, with an additional 1,000 streetlights retrofitted by Meralco, a private electricity utility. In the past, QC had relied on traditional lighting technologies. However, the emergence of the first generation of LED streetlights prompted a rethinking, since any improvements in energy efficiency would translate into desirable budget savings. The city funded a study to determine the feasibility of upgrading their streetlighting to more efficient technology. The study compared the potential costs and benefits of three technologies: ceramic metal-halide lamps, induction lamps, and LEDs. It concluded that ceramic induction lamps would be a suitable replacement for existing street lighting, while LED luminaires, which were quite expensive at the time of the study, would only be suitable for new installations A constraint arising from the conversion of QC’s streetlights to LEDs was the split ownership of the assets and the flat rate charged by Meralco on a portion of the assets, as identified in the study. To solve this, the Mayor of Quezon City signed a Memorandum of Agreement with Meralco that turned over the nearly 3,000 ornamental streetlights owned by the utility to the QC government for a price of PHP 5.7million (KES 12.6m). Meanwhile, the City installed meters on all of the ornamental streetlights so that savings from the retrofit of LEDs would yield energy cost savings. For the remaining pole-mounted streetlights that are owned by Meralco, the utility on its own authority has undertaken a project to convert the streetlights in its ownership to LEDs. Since QC continues to pay Meralco a flat rate per pole, the LED retrofit undertaken by Meralco increases their profit, and the city benefits from better lighting.

Case QuezonStudyCity,

5.3

The previous sections have considered and proposed climate resilient infrastructure projects which either directly support the proposed value chain opportunities, or further enable the town to respond to immediate needs with regards improvements in traffic and pedestrian circulation, public realm, solid waste management and extensions to the sewage and sanitation network. This section outlines other proposed infrastructure projects which will assist with issues which are located in the wider hinterland of the town and will promote climate resilient approaches to the introduction of power, irrigation, water and the development of a recycling and waste treatment stream to service the town and it’s wider communities. Most of these wider area sectoral proposals are aimed at providing enabling infrastructure across water/sanitation, waste, energy and transport to support urban growth in Kathwana. They are also aimed at increasing agricultural productivity and climate resilience and thereby supporting the livelihoods of Kathwana’s informal farming sector. Area Proposals

Beyond the Focus Areas: Enabling Infrastructure

Figure 5.20 - Wider

104 KATHWANA URBAN ECONOMIC PLAN

C92 Water Intake WorksTreatmentWater 2017 10220182017720172017 2017 2017 2017 Kathwana Municipalit y CBD RoadsRiverArea Pipeline System Distribution Main Gravity Main Raw Water Main Kenya Tharaka-NithiCounty

Improvements to the water supply intake are vital to provide climate resilience and ensure continuity of water supply to the town. Water is not only essential for domestic use but also for business and industry. Without reliable and adequate water resources the growth of the town will be hindered.

Figure 5.21 - Suggested improvements to the raw water intake for Kathwana, Source: Atkins

DEVELOPMENT FRAMEWORK 105

Improve Flood and Climate Resilience of the Water Supply Intake 1

Figure 5.22 - Location of the raw water intake for KathwanaWater:5.3.1

This project seeks to improve the resilience of the existing intake which is prone to clogging by sediments and damage by debris during rainy seasons. Damage caused by high flows has previously halted abstractions, leaving Kathwana with no water supply. The intake lacks efficient trash racks/grating, robust wing walls to withstand peak floods, additionally a barrage alignment redesign and sedimentation basin to make it more resilient to river flooding. During peak flows the intake is inaccessible for repairs which means the town sometimes goes without water until flows in the river subside and the intake damage can be repaired. Protection, such as screening, a barrier and improved access in high flows is needed to improve the climate resilience of the intake as well as regular maintenance inspections, especially following flooding to remove debris that has built up against the trash gratings. A possible outline of this set up is shown in Figure 5.21 below.

›

› governmentNGOsgovernments/IFI/CountyandNational Challenges

There is also a need to understand the long-term impact of climate change and catchment degradation on water resources in the region to understand potential hydrological impacts and ensure that there is no risk to supply during low flows and increased risk of damage during high flows. This project clearly enhances the resilience of Kathwana’s water supply. As disruptions to supply impact disproportionately on poor and vulnerable groups (see below), increasing resilience and consistency of supply supports efforts to improve the livelihoods of these groups.

›

Location: The project will be implemented in Kathwana River intake point on River Maara.

Linkages: The project will support other key sectors and projects in industry, institutional, domestic and commercial water supply needs.

Project title Estimated cost Impacts Delivery mechanisms W1. Improve flood and climate resilience of the water supply intake and promote practiceslandupstreamsustainablecatchmentmanagement 26.7m Sustain water supply Kathwanato in a more reliable and climateresiliencemannerconsistentwithtochange Addressing Challenges/Gaps project funds needed the utility Short term project with Long term impacts

› KES

a. Social inclusion interactions and approach Interruptions in the water supply usually affect the whole community but the impacts are likely to impact women, the poor, persons with disability disproportionally as they often find it more difficult to access or cannot afford alternative water supplies.

are significant and

may not be able to internally fund the project › This is a

Time Frame › Capacity › Funding › Capacity in utility to implement the projects is inadequate and consultants and contractors will be needed › The

106 KATHWANA URBAN ECONOMIC PLAN

SUED Principles a. Climate change interactions and approach The upgrade of the intake will increase resilience to high flows which are expected to become more frequent and rise in magnitude as a result of climate change. The resilience will be achieved by designing an intake able to resist extreme flows and improve access for repairs during flood events, and will be designed to take account of expected increases in peak flow. The intake will also utilise construction materials that can adapt to climatic changes in the region with minimum degradation.

Improvements to the water supply intake will impact positively the larger supply system, and therefore better access to this basic commodity for the whole community.

DEVELOPMENT FRAMEWORK 107

As outlined below, a clean, reliable water supply has multiple benefits, in particular for women, and as such this project combines social inclusion and climate resilience benefits.

SUED Principles a. Climate change interactions and approach Drought and rainfall variability pose significant risks to reliable water supply in the town.

Water:5.3.2

The proposal is to construct a 2500m3 pressed steel tank for clear water storage after the treatment plant. Primarily, the tank will act as a buffer in case of interruptions in raw water systems in the water supply works operations or for routine maintenance. Additionally, it will act as a source for further chlorine mixing and decanting of ultra-fine suspended solids that may have passed through the filtration system. This project also seeks to introduce a second raw water mains for future sustainability by providing redundancies in the system and the ability to abstract more as the town grows. To support the town growth, treated water mains, the distribution system, the water connections and metering are proposed to enable and sustain water utility operations. Fire hydrants and two 750m3 elevated storage steel tanks within the CBD are also proposed in the water supply interventions.

Linkages: This project will support the growth of the population, industry, institutions and businesses in Kathwana.

b. Social inclusion interactions and approach

A clean water supply will take the burden off women who are often responsible for the collection and treatment of water. Alongside new household connection, new, free or subsidised cost kiosks will need to be built to ensure that water is available to low-income residents who cannot afford their own connection. The kiosks should be located in lowincome residential areas. The current kiosk management system seems to work well and creates employment for the kiosk operator. However, this type of water supply may cause challenges for PWDs who are unable to carry water from the kiosk to their homes and therefore the water company should consider alternative initiatives such as subsidising home connections for PWDs.

This project increases resilience by increasing storage capacity, thus acting as a buffer against climate-induced interruptions in supply whilst metering of consumers will encourage water efficiency and will provide data to help improve NRW. Metering in combination with awareness campaigns to consumers would support the principles of sustainable resource management and can help to improve water use efficiency. Fire hydrants will help to address fire risk, which is expected to increase under climate change.

Location: The 2500m3 clear water tank, will be near the water treatment plant, two 750m3 elevated steel tanks will be located within the focus areas. The pipe network is partially located within the Municipality. The exact location needs to be determined by a hydraulic/ network design study.

Clear Water Storage Tank, Water Distribution Improvement, Municipality Water Storage and Fire Hydrants 2

Having a reliable and clean water source will be a huge advantage and is likely to attract more businesses and industry to the area. The Kathwana water supply system is not yet financially sustainable and new customer connections will improve this. The proposed interventions will mitigate interruptions in water supply services, to provide reserve for emergencies and to improve water quality before distribution a clear water storage tank is needed at the water treatment plant. An efficient water asset; pipelines and appurtenances are also needed to ensure continuity of service provision. The pipe network should be adequately sized and designed to meet at least a design horizon of 30 years.

108 KATHWANA URBAN ECONOMIC PLAN Project title Estimated cost Impacts Delivery mechanisms › W2. 2500m3 Clear water tanks / storage at WTP › W3. distributionsExpand systems & fire hydrants › W4. 750m3 elevated steel tanks reserveMunicipalityforstorage › KES 62.9m › KES 565.5m › KES 78.65m › Sustain water supply Kathwanato in a more reliable and climateresiliencemannerconsistentwithtochange › Increase water supply access and coverage › Improve preparednessdisaster › Increase water supply access and coverage, › Improve preparednessdisaster › governmentNGOsgovernments/IFI/CountyandNational › governmentNGOsgovernments/IFI/CountyandNational › governmentNGOsgovernments/IFI/CountyandNational Challenges Addressing Challenges/Gaps Time Frame › Capacity › Funding › Capacity in utility to implement the projects is inadequate and consultants and contractors will be needed › The project funds needed are significant and the utility may not be able to internally fund the project › These are Long term projects and may take 2-5 years depending on funds availability › All the above projects are long term Figure 5.23 - Some of the proposed water and sanitation projects

The location is at the lowest point in the town, which means the sewage could be gravityfed to the treatment works. This is ideal for a sewage system as it does not require costly and energy intensive pumping making it more likely to be financially (less costs) and technically (pumps often breakdown) sustainable Linkages: The project will improve human health in the town by providing a more hygienic sewage system with lower impacts on the environment.

Sanitation:5.3.3

› Short term measures are achievable immediately, but Long term projects may take 2-5 years depending on funds availability › The sludge handling facility is a Short to Medium term solution while sewer network extension and wastewater treatment plant are Long term

Challenges Addressing Challenges/Gaps Time Frame

The re-use of human waste can provide business opportunities selling fertiliser, compost or fuel briquettes. SUED Principles a. Climate change interactions and approach The project will reduce the distance that exhauster trucks have to travel to discharge, which will contribute to climate change mitigation by reducing emissions.

