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REPUBLIC OF KENYA

THE LAIKIPIA COUNTY ASSEMBLY

REPORT

BY

TRADE, TOURISM AND COOPERATIVE

DEVELOPMENT COMMITTEE ON A NAKURU

BENCHMARKING VISIT BETWEEN 6TH

– 8TH

AUGUST, 2015

Dated: 5th

March, 2016

FORTH SESSION

Clerk’ Office

Laikipia County Assembly

Assembly Building

NANYUKI March, 2016

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Table of Contents Table of Figures ...................................................................................................................................... iii

PREFACE ................................................................................................................................................. iv

1.0 COMMITTEE’S MEMBERSHIP ...................................................................................................... 1

Mr. Speaker Sir, ....................................................................................................................................... 1

2.0 INTRODUCTION ........................................................................................................................... 2

Objectives of the visit.............................................................................................................................. 2

Position and Size of Nakuru County .................................................................................................... 2

3.0 COMMITTEE’S VISIT .................................................................................................................... 4

DAY ONE VISIT ......................................................................................................................................... 4

GEOTHERMAL DEVELOPMENT COMPANY .............................................................................................. 4

GDC’s Mandate ................................................................................................................................... 5

Menengai Geothermal Power Project ................................................................................................ 6

DAY TWO VISIT ........................................................................................................................................ 8

Visit to Markets ................................................................................................................................... 9

Visit to hawkers stalls........................................................................................................................ 11

Visit to curio shops ............................................................................................................................ 12

4.0 OBSERVATIONS ......................................................................................................................... 13

5.0 RECOMMENDATION ................................................................................................................. 14

6.0 ACKNOWLEDGEMENT ............................................................................................................... 15

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Table of Figures

Figure 1: Tree and fruit nurseries........................................................................................................... 7

Figure 2: Drilling of Borehole ongoing ................................................................................................... 7

Figure 3: The drilling of this borehole was completed and steam found to produce 30 megawarts.... 8

Figure 4: Chair, some members and one of the GDC Engineer ............................................................. 8

Figure 5: Storey market building in Nakuru Town ................................................................................. 9

Figure 6: Cereal stalls within the storey market. It allows free movement of air, customers and

goods ..................................................................................................................................................... 10

Figure 7: Wakulima /wholesale market shed with enough space to allow free flow of air, goods and

customers .............................................................................................................................................. 10

Figure 8: The sheds have enough area for storage .............................................................................. 11

Figure 9: Hawkers stalls ....................................................................................................................... 11

Figure 10: Hawkers in this market construct stalls for themselves ..................................................... 12

Figure 11: A row of curio shops ........................................................................................................... 12

Figure 12: The CAL committee chairman and CAN vice chair sharing with a curio trader .................. 13

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PREFACE

The Trade and Tourism Committee was constituted by the House on 24th

April 2014 pursuit

to provisions of Standing Order No. 191.

Under Standing Order No. 191 (5), this committee is permitted to investigate, inquire into,

and report all matters relating to its mandate, functions of the County Government, in regard

to trade, tourism and entrepreneur development. The mandate of the Trade, Tourism and

Cooperatives Committee shall be as follows:-

(i) Trade development and regulation including the markets;

(ii) Trade licenses;

(iii)Fair trading practices; and

(iv) Local tourism and cooperatives societies

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1.0 COMMITTEE’S MEMBERSHIP

According to Standing Order No. 157, the membership of a select committee shall consist

of an odd number of members being not less than five members.

The Committee was constituted by the House on 24th

April 2013.

The committee’s membership has been as follows:-

1 Hon. Michael Kinyua Chairman

2 Hon. Paul Lebeneiyo Vice Chairman

3 Hon. Jacob Endom Member

4 Hon. Jane Meshami Member

5 Hon. Rose Maitai Member

Mr. Speaker Sir,

During the year 2015, the committee saw the need to benchmark with Nakuru County to

observe and learn on the best practices inorder to improve on the oversight role of the

committee. It is for this reason that the committee undertook the visit between 6th

– 8th

August, 2015.

