Kisii Municipality Urban Economic Plan by Tetra Tech International Development Europe

KISII MUNICIPALIT Y URBAN ECONOMIC PLAN August 2020

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The development of the Kisii Municipality Urban Economic Plan (UEP) has been made possible by funding from the UK government through UKaidâ&#x20AC;&#x2122;s Sustainable Urban Economic Development Programme (SUED) that is managed by Tetra Tech.

This report was developed by Atkins.

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ABBREVIATIONS & ACRONYMS

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CBD CCCF CIDP CGoK DFID IDeP FGDs FTE GCP GDP GHG GWASCO IFI KES KeRA KeNHA KOM KNBS KPLC KURA

Central Business District County Climate Change Fund County Integrated Development Plan (2018-22) Central Government of Kenya Department for International Development Draft Integrated Development Plan (2019-20) Focus Group Discussions Full Time Equivalent Gross County Product Gross Domestic Product Greenhouse gas (emissions) Gusii Water and Sanitation Company Internationally Funded Institute Kenyan shillings Kenya Rural Roads Agency Kenya National Highway Authority Kick off Meeting Kenya National Bureau of Statistics Kenya Power and Lighting Company Kenya Urban Roads Authority

KUSP LREB MSW NCPWD NGO NMT PSG PWD PV SIGs SMEs SuDS SUED SWOT TEA TVET UN UEP VC

Kenya Urban Support Programme Lake Region Economic Bloc Municipal Solid Waste National Council for Persons with Disability Non-Government Organisations Non-Motorised Transport Project Steering Group Persons with disability Photovoltaics Special Interest Groups Small and Medium sized Enterprises Sustainable Urban Drainage Systems Sustainable Urban Economic Development Strengths, weaknesses, opportunities and threats Transforming Energy Access Technical and Vocational Education and Training United Nations Urban Economic Plan Value Chain

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Executive Summary 1 Introduction 1.1 Background 1.2 Purpose of the Plan 1.3 Approach 1.4 Key Principles 1.5 Covid-19 Impacts and Lessons 1.6 Structure of this Report

CONTENTS

Kisii Urban Diagnostics

2.1 2.2 2.3

Study area and regional context Planning context State of Kisii

UEP Development Concept

3.1 3.2 3.3

UEP Vision Economic Development Plan Development Framework overview

Economic Development

4.1 4.2 4.3

Economic Development Plan Economic Sector Action Plans Value Chain Projects

Development Framework

5.1 Introduction 5.2 Focus Area 1: CBD 5.3 Focus Area 2: Logistics and Supporting Facilities 5.4 Focus Area 3: VCs and Industrial Cluster

Implementation Plan

6.1 Introduction 6.2 Partners and Institutional Structures 6.3 Implementation costs and delivery 6.4 Scheduling 6.5 Funding 6.6 Recommendations for Capacity Building 6.7 Recommendations for Social Inclusion 6.8 Recommendations for Climate Change and Resilience 6.9 Next Steps

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2 6 6 6 6 10 12 13 15 15 16 17 32 32 32 33 35 35 36 43 58 58 62 101 118 133 133 133 135 147 148 150 150 151 151

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EXECUTIVE SUMMARY

EXECUTIVE SUMMARY WS Atkins International Limited was commissioned to develop the Urban Economic Plan for Kisii Municipality as part of the UK’s Department for International Development Sustainable Urban Economic Development Programme (SUED). The aim of the programme is to support market driven growth in emerging towns and cities in Kenya. The Urban Economic Plan (UEP) is an advisory document that builds on existing work and priorities identified under the County Integrated Development Plan (CIDP) as well as aligning and complementing work by other donors. In doing so, it will provide a focused economic strategy for the Municipal Board and Municipal Departments to deliver economic development within Kisii Municipality. Further, the UEP will support the Municipality in driving forward an Integrated Spatial Development Plan. The UEP prioritises actions and climate resilient and inclusive infrastructure projects that can support Kisii’s economic sectors with the greatest potential for inclusive employment generation and promotes sustainable urban development. Drawing on international best practice, it introduces an integrated multidiscipline approach to planning for economic growth and supports capacity building from an early stage.

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The purpose of the plan is to: › provide an inclusive economic strategy that can guide future development towards increasing prosperity in Kisii; › prioritise economic activities and climate resilient and inclusive infrastructure that can maximise benefits and support the development of a sustainable economic future for Kisii; › introduce international best practice and innovation; › bring together stakeholders in shaping and deciding the economic future of Kisii and implementing it; and › identify and prepare projects that can be considered further in terms of their feasibility and bankability before SUED seed financing is committed. Stakeholders’ interests and insights have been considered throughout the development of the Kisii UEP. Section 2 of this document sets out the Diagnostic Assessment of Kisii, where the social, economic, planning, infrastructure and environmental and climate risk baseline has provided an understanding of the barriers and drivers to sustainable economic growth. There has been rapid growth within the Municipality, where this has been unplanned and haphazard without an Integrated Spatial Development Plan

(ISUDP). This has resulted in a myriad of challenges including significant traffic congestion, the decay of prime locations and overstretched and insufficient infrastructure provision. However, the Municipality is a vibrant trade hub that hosts three key markets, including one of the largest open-air markets in Kenya, and experiences large influxes of people accessing its trade and urban services. 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, women and youth as well as other identified groups who are currently excluded. The prioritised UEP projects have been developed in a way to address the economic, social and spatial dimensions of exclusion for Kisii’s identified groups, with recommendations for project implementation. The diagnostic stage identified key sectors that Kisii should prioritise for development, as: › Agriculture; › Agri-processing and Industry; › Trade and Services. Kisii County is an important agricultural producer in the Western region, though there is a lack of value addition and limited processing and industrial activities despite significant opportunities. The Municipality

has an advantageous location and trade legacy that make the trade and services sector a key aspect of its future growth and an enabler for successful agri-processing development. Kisii County’s climate and natural resource base, including its soils and rivers, is conducive for a range of agricultural produce, supporting high yields. However, the reliance on rain fed agriculture enhances Kisii’s vulnerability to climate change risks. Key climate risks include temperature extremes, wildfire, flood and drought. Kisii County is exposed to the risk of wildfire and drought, with a 50% chance of weather that could result in a significant wildfire and 20% chance that droughts will occur in the coming 10 years. Kisii County also continues to lose biodiversity and experiences wetland degradation due to habitat destruction, overgrazing, deforestation, pollution and unsustainable harvesting and domestic energy use. The proposed infrastructure and Value Chain (VC) projects have been assessed for climate vulnerability and recommendations are provided. Section 3 presents the Development Concept for Kisii Municipality, overarching the Economic Development Plan and the Development Framework of climate resilient and inclusive infrastructure projects. This is driven by the economic vision that has been developed with key stakeholders for Kisii:

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"Kisii Municipality to develop into a green, walkable, economically vibrant cosmopolitan city that serves as a regional trade and business hub founded on climate resilient and inclusive infrastructure and inclusive opportunities for all". This vision is underlined with the following elements: › Decongested - a congestion free town with an improved road network; › Well provided - a well-planned town with housing and infrastructure provision; › Liveable - a green, sustainable town with open space and effective waste management; › An economic hub - a town that grows economically as a business, industrial and trader hub, with facilitation of investment and SME growth; › Inclusive - an inclusive and diverse town and access to socio-economic opportunities; › Walkable - a town with more walkways and pedestrian access through the urban core and with efficient road space use.

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To realise this vision, the UEP developed three Focus Areas to drive forward development and prioritise the identified economic opportunities and infrastructure projects, as: › Focus Area 1: Central Business District (CBD) - supports the better functioning of the urban centre, in its transport, utility provision and land use, to effectively support the trade and services sector and market access for local produce; › Focus Area 2: Logistics and Supporting Facilities - the UEP proposes the relocation of current industrial uses and for this area to support the trade and services sector with truck parking, storage and facilities for required urban utility; › Focus Area 3: VCs and Industrial Cluster - out of the urban centre, this area will cluster industry and agriprocessing activities to provide scale and efficient infrastructure provision to enable sustainable growth of this sector and provide income security for Kisii’s agricultural sector. Section 4 sets out the Economic Development Plan in response to the economic vision and the sectoral SWOT assessment undertaken at diagnostic stage. Action plans have been developed for each of the key sectors to: develop a resilient agriculture system; grow the agri-processing and industrial sector; and establish a developed service economy. Interventions are proposed covering stakeholder collaboration, institutional

capacity, best practice and training, information and digital sharing, and infrastructure and planning enhancements.

resilience, and include recommendations for social inclusion to ensure access and acceptability for all.

Six potential VC projects were shortlisted and further assessed for inclusion to the UEP. Their assessment included consideration of target market, costs and revenues, competitiveness, land and infrastructure requirements, and climate vulnerability and inclusion assessment. All of these opportunities would be suitable for development in Kisii. However, two priority VC opportunities have been selected to maximise benefits with their ability to catalyse the industrial sector, utilising synergies to existing assets and the opportunity to implement a circular economy. These are:

The figure below demonstrates the overall Development Framework Plan, showing Focus Areas and sector proposals.

› Banana pads - the production of sanitary pads from banana stem fibre; › Banana leaf products. Section 5 sets out the Development Framework, which structures, prioritises, and phases urban development in a coherent and coordinated manner with respect to the three proposed Focus Areas. VC and climate resilient and inclusive infrastructure projects are then sequenced based on optimising their individual and collective impacts whilst aiming to minimise costs.

Section 6 provides the Implementation Plan, which presents relevant considerations across partnerships, funding and scheduling for the proposed VC and climate resilient and inclusive infrastructure projects, including estimated delivery costs. The section also presents recommendations for capacity building, social inclusion and climate resilience, as crucial elements for implementing the UEP. Following the completion of the UEP, during the next phase of the SUED programme, the identified 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 › Investment experts to develop feasibility studies, business cases and investment promotion strategies for the projects.