› The project funds needed are significant and the utility may not be able to internally fund the project

› KES 55m › 1,.46bnKES › Improve safety in faecal managementsludge › managementwastewaterImprove in the county › Enable growthtermsupportandlongmunicipalityplans › governmentNGOsgovernments/IFI/CountyandNational › governmentNGOsgovernments/IFI/CountyandNational

› Capacity › Funding › Capacity in utility to implement the projects is inadequate and consultants and contractors will be needed

DEVELOPMENT FRAMEWORK 109

› S1. facilitysewageDe-centralisedtreatment › S4. Long term sewerage system and wastewater treatment plant

Medium Term Sludge Handling Facility and Long-Term Centralised Sewers System 4 Kathwana has no centralised sewerage system and at present Kathwana does not have the population to support this type of expensive investment. In the short to medium term Kathwana should develop and improve the decentralised sanitation system. This type of system is considered more affordable for residents and can be upgraded to a sewerage system as the economy of Kathwana develops. The project consists of the development of a sludge handling system as part of a de-centralised sanitation system. The County already has a design for the facility which should be adequate for the medium-term needs of However,Kathwana.itmay be possible to develop a treatment works that reuses human waste as fertiliser, compost or fuel briquettes. The sale of such a product could add an additional stream and would also reduce the use of additional resources and environmental damage revenue caused by charcoal (briquettes) and other fertilisers. The development of a resource reuse treatment plan would need to be implemented in conjunction with a community sensitisation programme to ensure acceptability of the use of human by-products.

Project title Estimated cost Impacts Delivery mechanisms

On-site sanitation uses less water than traditional sewerage systems making them more resilient to climate change impacts such as more frequent droughts. If in future, as the town expands, Kathwana want to invest in a sewer system, they should consider small bore / condimental sewers which use less water, and consider the effect of prolonged drought on the functioning of the system if a briquette system is used.

The location of the facility is also proposed at the lowest point in the town, so if a sewerage system is developed later, sewage can be gravity fed to the treatment works. A rapid flood risk assessment will ensure that localised flooding doesn’t pose a threat to the facility.

Location: The IDEP shows an area of land allocated for the development of a WWTW.

110 KATHWANA URBAN ECONOMIC PLAN Case Study

BriquettesSanivation Calorific value 29 MJ/kg 15 MJ/kg 22 MJ/kg Burning time 3 Hours 1 Hour 4.5 Hours Emissions (CO ppm) 118 ppm NA 82 ppm Emissions (PM2.5 ppm) 213 ppm NA 196 ppm

Solid Fuel Briquettes as a Reuse Product in Kakuma, Kenya52 52 Sanivation and UNHCR. Container-based Toilets with Solid Fuel Briquettes as a Reuse Product. Best Practice Guidelines for Refugee CampS. https://data2.unhcr.org/en/documents/download/64297

Sanivation has developed a briquette production system for human waste and it is used in Kakuma, Kenya. Treated faeces has a high energy content and can be utilised as a biomass fuel like charcoal and wood. In the Sanivation system the faeces act as a binder for other biomass waste streams such as charcoal dust, agricultural residues, and carbonised Prosopis (a woody invasive weed in East Africa). Treated faeces mixed with crushed high-carbon co-waste (other bio-mass as above) at a ratio of around 10-30% wet faecal sludge by mass. Water is added as required to produce the required consistency for mixing and pressing. When it reaches the required consistency, it is transferred to a roller press, which presses the mixture into briquettes. Pressed briquettes are spread onto drying racks and dried in the sun for 3 days. The briquettes are checked in quality control process for burn time, water boiling time, and resistance to breaking when dropped from a height of 1 meter.

Charcoal

Figure 5.24 - Small-scale treatment and reuse system comprising of treatment tank, mixer, roller press, drying beds and burning briquettes, Source: Sanivation and UNHCR Sanivation briquettes have been shown to have a calorific value higher than wood and with less smoke emissions than charcoal. Wood In Kakuma briquettes are sold for US$0.20 per kg which is equivalent to the cost of charcoal. The cost per year was estimated at USD$172 per year per household and revenue at USD$210.

DEVELOPMENT FRAMEWORK 111 Water:5.3.4

Irrigation and Rainwater Harvesting

SUED Principles a. Climate change interactions and approach One of the biggest sectors affected by climate change is the small-scale irrigation farming. Most farmers depend on rainfed farming and as a result are extremely vulnerable to climatic variations, hence affecting their livelihoods. The reliability of rainfall, in particular during the March-May rains, has been decreasing, and drought, and intra-season dry spells cause significant losses. Climate projections show that the combination of higher temperatures, and rainfall variability is likely to increase water stress. As such, this project seeks to improve the resilience and adaptability of small holder farming by sustaining planting even through seasons of extreme drought, through water management, water conserving irrigation techniques and good soil management and moisture retention practices e.g. composting, mulching, green manures.

Location: The projects are focused on farmers with crops that supply the food processing hub but may include other farmers with crops that are important to Kathwana’s economy.

›

governmentNGOsgovernments/IFI/CountyandNational ›

Challenges Addressing Challenges/Gaps Time Frame

Project title Estimated cost Impacts Delivery mechanisms 1. Irrigation to support potato farming and other crops linked to the VC proposals › 2. Study into the viability of rainwater harvesting and promotion conservationof agriculture › KES 240.7m › KES 22.8m › Improve residentscapabilityconservationwaterof › Increase farmer output per unit of farm size › Improve water capture, retention and residentscapabilityconservationwaterof › Increase in catchmentscapacityconservationwaterinthe › Improve access to water supply among residents ›

SmartStudyWater

The project proposes to train and equip 3,000 small holder farmers with drip irrigation or water conservative sprinklers. Kathwana has existing irrigation schemes and the proposal is to improve their efficiency, such as in training farmers in water conserving irrigation techniques, e.g. drip irrigation and the sourcing through small holder schemes of low flow overhead sprinklers.

Smart Water Agriculture project funded by the NGO called SNV is an example of such irrigation interventions. The Smart Water for Agriculture ran between 2016-2019 with an aim of saving water and energy. It also sought to ensure sustainable resource use by promoting farmer-led and market-based smart water products and services. These was also a component on assistance to farmers in reducing labour and inputs, mitigate weather related risks, and promote off-season production opportunities. By bringing stakeholders together in 'Irrigation Acceleration Platforms' the facilitated smart water innovation across selected counties in Kenya.

governmentNGOsgovernments/IFI/CountyandNational

Linkages: The irrigation will provide a more reliable supply to the food processing hub.

› Capacity › Funding › Capacity in utility to implement the projects is inadequate and consultants and contractors will be needed › The project funds needed are significant and the utility may not be able to internally fund the project › Short term measures like capacity building are achievable immediately but Long term projects may take 2-5 years depending on funds availability › Irrigation may start immediately but require Long term plans due to funding and Monitoring and Evaluation of impacts Case Agriculture

This project is intended to improve the output of local micro, small and medium size farmers by providing them with a consistent water supply for crop irrigation and also improve their finances by reducing costs associated with the provision of water. It will simultaneously reduce greenhouse gas emissions associated with irrigation by utilising solar power.

› A baselining exercise to determine the number of agricultural and livestock holdings, their irrigation needs, the current status of their irrigation facilities and the type of system they would benefit from;

The proposal is to provide pumping kits that either i) pump water through an above ground distribution network, where the farmer has adequate rainwater storage but gravity irrigation won’t work, or ii) pump water up from a borehole where the farmer doesn’t have any rainfall water storage.

This project has several proposed components:

› Capacity building with selected farmers to ensure maintenance of systems.

This increases resilience to drought, and intra-seasonal dry spells, and will help to reduce crop losses. To ensure that groundwater abstraction is sustainable, the project includes an assessment of available groundwater resources along with groundwater recharge measures.

Energy: Solar Irrigation Systems

SUED Principles a. Climate change interactions and approach Drought and moisture stress are significant risks for smallholder farmers, and reduce yields and thus income. The combination of increased temperatures, and variable rainfall under future climate scenarios means that drought will remain a risk, and could become worse.

53 FAO Kenya at a glance, accessed 12th June 2020 http://www.fao.org/kenya/fao-in-kenya/kenya-at-a-glance/en/

The project helps to increase the resilience of farmers to climate change, and will contribute to improving livelihoods and reducing poverty.

112 KATHWANA URBAN ECONOMIC PLAN 5.3.5

This project will provide solar powered irrigation pump systems to local farmers who currently have irregular or no access to water supplies, or who are currently paying an unsustainable amount for water.

› A study to determine the status of the groundwater resources and sustainable extraction rates;

Location: The project will aim to assist micro, small and medium sized farms in rural areas surrounding Kathwana that are currently not served by the electricity or water utilities or where provision of these services is currently expensive for the farmer.

› Deployment of systems to selected agricultural holdings;

Linkages: Linked to Irrigation 1 project; Irrigation to support VC proposals. This proposal needs to remain separate from the Irrigation 1 project as assessment of the potential recipient farms may indicate that different interventions are required depending on circumstances.

This project supports the livelihoods of micro and small-sized farms by providing access to water for irrigation, through the pumping of groundwater. The use of a solar pumping system means that there are no additional emissions associated with the project.

› Establishment of the agricultural holdings that would benefit from a solar irrigation system, then preparation of designs for solar irrigation systems as well as a procurement and deployment plan;

b. Social inclusion interactions and approach Agriculture is a key component of Kenya’s gross domestic product, contributing over quarter directly and another quarter indirectly. It also employs more than 40% of Kenya’s population and more than 70% of its rural population53. Improving the financial sustainability of agriculture could provide significant improvements to the livelihoods of the local agriculture community and an expanding sector could lead to increased employment opportunities across the community.

DEVELOPMENT FRAMEWORK 113 Sub-components Estimated cost Impacts Delivery mechanisms › Mapping of ownership of all local agricultural and livestock holdings and their irrigation needs, current status of their irrigation facilities › Review of abstraction volumes from each borehole to resourcessustainabilityensureofwater › Establishment of needs for solar irrigation and borehole systems › Preparation of design brief for irrigationboreholes/systems › Development of procurement and deployment plan › Maintenance plan Benchmark: › KES 75,000 per system54 Actual: › 225mKES based on max 3,000 systems › Funding privateIFI/installation):(eqpt,donor/finance › irrigationnoforserviceConsistentprovisionfarmerswithpowered › Lower costs for farmers where current system is on grid › Reduced agriculturalassociatedemissionscarbonwithsector › Partner coordinategovernmentregional/countywithtoactivities › Partner with organisationsagri/livestocklocal › Partnering with local determinespecialistsequipmenttosolutions › Maintenancecapacity operationensureprogrammebuildingtocontinuedofsystems › Maintenanceresponsibility of individual farmers 54 FAO The benefits and risks of solar-powered irrigation - a global overview (2018), accessed 30th July 2019 http://www.fao.org/3/I9047EN/i9047en.pdf Challenges Addressing Challenges/Gaps Time Frame › Effort needed to obtain comprehensive data on current situation › Obtaining funding › No knowledge of current situation › Short to Mid-term Case Study Valle Family, Matagalpa - Nicaragua 55 Solar Drip Irrigation Case Study - The Valle Family, accessed 29th July https://gridalternatives.org/sites/default/files/International%20Valle%20irrigation%20case%20study.pdf2019

Grid Alternatives International Program has been helping farmers in Nicaragua with sustainable irrigation solutions for the last five years. One such solution helped the Valle family of Matagalpa. They grew squash, passion fruit and tomatoes on two acres of land to sell at the local market but had trouble making a profit due to high irrigation costs. The monthly electricity bill to run their pump was KES 3,300, but their income was only KES 10,300. Also, the supply quality was poor, meaning they could only irrigate on three days instead of every day. Other expenditure reduced their earnings to KES 2,500 a month. Working with Grid Alternatives and local company Suni Solar, they installed a solar irrigation system. The total cost was KES 1,000,000, but the Valle family was only asked to pay KES 200,000 which they financed via UNAG, their national agricultural organisation. Two solar panels power a pump that abstracts water from a nearby river into a cement tank and to a gravity fed pole mount system that drips onto the plants. With adequate water supply to the plants, they can now irrigate other crops, including onions, pipian and pasturage, and also raise tilapia. Their monthly electricity bill is now KES 300, and their monthly earnings have now increased to KES 54,60055.