It is therefore my pleasure to present and commend this report to the House for adoption.

…………………………………………………………………………………

HON. MICHAEL KINYUA, CHAIR

TRADE, TOURISM AND COOPERATIVE COMMITTEE

Date: ………………………

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2.0 INTRODUCTION

The Trade, Tourism and Cooperatives Committee visited Nakuru County between 6th

– 8th

August, 2015 to benchmark with its counterpart committee on the best practices that make

the county thrive and the challenges affecting them and how best the challenges are solved.

Objectives of the visit

1. To share best practices and challenges faced by the two committees in the attempt to

perform their mandate

2. To benchmark and see if Laikipia can produce geothermal power which in turn will

enable the manufacturers operate a twenty four hour economy

3. To visit markets and stalls

Position and Size of Nakuru County

Nakuru County is one of the 47 counties of the Republic of Kenya provided in the

Constitution of Kenya 2010. The county lies within the Great Rift Valley and borders eight

other counties namely; Kericho and Bomet to the west, Baringo and Laikipia to the north,

Nyandarua to the east, Narok to the south-west and Kajiado and Kiambu to the south. The

county covers an area of 7,495.1 Km² whereas Laikipia covers 9,462 km2 with a population

size of 427,000.

Attractions and places of interest

Tourist attractions in Nakuru County include Lake Nakuru National Park, Lake Naivasha,

Hell’s Gate National Park and Menengai Crater. Laikipia has many opportunitie but not

development apart from Nyahururu Thompson Falls which is not fully developed.

Lake Nakuru National Park, situated just 4km from Nakuru town, is one of Kenya’s most

popular tourist destinations. The park’s ecosystem, which comprises Lake Nakuru and

surrounding grasslands, supports over 50 species of mammals including white rhino and

about 450 species of birds including flamingos.

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Located just outside Naivasha town, Lake Naivasha draws a huge array of wildlife to its

shores – including buffalo, giraffes and hippos. The lake offers excellent wildlife viewing

opportunities. With over 350 species of birds, Lake Naivasha is a great birding destination.

Hell’s Gate National Park, which is situated beside Lake Naivasha, is ideal for rock climbing

and biking. The park supports a thriving population of wildlife, including cheetahs, leopards

and lions. The 2,490 meters-high Menengai Crater, which is located 10km north of Nakuru, is

the world’s second largest surviving volcanic crater covering 90 sq km.

Although the above facilities are under the national government, both local and international

tourist flop the town and benefit the local hotels through accommodation and shopping from

the local shops especially curio shops.

County Revenue Source

The major source of revenue is exchequer release from the national treasury which accounted

for 78.9% followed by local revenue source with 15.6 %. Revenue collected as appropriation

in aid accounted for 5.12% while donor funding accounted for only 0.27% of the total

revenue in the Financial Year 2014/2015.

Functions of the Ministry of Trade, Industrialization, Tourism and Wildlife

Management include:

1. Verification of weighing & measuring instruments.

2. Inspection of weighing and measuring instruments.

3. Inspection of pre-packed goods

4. Investigations of complaints related to unfair trade practices

5. Prosecution of offence arising from unfair trade practices

6. Development of markets & promotion

7. Trade Licensing: Liquour licensing, Betting & Control services.

8. Trade development policies

9. Development of the Industrialization policy

10. County private sector development strategy

11. Quality control including Industrial standards.

12. Leather development

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13. Establishment of Industrial parks & management.