Projects have been identified across urban design, transport, waste management, water and sanitation, drainage, and energy. The proposed projects have been assessed against climate vulnerability, with adaptation measures identified to ensure

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EXECUTIVE SUMMARY

Overall Development Framework Plan showing the three Focus Areas and individual sector proposals

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INTRODUCTION

1. INTRODUCTION 1.1 Background WS Atkins International Limited was commissioned to develop the Urban Economic Plan for Kisii 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.

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

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

1.2 Purpose of the Plan Combining local knowledge and international expertise, the Kisii Municipality Urban Economic Plan (UEP):

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

The UEP is an advisory document that builds on existing work and priorities identified under the County Integrated Development Plan 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 Municipal Departments to enable them to deliver economic development within the Municipality, as well as support Kisii Municipality in driving forward an Integrated Spatial Development Plan. The UEP prioritises actions and climate resilient and inclusive infrastructure projects that can support Kisii’s economic sectors with the greatest potential for inclusive employment generation. Drawing on international best practice, it introduces an integrated multidiscipline approach to planning for economic growth and supports capacity building from an early stage.

1.3 Approach

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

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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 Kisii. The aim was to enable a collaborative approach between different local stakeholders and the consultant team to assess Kisii’s economy in a systematic way, develop an agreed economic vision and

prioritise actions that will have maximum impact and are ready to attract donor co-financing. The preparation of the UEP comprised four main phases: › Phase 1 - Inception Phase which focused on the Kick-off Meeting. The aim was to present the approach of the UEP and capture key opportunities and challenges affecting economic growth in Kisii as defined by local stakeholders; › Phase 2 - The Diagnostics Phase was developed to provide a comprehensive and wide-ranging assessment of Kisii’s economy, demographics, infrastructure, environment and a local climate change risk profile against the national and international context; › Phase 3 - The Technical Briefing Paper set out a development framework for Kisii and identified, assessed and prioritised economic growth opportunities and their requirements; › Phase 4 - Development of the Final UEP which sets out in detail economic opportunities and actions and prioritises climate resilient and inclusive infrastructure projects for implementation.

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Figure 1.1 - UEP Development Phases

Inception Phase

Gather initial comments through stakeholder engagement - KOM

Diagnostics Phase

UEP Technical Briefing Phase

Policy Framework International/ National trends

Setting the principles for the development of the UEP

Economic and Demographic

Evaluating and prioritising VC opportunities

Infrastructure and Transportation provision

UEP Phase

Setting Vision & key economic sector actions

Analysis of Strengths, Weaknesses, Opportunities and Threats of key economic sectors

Environmental & Climate change risk profile

Assessing requirements & impact of shortlisted VC opportunities

Evaluating climate resilient and inclusive infrastructure opportunities

Development Framework & climate resilient and inclusive infrastructure

Anchor projects: Value chain opportunities

Identification of short listed VC opportunities and climate resilient infrastructure

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

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INTRODUCTION

Lands, Physical Planning and Urban Development; Deputy Director Urban Development; CECM Roads, Public Works and Transport; and County Assembly members; › Municipal Board including Chairperson, Municipal Manager, Board Members, and Municipal Engineer, Economist, Urban Planner and Director of Municipal Services; › Department leads, with Ministries of: Trade and Industry; Agriculture, Livestock, Fisheries and Cooperatives; Lands, Physical Planning and Urban Development; Energy, Water, Environment and Natural Resources; and Roads and Public Works; Kisii KOM workshop with stakeholders, Nov 2019

The Kisii Municipality 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.

Stakeholder Engagement The purpose of stakeholder engagement was to ensure that stakeholders’ interests are taken into consideration throughout development and reflected in the UEP. More specifically, the aims were: › To ensure that the development of the UEP is inclusive and is undertaken in a

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manner that fits with Kisii’s business and community culture; › To ensure that all stakeholders are clear on the purpose, scope, recommendations and outcomes of the UEP as well as meeting key stakeholders’ aspirations and gain buy-in from them; › To understand better the interests of specific groups and how the UEP can benefit them, and; › To provide a regular flow of information to and from key stakeholders. The Kisii stakeholders included: › County Government including County Governor; Deputy Governor; CECM

› Business representatives including Chamber of Commerce, organised business groups, traders/Jua Kali, Kisii Soapstone Carvers, Matatu Owners Association, Kisii Bottlers Ltd., Kenya Tea Development Agency, Kisii farmers association; › Utilities and service providers including water and sewage company (GWASCO); representatives from Kenya Highways Agency (KENHA), Kenya Urban Roads Agency (KURA); Kenya Rural Roads Agency (KERA) Kenya Power (KPLC); Kisii University Association chapter; Kisii Polytechnic University; › Special Interest Groups (SIGs) including the youth, women, elderly men and Persons with Disability; and representative departments like the National Council for Persons with

Disability (NCPWD); Catholic Peace and Justice Commission; the National Government Social Development Office; the County’s Youth, Gender and Social Services Department ; Baptist Community Organisation Partners (BACOP); and Uwezo Youth Group. A critical process in developing the UEP report has been stakeholder management including: › Establishment of a Project Steering Group (PSG); › Site visits and local meetings; › Stakeholder workshops; › Formal social inclusion consultations; and › Business consultations. 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 champion and climate change champion, following a Municipality nomination process: › Municipal Manager; › Economic Advisor; › Economist; › 2 Board members; › Municipal Engineer; › Physical Planner; › Environmental Officer;

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› Chair National Polytechnic; › CEO Kenya National Chamber of Commerce (KNCCI) - Kisii. The aim is to ensure the PSG is representative of the needs and challenges associated with the Municipality whilst being aligned and familiar with existing County and Municipal policies and regulations. 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, the Municipal Board and wider stakeholder community. Three separate Stakeholder workshops were undertaken, including the Kick-off Meeting (KOM), to gather feedback from stakeholders throughout the project. The first workshop (KOM), in November 2019, presented the project and process and collated information from over 180 stakeholders in terms of key characteristics, strengths and challenges within Kisii (captured within the Kisii Inception Report). Stakeholders included the Municipal Board, Municipality and County officers, private sector, civil society groups and non-government organisations and representatives from Special Interest Groups (SIGs). The second workshop following the Diagnostics Report, in March 2020, focused on gathering feedback from the PSG, Kisii Municipal Head of Departments, SIGs

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and businesses on the findings of the diagnostics evaluation, including sectoral SWOTs and identification of emerging economic opportunities. This workshop also comprised a visioning exercise for the UEP, bringing together stakeholder suggestions on what the vision should be, as well as evaluating the proposed economic opportunities according to the determined top evaluation criteria for Kisii. The feedback is in the Diagnostic Report and the UEP Technical Briefing Paper Report appended to this document. The third workshop focused on presenting and reaching consensus with the PSG, Municipality and key stakeholders on the development framework with economic and value chain opportunities that help leverage investment and support inclusive and sustainable development in Kisii. The stocial inclusion study involved primary research, covering interviews with key project informants and three focus group discussions, which together resulted in the identification of socially excluded groups and the development of recommendations. Both excluded and included community members were consulted on how inclusivity of community members from all social categories can be enhanced within the SUED Programme. Business consultation was undertaken to understand how Kisii’s businesses operate and their views on future growth opportunities and constraints. This consultation covered Kisii’s key sectors and comprised 1:1 interviews supported, with a detailed questionnaire, with

Kisii workshop 2: Visioning and Value Chain evaluation criteria exercises

numerous enterprises, cooperatives, market representatives and local service organisations. Individual businesses were also identified through the social inclusion focus groups to reflect businesses that were run by youth, women and people with disabilities (PWDs). A total of 50 representatives were consulted, whilst further discussions were held during site visits.

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INTRODUCTION

1.4 Key Principles The development of the UEP and evaluation of proposed projects are grounded on key principles that support the Programme’s aim to create market driven growth and build resilience. The Atkins SUED Team has defined these principles as: Figure 1.2 - SUED Principles

Resilient

Resource Efficient

› Shifts in the economy

› Circular economy and zero waste

› Adaptive infrastructure to climate change

› Water and energy management › Rural - urban linkages

› Smart Solutions

Resilient

Resource Efficient

Socially Inclusive

Sustainable

Socially Inclusive

Sustainable

› Socio-economic trends

› Low carbon development

› Vulnerable groups

› Green energy

› Immigration/migration

› Green infrastructure

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Resilience:

Resource efﬁcient:

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.

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.

Socially inclusive:

Sustainable:

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

The UEP promotes climate resilient and inclusive infrastructure and the minimisation of environmental impacts.

While these principles are closely linked and overlap in their definition, each one of them emphasizes 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. 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 the local population out of poverty whilst supporting crucial livelihoods such as the informal sector. All proposed projects (Value Chain opportunities and resilient and inclusive infrastructure projects) contained within the UEP have been screened and refined for their contribution to improving livelihoods by considering: availability; accessibility;

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affordability; acceptability; and adaptability, 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 community. Social 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), youth, women, elderly men and the Nubian community in Kisii 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. Climate change, social exclusion and poverty 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 Kisii. 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,

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livelihoods and shocks from critical events such as climate change, where vulnerabilities are enhanced in combination.

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

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.

Focus on the basics;

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. 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. 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.