Road Upgrade: Upgrading Major Roads to Enhance Kathwana’s Connection to East Region and Kitui County 5

Upgrading these roads will improve farm and market access, allow for less costly motorised transport to be used and directly increase the returns farmers and traders can earn from their produce.

Kathwana town has several major roads linking it to important economic centres in the County and the neighbouring Kitui County. These road links include Marimanti - Ciambyu (C359) and Kamarandi - Mwerera road (C382), Kathwana - Gatunga (C385) and Kathwana - Kamarandi (C383 extension) as shown in Figure 5.21 below. These roads are critical to the town’s economy, as they connect the town to the high agricultural productive areas and trading centres. However, despite their regional importance only the C385 road is paved while the rest of the road network fails to provide all weather access. The condition of the roads makes them difficult to navigate, particularly during the rainy season when they become completely impassable. This affects market and farm accessibility, increases transport costs which make farm gate prices low and retail prices high and hinders the growth of agricultural sector.

114 KATHWANA URBAN ECONOMIC PLAN Transport:5.3.6

This project is intended to improve the regional connectivity and accessibility of the east region (including Kitui County), by upgrading a total of 65km of road to provide for all weather access and providing for storm water drainage to mitigate flood risk. The 65km road will include 31km of C359, 23km of C382, and 11km of the C383 extension.

Location: The project covers the east of the Municipality and County Linkages: The project is linked to the Kathwana Food Processing hub value chain project. It will contribute to efficient flow of goods and services, especially raw materials from the region and access to market for the finished products from the industry to the regional markets including Kitui. In addition, it will support increased mobility of labour and trade with the industrial cluster. Figure 5.25 - Kathwana’s east link roads

Sub-components

vehicular volumes › Funding ›

b. Social Inclusion interactions and approach This project will have a direct effect on improving the social conditions. By improving the road infrastructure in the east and connectivity to Kathwana town, the communities will be more connected, and would have better access to markets and services. Better access to markets would increase access to job opportunities, that would in turn improve the quality of life for residents. In addition, improved road infrastructure attracts better service infrastructure like public transport (e.g. matatu routes and boda bodas), which has potential for creating jobs for the youth who operate boda bodas and public transport in the region.

To address the climate change concerns and improve road safety storm water drainage design needs to be based on projected changes in rainfall intensity to ensure that they are adequate under increasingly heavier rainfall events, and the road surface needs to be constructed to withstand increased maximum temperatures.

› Traffic

›

› Partnering with Tharaka Nithi County to deliver the Safety and NMT facilities on the corridor Funding WorldpartnersDevelopmentthroughlikeBank

›

Estimated cost Impacts Delivery mechanisms Upgrade of 65km of road from earth to bitumen › Storm water drains provision (130km) › NMT facilities provision Capex KEStheupgradingofroad2.9bn Annual Opex of bitumenthe road KES 296m › Capex of the KESdrainage4.1m Annual Opex of KESdrainage412m Capex KESsidewalksconstructingof226m › Annual Opex of KESsidewalks22.6m Eased access to the industrial park Better and safer pedestrian access Improved land value Partnering with the Kenya Nithi(KeRRA)RoadstheGovernmentNationalthroughKenyaRuralAuthorityandTharakaCounty

›

Challenges Addressing Challenges/Gaps Time Frame air and noise pollution due to increased Pre-feasibility and feasibility studies impact understanding due to this new road term to Medium term Value chain proposals support economic growth

› Increased

› Short

DEVELOPMENT FRAMEWORK 115

SUED Principles a. Climate Change Interactions and approach Flooding during the rainy season currently renders roads impassable, and reduces connectivity, and the flow of people and goods within the County. Climate change will result in increased temperatures, and likely increases in rainfall intensity, and extreme rain and flood events, and is expected to increase damage to the roads, and the amount of time that roads are blocked. Upgrading the road surface and providing storm water drainage will increase the resilience of the road network to climate change, and ensure that goods produced in the eco-industrial cluster have improved access to regional markets. As outlined below, this will also have clear livelihood benefits for local communities.

›

SUED Principles a. Climate Change Interactions and approach

The Tana River is a major waterway that runs along the border of Tharaka Nithi and Kitui and is a natural barrier to movement between the two counties. Several road links between the two counties are severed by the river with the only crossing over the waterway being provided by a single bridge at Usueni which is 60km from Kathwana. Other links that offer shorter and direct routes to Kitui but lack bridges include: the C382, which runs parallel to the Tana River, and the Marimanti - Ciambyu road (C359), which is 25 km from Kathwana, see Figure 5.26 below. In the past, there has been an attempt by the Kenya Rural Roads Authority (KeRRA) to construct a bridge on Marimanti - Ciambyu road (C359) across the Tana River at Grand Waterfalls but it was halted when Lamu Port and Lamu-Southern SudanEthiopia Transport Corridor project (LAPSSET) selected the same site to situate the Grand Waterfalls Dam. Discussions are still underway on both projects, but it is still unclear whether any of these projects will be developed. Therefore, faced with few alternative crossings, residents either use small wooden boats which can only facilitate low volume movement of passengers and light goods where available or at worst are faced with the risk of dangerously wading or swimming the river. In sum, the lack of crossings affects the ease of movement of goods and people between the two counties, and inhibits access to markets, farmlands, schools, employment and social networks and can even endanger the lives of residents stranded on either side of the river.

Hydrological modelling for the Tana River catchment shows potential increases in flood frequency and magnitude, and likely increases in rainfall intensity also highlight the potential for increased flood risk56,57. For a key crossing of a major river such as the Tana River, hydrological modelling under a range of climate scenarios should be carried out to ensure that the bridge is designed to withstand higher flood peaks. This will ensure that products from the industrial cluster maintain access to regional markets, and that the project can continue to provide increased connectivity and mobility. Bridge materials and surface should also take into account increases in maximum temperatures.

Bridge Development: New Bridge on MarimantiCiambyu Road (C359) across River Tana and Safe Crossings on Tana River 6

56 Muthuwata, L. et al. (2018) Understanding the Impact of Climate Change on the Tana River Basin. Proc. IAHS 379: 37-42 57 CGIAR (2018) Tharaka Nithi Climate Change Profile

This project aims to identify a suitable bridge crossing location along the C359 or C382 and develop a bridge with NMT facilities to support safe and comfortable crossing for pedestrians and cyclists.

b. Social Inclusion interactions and approach

Transport:5.3.7

Location: The project covers the east of the Municipality and County.

Figure 5.26 - Location of the missing bridge across the Tana River

116 KATHWANA URBAN ECONOMIC PLAN

A new bridge will improve connection for communities to access the market and other services safely and conveniently. This may include access to schools, healthcare and economic opportunities which is particularly important for the isolated communities in the surrounding area. In addition, better road infrastructure attracts better service infrastructure like public transport (e.g. matatu routes and boda bodas), which has potential for creating jobs for the youth who operate boda bodas and public transport in the region.

Linkages: The project is linked to the Kathwana Food Processing hub value chain project. It will ease accessibility of labour, raw materials, and finished products across the river, to support the industrial cluster.

DEVELOPMENT FRAMEWORK 117 Sub-components Estimated cost Impacts Delivery mechanisms › Hydrological study › Design and develop a bridge with safe crossing provision › Capex KEStheconstructingofbridge250m › Annual Opex of the bridge KES 25m › Eased access to regional markets like Kitui › Improved quality of life › Better and safer pedestrian access › Improved land value › Partnering with Kenya Nithi(KeRRA)RoadstheGovernmentNationalthroughKenyaRuralAuthorityandTharakaCounty › Funding BankpartnersDevelopmentthroughlikeWorld Challenges Addressing Challenges/Gaps Time Frame › Funding › Pre-feasibility and feasibility studies › Short term to Medium term › Value chain proposals support economic growth

Transport:5.3.8

To address the climate change concerns and improve road safety storm drainage design needs to be based on projected changes in rainfall intensity to ensure that they are adequate under increasingly heavier rainfall events, and the road surface needs to be constructed to withstand increased maximum temperatures.

b. Social Inclusion interactions and approach

Road Upgrade: Upgrading Major Roads to Enhance Kathwana’s Connection to West Region including Chuka and Nairobi - Meru Highway 7

SUED Principles a. Climate Change Interactions and approach

Major road links connecting Kathwana to the western region of Tharaka Nithi County are Chuka - Kaanwa- Kajuki - Kathwana (C384), Kibugua - Itugururu - Murigi (C381), KeriaMagutuni - Kathwana (C383) (Figure 5.27). These roads are critical to Kathwana’s economy, as they link the town to the high agricultural and milk production zones and significant major towns such as Chuka found along the Nairobi - Meru highway which is also a major trading corridor in the region. Despite their significant regional and economic importance, these roads are in a deplorable condition; characterised by unpaved roads, potholes, lack of storm water drains and complete absence of NMT facility provisions. During the rainy seasons these roads are impassable which affects market and farm accessibility, leading to an increase in transport cost and consequently, the overall cost of goods.

Location: The project covers the west side of the Municipality and County, including the urban development core.

This project, therefore, seeks to improve accessibility within the west region and improve connection between Kathwana and Chuka and Kathwana’s connectivity to Nairobi - Meru Highway. The project intends to upgrade a total of 85 km of roads from earth to all weather, provide storm drains and NMT facilities. The project targets: 20km of C384, 34km of C381, and 31km of C383.

Figure 5.27 - Kathwana’s western region link roads

As outlined below, this will also have clear livelihood benefits for local communities.

118 KATHWANA URBAN ECONOMIC PLAN

Flooding during the rainy season currently renders roads impassable, and reduces connectivity, and the flow of people and goods within the county. Climate change will result in increased temperatures, and likely increases in rainfall intensity, and extreme rain and flood events, and is expected to increase damage to the roads, and the amount of time that roads are blocked. Upgrading the road surface, and providing storm water drainage will increase the resilience of the road network to climate change, and ensure that goods produced in the eco-industrial cluster have improved access to regional markets.

New road works can also create employment opportunities for neighbouring communities through the encouragement of local labour engagement during construction and maintenance of the roads.

New and improved road links also generate new demand for transport services which creates economic opportunities especially amongst the youth.

Linkages: The project is linked to both Kathwana food processing and milk processing value chain projects. It will contribute to the efficient flow of goods and services, especially raw materials, finished products and labour to and from the industrial cluster to the regional markets.