14. Small and medium enterprise training

15. Development of Micro & small business enterprise.

16. Development of County Tourism policy

17. Management & promotion of County tourism

18. Promotion of co-operative societies

19. Processing of application for registration of Co-operatives

20. Inspections & investigation Co-operatives

21. Training needs assessment for co-operative market

22. Market information dissemination and advisory services

23. Banking inspections local savings and credit cooperative societies.

24. Risk assessment in savings and credit cooperative societies

25. Investment advisory services

26. Co-ordination and monitoring of co-operative indemnity by co-operative leaders

27. Promotion of co-operative ventures and innovations for local cooperatives.

28. Carrying out certification audits

29. Carrying out continuous and compliance audits

30. Co-operative advisory services

31. Pre-cooperative education

32. Settlement of disputes (arbitration).

33. Registration of co-operative society audited accounts.

3.0 COMMITTEE’S VISIT

DAY ONE VISIT

The Committee met with the trade, tourism and cooperative committee from Nakuru County

and they were taken to Geothermal Development Company (G.D.C)-Menengai Crater.

GEOTHERMAL DEVELOPMENT COMPANY

The Geothermal Development Company (GDC) is a 100% state-owned company, formed by

the Government of Kenya as a Special Purpose Vehicle to fast track the development of

geothermal resources in the country.

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Geothermal energy is an indigenous, abundant, reliable and environmentally- friendly source

of electricity. There is need for the county government to partner with the National

Government to research on whether Laikipia North can develop geothermal electicity.

The committee was informed that the creation of GDC was based on the government’s policy

on energy - Sessional paper No. 4 of 2004, and the energy Act No.12 of 2006 - which un-

bundled the key players in the electricity sector to ensure efficiency.

The search for geothermal energy in Kenya started in 1957. But this has so far yielded

209MW only against a massive potential estimated at 7000MW to 10,000MW. Evidently, the

speed of harnessing geothermal resources has been too low necessitating the creation of

GDC.

In Vision 2030, Kenya aspires to become a mid-income economy. To attain Vision 2030, the

government’s forecast is to generate 15,000 MW, 5000MW will come from geothermal.

Today, the total effective installed capacity stands at 1533 MW.

For a long time, Kenya has relied on hydroelectricity with perennial power outages forcing

the government to invite emergency power producers who use diesel to generate electricity.

This stop-gap measure is a two edged sword. First, it increases the cost of electricity and

second, it causes massive pollution.

The government has identified the country's untapped geothermal potential as the most

suitable indigenous source of electricity. GDC will drill 1400 steam wells to provide steam

for the generation of 5,000MW of geothermal power by 2030.

GDC’s Mandate

To promote rapid development of geothermal resources in Kenya through surface

exploration and drilling for steam.

To avail steam to power plant developers for electricity generation.

To manage the geothermal reservoirs- to ensure constant supply of steam for power

generation

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To promote alternative uses of geothermal resources other than electricity generation.

These include green house heating, drying of grains, pasteurizing milk, cooling and

heating of rooms, among others.

Menengai Geothermal Power Project

Menengai volcano caldera is one of the high potential prospects in Kenya. It is Located in

Nakuru and therefore is close to high power transmission lines and is situated close to a

populated town. Detailed surface exploration was carried out in 2004. Menengai is a major

Quaternary caldera volcano located within the axis of the central segment of the Kenya Rift.

The volcano is located within an area characterized by a complex tectonic activity

characterized by confluence of two tectono-volcanic axes (Molo and the Solai).

Exploration drilling commenced in Menengai in 2011 and currently 25 deep wells of depths

varying from 2,100 m to 3,200 m have been drilled. Reservoir temperatures of up to 400°C at

2,000 m have been encountered in several wells making it the hottest geothermal system in

Kenya. The steam produced is at 90 MW which is expected to produce 460M.W to the

national grid by December 2016.

Menengai Georthermal Power Project also participates in Community Social Responsibility

which include:

Provision of piped clean water to the residents.

Conservation of environment by planting and provision of tree seedlings

Economic empowerment through creation of jobs.

Once complete, the power generated will enhance trade in reduction of the operational cost

on production of goods and services and provide security. This will also lead to lower cost of

electricity to traders.

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Figure 1: Tree and fruit nurseries

The trees and fruit seedlings are issued to the residents at no cost which encourages them to

take care for the environment.