› Health; › Basic education; and › Infrastructure. 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. Kisii already has a base of educational institutions, reflecting a large student population, and a strong provision of urban services including finance and transport services. These assets and services have been considered as complementary to an improvement of the urban environment, as well as providing opportunities to integrate with Kisii’s economic opportunities. 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 consideration 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). Kisii is currently without a comprehensive plan and as such there is an opportunity for the SUED programme to drive this forward in an effective and integrated way. 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 locally relevant. There is not a ‘silver-bullet’ policy to improve competitiveness. The UEP is cognisant of Kisii’s current and potential regional role, recognising wider development and where Kisii has a differentiating and complementing opportunity. 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. The approach to the UEP has been built on stakeholder involvement and buy-in, with transparent and effective collaboration between the County Government, PSG, Municipal Board, Municipal Departments and stakeholder community.

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INTRODUCTION

1.5 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 hit the hardest because they rely on the informal sector and daily wages. Mostly 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;

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› 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 crossborder 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 flowers and both these critical industries have experienced a negative impact from Covid-19 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 based 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. 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. 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 response. Emerging 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. 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. 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. 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. Young women and girls are also at high risk of many forms of domestic and genderbased violence during the pandemic. 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. 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. It will be important to draw lessons from the current crisis to inform long term planning and ensure resilience is imbedded 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:

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› Emphasising the need for adaptive, urban integrated plans to ensure sustainable urban development and infrastructure provision including appropriate housing for all that can help minimise impact from high risks; › Redefining green spaces and the way city centres are designed for business; › 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; › Prioritising policies to confront spatial, social and economic exclusion with the aim of cushioning the vulnerable in the face of another shock; › Targeting women and girls in all efforts. 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 exportoriented products; › Improving marketing efficiency through adoption of innovative processes that connect buyers and sellers. This may include adoption of technology to

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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.

1.6 Structure of this Report Following this introduction, the report is structured as follows: › Section 2 provides a summary of key findings from the Kisii Diagnostics Report. This summarises the demographic and economic profiles, infrastructure and environmental conditions and climate change risks. The section details the key challenges and drivers for growth, identifying Kisii’s key sectors; › Section 3 sets out the Development Concept and vision, framing the Economic Development Plan and Development Framework;

› Section 4 set outs the Economic Development Plan, which is underlined by Kisii’s economic vision. Each of the three key sectors is presented with a summary of its SWOT analysis and a Sector Action Plan. The identified Value Chain (VC) projects are then set out in detail; › Section 5 outlines the Development Framework and supporting climate resilient and inclusive infrastructure projects that have been identified for enabling urban and economic growth within Kisii Municipality; › Section 6 presents a range of implementation considerations to support the next stages of the SUED Programme. The report is supported by a series of appendices:

› Appendix C - Kisii Social Inclusion Study. 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 and 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 that these groups face; › Appendix D - Climate Vulnerability Assessment. The assessment outlines the climate vulnerability context for the selected infrastructure projects to be developed in Kisii. The Climate Vulnerability Assessment will complement associated pre-feasibility and feasibility study assessments.

› Appendix A - Kisii Diagnostic Report. 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; › Appendix B - UEP Technical Briefing Paper. This paper captures the process followed from identification to assessment of growth opportunities for Kisii and provides recommendations on those with the greatest potential to maximise benefits to be developed further;

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2. KISII 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 Kisii Municipality 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: › Kisii study area and regional context › The planning context › The Municipality context › The socio-economic profile › The state of existing infrastructure › Environmental and climate risks › Diagnostic conclusions

2.1 Study area and regional context Kisii County is part of the Lake Region Economic Bloc (LREB), alongside 12 other counties. Kisii acts as a well-located trade hub and centre point for the Western tourist circuit and is a cosmopolitan transit town. It borders with Nyamira County to the North East, Narok County to the South and Homabay and Migori Counties to the West. The County is strategically placed in close proximity to Uganda, Tanzania

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and Rwanda, where entrance into these international markets can be coordinated through the region, as well as access to transportation routes into the COMESA and SADC regions. Kisii Municipality is located at the county’s western border, with the intersection of the A1 and the B3 national trunk roads. It is located approximately 107km from Kisumu (Kenya’s 6th largest urban centre) via the A1 and 315km from Nairobi via the Isebania - Kisii - Ahero B3 road. The County and wider region is rich in natural resources and benefits from an advantageous climate of reliable rainfall and moderate temperatures (see Section 5). Lake Victoria is a unique asset of the region, providing potential with port access and further water transport and tourism. The region is mostly categorised as high agriculture potential, which is largely rainfall dependent, and produces food that serves wider areas of Kenya. The LREB has a total population of 13.8 million and is a region of high population density for the country, where Kisii Municipality is one of the most densely populated areas of the region. Kisii County is the fourth largest economy in the region after Kisumu, Bungoma and Kakamega. The Kisii Municipality study area has been determined through local consultation and through satellite imagery, with a 75km2 study area and a focus for urban development with a defined urban centre of 35km2, as demonstrated in the town context map Figure 2.3 further below.

Figure 2.1 - Regional context of Kisii

Uganda Kenya Lake Economic Regional Bloc (LREB)

Bungoma

A104

Busia

Kakamega Nandi Vihiga Siaya

Kisumu A1

Kericho A104

Lake Victoria

Homa Bay

Nyamira

Kisii

Bomet

Migori

B3 A1

Nairobi A104

Kenya Border County Borders

Tanzania

Kisii Municipality Key Roads

›

The LREB reflects 30% of Kenya’s population

›

4th largest agricultural producer

›

Intersection of trunk roads A1, B3

›

Tanzania (Isebania) & Uganda border access

Services and trade hub, one of Kenya’s largest outdoor markets (Daraja Mbili)

›

4th largest economy

›

Proximity to Lake Victoria and Kisumu (Kenya’s 6th largest centre)

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KISII URBAN ECONOMIC PLAN

2.2 Planning Context The diagnostic process set the basis and context for the development of the UEP. The Kisii Diagnostic Report covers the key international and national trends, which are likely to influence Kisiiâ&#x20AC;&#x2122;s growth trajectory, and the policy framework from national strategies through to Kisiiâ&#x20AC;&#x2122;s own priorities

and ambitions. Kisii Municipality does not have an Integrated Spatial Development Plan (ISUDP). A 2011 ISUDP version was not adopted and growth has followed an extensive yet unplanned and haphazard pattern along main arterial routes over the last decade.

Economic planning context

Figure 2.2 - Planning context

International trends

Urbanisation trends Depletion of resources Climate change Impacts of the 4th Industrial Revolution

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National Polices and Strategies

Kenya Constitution 2010 (Chapters 5 & 12) County Governments Act No. 17 of 2012 (revised 2017) Urban Areas and Cities Act of 2011 (revised 2019) The Physical and Land Use Planning Act (2019) Kenya Vision 2030 National Spatial Plan (NSP) Kenya Green Growth Strategy

The Kisii UEP aspires to build on and enhance the work already done

Local Plans

Kisii CIDP 2018-22; draft Integrated Development Plan (IDeP) 2019-20; Lake Basin Economic Blueprint 2014; Kisii Municipal Charter 2018;

Kisii Priorities

Globally competitive, regional commercial, service and industrial centre Develop a Kisii Spatial Strategy Utilise advantageous position for trade Utilise climate conditions and agricultural production Utilise student population and educational institutions Improve livelihood of residents, with sustainable employment generation

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2.3 State of Kisii

Figure 2.3 - Land Use and Development Context Map

2.3.1 Town Character The physical development of the Municipality is currently managed with no spatial development framework to guide its decision-making. Consequently, the Municipality has been experiencing a myriad of challenges including uncontrolled plot development, lack of building permitting and controls, urban sprawl, decay of prime locations and housing stock, overwhelmed utilities such as sewer, piped water and roads, significant traffic congestion and a lack of public open space. This has led to a significant deterioration in public amenity and economic wellbeing, including access to services and civic facilities and with increasing environmental degradation. This development trend has resulted in a polycentric development, where there are areas of strong commercial land use with overlapping and mixed uses and a sub-centre away from the town centre. Satellite imagery analysis has found this growth to have occurred to the north and south of the urban centre along the existing main road corridors and has expanded approximately 10-15% every 5 years. An industrial area was identified to the North of the Central Business District (CBD), separated by a waterway, though this has been underused (40% not operational) with poor service provision and is composed of other uses including car mechanics, juakali and informal parking.

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Figure 2.4 - Key transportation routes

CBD B3 Main Road

The CBD is located along the B3 as the main arterial/through road traversing the town bringing large amount of both local and regional traffic through the centre. It mainly comprises medium to high density commercial offices and civic buildings. The area is also inundated with informal trading structures and hawkers along with commercial boda boda and matatus that lack stopping and parking areas and the two bus/taxi stations in the CBD are also severely congested and suffer from poor maintenance. Kisii Municipality has three main markets in the urban core: Daraja Mbili; the Municipal Market and an open-air market behind the Municipal Market. There are illegal traders spread along the main road, which has become a key informal market, since the space to accommodate all traders has been inadequate. However, a new market building is near completion to accommodate around 3,000 traders and areas are being levelled near Daraja Mbili to accommodate further traders within the requirements of Kenyaâ&#x20AC;&#x2122;s Covid-19 response. A high urbanisation rate has increased demand for housing, supporting infrastructure and community facilities, including employment opportunities. There is a lack of available land, whilst land areas are commonly encroached by traffic and trade. There is also cascading higher density building from the main roads with lower density buildings scattered across the CBD.