Improving the road conditions to the western region of the County and connectivity to important trading centres such as Chuka town promotes better access to markets and services for residents, particularly those previously marginalised due to lack of connectivity.

Management: Integrated Waste Collection System

An upgraded waste collection system would include procurement of new waste receptacles for residents and businesses which encourage source segregation (organic, recyclables, residual), as well as the procurement of new collection vehicles, staff and offices to manage collection operations and logistics. This would include public awareness and education campaigns to encourage recycling/reuse, and proper waste disposal.

DEVELOPMENT FRAMEWORK 119 Sub-components Estimated cost Impacts Delivery mechanisms › Upgrade of 85 km of road from earth to bitumen › Drainage facility provision › NMT facilities provision › Capex KES85kmupgradingofroad3.9bn › OpexAnnualof the bitumen road KES 385m › Capex of the KESdrainage5.4bn › Annual Opex of KESdrainage539m › Capex KESwalkways10kmconstructingofof226m › Annual Opex of KESsidewalks22m › Eased access to the Kathwana and clusterindustrial › Better and safer pedestrian access › Improved land value › TharakaGovernment,(KeRRA)RoadstheGovernmentwithPartneringNationalthroughKenyaRuralAuthorityandCountyNithi › Funding BankpartnersDevelopmentthroughlikeWorld Challenges Addressing Challenges/Gaps Time Frame › Increased air and noise pollution due to increased vehicular volumes › Funding › Pre-feasibility and feasibility studies › Traffic impact understanding due to the new roads › Short term to Medium term › Value chain proposals support economic growth Waste5.3.9

The county currently owns a total of 2 tractors, 1 skip loader and 56 skips distributed in various parts of the county. The county has also installed 205 litter bins in strategic areas of the Municipal towns, which are serviced on regular basis. Therefore, there would be need for integration with the overall county collection system before implementing in Kathwana.

Location: The new waste collection system will be Municipality wide.

Installation and use of containers, rather than deposit in open piles, would ensure minimisation of nuisance (odours and landscape impacts), reduction of pollution from leachate and scattered litter and protection of public health from rodents and pests. It is noted that the containers and the refuse collection vehicles would need to be compatible.

› The upgraded waste collection system relies on a good transportation network (roads, vehicles, traffic routes);

Linkages: › The KIDeP discusses upgrading the solid waste management collection system in Kathwana. It is proposed in the KIDeP that an estimated 50 new members of staff would be required for the cleaning, collection, and disposal of waste management in the Municipality, which equates to approximately half of the future human resourcing requirements of the Municipality;

The Tharaka Nithi County CIDP 2018-2022 states that the county has a target of 80% for the reduction of waste generation at source. An upgraded waste collection system in Kathwana would aid the segregation of waste at source and ensure that recyclable/treatable waste streams (organic, dry recyclables) are diverted away from landfill disposal, hence helping to meet the county reduction target of 80%.

› Higher quality materials which can be sold to recycling brokers › Improved understanding of waste collection and collection days, etc › Introduction of Private collectionservicesand/orPartnershipPublic(PPP)privatewasteintowasteeffort

Sub-components Estimated cost Impacts Delivery mechanisms

SUED Principles a. Climate change interactions and approach This project would aim to create a better system for the collection and management of waste, discouraging informal dumping and open-burning, as well reduce significantly the health and environmental impacts of open waste deposits. This would offset the effects of improper waste management on the environment and subsequent climate effects. However, this project relies on a strong transportation network, with the use of more waste collection vehicles and more collection routes. This would increase traffic on the roads and emission of CO2 into the environment, which can be mitigated with good collection route planning and scheduling and use of vehicles with stringent emissions standards and/or using biofuels. Climate change does not pose a risk to this project. Better waste management and a reduction in dumping may reduce the risk of local flooding caused by blockages.

For inclusivity and to maximise benefits to the local community, it is recommended that:

› systemwasteUpgradedcollection › KES 5.3m to KES 10.6m

GovernmentofresponsibilityMaintenanceMunicipal

b. Social inclusion interactions and approach

These are considered to have positive secondary impacts on the local economy and provide stimulus for local investment.

› Support from NGOs, community groups, waste pickers › Funding for PPE, collection carts, training and wages for the CBOs, etc ›

120 KATHWANA URBAN ECONOMIC PLAN

› Increased employmentformalinthe waste sector as catchment area/ routes increase › Increased awarenesspubliconwaste and recycling › Reduced illegal dumping of waste and improved sanitation › Provides an increased level of service and engages community and private sector › Improves sanitation and flood and surface water management ability.

› Funding: IFI/ Donor Finance › aspects:generatingRevenue valuable waste streams to metals,segregatedbee.g.plastic › Encourage landfillvolumethereforerecyclables,segregationsource-(residual,organic)reducingofwasteto

› Employ local SME’s for waste services

Short term / Ongoing Case DevelopingStudy

Source: Waste Pickers Alliance, Uganda

›

an Integrated Waste Management System (Kampala, Uganda) In Kampala, Uganda, the development of an integrated waste system was prompted by the lack of formalisation in the waste sector. Much of the waste was disposed informally by dumping, burning or burying. Only 55% of the city’s solid waste was officially collected and transported to the city’s landfill by the Kampala Capital City Authority (KCCA). Several standalone Community Based Organisations (CBO) existed offering financial incentives to informal settlements for the collection of recyclable materials, however, the KCCA were not aware of many of these organisations.

DEVELOPMENT FRAMEWORK 121

› Launch

›

› Provide

Challenges Addressing Challenges/Gaps Time Frame No formal recycling in place Current systems in place for collecting and sorting waste by informal sector (waste pickers) do not comply with appropriate health and safety standards Current capacity of system unable to serve future community needs and waste quantities. Very low levels containerisationofof wastes deposited for collection causing nuisance and negative health and environmental impacts Waste generation and compositional study to identify how many collection vehicles would be required funding for new collection infrastructure adequate training and support systems infrastructureexisting public awareness campaign

› Obtain

› Convert

The KCCA developed a new Kampala City Integrated Waste Management System to improve the collection, transportation and treatment of the city’s waste and incorporate the informal sector (predominately the landfill pickers and CBOs) as part of an integrated approach across the waste management value chain.

As a result of the Integrated Waste Management System, a strategy was developed to identify, inform and consult stakeholders; clear objectives and measurable targets for education and knowledge sharing were created; activities were undertaken to educate waste pickers; a new contract was developed to ensure that new landfill operators would formally integrate registered waste pickers; and CBOs were encouraged to form partnerships with the KCCA in order make the System more integrated.

›

A number of other factors also impact on the ability of cities to respond to risks and development needs. These include the skills available in the workforce and within the municipal authorities, an effective and transparent governance structure, issues shaped by national and regional economic policies and dynamics, as well as access to global financial markets and the global governance of environmental issues.

IMPLEMENTATION PLAN 123

It will be critical to identify potential risks to the implementation of the UEP, including risks and impacts from the current Covid 19 crisis or other external shocks, as well as increasing stresses from the effects of climate change. This will need to be a continuous process of reviewing identified risks starting from planning and design to implementation stages. The proposed UEP and projects within the Development Framework have considered the existing and emerging economic and urban context including institutional and financial capacity of the county and Municipality. The following key themes will support the implementation of the UEP:

› Sequencing: it is very important to initiate infrastructure development carefully and strategically to lead and signal the optimum development direction for Kathwana. This includes the development of the Eco-Industrial Park to kick-start economic growth and the development of the Urban Core as a starting point for a town centre.

Effective urban and economic planning by strong, empowered city governments is critical to the success of cities in responding to current and future challenges. The city government’s central role in the coordination of actors that shape urban development and economic growth is becoming even more important as governments are required to address increasingly complex challenges. Planning plays a critical role in directing and controlling land use, urban form, infrastructure and service delivery as well ensuring resilience of the urban system.

› Building on existing eco-systems: Even though Kathwana is largely a green field development, it is not planned on a clear slate. It is important that new development in Kathwana is well integrated with the existing local economy so that the local population can benefit from the expected growth. The VCs outlined in section 4 supported by the produce collection aggregation model outlined in Sections 3 and 5 link small scale farmers in Kathwana to agricultural value addition businesses making local farmers an integral part of economic growth in the Municipality leading to improved livelihoods.

IMPLEMENTATION PLAN

› Incremental Upgrades: Infrastructure investments that are phased in relation to population growth allow for incremental improvements that remain affordable for the local population. For example, while a centralised sewerage system is a long-term goal for Kathwana, it is too expensive for its current population size. Therefore, in the short and medium-term it is recommended to improve the Municipality’s existing decentralised sanitation system and upgrade this continuously as the population grows. This approach allows population, economic activity and service provision to develop hand in hand.

› Integrated approach: there is inherent disconnect between spatial planning, economic planning, infrastructure plans and investment planning decisions which creates risks for high impact development and is exacerbated by ‘silo’ thinking and lack of capacity at the local level. Better vertical and horizontal governance will ensure that all issues are considered, and appropriate decisions are taken. Establishment of working groups or zonal authority could facilitate integrative thinking and improved coordination as well as providing a platform for stakeholder engagement within the process.

The following sections discuss some of the relevant considerations in further detail.

6.1 Partners & Institutional Structures

The strength of urban governance is one of the biggest issues affecting the ability of cities to respond to major economic and environmental challenges. There are two different aspects of multi-level governance: 1. Vertical governance which refers to the strength of coordination across multiple levels of government at national, regional and city levels, and 2. Horizontal governance referring to the coordination of activities across different sectors of society from local governments to the private sector, civil society and grassroots organisations Vertical governance recommendations Kathwana Municipality and the various departments of the Municipality maintain good relations with the county government and various, frictionless communication channels exist vertically. Nonetheless, the Municipality should maintain regular communication (e.g. Periodic meetings and/or reporting) to keep the County government appraised of progress and developments on SUED projects and to ensure that efforts are coordinated across Tharaka Nithi. Failure to put such structures and processes in place will cause significant delays in project formulation and implementation along with direct impacts on the future

124 KATHWANA URBAN ECONOMIC PLAN role out of supporting climate resilient infrastructure and their associated costs. Horizontal governance recommendations The following are likely to support the effective implementation of the UEP:

It is important to note that these costs do not include various costs items including land acquisition, design and planning (unless stated, where this could reflect 10-30% of the Capex costs). Inflation and optimism bias have not been included at this stage, where this would uplift the cost estimates. There will also be often sizeable operational expenditure which will need to be factored in.

› Thematic working groups: Kathwana Municipality should establish project teams drawn from representatives from government and community stakeholders to develop particular actions and track implementation. These working groups and project teams would usefully report back to Kathwana Municipality on a quarterly basis. These groups could be formed around the key sectors and urban elements, such as: markets and trade, Municipality services including the waste system, sustainable transport, land use and planning permissions.

