PRESS RELEASE, Monday 13th, May 2024
RELEASE OF KSH. 1,125 BILLION FOR COUNTY AGGREGATION & INDUSTRIAL PARKS
I have an important message to share with Kenyans. It is about the release of Ksh. 1,125 billion for County Aggregation and Industrial Parks, popularly referred to as CAIPs by the National Government. This welcome shot in the arm for CAIPs will spur economic growth in the counties and rekindle the momentum of one of Kenya’s most revolutionary post-independent pro-people projects.
For context, the establishment of CAIPswas borne of the realisation that each of Kenya’s 47 counties has a competitive edge whose fuller economic dividend can only accrue if our focus is on the grassroots. The hitherto one-size-fits-all approach applied in gleaning the economic potential of Kenya’s diverse regional dominions denied us the sharper focus required in drawing the rarest value from each of our now officially devolved entities. In sum, the main objective of CAIPs is to grow manufacturing and agro-industrial investments and enhance the competitiveness of the agriculture sector in a sustainable manner hence creating inclusive and decent jobs, promote productivity at the farm level, increase farmers’ income, increase export, increase foreign exchange and ultimately grow our economy by providing a platform for stakeholders’ engagement in promoting industrialisation in the country.
The spirit and letter of CAIPs is tattooed in Vision 2030 whose intent seeks to transform Kenyain to an industrialised middle-income economy offering a better quality of life to all her citizens. The Vision envisages a Kenya that can produce manufactured goods for consumption in eastern and central Africa besides making inroads to the global market. As a matter of fact, the manufacturing sector plays a key role in economic development and employment creation besides reducing poverty. Kenya’s huge agro-processing potential across counties renders CAIPs a high octane economic game-changer within the Bottom-up Economic Transformation Agenda (BETA) framework.
The Kenya Kwanza Plan aims at delivering economic turnaround and uplifting the lives and livelihoods of those at the bottom of our socio-economic pyramid through BETA. To achieve that goal, my ministry targets to raise the contribution of manufacturing to our GDP from the current 7% to 15% by 2027 and to 20% by 2030 while increasing exports from 10% of the GDP to 30% by the year 2025.
It is in this regard that my ministry, through the State Department for Industry,County Governments and the Council of Governors agreed to collaborate in the establishment of CAIPS. Envisioned in the Plan was growth of manufacturing through agro-industries and enhanced competitiveness in the agriculture sector that would then lead to the creation of jobs, increased income to farmers, earning of additional foreign exchange, promotion of new products, reduction of post-harvest losses and ultimately the provision of a reliable platform where farmers, processors, exporters, researchers, industrial entities and the Government would engage in agro-industrial development.
In the 2023/2024 Financial Year, the two levels of Government are implementing CAIPs in Migori, Mombasa, Busia, Meru, Bungoma, Kirinyaga, HomaBay, Machakos, Siaya, Kiambu, Murang’a, Trans Nzoia, Embu, Uasin-Gishu, Nandi, Nakuru and Garissa.
In response to Kenya Kwanza’s promise to honour CAIPs obligations, on Thursday the 9thof May 2024, Ksh. 1.125 billion was released by the National Government for the on-going phase one. Each County will receive Ksh. 62.5 million under tranche one.
Soon, my Ministry—in consultation with the Council of Governors and county-based implementation organs—will issue an expression of interest for the management of CAIPs in support of their operationalisation.
Thank you.
Rebecca Miano, EGH,
Cabinet Secretary, Ministry of Investments, Trade and Industry
