Investment Opportunities In Rumuruti
Rumuruti Investment Forum which will be taking place on February 26th 2021 presents exciting growth opportunities for engineering, agro-processing firms, hospitality and real estate sector.
The forum will provide a marketing platform for firms manufacturing inputs, farm machinery, irrigation kits and accessories and processing equipment.
In addition, it will enlighten farmers and business people on the business case for setting up manufacturing plants in Laikipia.
The main objective of the forum is to promote manufacturing of irrigation kits and accessories, farm equipment and value addition of high value produce in Rumuruti town. It will generate partnerships to accelerate attainment of the Governments goal to irrigate 50,000 acres and add value to at least 50% of the produce within Laikipia.
In its strategy, the County Government of Laikipia under the leadership of Governor Ndiritu Muriithi targets to grow its economy fourfold from the current Ksh 100 billion to Ksh 400 billion by prioritizing manufacturing, commercial agriculture, tourism and mining as the key investment sectors.
Manufacturing is the anchor sector necessary to raise productivity per capita at farms and businesses, increase incomes per capita through value addition and accelerate higher utilization of local raw materials to produce tools, machines and inputs in Laikipia.
At this forum, the Government will present projects under the Water for Production initiative that offers partnerships to private sector to buy and process the produce under structured scheme.
The anchor partners are Nyahuwasco and Nawasvo the will manage water and irrigation infrastructure and collect the tarrifs from farmers to pay off the investment and maintain the irrigation system and water pans throught regular desilting.
The Department of Agriculture will advise farmers on appropriate agronomical practices. The farmers are supporting this initiative considering the benefits of lower irrigation costs, longer lifespan of water pans due to regular de-siltation, lower post-harvest management losses and value addition.
This initiative presents opportunities to engineering firms in the manufacture of irrigation kits and installation, post-harvest management and processing facilities adjacent to production areas. Availability of more than 2,000 acres of land in Rumuruti Municipality for a serviced Special Economic Zone (SEZ) and reliable energy source are important motivation to the investors.
Laikipia North TTI at Mouwarak presents engineering firms with another opportunity to access the latest models of lathe machines to fashion out components, accessories, tools and machine parts fast and in large quantities. The institution has advanced equipment to machine and make commonly used farm equipment, tools and accessories needed for irrigation and in other sectors.
The area around Rumuruti has many water pans with vibrant tomato and vegetable production businesses around them placing it among the top three tomatoes suppliers in the country.
Other popular horticultural crops for the local market are vegetables, pineapples, herbs, drying facilities, among others. This is an opportunity for producers, processors, packaging firms, refrigeration, specialized storage, bank, and agro-chemical firms to bet on Rumuruti.
All of them will be in the room. An expected outcome of this linkage is the signing of supply contracts by tomatoes and vegetables processing firms with farmers and establishment of processing plants at Rumurutis Special Economic Zone.
The County has in place innovative financing opportunities for transformative projects. Through the Laikipia Leasing Programmes, the County Government is accelerating development and maintenance of rural roads.
This is enhancing transportation of farm commodities to the market. In addition, the County Government has mobilized more than Kshs 3 billion for lending to SMEs under the economic stimulus programme.
It is also preparing to float an infrastructure bond to fund investment in the water pans/dams for irrigation and infrastructure for mid-size and large towns such as Rumuruti.
There are also immense opportunities in establishment of feedlots and beef processing in Rumuruti for both domestic and international markets.
The County Government through the Department of veterinary services are working to establish disease free compartments out of feedlots and ranches. A feasibility study and business plan for the integrated production, processing and distribution under the Laikipia Beef SPV is ready.
The Government has also undertaken analysis of affordable housing demand in Rumuruti, designated the land parcels, proposed house types/pricing options and an investment vehicle to partner with private sector. Investment in affordable housing is necessary to meet the demands of workers in Rumuruti and farms, as well as visitors. Rumuruti investment forum is the first in a series of focused for a that Laikipia will rum for key commercial centres and towns in Laikipia.
It is a build-up of the public sector modernization program that this Government has been undertaking to deliver services at the same level of quality and efficiency like the best run private sector firms.
Laikipias strategy is to go beyond enablers such as roads, markets and houses by hand-holding the farmers and business people to grow their enterprises for society to get a favourable return on investment in the infrastructure.
Since mid-2018, the Government has run a vibrant innovation and enterprise development programme to identify and support innovative enterprises to grow.
The lessons learnt and interest generated in the last three years are now being applied across all government departments, where enterprise development is the service delivery model. Beginning this financial year, all departments have identified businesses in their sectors to provide the necessary infrastructure and advise.
The frontline staff have been trained to become business development officers.
(Source: CGL E-Newsletter)