At a Development Concept level, the project implementation is summarised as:

› Involvement of stakeholders in steering committees & working groups: Kathwana Municipal Board and a continued PSG should involve a broad range of stakeholders throughout the lifecycle of any SUED VC and infrastructure projects, sharing information and monitoring progress on intended outcomes for different stakeholders.

Sweet N’ Dry is a successful agri-processing business in Kathwana. As outlined in the sector action plan it is critical to build a partnership of support and collaboration with this business in order to strengthen Kathwana as a regional hub for food processing. 6.2 Implementation costs and potential funding sources Table 6.1 summarises the implementation costs and delivery for the VC and climate resilient and inclusive infrastructure projects across the three Focus Areas. Each project is considered by its sub-components; delivery partners and funding sources; capital costs and key cost elements; expected benefits to be realised; and timescale. This brings together the project information set out in Section 5.

The success of the milk and food processing VCs outlined in Section 4, depends on establishing close partnerships with suppliers of the required agricultural produce, food and milk. The produce collection aggregation model proposed in Sections 3 and 5 will support the VCs facilitating and formalising the relationship between value addition facilities and farmers. The produce collection model could either be managed entirely by a business to support sourcing of its raw materials or by an outsourced third-party agent supplying to manufacturers, retailers and markets. In Kenya, Twiga Foods is an example of a business that manages its aggregation. It has set up several collection centres across the country targeting small scale farmers and supplies to retailers and wholesalers in Nairobi city. The milk processing VC would further benefit from cooperating with existing dairy cooperatives, such as the Tharaka Goat Breeders Association. It is equally important to establish lasting partnerships with local, regional and international distributers to ensure successful marketing of the products. The milk processing VC should work closely with a Kenyan distributer for delivering UHT milk into the local market and for the export market with a large European retailer that provides inputs on product development and packaging, as well as volume offtake and logistical support. For the food processing VC, Betta Grains of Nairobi could be a good distribution partner for the local and regional market as they have a good fit with the product range. For the development of mixed food products, a partnership with an experienced producer, such as Ingredion, would be beneficial. The company is experienced in processing similar products and established one of their 28 Idea Lab innovation centres in Nairobi in 2018 which could support the long-term development of the hub both in terms of local and international markets.

Value Chain partners

› A mapping exercise should also be undertaken to identify the existing relationships and partnerships that exist at both Municipality and County level. Existing relationships with multilateral institutions, bilateral institutions, NGOs and think tanks can all be leveraged to support SUED projects. The mapping exercise will also be conducive to building greater coordination between the existing partnerships as well as identification of opportunities for partnerships with new and emerging entities. Some potential partnerships are set out below. Synergies with other development programmes National government, IFIs, multilateral institutions and NGOs have ongoing programmes within Tharaka Nithi County which will provide synergy with the SUED programme and potential for partnerships.

For instance, a number of irrigations schemes have been established in Tharaka Nithi funded by the County government and National government with support from donors like the International Fund for Agriculture Development - IFAD. The World Bank’s Kenya Urban Support Programme (KUSP) could provide an important partnership, supporting proposed urban improvements. For the development of affordable housing, cooperation with the the GoK Affordable Housing Programme is envisioned which provides an opportunity to engage in the development of housing and supporting infrastructure.

In terms of the funding scale between private (/PPP), public and other sources, the following is provisionally estimated:

Focus Area 2 CAPEX: KES 547 million Wider Municipality CAPEX: KES 734 million

Immediate-term CAPEX: KES 184 million

Short-term CAPEX: KES 27,465 million

Focus Area 1 CAPEX: 50% public sector led (County, CGoK, providers), 25% private and PPP, 25% donor funding

In terms of the cost scale over time, the following breakdown is estimated given the individual project schedules:

Table 6.1 - Implementation Costs

Focus Area 2 CAPEX: 27% public sector led, 58% private and PPP, 15% donor funding VC CAPEX: Milkprocessing VC: PPP Food Processing Hub: donor funded and PPP Whole CAPEX: 30% public sector led, 50% private and PPP, 20% donor

IMPLEMENTATION PLAN 125

Total estimated CAPEX for the UEP Development Framework: Focus Area 1 CAPEX: KES 9,899 million VC CAPEX: KES 440 million

Medium to long-term CAPEX: KES 767 million

126 KATHWANA URBAN ECONOMIC PLAN Table 6.2 - Costing overview Title Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits Timescale

› Raising the potential for stock improvements through the link with the Livestock Improvement Centre.

› Estimated that the project will create 60 full-time employees in the first phase, with high potential for employing special interest groups (SIGs).

Focus Area 1: Eco-Industrial Park VC: processingMilkDevelopment of a Milkprocessing Plant for Cow and goat milk focused on long life products, including UHT milk and cheese Private Public Partnerships (PPP), Cooperatives (such as Tharaka Goat Breeders Association), regional and international distributor and retailer For Milk processing, the total investment required is estimated at KES 180 to KES 200 million. Over one third the investment costs are for machinery and vehicles, with around 20% for buildings and site preparation, some 15% covers working capital and the remainder for training and marketing.

› Supporting investment in fodder production, abattoir and tannery.

Short-term to mid-term

› Supporting for expansion in milk production › Reducing spoilage and improving product quality

› Increase resilience of livestock farmers and contribute to poverty alleviation through reducing losses and providing access to a stable market for their produce.

› Environmental benefits include support to pastoral farmers, low levels of water usage and low levels of waste or pollutants produced.

Other capital costs cover initial training and marketing.

ParkEco-Industrial

› Masterplan to be developed for the Focus area 1:EcoIndustrial Park

› Network SuDS(water,power,infrastructuresanitation,ICT, › Blue & Green Infrastructure

Private Public Partnership › KES 8,122,000,000 inclusive of premises required for the proposed VC projects

› Enhances the local economy and employment generation through the provision of modern manufacturing space,and mixed-use amenities

› Opportunity for immediate investment and development -Contribute to a polycentric territorial development Short-term

› Creating up to 200 fulltime employees in the first phase, with high potential for employing special interest groups (SIGs) and people with disabilities (PWDs). › Reducing post-harvest losses; › Establishing a food processing hub that could be expanded in line with produce supplies and markets. › Supporting investment in irrigation and expansions in production in a wide range of crops, through stable offtake and prices.

› Providing a range of shelf-stable foods, enhancing food security › Enhancing Kathwana as a market centre Short-term to mid-term

Title Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits Timescale VC: HubProcessingFoodA single hub for processing a range of fruit, vegetables and grains, combining common collection, processing, packaging, storage, finance and marketing to produce competitively priced food for consumers and industry.

IMPLEMENTATION PLAN 127

IFI/ Donor Finance, Private Public Partnership (PPP) Existing processors such as Sweet n Dry, Local distribution partner, Technical and export partner

Timescale Waste: New SiteManagementWaste

Short-term Waste: Solid UpcyclingWaste

on-goingLong-term, Plastic recycling unit KES 3,200,000 Plastic pelletiser KES 190,000

Setting up new social enterprises/ engagement with existing ones Initial IFI/ Donor Finance, Introduction of PPP and / or private service contracts into waste collection effort Support from NGOs, community groups. Use of local SME’s for waste services KES 1,066,000 › Reduces the volume of material ending up as waste, reducing impacts on landfill › Increased formal employment in the waste sector through engagement with social enterprises › Potential to engage the local community and private sector and thereby raise public awareness on waste and recycling › Turns waste into a positive component of the town’s economy

128 KATHWANA URBAN ECONOMIC PLAN Title Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits

Construction of new engineered landfill cells IFI/ Donor Finance, Private Public Partnership (PPP) and/or private waste service provision Support from NGOs, community SMEsofMaintenanceorbyEmploymentgroups.andtrainingKathwanaMunicipalityprivateentity/CBOs.responsibilityMunicipality.Useoflocalforwasteservices

› Protection and improvement of natural resources (water, soil, forested areas and air) across the Municipality and consequently protection of public health › Employment generation potential including for youth, women › Revenue generation potential from waste stream use management including biogas generation (see below)

Plastic/carton shredder KES 1,100,000 Cardboard baler KES 350,000 Aluminium can shredder KES 1,300,000 Higher quality materials which can be sold to recycling brokers

KES 106,000,000 to KES 426,000,000

› Requirement to ensure affordability for lower income groups

Energy: Landfill biogas for cooking

› Reliable, resilient and green energy supply for the Municipality

› Employment generation potential › Revenue generation potential for the Municipality Short-term Development of procurement and deployment plan Maintenance plan

Title Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits Timescale

Detailed study of landfill to determine initial waste volumes and potential biogas outputs IFI/ Donor and/ or private finance Partnering with Municipality to coordinate and plan

KES3,000,000 initial feasibility

initialKESstudy25,000,000-50,000,000start-upcosts

› Reduction in greenhouse gas emissions and deforestation › Revenue generation potential

› Reduction in health incidents through improved indoor air quality by replacing wood/ charcoal/ kerosene

Energy: Utility energyrenewablescaleproject

IMPLEMENTATION PLAN 129

Detailed operation plan (incl. revenue collection, maintenance etc.)

Mid-to Long term, dependent on establishment of new relocationlandfillInitial program design (incl. operation plan, financial modelling, customer service Initialmodel)technical design Social and environmental analysis Development of implementation plan procurement (incl. procurement, deployment)

KES 15,000,000 to complete study/ design KES 850,000,0001,100,000,000 to complete installation

Complete initial feasibility study and outline design Private Finance Partner with the ecoindustrial park developer to coordinate activities and develop the energy Partneringpropositionwith renewable energy ofensurebuildingMaintenanceprocurementspecialiststechnologytodeterminesolutions-capacityprogrammetocontinuedoperationsystems

Partneringactivities with local/ regional solution providers to determine appropriate technical and commercial Maintenancesolutions - capacity building programme to ensure continued operation of systems

› Improved resilience against extreme weather events. › Improved land value › NMT facilities, walking and cycling mode, it will be providing an affordable, safe mode of transport for all workers and visitors

Annual Opex of the Collection Centre KES 400,000

Title Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits

Timescale Transport: New accessofupgradingopeningupgrade:roadsaccessandindustrialroads

130 KATHWANA URBAN ECONOMIC PLAN

Upgrade of 1 km of road from earth to bitumen Funding Partnering through Kenya National Government through the Kenya Rural Roads Authority (KeRRA) in Partnership with Tharaka Nithi PartneringCountywith Tharaka Nithi County to provide the Safety and NMT facilities Capex of upgrading 3.9km of road KES 45,300,000

Transport: InfrastructuressupportingCentresCollectionProductand

› Employment generation potential for youth, women and safeguarding livelihoods

Drainage facility provision C20 Annual Opex of drainage million KES 6,340,000 Capex of constructing sidewalks KES 45,300,000