Figure 2.3 and Figure 2.4 demonstrate the land use within Kisii Municipality and the traffic movements which drive congestion of the CBD. The Development Framework (Section 5) seeks to address these pertinent issues and ensure long term resilience to help Kisii realise its potential as a vibrant trade hub with a high quality urban environment. The key principles considered for the Development Framework include decongestion, traffic management and circulation, wider connectivity, infrastructure upgrades, supporting facilities for trade, market space developments and open space provision. 2.3.2 Socio-Economic Profile Demographics Kisii County is the 3rd most populous county of the bloc with 1.26 million people, behind Kakamenga and Bungoma, and reflects 9% of the total LREB population. Kisumu is the regionâ&#x20AC;&#x2122;s largest urban centre at almost 400,000 people, Kisii Municipality had an estimated population of 207,000 in 2019, and with a largely daily influx estimated up to 150,000 to access markets, services, health and education facilities. The urban centre - including the CBD and peri-urban areas - has 112,400 inhabitants according to the 2019 Census. This leaves Kisii as the 20th largest urban centre in Kenya1. There are significant differences in population density across Kisii County,

1 KNBS 2019 Census (2019)

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Contrary to the general County trend showing sluggish demographic growth, the Kisii urban area has been growing at a fast pace. Between 2009 and 2019, the population of the urban centre grew by 38%, from 81,000 inhabitants to 112,4002, highlighting the significant urbanisation trend, with associated challenges. Kisii County performs well in terms of qualifications compared to the rest of the country - the share of the population with no level of education was just 7%, compared to 16% nationally. Almost half (46%) of the county residents have a secondary level of education or above (secondary school, TVET or university level), compared to just 37% nationally for urban areas3.

at KES 3,261 and KES 996 on non-food items, as per 2015, compared to KES 3,674 and KES 1,576 in Kisumu - showing a significant gap for non-food expenditure and likely income differentials5. The improvement in incomes supports local business, beyond those that are agricultural producers, through disposable income spend. Women’s and PWD’s lower rates of education and paid employment render them more vulnerable to poverty. Youth unemployment levels remain high in Kisii County, alongside a large student population who then lack job opportunities. These vulnerabilities can be exacerbated at times of economic disruption/crisis as shown by the current Covid-19 pandemic. and described in Section 1.4.

Figure 2.5 - Monthly spend per capita (in KES) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Nairobi Mombasa Kiambu Kisumu Lamu Nakuru Machakos Nyeri Kajiado Kirinyaga Uasin Gishu Vihiga Migori Embu Murang’a Kericho Nyandarua Tharaka Nithi Siaya Meru Isiolo Bungoma Trans Nzoia Kilifi Homa Bay Taita Taveta Kisii Nandi Laikipia Kakamega Garissa Nyamira Narok Baringo Elgeyo Marakwet Bomet Kitui Makueni Busia Kwale Tana River Samburu West Pokot Marsabit Mandera Turkana Wajir

with a level of 957 inhabitants per sq.km (compared to 82 nationally), making Kisii the fourth densest county in Kenya, whilst some of the urban centre has a density up to 3,811 inhabitants per sq km.

Monthly spend per capita

Kenya average

Source: KNBS, Socio Economic Atlas of Kenya (2016)

The following Figure 2.6 presents key socioeconomic statistics for Kisii Municipality.

Kisii is the county with the 17th highest poverty rate in Kenya, with 51.4% of the population living under the poverty line. This represented a total of 586,200 people in poverty, or 3.5% of the total Kenyan population - leaving Kisii County with the 8th largest poor population in Kenya4. Kisii County inhabitants spent KES 4,257 on average per month. The average adult monthly spend on food has been estimated 2 KNBS 2019 Census (2019) 3 KNBS, Exploring Kenya’s Inequalities (2013) 4 KNBS, Socio-Economic Atlas of Kenya (2016) 5 Open County Initiative. https://opencounty.org/county.php?cid=45 (data as of 2015, KNBS)

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Figure 2.6 - Socio-economic profile: key statistics

Kisii Municipality

207,000

population in 2019, at 16% of the county. Kisii urban centre grew 38% in population since 2010, and 10-15% in spatial area every 5 years

45% County

3.5% Kisii Municipality 2.4% 1% Nationally Kisii County Population Growth Secondary Education

53% Kisii Municipality

Kisii Municipality will have nearly

300,000

inhabitants by 2030 if current growth rates continued

46% 54% Kisii County Kisii Municipality 23% Nationally

37% For National urban areas

Of working age residents with secondary education attainment

Inhabitants of Kisii County spend

Working Age SUED_Kisii_UEP_Report.indb 25

High levels 50% less of poverty than the average in Kenya. This ranks the County 24/47 counties

586,000 people were living

below the poverty line in the County in 2019

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Social Inclusion Leaving no one behind is a central theme that underlines both the 17 UN Sustainable Development Goals adopted in 2015 and Kisii County’s aim of transforming Kisii for inclusive and sustainable development. The approach to gender and social inclusion was guided by the SUED Programme’s need for age, gender, PWDs and refugees’ inclusion and aimed to identify excluded groups and describing how their exclusion manifests. Atkins’ choice of a multi - dimensional approach to inclusion also guided this work, covering social, economic and spatial dimensions as per Figure 2.7 below. Figure 2.7 - Three dimensions of social inclusion

SPATIAL INCLUSION Improving access to infrastructure, services and affordable housing

SOCIAL INCLUSION

ECONOMIC INCLUSION

Improving the terms for individuals and groups to take part in society

Ensuring opportunities for all, to contribute and share in rising prosperity

SUED_Kisii_UEP_Report.indb 26

The Kisii Social Inclusion Study (Appendix C) was a key part of the diagnostic process and subsequently informed the development of inclusive interventions for the UEP, across the value chain and infrastructure projects as part of the wider Development Concept. As raised in Section 1.4, there is an interaction between climate change and poverty, and social inclusion is cognisant of this nexus in how it impacts income security and quality of life. It is important to understand where the burden of climate change impacts may fall (such as heat stress, failing crops and limited water supply) and how groups can be included in mitigation measures. Social inclusion is also cognisant of this nexus and has looked into how the UEP can adopt inclusive climate adaptation approaches to avoid exclusion of some groups; how infrastructure and VCs can be made more resilient to climate shocks. This is informed with the understanding that climate impacts hit vulnerable groups the hardest; as well as factoring in inclusivity in all forms of planning to reduce inequalities and poverty. The Social Inclusion Study sought to understand Kisii’s special interest groups (SIGs) through GeSI - related literature review, key informant interviews, focus group discussions and observation. Further, SIGs’ representatives have attended all the UEP development workshops and participated in the business survey; and youth, women and PWDs have a representative (Inclusion Champion) in the PSG.

Figure 2.8 - Overview of excluded groups in Kisii Municipality

PWDs › Lack of involvement in decision making › Inaccessible infrastructure including roads and markets › Perceptions of abilities and workplace corruption Youth

Across all: Lack of implementation of Access to Government Procurement Opportunities (AGPO) policy tailored to give youth, women and PWDs opportunities with government tenders Elderly men › Exclusion from their own families and isolation

› Lack of information sharing to youth

Nubian community

› Lack of employment with experience barrier and perceptions

› Lack of effective access to citizenship

Women

› Lack of access to property, education, health care, work, movement, and political participation, with condemnation to life in poverty

› Culture denying participation in decision making › Challenge to access capital due to property laws › Lacking enabling business environment for women SMEs and traders › Corruption and discrimination in workplace traders

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KISII URBAN ECONOMIC PLAN

good Programme, though corruption has led to a diversion of the opportunities to people who are not PWDs, youth or women8.

Focus Group Discussion: Kisii youth

Engagement exercises informed that women, youth and PWDs are able and willing to fully participate in all of the shortlist of VC projects proposed for Kisii Municipality (Section 4). However, the main barriers to their participation would be low access to capital and a lack of skills/ knowledge to implement and/or engage in the proposed economic opportunities, where this is detailed for each of the VC projects in Section 4.5.

Processes that perpetuate social exclusion in Kisii Municipality include: › Rapid population growth & urbanisation - While urbanisation offers opportunities and demand for social mobility, it also creates polarization. This polarization, especially along socioeconomic classes, causes discrimination of urban low-income earners and can perpetuate the phenomenon of informal settlements having inadequate water and sanitation services, poor health and transport services and generally a poor quality of life characterized by poverty. Rapid population growth also increases competition for available resources and subsequent inequality in access to basic services such as water and sanitation, and housing.

› Local cultural practices - Generally speaking, the Gusii culture denies women participation in decision making and although this has decreased to a great extent, traditionally Gusii women were not allowed to own property6. Such biases may be unconscious, but they lead to exclusion of women and youth in key developmental matters. › Corruption - Corruption and exclusion interact in a vicious cycle. Corruption leads to unequal or unfair distribution of power in society, which in turn translates into an unequal distribution of wealth and opportunities7. An example was given by the youth of the unfair implementation of the 30% AGPO Programme’s policy on procurement opportunities. It was reported that it is a

The study proposed the following recommendations across the three elements of inclusion: Spatial The Programme to: › Provide inclusive urban infrastructure that allows equal access for all e.g. inclusive roads, buildings, markets, sanitary facilities; › Design safe, green urban infrastructure which improves the living environment and promotes all people living safely together e.g. green spaces with benches, well-lit markets and streets for safety; › Implement inclusivity proposals provided in the UEP’s water & sanitation, waste management, energy, urbanism and transport interventions.

Economic The Programme to: › Set aside a specific percentage of the Programme’s employment and capacity building opportunities that should go to the youth, women, elderly men, PWDs and the Nubian community. This will ensure fairness and accountability in allocation of jobs, seed capital and trainings, and provide parameters for progress monitoring and evaluation; › Only embrace inclusive climate adaptation and resilient approaches. Approaches proposed for the Programme should be thoroughly screened to ensure that they don’t create polarization and are reasonably affordable to the target beneficiaries; › Provide green, safe, inclusive infrastructure that enables all (including PWDs) to perform at their optimum or from the same level as everyone else e.g. provision of PWDsfriendly sanitary facilities, access ramps and/or lifts in markets, public spaces & Municipal offices; provision of green spaces with resting benches will be good for everyone but especially for PWDs and the elderly; and ensuring markets & municipal streets are well lit and organised and receive waste management services will be crucial for increasing Kisii’s business hours and safety.