Figure 2: Drilling of Borehole ongoing

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Figure 3: The drilling of this borehole was completed and steam found to produce 30 megawarts

Figure 4: Chair, some members and one of the GDC Engineer

GDC is one of the major tourism attraction sites in Nakuru County.

DAY TWO VISIT

The visit was scheduled for markets:-

Market stalls.

Wakulima market

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Hawkers complex

Curio shops

Visit to Markets

The committee visited vegetables, cereals and food sheds. The market sheds have been by use

of floor and each floor is open space. Further the shed has a free space that allows free flow

of air.

The market shed is well managed by the market committee, who are responsible for

allocation, resolving complaints and cleaning of the market in liaison with the relevant

agencies.

Figure 5: Storey market building in Nakuru Town

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Figure 6: Cereal stalls within the storey market. It allows free movement of air, customers and goods

The enclosed market has ground floor for fruits, first floor for cereals and second floor for

ready food stalls.

Visit to Wakulima market

Figure 7: Wakulima /wholesale market shed with enough space to allow free flow of air, goods and

customers

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Figure 8: The sheds have enough area for storage

Visit to hawkers stalls

Nakuru County Government has allocated two areas to hawkers both of them are within the

the town centre. The stalls are constructed by the county government and allocated to

traders. The traders deal with new and second clothes and shoes. The stalls in figure 9 are

constructed using iron sheets and iron bars but not partitioned.

Figure 9: Hawkers stalls

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Figure 10: Hawkers in this market construct stalls for themselves

The traders in this market deal with clothes and shoes but not food.

Visit to curio shops

The kiosks are constructed along the unutilised road sides and branded with government

colours. The kiosks are allocated to curio traders. The fees charged is Kshs. 2,500.00 for

business permits and Ksh. 2,500.00 for the stalls per trader as rent.

Figure 11: A row of curio shops

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Figure 12: The CAL committee chairman and CAN vice chair sharing with a curio trader

4.0 OBSERVATIONS

The committee made the following observations during the visit:-

i. The Menengai crater has almost the same climate with the dry areas of Laikipia;

ii. The Menengai Crater is one of the major tourist attractions sites for Nakuru County;

iii. The market storey structure saves space and it is considerably cheap;

iv. The market is equipped with ramp for use by people living with disabilities;

v. The market is well maintained;

vi. Hawkers conduct business in designated places making the town clean and organised;

and

vii. Lake Nakuru is under National Government and tourist benefit the local traders

through accommodation, transport, purchase of curios and food.

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5.0 RECOMMENDATION

The committee recommends that the County Government:-

i. Does utilise solar energy which is sufficient within the county inorder to enhance

security to traders within towns and market places;

ii. Constructs simple and cheap kiosks within the county in open spaces and lease them

to the needy hawkers, keep the town clean and maintain the town plan;

iii. Put up storey building structures for the markets; and

iv. Develops the County tourist sites with priority to Manguo hippo sanctuary and

Thompson falls to attract more tourists who will in turn promote the local hotels

within the county;

v. The County Government builds a hawkers market as well as spacious cereals and

fruits markets in Nyahururu and Nanyuki and other major towns and the County

Government to undertake renewable energy mapping.

vi. Develops markets to allow farmers sell their produce at the market price without

going through the middle men.

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6.0 ACKNOWLEDGEMENT

The committee wishes to sincerely thank the Honourable Speaker or his tireless effort and

undivided commitment to see this committee deliver upto its mandate through meetings and

supervision visits. The committee would also wish to thank the County Assembly Clerk for

enabling performance of the committee’s oversight mandate.

Finally, we thank all members who have journeyed with this committee this far.

Signed on this 5th

day of March, 2016.

Name Designation Signature

1 Hon. Michael Kinyua Chairman

2 Hon. Paul Lebeneiyo Vice Chair

3. Hon. Jacob Endom Member

4 Hon. Jane Meshami Member

5 Hon. Rose Maitai Member