› Eased access to the Kathwana and industrial cluster, including for PWDs

Develop a collection centre fitted with sorting, storage, loading and unloading and parking facilities Funding Partnering with Tharaka Nithi County for the delivery of the collection centres Partnering with Development Partners like DfID for delivery of collection centres Partnering with existing providers like Twiga Foods GradingLimited of feeder roads could be done by Tharaka Nithi County annual allocation Capex of the 2 Collection Centre KES 4,000,000

developmentinfrastructureenablingessentialImmediate-term

› Reduced logistics costs of sourcing products from smallscale farmers with wider positive impact through stabilisation of prices, avoidance of losses due to inadequate storing, and improved access to information

developmentinfrastructureenablingessentialImmediate-term,

NMT facilities provision Annual Opex of sidewalks KES 4,530,000

Annual Opex of the bitumen road KES 4,500,000 Capex of the drainage KES 63,400,000 million

maintenance

Focus

New exhauster service Public Sector Funding Kenya National Government through KeNHA and KURA in Partnership with Kisii County KES 22,022,000 safety in faecal sludge

Improve

New public toilets in the new market KES 154,154,000 access to sanitation services for all on construction and of septic tanks and latrines KES 3,146,000 awareness on safe sanitation processes among access to sanitation services for

VIP

Increase

resident › Increase

IMPLEMENTATION PLAN 131 Title Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits Timescale Energy: systemsrefrigerationSolar Mapping of ownership of all local livestock holdings and their product outputs, mapping of current distribution hubs and status of their product storage facilities IFI/ donor/ private finance (equipment, installation): Partner with regional/county government to coordinate Partneractivitieswith local agri/ livestock ofMaintenanceofensurebuildingMaintenanceappropriatespecialistsPartneringorganisationswithlocalsolutiontodeterminedeployment-capacityprogrammetocontinuedoperationsystems-responsibilityindividualfarmers KES11,250,000 based on max 15 AndsystemsKES6,000,000 for two hubs › Reduced spoilage of agricultural produce leading to higher revenues for small farmers › Employment opportunities for women Short-term Establishment of needs for solar refrigeration systems Preparation of design brief for refrigeration MaintenanceandDevelopmentsystemsofprocurementdeploymentplanplan

management 2-5achievableShort-term,inyears

all

› Raise

Training

Area 2: Development Core Sanitation: maintenanceandconstructionsystemssanitationonbuildingandpublicservices,ExhausterNewtoiletscapacityonsite

Design & development of bus terminus, with the incorporation of pedestrian facilities, drainage facilities, streetlighting, and vending spaces IFI / Donor finance (e.g. World bank) Partnering with Tharaka Nithi County Government through the Kathwana Municipality Partnering with Development Partners and IFIs Capex of constructing of the bus park KES 200,000,000 Annual Opex of the bus park KES 20,000,000

parkofDevelopinganewbus

› Facilitate accessibility of buses/ matatus for PWDs Short-term

› Increased footfall to support adjacent businesses and the local market.

implementationtermShort-tocoordination,toShort-termcompleteMid-tocomplete

Review current commercial and technical arrangements

Estimated total based on part coverage to new areas, part reworking of existing areas

› Improved safety and security especially for vulnerable groups.

› Increase of sustainable transport options i.e. public transport › Increase revenue Municipality/county.for

Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits Timescale

› Longer operational hours at market, increased economic activity

Transport:

132 KATHWANA URBAN ECONOMIC PLAN Title

Design a study to ensure suitable coverage of target area Equipment review and selection Development of a new commercial plan (procurement, deployment, maintenance)implementation,

KESactual:31,000,000 - 60,000,000

Energy: Streetlighting Review current implementation plan Public/ private finance Partnering with Municipality to coordinate and plan Partneringactivities with equipment specialists to determine appropriate technology

Maintenancesolutions capacity building programme to ensure continued operation of systems

› Support future growth and public transport demand increase associated with increased levels of urbanisation

Timescale

supplytheresilienceclimateofwaterintake

Transport:

› Increased safety and accessibility for pedestrians and PWDs.

Improve flood and climate resilience of the water supply intake

IFI / Donor finance and public funding IFI/County governments/ NGOs and governmentNational KES 26,741,000 Sustain water supply to Kathwana in a more reliable and consistent manner with resilience to climate change. Short-term

Wider Water:Municipality Improve flood and

parkofDevelopinganewbus

Walkway & Cycling (NMT) provision on both sides along 2km of streets IFI / Donor finance e.g. World bank through the Kenya Urban Support Programme (KUSP) Partnering with Tharaka Nithi County Government through Kathwana Municipality Capex of constructing of walkways and cycling lanes KES Annual45,000,000Opexof the NMT facilities KES 4,500,000 Capex of the drainag KES millionAnnual63,000,000OpexofdrainageKES6,300,000

IMPLEMENTATION PLAN 133

Title Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits

› Improved livelihood for street vendors › Reduced congestion and air quality › Improved street quality for public transport use

Short-term Drainage facility provision Traffic calming measures Vending activities

› Improved liveability from green infrastructure i.e. reduced urban heat and increased air quality.

Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits Timescale

134 KATHWANA URBAN ECONOMIC PLAN Title

Sanitation:

Water: Improve flood and

750m3 elevated steel tanks for Municipality storage reserve KES 78,650,000 › Increase water supply access and coverage. › Improve disaster preparedness.

supplytheresilienceclimateofwaterintake

Long term sewerage system and wastewater treatment plant KES 1,457,244,764 › Improve managementwastewaterinthe county

De-centralised sewage treatment facility IFI /Donor finance and public funding IFI/County governments/ NGOs and governmentNational KES 55,055,000 › Improve safety in faecal sludge management › Protecting soil and water quality and reducing health related risks Immediate 2-5projectsbutimmediately,achievabletmeasuresShort-termareLong-termmaytakeyears

› Enable and support long term Municipality growth plans

2500m3 Clear water tanks / storage at WTP IFI/ Donor finance and public funding IFI/County governments/ NGOs and governmentNational KES 62,920,000 Sustain water supply to Kathwana in a more reliable and consistent manner with resilience to climate change Long-term, 2 - 5 years Expand distributions systems & Fire hydrants KES 565,463,008

sewerscentralisedLong-termFacilityHandlingTermMediumSludgeandsystem

› Protecting soil and water quality and reducing health related risks Long-term

› Increase water supply access and coverage. › Improve disaster preparedness.

Irrigation to support potato farming and other crops linked the VC proposals

› Improving the financial sustainability of agriculture could provide significant improvements to the livelihoods of the local agriculture community and an expanding sector could lead to increased employment opportunities across the community

Establishment of needs for solar irrigation and borehole systems

IFI / Donor finance and public funding IFI/County governments/ NGOs and governmentNational KES 240,699,000

KES 225,000,000 based on max 3,000 systems

› Lower costs for farmers where current system is based on diesel generators or grid

Review of abstraction volumes from each borehole to ensure sustainability of water resources

Preparation of design brief for boreholes/ irrigation systems

› Improve water conservation capability of residents › Increase farmer output per unit of farm size Measures such as capacity building are immediately.achievable

Mapping of ownership of all local agricultural and livestock holdings and their irrigation needs, current status of their irrigation facilities

› Consistent service provision for farmers with no powered irrigation

IFI / Donor/ private finance Partner with regional/ county government to coordinate Partneractivitieswith local agri/ livestock ofMaintenanceofensurebuildingMaintenancedetermineequipmentPartneringorganisationswithlocalspecialiststosolutions.-capacityprogrammetocontinuedoperationsystems.-responsibilityindividualfarmers

› Reduced carbon emissions associated with agricultural sector

Title Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits Timescale

Viability study into rainwater harvesting and conservation agriculture KES 22,808,500 › Improve water conservation capability of residents › Increase in water conservation capacity in the catchments

Short-term

Energy: Solar systemsirrigation

› Improve access to water supply among residents Long projects-termmay take 2-5 years

Water: Irrigation and harvestingrainwater

Development of procurement and deployment plan Maintenance plan

Funding (eqpt, installation):

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CountyandeastconnectionKathwana’stomajorUpgradingroadsenhancetoregionKitui

Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits

Upgrade of 65km of road from earth to bitumen IFI / Donor Finance (e.g. World bank) Partnering with the Kenya National Government through KeRRA and Tharaka Nithi PartneringCountywith Tharaka Nithi County to deliver the Safety and NMT facilities on the corridor Capex of upgrading the road KES Annual2,900,000,000Opexofthe bitumen road KES 296,000,000 Capex of the drainage KES 4,100,000,000 billion Annual Opex of drainage KES 22,600,000AnnualsidewalksCapex412,000,000ofconstructingKES226,000,000OpexofsidewalksKES

› Eased access to the industries › Better and safer pedestrian access › Improved land value Short-term Storm water drains provision NMT(130km)facilities provision

Upgraded waste collection system IFI/ Donor IntroductionFinance,ofPPP and/or private waste services into waste collection effort

136 KATHWANA URBAN ECONOMIC PLAN Title

› Protection and improvement of natural resources (water, soil, forested areas and air) across the Municipality and consequently protection of public health wasteandlandfillreducingrecyclables,source-segregationthrough(residual,organic)thereforevolumeofwastetoandimprovedsanitationreducedillegaldumpingof

› Employment generation potential including for youth, women › Higher quality materials which can be sold to recycling brokers

Support from NGOs, community groups, waste Fundingpickers for PPE, collection carts, training and wages for the CBOs, Maintenanceetcresponsibility of Municipal Government Employ local SME’s for waste services KES 5,300,000 to KES 10,600,000 million

› Revenue generating aspects: valuable waste streams to be segregated e.g. metals, plastic Short-term / on-going Transport:

Timescale Waste: SystemCollectionWasteIntegrated

Short-term Transport:

Development of a bridge with safe crossing provision C63 IFI / Donor Finance (e.g. World bank) Partnering with Kenya National Government through KeRRA and Tharaka Nithi County Capex of constructing the bridge KES 250,000,000 Annual Opex of the bridge KES 25,000,000

IMPLEMENTATION PLAN 137

Development of a bridge with safe crossing provision C63 IFI / Donor Finance (e.g. World bank) Partnering with National Government through KeRRA and County Government, Tharaka Nithi Capex of upgrading 85km road KES 3,900,000,000 Annual Opex of the bitumen road KES 385,000,000 Capex of the drainage KES KESofCapexKESAnnual5,400,000,000Opexofdrainage539,000,000ofconstructing10kmwalkwaysKES226,000,000AnnualOpexofsidewalks22,000,000

› Eased access to the Kathwana and industrial cluster › Better and safer pedestrian access › Improved land value Short-term

onSafeRiver(C359)-CiambyuonNewDevelopment:BridgebridgeMarimantiroadacrossTanaandCrossingsTanaRiver

› Eased access to regional markets like Kitui › Improved quality of life › Better and safer pedestrian access › Improved land value

Title Description & sub-components Delivery Partners & sources of funding Cost in KES Expected benefits Timescale Transport:

HighwayNairobiChukaincludingWestconnectionKathwana’stomajorUpgradingUpgrade:RoadroadsenhancetoRegionand-Meru

Incorporation of street features on key urban roads

Clear storage tank, water distribution improvement, Municipality water storage and fire hydrants

Project Immediate Short-term Medium Long-termto

Medium Term Sludge Handling Facility and Long-term centralised sewers system

Product Collection Centres and supporting Infrastructures

New Waste Management Site Solid Waste Upcycling Landfill biogas for cooking Utility scale renewable energy project

a new bus park

New access roads upgrade: opening and upgrading of industrial access roads

Eco-Industrial Park Milk FoodProcessingProcessing Hub Eco-Industrial Park

DevelopingStreetlightingof

138 KATHWANA URBAN ECONOMIC PLAN

Upgrading major roads to enhance Kathwana’s connection to east region and Kitui County Bridge Development: New bridge on Marimanti - Ciambyu road (C359) across River Tana and Safe Crossings on Tana River Road Upgrade: Upgrading major roads to enhance Kathwana’s connection to West Region including Chuka and Nairobi - Meru Highway

Table 6.3 - Timing Overview giving an overview of the sequencing of infrastructure proposals and VCs

Solar refrigeration systems

Development Core Area Affordable Housing New Exhauster services, public toilets and capacity building on onsite sanitation systems construction and maintenance

Wider Municipality Improve flood and climate resilience of the water supply intake

Solar irrigation systems

Management: Integrated Waste Collection System

6.3 Funding

› The VC and infrastructure projects have had climate change resilience actions embedded in their proposals, and further recommendations have been made, as Section 5 Focus Area project details. This will aid the projects in accessing funding by demonstrating their significant contribution to climate change actions.