6 Kisii women Inclusion Focus Group Discussion - 3rd December 2019 7 https://www.transparency.org/en/news/corruption-and-inequality

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8 Kisii Youth Inclusion Focus Group Discussion - 2nd December 2019

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KISII URBAN DIAGNOSTICS

› Increase SIGs employability by building their capacity. It is recommended that the choice of capacity building initiatives be guided by the Municipality’s VC Projects to ensure the trained are absorbed into employment during the VC Projects implementation; › Address SIGs’ main barriers to participation in the VC Projects which they report as low access to capital and a lack of skills/knowledge to implement the proposed VC projects. Social The Programme to: › Ensure continued engagement of all (including SIGs) in the UEP planning, development, implementation and monitoring, and decisionmaking process; › Develop a SIGs-appropriate communication plan to ensure they receive Programme information in a timely manner, are involved in decision making, and for maximum participation;

› Tap into the wealth of knowledge that elderly men have about Kisii Municipality that can greatly help in planning for the city. The elderly men can be reached through the Gusii Council of Elders.

Figure 2.9 - Economic growth context

Appendix C provides the full Social Inclusion Study.

Mandera Turkana

Marsabit

2.3.3 Economic Profile Kisii County is a medium-sized economy in the Kenyan (14th largest county) and regional context (4th largest). The County’s economy relies on agriculture and services, with manufacturing being underdeveloped compared to neighbouring counties. The services sector is significant in the County’s economy and reflects the urban hub role played by Kisii Municipality. However, the economy shows some concerning trends - with lower than average GCP growth, productivity and productivity growth. Kisii’s economy grew 5.2% between 2013 and 17, mirroring the LREB and below the national 5.6%, as demonstrated in Figure 2.99.

Wajir West Pokot Samburu Trans Nzoia

ElgeyoMarakwet

Bungoma Uasin Gishu

Busia Kakamega

Bungoma

Laikipia

Kisumu

Busia

Nandi

Vihiga

Migori

Tharaka-Nithi

Nyandarua Kericho

Homa Bay

Kakamega

Nakuru

Nyeri

Kisii

Narok

Kiambu

Nairobi

Machakos

Kitui

Tana River

Makueni

Kericho

Kajiado

Lamu

GCP change 2013-17

Nyamira

Kisii

Garissa

Embu Murang'a

Bomet

Kisumu

Migori

Kirinyaga

Nyamira

Siaya

Homa Bay

Meru

Nandi

Vihiga

Siaya

Isiolo

Baringo

Bomet

< 10% Kilifi

10 to 20% Taita Taveta

20 to 30% 30 to 40%

Kwale

> 40%

› Conduct Social Inclusion Awareness Creation - this will build the Social Inclusion capacity of all the Program stakeholders across all the Program’s components so that nondiscrimination becomes part of their DNA;

9 KNBS Gross County Product (GCP) Report (2019)

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Economic Profile Despite its recent population Kisii County shows low productivity growth, Kitui levels. In 2017 (the latest available County data), is a the County’s GCP per capita was at KES 118,858 per inhabitant, significantly lower than the national average of KES 161,499. as the 26th largest county in Gross Productivity is also low regionally: only two 8 Countyand Product counties out of 13 (Bomet Kisumu)(GCP) at KES 101 billion. had a higher level of productivity than the national average10.

small economy

Kisii County’s economy is relatively diverse, despite agriculture accounting for more than half (52%) of the total output in 2017. This is followed by public services (16%), technical services (such as ICT, finance and insurance, and professional services, 14%), retail and hospitality (6%) and transport and logistics (6%).

The broad sectoral split is the following: › 52% in the primary sector › 12% in the secondary sector › 36% in the tertiary sector

Figure 2.11 - Kisii County Sector GCP Breakdown Figure 2.10 - GCP per capita (in KES)

Gross county product per capita, 2017 (in KES) 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0 Nyandanrua Elgey o Marakwet Nairobi Mombasa Nakuru Lamu Kiambu Nyeri Machakos Embu Bomet Tharaka Nithi Kisumu Kirinyaga Marok Muranga Laikipia Busia Meru Nyamira Kericho Taita Taveta Uasin-Gishu Baringo Nandi Kajiado Kisii Trans Nzoia Tana River Marsabit Makueni Dwale Isiolo Homa Bay Bungoma Kakamega Siaya Vihiga Kitui Samburu Garissa Migori Kilifi Sajir Turkana West Pokot Mandera

Public services 16%

GCP per capita (2017)

Agriculture 52%

Kisii County Sector GCP Breakdown

Retail/Hospitality 6%

Technical services 14%

Kenya average

Productivity growth in the County was on par with the national average between 2013 and 2017, with an annual average growth of 2.9% (2.8% nationally). Within the LREB, some counties have seen significant productivity increase, including Siaya (5.9% growth, the fourth fastest growing productivity in Kenya).

Agriculture Driven by good climate and reliable rainfall. Trade and Services Advantageous location, with second largest market within LREB.

Logistics 6% Mining & Manufacturing Construction utilities 2% 3% 1%

Sectors: Kisii County’s three key economic sectors have been identified as: 10 KNBS Gross County Product (GCP) Report (2019)

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Agri-processing and industry Potential to grow local agri-production to highervalue products.

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Lake Economic Regional Bloc

KISII URBAN DIAGNOSTICS

Finance & Insurance Output 16% Other LREB Counties 13% Kericho

Bungoma

13% Kisii 10% Nandi 10% Nyamira

The economic sector contributions can also be shown in regional context, showing Kisii County’s under-developed manufacturing sector in Figure 2.12. Kakamega

sia

9% Kakamega 9% Bungoma 8% Kisumu 6% Bomet 6% Migori

Figure 2.12 - Kisii economic sector context Nandi

Vihiga

Lake Economic Regional Bloc

aya

Kisumu

Kisumu Finance & Insurance Output

Manufacturing Output

16% Other LREB Counties

34% Kisumu 20% Kericho

Kericho 13% Kericho 13% Kisii 10% Nandi

oma Bay Nyamira

12% Kakamega 8% Nyamira 7% Bomet

10% Nyamira 9% Kakamega 9% Bungoma 8%

6% Nandi 5% Kisii 4% Migori

Kisumu

6% Bomet Bomet 6% Migori

Kisii

The State of Business in Kisii

Manufacturing only accounts for 2% of Kisii County’s output, compared to 4% across the LREB and 8% nationally. Manufacturing is largely concentrated in a few regional hotspots: Kisumu, Kericho and Kakamega counties (two thirds of LREB manufacturing output).

There were 16,199 registered businesses in Kisii County in 2014, most of them (75%) being licensed retail traders (excluding supermarkets). Kisii Municipality also had 2,936 retail shops in 2010 (the large majority being small traders, shops and kiosks), and 154 industrial businesses (the large majority being small workshops)11.

Tertiary activities (public services, technical services, retail and hospitality) are significantly developed in Kisii County, with a 36% contribution to GCP. Financial and insurance activities are quite concentrated in Kisii County, being 13% of the LREB’s output in this sector is generated in the County.

4% Other LREB Counties

Professional Services Output

Migori

Lake Economic Regional Bloc

79% Kisumu Kakamega

Kisumu

8% Finance & Insurance Output

Bungoma

13% Kisii 10% Nandi

Manufacturing Output Busia

Siaya

6% Kisii 3% Kericho

16% Other LREB Counties 13% Kericho

Kakamega20% 12% 8% Vihiga 7% 6% 5% Kisumu 4% 4%

Kisii Migori OtherKericho LREB Counties

4% Other LREB Counties

8% Kisumu 6% Bomet 6% Migori

Kericho Kakamega Nandi Nyamira Bomet Nandi

Kisumu

Professional Services Output Nyamira Kisii79% Migori

8% 6% 3% 4%

Bomet Kisumu Kakamega Kisii Kericho Other LREB Counties

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Kenya Kisii County

Manufacturing Output 34% Kisumu 20% Kericho 12% Kakamega 8% Nyamira

Homa Bay

Figure 2.13 - Kisii employment types

10% Nyamira 9% Kakamega 9% Bungoma

34% Kisumu

Figure 2.13 shows the breakdown of employment types for Kisii Municipality and the County compared to the national level. More residents in the Kisii Municipality work for pay (28%) than the County (14%) though family businesses and agricultural holdings still reflect 40% of the Municipality economy. This does not capture the informal economy and as such a greater share of the Municipality’s residents are not in formal employment.

7% 6% 5% 4% 4%

Bomet Nandi Kisii Migori Other LREB Counties

Professional Services Output 79% 8% 6% 3% 4%

Study Area Family Agricultural Holding

Work for pay

Family Business

Fulltime student

Retired/Homemaker

Other

Kisumu Kakamega Kisii Kericho Other LREB Counties

11 Kisii County Statistcal Abstract (2009)

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Financial institutions - banks and SACCOs - are crucial to supporting a growing business ecosystem, and Kisii County is an important financial hub, with 23 bank branches and several SACCOs. Data reveals 60% of households had sought credit, and of those 93% had accessed credit. However, access to credit and risk aversion by borrowers and lenders was identified as a constraint to growth in the Kisii business consultation. Access to finance may be understood as being more specifically a challenge faced by businesses, rather than households with temporary credit needs. Discussions with the Chamber of Commerce highlighted that a ‘proxy’ for the lack of sustainable economic opportunities in Kisii would be the number of higher education graduates who end up becoming licensed boda boda riders or informal traders, rather than established MSMEs or with skilled employment access. A lack of income security is an issue for many in Kisii, where there is limited access to formal employment. Farmers rely on accessing the markets to sell produce, without value addition and a lack of formal trading organisation to secure prices, volumes and provide an information sharing ecoystem. A multitude of individual traders, up to 8,000, utilise Kisii’s street network, parking areas and the bus station as well as within the three market areas for household income, where a large amount of product duplication exists. Service providers, including matatu owners and 5,000 CBD boda boda riders, rely upon daily demand and compete with

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a large number of providers in a crowded operating environment.

Table 2.1 - Business identified challenges to growth

The Business Consultation

Type

Challenges to Growth

29 businesses and 21 SIG led enterprises, reflecting key sectors, were interviewed on their business type, operations, barriers and growth potential.

Transport Infrastructure

Poor road conditions, with few roads tarmacked, restricting the access to the market and causing congestions.

Market-Related Infrastructure

Too little land allocated to market activities, shortages of shelters, sheds, parking space and unloading bays, drainage systems, toilets and lighting.

Urban Environment

Lack of urban infrastructure such as affordable housing, pedestrian pathways, public parks, community facilities.

› No linkages: producers sell directly at the local market;

Access to Finance and Inclusion

Difficulty and / or reluctance to take up a loan.

› Producers - small retailers: producers sell their products to small retailers who operate in local markets. Crops are sometimes sold through the Chamber of Commerce as an intermediary;

Water and Electricity Supply

Disruption / affordability of electricity and lack of access to clean water occasionally mentioned.

It was found that Kisii businesses are typically small and their linkages with other businesses upstream and downstream production chains are limited:

› Producers - (small retailers) - brokers: products are sold to brokers who sell the products at other regional markets or at auctions in Nairobi or Mombasa for international exports. A consensus on the key challenges to growth for businesses were identified:

2.3.4 Infrastructure Provision Kisii Municipality’s fast population growth and uncontrolled urban sprawl has placed enormous pressure on infrastructure provision which hasn’t been able to keep pace with significant growth. Some of the issues include extensive congestion, lack of designated areas for transportation, underutilised prime town centre locations, lack of and poorly functioning open space, inadequate space and accessibility for the main markets and industrial areas. These issues have been identified as impediments to the economy and the business community’s growth aspirations, whilst also impacting residential quality of life and wellbeing. (See Figure 2.14 on following page).

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KISII URBAN DIAGNOSTICS

Figure 2.14 - Infrastructure Gaps in Kisii

Land

Scarce land availability Municipality has a total of just acres available.

.25

Population increase and scarce land has led to significant housing shortage, high land prices and poor quality informal housing.

Water

Increased water supply (Kigati water treatment) but lacking distribution network. Areas lacking piped water supply, only of households are connected to the sewerage system.

13%

Urban centre flooding impacts trade areas and transport routes. No larger-scale irrigation schemes in Kisii.

Waste

A landfill site at capacity and unmanaged in urban centre - illegal waste dumping.

Lacking equipment and resources (waste centre, trucks, segregation) in waste collection - and heavy rains impact ability.

Energy

Adequate energy infrastructure for short term - but growing demands will cause pressures.

70%

of urban area with electricity connection.

Country Road Network

15% 59%

tarmacked to bitumen standards.

26%

gravelled.

earth road. Isebania - Kisii - Ahero (B3) road between Kisumu port and Mwanza port (Tanzania) being upgraded.

Public transport carries 84% of motorised traffic in the town. 13 Matatu SACCOs and over 10,000 County boda boda riders - few designated areas, bus station at capacity.

Households use unsustainable means for cooking (firewood, charcoal and LPG) -

only 1% use biogas

Areas lacking in street lighting. No at-scale utilisation of renewable energy sources.

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Road Network

Severe congestion through CBD, including through traffic.

Unmanaged parking and encroachment.

Few footpaths, though pedestrians are significant share of movements.

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2.3.5 Environment Conditions and Climate Change Risk Kisii County’s climate and natural resource base, including its soils and rivers, is conducive for a range of agricultural produce, supporting high yields, making the County an important food producer for the LREB. However, the reliance on rain fed agriculture enhances Kisii’s vulnerability to climate change risks. Kisii County has a highland equatorial climate resulting in a bimodal rainfall pattern with an average annual rainfall of 1,500mm. The average annual rainfall, which is roughly correlated with altitude, ranges from 1,200mm in the northwest to slightly over 2,000mm in the Central Kisii Highlands. The long rains are between March and June while the short rains are received from September to November; with the months of January and July being relatively dry. The maximum temperatures in the county range between 21°C and 30°C, while the minimum temperatures range between 15°C and 20°C. The high and relatively reliable rainfall patterns coupled with moderate temperatures are suitable for growing crops like tea, coffee, pyrethrum, maize, beans and bananas as well as dairy farming. Kisii Municipality is characterized by a series of valleys and further located on a confluence of numerous valleys surrounded by both gentle and steep hills. All rivers within Kisii County flow westwards into Lake Victoria. The County is traversed by permanent rivers: main rivers being Gucha (referred to as Kuja), Mogusii, Mogonga and Iyabe.

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There are no clear trends in rainfall in Western Kenya, however, rainfall has become more variable, with both increased drought and flood risk. Climate projections show increasing temperatures, and likely intensification of rainfall during the rainy seasons. Under lower emissions scenarios rainfall totals may increase, however, with greater levels of warming decreases in rainfall during the first rains, and an increase in moisture stress, are likely. Key climate risks for Kisii include temperature extremes, wildfire, flood and drought. Kisii County is exposed to the risk of wildfire and drought, with a 50% chance of weather that could result in a significant wildfire and 20% chance that droughts will occur in the coming 10 years. Kisii County continues to lose biodiversity and experiences wetland degradation due to habitat destruction, overgrazing, deforestation, pollution and unsustainable harvesting and domestic energy use.

Figure 2.15 - Climate Variables and Hazards (High, Medium, Low, Very Low)

Climate Variable / Climate-related Hazard

Rating

Extreme Rainfall Events

Comments

The river and urban flood hazards are classified as very low - less than 10% chance of potentially damaging and lifethreatening river and urban floods in the coming 10 years. Nevertheless, the present hazard level is expected to increase in the future due to climate change effects (high confidence in an increase in intense precipitation).

Drought

Water scarcity is classified as medium. This means that there is up to 20% chance droughts will occur in the coming 10 years. There is medium confidence in decreasing dryness, and moisture stress.

Extreme Temperature Events

The extreme heat hazard is classified as low. This means that there is between a 5% and 25% chance that at least one period of prolonged exposure to extreme heat, resulting in heat stress, will occur in the next five years. Relative to what is currently experienced, there will, however, be an increase in maximum temperatures, and temperature extremes.

Storms and High Winds

Cyclone (hurricane or typhoon) hazard is classified as very low. This means that there is less than a 1% chance of potentially damaging cyclone strength winds in the next 10 years.

Wildfires

The wildfire hazard in Kisii is classified as high. This means that there is greater than a 50% chance of encountering weather that could support a significant wildfire that is likely to result in both life and property loss in any given year. It is likely that the frequency of fire weather occurrence in this region will increase due to climate change.

High Hazard Level

Medium

Low

Very Low

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As such, it is prudent to design projects to be robust to river and urban flooding; drought and water scarcity; global warming; and wildfires.

Figure 2.16 - Climate Sensitivity (high, medium, low)

Climate Variable / Climate-Related Hazard Precipitation

In relation to the key economic sectors, the following climate change risks were assessed to be pertinent:

Sector / Sub-Sectors

› Agricultural sector - Risks include wildfires, prolonged dry spells and moisture stress, which have already reduced banana and impacted tea production negatively;

Agriculture

› Industry - Flood water, drought and power shortages are identified risks that are magnified due to the foodwater-energy nexus, with significant and immediate knock-on effects; › Trade and services - Buildings and market areas would be significantly impacted by wildfires. The quality of the business environment and quality of life would be reduced by poor air quality. Transport services would be impacted by flooding, landslides and storms. Specifically, sectoral sensitivities were assessed as follows:

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Extreme Rainfall Events (Flooding)

Drought

Temperature

Wind

Wildfire

Extreme Temperature Events

Storms and High Wind

Wildfire Risk

Transport Water Waste Management Energy Health Tourism Trade & Retail

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KISII URBAN ECONOMIC PLAN

2.3.6 Diagnostic conclusion: drivers and barriers for growth The UEP diagnostics process identified three sectors that are key for the sustainable development of Kisii Municipality: › Agriculture, having been driven by Kisii’s conducive climate and relatively reliable rainfall; › Trade and Services, due to its advantageous geographical location along the highway (connecting Nairobi and Kisumu to the Kenya-Tanzania border) and with it having the second largest market within the LREB; and › Agri-processing and Industry, to stepup local production to higher-value products and create better paid and stable jobs - recognising that very little value addition is currently undertaken in Kisii County. Kisii County may be a key food producer for the Western region, however there are limited examples of its agriculture, trade

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or industrial activity penetrating wider markets. Across these sectors there is also limited value addition and Kisii typically hosts limited linkages in the production chain, with direct selling at Kisii’s markets, or selling to brokers where value is then added further afield and outside of the local economy. It is also important to consider regional competition. Surrounding counties are also large agricultural producers, with different cash crops. Kisumu is set to benefit from a manufacturing focussed SEZ, whilst its port access and current market scale further highlight the need to refine the focus for Kisii Municipality’s manufacturing and industry sector development. Kisii Municipality has already experienced an industrial area development which for various reasons has not met its objectives. The diagnostics process and consultation with business and key stakeholders has enabled the barriers and drivers to growth to be identified, as shown on the right:

Figure 2.17 - Drivers and barriers for growth

Barriers

Strategic Location

 Insufficient Transport Infrastructure

 Lacking Market Market Ecosystem

Good Climate

Growth Drivers

Infrastructures

 Degraded Urban Environment

 Poor Climate Resilience  Exclusion of Vulnerable Groups

Student Population

Regional Centre

 Poor Access to Finance  Poor Machinery and Equipment

Section 4 Sector Action Plans sets out how Kisii Municipality can utilise its existing assets and comparative advantages for sustainable economic development and value addition within its three key sectors.