The National Treasury is the Kenyan National Designated Authority (NDA) for the GCF and developed the Kenya National

funding could also be leveraged through initiatives such as businesses dedicating 1% of profits

PLAN 126 to corporate social responsibility (CSR) initiatives. Examples of projects could include tree planting, provision of or access to recreational facilities such as SuDS development. The World Bank’s Kenya Urban Support Programme (KUSP) has also been identified as potential funding support for some of the UEP projects, including the incorporation of street features on key urban roads. Private sector finance for a range of sectors is available in East Africa from both local and international sources. Existing investors in the region include impact investors, venture capitalists and private equity funds who are able to provide relevant instruments for the value chain projects such as equity, quasi-equity (mezzanine finance) or concessionary debt. Access to private finance will be contingent on the concrete demonstration of viable business models and strong governance structures. Projects will also benefit by blending in non-financial support in the form of social capital, such as volunteer efforts from the community. Actions to build social capital include mobilising community organisations and volunteers to be involved with the development and implementation of projects. The most successful mobilisation of human and social capital resources occurs for projects where there is a demonstrated, direct and visible relationship between the project and the future benefits for community and volunteer stakeholders. Examples of projects could include raising awareness campaigns for more efficient use of water and solid waste collection and management.

58 http://pubdocs.worldbank.org/en/222771436376720470/010-gcc-mdb-idfc-adaptation-common-principles.pdfIMPLEMENTATION

Climate change resilience funding Mobilising the scale of resources to address the identified climate change adaptation measures to be implemented and ensure that the selected VC and infrastructure projects are climate resilient, the counties need to consider the full spectrum of potential funding sources available.

IMPLEMENTATION PLAN 139

The investment experts as part of the SUED programme will develop feasibility studies for the proposed projects which will include estimated capital expenditure and operating expenditure requirements. It will likely be necessary to blend and combine a range of different sources of financial and non-financial support to meet the projects’ expenditure requirements. Careful consideration will have to be given to the differing eligibility criteria of the various sources in order to successfully structure blended finance arrangements. Grant funding can help improve the financial viability of projects which have significant, upfront capital expenditures, improving the overall investment appeal of a project and attracting additional private investment as a result. The proportion of grant finance of the total project finance amount should be carefully justified, as simply seeking a maximised grant finance proportion can seed doubts in the private sector about the long-term financial sustainability of the project. Grant funding is also available to less commercially viable projects with significant socio-economic or environmental benefits, particularly relating to climate change and resilience. They may also be focused on certain activities such as technical assistance in project preparation or capacity Philanthropicdevelopment.andNGOgrant

Presented below is a snapshot of the available climate change funds that cover climate adaptation and mitigation. It is important to note the following:

A comprehensive grasp of funding criteria as well as the different financial mechanisms and the extent to which they can be combined is important.

Existing guidance58 presents the following principles that need to be generally adhered to. The project activity must: › Include a statement of purpose or intent to address or improve climate resilience in order to differentiate between adaptation to current and future climate change and good development; › Set out a context of climate vulnerability (climate data, exposure and sensitivity), considering both the impacts from climate change as well as climate variability related risks, where the UEP Climate Vulnerability Assessment (Appendix D) provides important considerations here; › Link project activities to the context of climate vulnerability (e.g., socio-economic conditions and geographical location), reflecting only direct contributions to climate resilience. Global Funds Green Climate Fund (GCF): The GCF seeks to promote a paradigm shift to low emission and climate-resilient development, taking into account the needs of nations that are particularly vulnerable to climate change impacts including Africa and Small Island Developing States (SIDs). The GCF aims to deliver equal amounts of funding to mitigation and adaptation and its activities are aligned with the priorities of developing countries through the principle of country ownership. The financial instrument / delivery mechanism for the GCF is grants, loans, equity or guarantees.

› Successfully accessing resources from these funds depends on a good understanding of the funder’s perspective and procedures.

The Adaptation for Smallholder Agriculture Programme (ASAP): ASAP channels climate finance to smallholder farmers so they can access the information, tools and technologies that help build their resilience to climate change. ASAP is contributing to the drive of scaling-up successful ‘multiple-benefit’ approaches to increase agricultural output while simultaneously reducing vulnerability to climate-related risks and diversifying livelihoods. ASAP is the world’s largest climate change adaptation programme for smallholder farmers, and it is run by the International Fund for Agricultural Development (IFAD). Regional Funds

The Least Developed Countries Fund (LDCF): The LDCF was established to meet the adaptation needs of least developed countries (LDCs). Specifically, the LDCF has financed the preparation and implementation of National Adaptation Programs of Action (NAPAs) to identify priority adaptation actions for a country, based on existing information. The financial instrument / delivery mechanism used by the LDCF is grants. The Global Environment Facility (GEF) administers the LDCF and Operational Focal Points (OFPs) are responsible for coordination in country.

The Africa Climate Change Fund (ACCF): the ACCF aims to support African countries transition to climate resilient and low carbon mode of development, as well as scale-up their access to climate finance.

The Kenya County Climate Change Fund (CCCF) Mechanism: These improve a counties readiness to access and disburse national and global climate finance to support community-prioritised investments to build climate resilience, five counties have so far established CCCFs. The CCCFs are aligned with national priorities set out in Kenya’s National Adaptation Plan (NAP) and enable these county governments to strengthen and reinforce national climate change policies while delivering on local adaptation priorities. The expansion of the CCCF across the country is one of the priorities in the Kenya National Climate Change Action Plan, 2018-2022.

140 KATHWANA URBAN ECONOMIC PLAN Green Climate Fund (GCF) Strategy59 which has a vision to increase financial flow from the GCF for a climate-resilient society and low-carbon economy. The Strategy identifies County governments as critical co-financiers who can take the role of Executing Entities and/or Implementing Entities of climate resilient and low-carbon initiatives. The Strategy provides a roadmap for stakeholders in harnessing resources from the GCF.

County Mechanisms

The Ministry of Environment and Forestry is Kenya’s GEF Operational Focal Point.

The ACCF serves as a catalyst with a scope broad enough to cover a wide range of climate-resilient and low-carbon activities across all sectors. Priority for funding is given to the following themes; supporting small-scale or pilot adaptation initiatives to build resilience of vulnerable communities; and supporting direct access to climate finance. The ACCF gives grants and launches calls for proposals periodically.

The Special Climate Change Fund (SCCF):

The Adaptation Fund: The AF finances projects and programmes that help vulnerable communities in developing countries adapt to climate change. Initiatives are based on country needs, views and priorities. The financial instrument / delivery mechanism used by the Adaptation Fund is grants. NEMA is the National Implementing Entity (NIE) for Adaptation Fund in Kenya.

59 The Kenya National Green Climate Fund (GCF) Strategy https://www.gcfreadinessprogramme.org/sites/default/files/GCF%20Coordination%20Strategy%20Report.pdf

The SCCF was established to address the specific needs of developing countries under the UNFCCC with respect to covering incremental costs of interventions to address climate change relative to a development baseline. Adaptation to climate change is the top priority of the SCCF and in addition to this, it finances projects relating to technology transfer and capacity building in the energy, transport, industry, agriculture, forestry and waste management sectors. The SCCF is administered by the GEF and its financial instrument/delivery mechanism is grants.

The Ministry of Environment and Forestry is Kenya’s GEF Operational Focal Point. The Pilot Program for Climate Resilience (PPCR): The PPCR provides funding for climate change adaptation and resilience building. It aims to pilot and demonstrate ways in which climate risk and resilience may be integrated into core development planning and implementation by providing incentives for scaled-up action and initiating transformational change. It is a targeted program of the Strategic Climate Fund (SCF), which is one of two funds within the Climate Investment Funds (CIF) framework. The financial instrument/ delivery mechanism for the PPCR is grants and loans. The CIF Secretariat is housed at the World Bank.

The Secretariat is housed at the African Development Bank. National Mechanism. The financing of climate action is anchored on the Kenyan constitution. The Climate Change Act, 2016 requires that deliberate Climate Change considerations are made to ensure mainstreaming in all government plans, policies and programmes, resulting into inbuilt public climate financing of all sectors of the economy. The Climate Change Act, 2016 further created a Climate Change Fund to facilitate climate action. The National Treasury is the National Designated Authority (NDA) for climate finance in Kenya and oversees the implementing entities for various climate finance streams.

It is recommended that the climate resilient and inclusive infrastructure SUED projects are used to drive a capacity building exercise across Tharaka Nithi County in advance of implementation and that the CCCF can be a potential source of funding for these and other adaptation measures.

Recommendations for Capacity Building

c. Develops a Gender and Social Inclusion monitoring framework - This will measure social inclusion progress throughout the UEP’s life. Some of the aspects to be checked include and are not limited to: number of SIGs invited to the Programme’s workshops; number of SIGs recruited into the Programme’s capacity building initiatives; number of SIGs employed by the Programme; level of inclusivity in the VC projects; inclusivity in climate adaptation and resilience approaches proposed for the Programme; attitudinal changes (if any) in the Programme stakeholders’ perspectives after social inclusion workshops etc.; Gender and Inclusion Needs Awareness Level; inclusive infrastructure proposals delivered by

Several areas are recommended for capacity building for the UEP implementation, with Municipality and departmental upskilling alongside partnerships and institutional structuring. These would support the effective and integrated approach to sustainable and inclusive economic sector development; infrastructure delivery, operation and maintenance; and climate resilience future proofing development. Project implementation Capacity building in project preparation, project management and delivery and maintenance from the Municipality, particularly when it comes to revenue generating activities and how to ensure revenue is received and used, is recommended. Working with the private sector for the delivery of urban services and projects is increasing in importance and requires knowledge and skills to support effective implementation of market driven solutions including PPP mechanism.