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UEP DEVELOPMENT CONCEPT

3. UEP DEVELOPMENT CONCEPT The UEP provides an overarching Development Concept to guide and support the realisation of economic opportunities, as sectoral development (Section 4.2) and Value Chain opportunities (Section 4.3), and the implementation of a Development Framework of infrastructure projects (Section 5.2 - 5.4). A number of value chain projects have been identified and assessed to act as anchor projects for

Kisii Municipality, while the Development Framework (Section 5) prioritises the climate resilient and inclusive infrastructure projects that will be required to support economic growth. This Section presents the Concept and overview to these elements, as demonstrated in Figure 3.1.

Figure 3.1 - Economic Development Plan - Elements

Vision

Economic Sector Action Plan & Value Chain Project Opportunities

Development Framework & Priority Infrastructure Projects

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3.1 UEP Vision A visioning exercise was undertaken at the diagnostics and outline UEP workshop. Stakeholders were asked to consider the key elements of a UEP vision, where proposed vision statements were submitted by 62 stakeholders. The team analysed these responses to identify common objectives: › Decongested - A congestion free town with an improved road network; › Well Provided - A well-planned town with housing and infrastructure provision; › Liveable - A green, sustainable town with open space and effective waste management; › An Economic Hub - A town that grows economically as a business, industrial and trader hub, with facilitation of investment and SME growth; › Inclusive - An inclusive and diverse town and access to socio-economic opportunities; › Walkable - A town with more walkways and pedestrian access through the urban core and with efficient road space use. A vision statement for the UEP was developed and tested with the Kisii PSG and key stakeholders at the UEP workshop (workshop 3) to be articulated as:

Kisii Municipality to develop into a green, walkable, economically vibrant cosmopolitan city that serves as a regional trade and business hub founded on climate resilient and inclusive infrastructure and inclusive opportunities for all. 3.2 Economic Development Plan The model for development for Kisii Municipality is founded on the UEP principles set out in Section 1 and in collaboration with Kisii’s stakeholders. It aims to strengthen Kisii’s economic position and trade hub functionality, based on its competitive and comparative advantages and taking a citizen centred approach to green growth and sustainable investment. The economic development plan for Kisii Municipality is based on the economic vision and sectoral action plans, set out in Section 4.3. These action plans respond to the diagnostics phase where the Municipality’s key economic sectors - agriculture, agri-processing and industry, and trade and services - were assessed according to a SWOT framework that utilised data gathering, stakeholder engagement and business consultation to identify the opportunities and threats for each sector. These action plans build on this to ensure the realisation of economic opportunities and the mitigation of threats

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in an inclusive and resilient way. This economic development plan will support the Municipality deliver a more cohesive, holistic and sustainable economic future. Value Chain projects have been assessed to select two agri-processing VCs for Kisii Municipality, of banana pad and banana leaf products. These VCs, and further VC and industrial opportunities, sit within the wider economic development plan for Kisii (and set out in Section 4.1 and 4.2). The following elements are critical in establishing a VC and industrial cluster as an economic ecosystem that can grow and ensure opportunities for residents, in particular its youth, women, PWDs and Nubian community who have been excluded from more formal employment. › A ‘business incubator’ for smaller value chain opportunities and agri-processing for graduates and SMEs to take forward, with the supporting skills, mentoring, credit access and testing grounds; › An Agri-industrial Board and onestop services point for agriculture with support on finance, market linkages and information, best practices, product and export support; › An Education and Skills Board to link up education providers with businesses and County government; › A digital platform development with the upskilling of Kisii’s students to take this forward as it develops. This platform should link producers, customers and transport providers, to reach the

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Municipality and wider markets and to be demand responsive; and › The development of a circular economy waste system, where farmers can have free or low-cost access compost as an output of the organic waste produced from agri-processing.

3.3 Development Framework overview The UEP provides an overarching Development Framework to guide and support the realisation of economic opportunities, as sectoral development (Section 3.4) and Value Chain opportunities (Section 1.1), and the implementation of climate resilient and inclusive infrastructure projects (Section 4.2 - 1.1).

congests the urban centre. The UEP proposes the relocation of industrial uses and for this area to support the trade and services sector with truck parking, storage and facilities for required urban utility; › Focus Area 3: VC and Industrial cluster - out of the urban centre, this area will cluster industry and agri-processing to provide the scale and efficient infrastructure provision to enable sustainable growth of this sector and provide income security for the County’s agricultural sector. Section 5 sets out the Development Framework and the proposed infrastructure projects in detail.

The Development Framework is composed of three focus areas, which relate to the key economic sectors and VCs as: › Focus Area 1: CBD - supports the better functioning of the urban centre, in its transport, utility provision and land use, to support the trade and services sector to operate more effectively and to a larger scale. This enables produce from the wider area to access markets more efficiently, whilst creating a higher quality environment for trade and socioeconomic activities; › Focus Area 2: Logistics and supporting facilities - this area is currently designated as an industrial zone though has a lack of infrastructure and further

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ECONOMIC DEVELOPMENT

4. ECONOMIC DEVELOPMENT 4.1 Economic Development Plan Kisii is one of the largest towns in the LREB region, with over 200,000 inhabitants. While the primary sector is still key to most resident’s revenues, the Municipality is also a large trading place with one of the largest markets in Kenya. The County’s growing economy suggest that there are opportunities to consolidate the secondary and tertiary sectors, which would increase employment opportunities and diversify the economy. Because of this, the economic development plan for Kisii Municipality must be integrated and reflect co-dependent interventions. As for every growing economy, sectors are strongly interrelated, and development cannot be thought of in silos. In the case of Kisii in particular, the relatively large size of the town means that there is scope to push towards developing secondary and tertiary sector activities, where demand and supply for more advanced goods and services could be met in the future. Strong linkages between sectors are essential to achieve this – for instance, the development of agri-processing, whether that is processing per se, packaging, branding, marketing or export, can only succeed if supported by a reliable agriculture sector and developed service activities. If well planned, sectoral growth could trigger “spillover effects”, whereby skills and sectoral development can foster entrepreneurship and new

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ideas generation. The larger size of Kisii Municipality and its regional significance also gives the opportunity to “use up” existing assets and institutions to support this development plan. These are the County and Municipal governments, the

universities and TVET institutions, the Agricultural Research Centre, the large trading and business community, and the largely developed supporting sectors that are banking and healthcare. Fostering strong and serious linkages between these

institutions and identified sectors will also be crucial for their development. The following diagram sets out these interactions between sectoral actions and the role of the County’s institutions.

Figure 4.1 - Economic Development Plan - Overview and Interactions Focus Area 1: CBD Focus Area 2: Logistics

B3: Create inclusive work contracts A1: Set up training programmes to help farmers diversify and enhance production

Focus Area 3: Industrial Cluster

A Growing Agri-Processing and Industrial Sector

B1: Plan and develop an industrial cluster in Kisii

A Resilient Agriculture System

C1: Develop a logistic area to support market activities

A4: Create a digital platform for sellers

B2: Set up an Education and Skills Board

A2: Improve road conditions

A3: Organise a system of collection points to facilitate distribution

C2: Provide needed facilities and infrastructures at the market

B4/C5: Help entrepreneurs access financial and material support

A Developed Service Economy

C3: Improve connectivity and amenities in the town centre

C4: Increase housing supply, including affordable housing B5: Create an Agriindustrial Board

C6: Promote exports through the Agriindustrial Board

Exports Higher Education Institutions (Universities and TVET)

Proactive Local Government

Local Businesses

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KISII URBAN ECONOMIC PLAN

4.2 Economic Sector Action Plans Having identified the three key sectors for further assessment 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.

4.2.1 Agriculture Agriculture is a sector of fundamental importance to Kenya’s economy. It accounts for approximately 25% of annual GDP with a further 25% through the sector’s supply chain and related spending. Agriculture represents 65% of Kenya’s exports and accounts for 70% of informal employment in rural areas1. As such, developing the sector has been identified as a central component of the country’s growth strategy, as clearly reflected in Vision 2030. Specific policies being targeted include improving the branding of Kenyan agricultural products to increase their value in global markets and improving the management of land registries for land use to help increase productivity. Agriculture is a fundamental sector for the County’s economy, representing 52% of its economic output and directly and indirectly driving the incomes of many of Kisii’s

inhabitants through household subsistence farming, smallholdings and the trade and services sector. Activities are largely limited to raw produce and its transporting and selling. Kisii Municipality and the wider County benefit from an environment of

high rainfall and fertile land that allows the growth of a large variety of produce. The County’s main crops include maize, beans, finger millet, bananas, sweet potatoes, cassava, arrow roots, sorghum, carrots, avocados and vegetables.

Strengths

Weaknesses

Good climate for rain-fed agriculture and volcanic soils.

Lack of crops distinctiveness and competition with surrounding counties.

Sufficient source of water for agri-processing. Established tea and coffee value chains. Good strategic location in Western Kenya. One of the largest trading markets in the region.