It is recommended that the Programme: a. Establishes a Gender and Social Inclusion Implementation Unit. The Unit will be responsible for ensuring the inclusion proposals in this UEP are implemented; there is appropriate coordination between the agencies and jurisdictions involved in inclusivity implementation; and the measures (including technical assistance) needed to strengthen the Municipality’s capacity to foster inclusion are delivered; b. Performs more Gender and Social Inclusion Capacity DevelopmentIn addition to the inclusion awareness presentations delivered during the UEP development process, all UEP players will need education on what inclusivity is, why it's important and how to achieve it in their areas, so that non-discrimination becomes part of the Programme’s culture and beyond;

The UEP promotes an integrated approach to development and there is a need to ensure silo thinking is removed from planning and delivery. This enables understanding of what needs to come first in the development process, and the wider dependencies and synergies. Covid-19 lessons Strengthening preparedness and emergency response capacity is critical. This means better preparedness in terms of financing, service delivery and business continuity including budgeting for future crises, emergency operations centres, capacity building, drills, and human resources redeployment plans. This capacity building is recommended for Kathwana Municipality, where a cross-sector taskforce would be a recommended structure.

IMPLEMENTATION PLAN 141

6.4

Data and digital tools Effective data gathering and analysis will support the monitoring of strategic objectives for the Municipality, including UEP project implementation, where capturing stakeholder information can be a key element of this. Data management of Municipality services, such as waste management, public transport service and open space maintenance, will support the Municipality in responding to its resident and business needs as well as monitoring the impact of these services. It is also recommended that digital platforms be developed, with business and community involvement, to better coordinate and deliver in the first instance, boda boda services and support online trading and supply chain linkages. Climate resilience It will be important for the Municipality to develop understanding of climate change impacts across different sectors, exposure to risks and vulnerabilities. Such knowledge should be mainstreamed throughout services and projects to ensure resilience is imbedded. The capacity and capability to access available funds (set out in Section 6.3) should be improved.

Building capacity among key planners and decision-makers so that climate change can be more widely integrated into County sector and development plans will help ensure that climate risks are adequately considered, and that the Municipality is well positioned to identify any potential opportunities arising. Opportunities might take the form of attracting investment for climate resilient investment programmes, or proactively identifying and supporting new business ventures which respond to changing conditions and consumer demand. More specific recommendations provided further below in Section 6.6.

Social inclusion

It is recommended that the Municipality and its departments are supported in their understanding and upskilling around social inclusion, including Social Inclusion Awareness Creation for the Municipality and its stakeholders to embed a shift in attitudes and reduce discrimination. This is important to open up socio-economic opportunities and infrastructure and services to all groups, improving social cohesion and addressing the significant outcomes of exclusion. This capacity building with the Municipality would suitably support the better application of inclusive contracts such as the Access to Government Procurement Opportunities (AGPO) policy.

RecommendationsInclusivity

› Specifies the percentage of its jobs and capacity development opportunities that should be reserved for qualified excluded groups. This can be done through an inclusion targeting policy.

The economic dimension of inclusion

› Establishes strong collaboration measures among the various stakeholders in the food processing hub value chain. These will include small holder farmers supplying the produce, collection system players e.g. in transport, agribusinesses stakeholders, consumers as well as regulatory government bodies. This will ensure sustainable returns for the hub, direct and indirect job creation, an improved food supply, a strengthened tax base and a lighter environmental footprint of food production and distribution; all of which are key to reducing poverty.

Economic opportunities and Value Chains

› Implements the inclusive, climate resilient infrastructure proposals made in this UEP. The proposed infrastructure projects are key to supporting the VCs’ performance and the general socioeconomic welfare of the Municipality and its residents;

To ensure the Programme achieves its UEP goal of promoting enterprise development activities that enhance the employability of marginalised populations, everyone’s participation in the UEP development and implementation activities, and shared benefits across the Municipality, the following is recommended for inclusion across a 3-dimensional approach: The social dimension of inclusion This refers to the fundamental principles of rights, dignity, equity and security for all, and it seeks to address attitudinal and information barriers to inclusion. The Programme shall continually implement inclusive stakeholder engagement which will include: › Ensuring participation of all including the youth, PWDs, and women in the UEP’s planning, development, implementation and monitoring phases, and related activities; › Applying pro -excluded groups and pro-poor engagement methods to reach out to excluded groups in subsequent phases of the UEP, and the entire Programme. This will ensure excluded groups that would be shy to contribute meaningfully in regular engagement fora get a chance to meaningfully participate in decision making;

This dimension focuses on provision of economic opportunities for all. It emphasises the ability of all, including the most marginalised, to contribute to the economy and to share in the benefits of economic growth. To achieve economic inclusion, the Programme shall ensure that it:

› Provides capacity development initiatives that are tailored around Kathwana’s VC Projects. This will ensure trained persons are absorbed in the VC projects during implementation for optimum job creation;

› Implements the inclusive, climate adaptation approaches suggested in this UEP. These are supposed to be affordable to Kathwana residents and adaptable to the local conditions.

6.5

› Developing a blind,available,developmentcoulddecisionareceivecommunicationSIGs-appropriateplantoensuretheyProgrammeinformationintimelymannerandareinvolvedinmaking.SuchinformationincludekeyUEPdates,capacityandjobopportunitiescustomisedforaccessbythedeafandotherPWDs.

› Develops ways of improving finance access for smallholder participants of all gender, age groups and (dis)ability across the milk pressing value chain. This could be for instance through facilitating linkages with pro-women, pro-youth and pro-PWDs micro-credit programmes or organisations that can support SIGs’ investments in the value chain. Youth and Persons with Disability contacted reported lack of capital as one of the main hindrances to their participation in this value chain; › Sells the business case of inclusive supply chains to the milk processing value chain stakeholders. In most cases, milk processors, supermarkets and hotels play the lead role in this value chain. Raising their awareness through arguments on the business and human case of supporting women’s, PWD’s and youth’s participation in the milk processing chain can yield self-sustaining inclusivity impacts. An example of this could be including inclusivity targets as part of the minimum requirements for recruiting milk supply bases;

142 KATHWANA URBAN ECONOMIC PLAN the Programme; Inclusion Awareness workshops delivered by the Programme, overall inclusion and poverty reduction impact achieved etc.

Where these are not affordable, funding measures like subsidies by collaborating with the government are proposed to avoid creating climate induced exclusion in Kathwana;

The Sector Action Plans (Section 4.2) present recommendations around institutional structures and capacity to successfully develop the key sectors and realise the opportunity from the VC projects. An Agri-industrial board is recommended to build cross-sector understanding on the processing ecosystem, markets and export promotion, as well as track strategic objectives. Capacity building for the Sector Action Plans incorporates the County’s educational facilities, the County Government and Municipality, the business community, local community and sectoral partners, where a business incubator is aspired to as local capacity is built.

Provision of this threshold will make it possible to achieve and monitor progress as what gets measured gets done;

IMPLEMENTATION PLAN 143

The spatial dimension of inclusion

6.6 Recommendations for Climate Change and Resilience

The projects outlined in this report will help to strengthen the resilience of the Municipality to climate change, but much more will be needed, both in terms of infrastructure investment, and strengthening institutional capacity, to ensure that the city can reach its goals despite challenging climate conditions. 60 http://tharakanithica.go.ke/wp-content/uploads/2020/03/climate-Change-Fund-Bill-2019-report.pdf

The 2019 County Climate Change Bill60 aims to establish a fund that can be used to finance key climate change activities in the County and provides the legislative framework to coordinate activities on climate adaptation and mitigation in Tharaka Nithi. The Fund could provide a key mechanism for financing the adaptation measures needed to allow Kathwana to become a climate resilient Municipality, as well as providing a mechanism to ensure strong community participation in planning adaptation and ensure that currently disadvantaged groups are included in the decision-making process. Ensuring that the Fund has strong enough financial and technical capacity to function effectively is an important part of building climate resilience in the county. In particular we recommend a targeted programme of capacity-building is delivered to help attract additional climate finance resources for the Fund. Water availability is the overarching climate resilience issue for the county. The management of water resources, however, requires coordination between multiple counties covering the catchments upstream from Tharaka Nithi. There are significant climate resilience benefits that could be achieved through improved catchment management measures, with water sensitive land management in the upper catchments helping to both reduce flood risk, and increase the quality and quantity of water available downstream in counties such as Tharaka Nithi. An integrated catchment management plan which actively considers a range of possible climate scenarios, and plans a series of interventions accordingly could significantly enhance the resilience of the county and its neighbours. This could include piloting Payment for Ecosystem Services projects, where upstream landowners are paid for good environmental practices by downstream beneficiaries, such as municipal water Itcompanies.isclearthat a climate resilient agricultural sector will be essential both for driving growth in the county, as well as improving livelihoods and reducing poverty. There are several key actions that are key prerequisites for a resilient agricultural sector:

› Training programmes on Climate Smart Agriculture; › Improved access to seasonal and 10-day forecasts; › Increased awareness of appropriate insurance products (e.g weather-based index insurance for livestock); › More efficient use of water resources, including rainwater harvesting, soil conservation techniques, less water intensive crops. Irrigation may be appropriate in some areas, however, schemes need to be stress-tested against potentially hotter and drier conditions to ensure they remain viable. Critically, these will need to be planned and sequenced in a coordinated way. The creation of a climate resilient agriculture policy, building on existing county agricultural plans, and national policies such as the Kenya Climate Smart Agriculture Strategy (2017-2026), could help to coordinate these efforts and build institutional capacity on climate resilient agriculture. 6.7 Next Steps Following the completion of the UEP, during the next phase of the SUED Programme the identified value chain and climate resilient infrastructure projects will be developed further forward by: Capacity building specialists to help: › enhance municipal and local capacity to implement the identified projects, and › enable revenue generation to ensure financial sustainability beyond the programme Investment experts to help: › develop feasibility studies and business cases for specific projects to establish their bankability, and › develop investment promotion strategies to draw in investment (including seed financing through the programme) Investment climate advisers: › will help remove or amend policy and regulatory constraints to private sector led urban development and growth

This is the cornerstone of inclusion in urban areas and it focuses on equal access to housing, infrastructure and basic public services whose main aim is to upgrade the quality of living environment in the ForMunicipality.eachofthe UEP’s climate resilient infrastructure projects, inclusion proposals that enhance benefits to the community have been made e.g. adaptation of humancentric designs to ensure access by all but especially by Persons with Disability; street lighting to promote everyone’s safety especially women, and Persons with Disability; creation of green urban spaces to improve urban aesthetics and the quality of life; formalisation of waste management systems to improve the environment and create jobs; and improvement of water and sanitation access to support VCs, improve hygiene and human dignity.

Kathwana Urban Economic Plan

Articles inside

6.5 Inclusivity Recommendations

6.4 Recommendations for Capacity Building

1.5. Climate change, social exclusion and poverty

3.3 Key Components of the Development Concept

6.3 Funding

5 Development Framework

6.2. Implementation costs and potential funding sources

Executive Summary

3.2. Visioning exercise

1.6 Structure of this report