Low prices of crops. Limited land for expansion for agricultural purposes. Limited water distribution system despite resources and no large irrigation system. Poor road condition and maintenance. Lack of value addition from processing, packaging, branding and marketing. Lack of storage points and facilities. Significant physical and topographic constraints.

Challenges to address Agriculture outputs can be erratic as they are highly reliant on many factors, both internal (responses to weather, provision of water resources) and external (global price of commodities, global demand). The climate vulnerability assessment identified drought and extreme weather conditions as a significant risk for Kisii County.

Locally, the small size of land holding (1.15 ha on average in the county, with many as small as 0.2 ha) results in crop duplication. Regionally, surrounding counties are also highly reliant on agriculture and produce similar types of crops, making competition high.

1 CGoK, Agricultural sector development strategy (2018)

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ECONOMIC DEVELOPMENT

Table 4.1 - Agriculture Action Plan Aim

Action

How to deliver

Diversified production and improved reliability

Set up training programmes to help farmers diversify and enhance production

The Agriculture Training Centre already provides training programmes to local farmers, yet lack of crops diversification has been noted, leading to overproduction and lower returns for farmers. Whilst most farmers rely on seasonality to grow crops, better knowledge of crops and seeds could help farmers develop off-season agriculture - products could be sold at a premium. Off-season agriculture could be adapted to include cereals and some leaf vegetables.

A more efficient distribution system

Better roads

The road network has been frequently highlighted as a limitation to sectoral growth. In particular, some parts of Kisii and the wider County are not accessible by all-weather roads, which makes it very difficult for farmers to reach the markets.

Organise a system of collection points to facilitate distribution

Most agriculture production is done by individual households, meaning that cost to travel to Kisii markets is high when they live far from the town centre. One way to mutualise and reduce costs would be to create collection points at major crossroads or villages to allow farmers to leave their products there - with an intermediary selling to Kisii market.

Create a digital platform for sellers

As cashless transactions are increasingly important and with regards to physical restrictions related to the Covid-19 pandemic, there is a need to support farmers selling their products online. A digital platform, that would act as an online marketplace, could be developed. It would be managed by a cooperative and would play the intermediary role of collecting products, receiving orders, delivering to clients and paying back farmers.

Facilitate online retail in the face of Covid-19 pandemic

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4.2.2 Agri-processing and Industry Whilst agriculture is the main economic sector nationally, the national government aims to support and develop agriprocessing, in an effort to develop the industrial sector locally, make local communities more resilient, and develop new products that can be competitive on international markets. The national government recently developed the Agricultural Sector Transformation and Growth Strategy (ASTGS), with the aim to create 200,000 new jobs and increase the contribution of agri-processing to GDP by 50%. Manufacturing activities more broadly are also part of the governmentâ&#x20AC;&#x2122;s strategy which is giving momentum for new activities to develop. Agri-processing is currently limited in the County, with tea and coffee production representing the most established lines. Avocado and banana processing are at an early development stage, and the UEP VC projects (Section 4.3 below) are designed to support their growth into an effective and well served cluster. The broader manufacturing sector is limited. There is one small industrial cluster in Kisii town, mainly underdeveloped and underutilised, and a number of light industrial workers â&#x20AC;&#x201C; such as Jua Kali, across town. Yet manufacturing and industrial activities present potential for development, as a support for other activities such as agriculture but also as an activity per se. Already a couple of small initiatives have developed locally, including a plastic recycling process led by UN

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Habitat. One of the townâ&#x20AC;&#x2122;s higher education facilities, the National Polytechnic, has also struck partnerships with colleges in Canada to improve degrees in applied building technology.

Strengths

Weaknesses

Good water resources for manufacturing and industrial use.

Lack of significant industries.

Banana agri-processing facilities with an operational start. Presence of Kenya Industrial Estates (KIE) in the town.

The designated industrial area has been operating below capacity.

Higher education institutions that are supported by international programmes.

Light industries are spread randomly within the urban centre with a lack of space. Lack of machinery, equipment and technical skills to organically use industrial space.

Small scale light industry and services.

Poor infrastructure in the industrial area, including neglected road network and poor sewer system.

Established market centre and trade activities.

High business costs and a challenge to access the scale of energy that production may need.

Challenges to address Agri-processing and manufacturing sectors are not well developed in Kisii County and kickstarting the industry will require more capital and human investment. In addition to this, a number of external factors must be taken into account:

Environment: environmental challenges could have damaging impacts on the industry, in particular with flooding caused by extreme rainfall events which could damage the water supply infrastructure. New Industries: could also have impact on the environment, through air pollution, groundwater pollution and fire outbreaks due to poor building maintenance.

Infrastructures: the use of the road network by heavier vehicles, which might be required by new industries, will further reduce the life expectancy and condition of the road and exacerbate congestions. External Competition: a new Special Economic Zone (SEZ) is being developed in Kisumu, which will make for a significantly more attractive location for manufacturing than Kisii. Finance: lack of finance and credit access to rent space and acquire key machinery and equipment will be a challenge for entrepreneurs to enter the sector, in an industry where capital investment is crucial.

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Table 4.2 - Agri-Processing and Industry Action Plan Aim

Action

How to deliver

Suitable built infrastructure to support the industrial sector

B1. Plan and develop an industrial cluster in Kisii

A new industrial cluster area should be developed in Kisii, outside of the town centre, where infrastructure requirements can be provided efficiently and where future expansion can be accommodated. It is important industrial activity does not impede on the urban environment and residents’ quality of life (such as congestion, noise, displacing land from central activities). However, the area needs to be well connected to the Municipality’s markets.

A suitable and skilled workforce

B2. Set up an Education and Skills Board to link up education providers with businesses and county government

Take advantage of higher education institutions and their proximity to the industrial cluster, with a large pool of graduates, to link up development policies with the education.

B3. Create inclusive work contracts

Agri-processing and industrial development should be a key driver for inclusive growth, with opportunities taken forward to connect special interest groups with employment opportunities. Consideration should be given to create potential incentives for respective employers to ensure a proportion of available jobs are targeting youth, local students, women and PWDs to gain work experience.

B4. Help entrepreneurs and businesses access financial and material support

Financial distress was a common limitation among businesses surveyed. Those who operate in agri-processing (tea, coffee) tend to lack capital to buy new machinery and equipment. There is scope to develop business training programmes particulary on access to finance, accounting, marketing, stock management, potentially with the support of local banks.

B5. Create an Agriindustrial Board to link up stakeholders across the agriculture value chains

As the whole agriculture value chain (including processing and export) is likely to be key to the Municipality and wider County growth, an Agri-industrial Board should be set up to coordinate actions. The Board would link stakeholders from agriculture, processing, trading and export, and it would have the following tasks:

A supported industrial ecosystem

Agri-processing Value Chain projects, selected through the UEP evaluation process (banana pads and banana leaf production), will be located in the proposed industrial cluster. There will be gains to also locate other agri-processing projects (such as those that were considered but not prioritised) to develop a critical mass and ensure shared use of infrastructures (roads, energy, water, public transport, etc.).

Partnership should start with the creation of an Education and Skills Board that would coordinate efforts between TVET institutions and universities, relevant local/regional businesses and Kisii County Government. Kisii County Government should inform stakeholders of new development projects and cross-cutting needs and discuss how local skills can be utilised. Local/regional businesses should inform about skills shortages and work together with education institutions to develop adapted curriculums including potential apprentice schemes..

The development of business incubator system could provide the linkages to education, finance and agricultural training. Entrepreneurs can be supported in taking forward potential value chain opportunities, utilising the developed collection system for agricultural produce and fast-tracked with a one-stop shop for supporting services and best practice. The incubator should provide a testing ground for how opportunities can be started and sustained. This would suitably be supported with aspects including IT and e-commerce skills, business mentoring and low rents or upfront credit for available plots and equipment within the industrial cluster.

› Set up strategic objectives for the development of the agri-industrial value chain, and identify opportunities for growth; › Engage with small landowners and entrepreneurs, exchange information about business growth and opportunities, existing development programmes and alignment with strategic objectives; › Identify shortages and weaknesses that threaten the value chain (e.g. skills shortage, infrastructure requirements) and take initiatives to address them; › Support exports and develop an export strategy, including export promotion, negotiated deals with brokers and local branding strategy.

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Case Study: Agri-Business Incubators, Tanzania and Nepal, World Bank Programme2 The World Bankâ&#x20AC;&#x2122;s Agribusiness Entrepreneurship Programme has established centres in Tanzania and Nepal. This recognises that the middle segment of value chains (processing, logistics, and wholesale) make up 3040 percent of the total value added and that there are opportunities from the global market trends in food and beverage (from the developing middle class tastes in low-middle income countries and demand from high-income countries). Growth in the agri-processing industry creates opportunities to reduce poverty and transform the economy, where each additional job in agri-processing creates 2.8 more jobs in the wider economy; each agri-processor purchases from numerous smallholder farmers; and smallholder farmers can mitigate against harvest seasonal gluts, creating value from what might have been lost to spoilage.

to new market opportunities, guidance on certification and production improvements, and access to financial support. A focus case study3: Rocky Products, an agri-processing company located in Tanzania specializes in high-quality natural spice products, such as garlic paste, black pepper, and curry powder. The entrepreneur who began the company from raw products and limited funds has been supported by the Agribusiness Innovation Centre, to supply her products to major supermarkets, hotels, and restaurants. Rocky Products has been able to expand and employ, following support with market linkages and product certification, and is now looking to expand into international markets.

The Agribusiness Entrepreneurship Program supports the growth of competitive agri-processing enterprises by advancing innovation in products, processes, and business models. This has included the provision of coaching on business management, introduction 2 https://www.infodev.org/agribusiness-entrepreneurship-program 3 https://www.infodev.org/profiles-women-digital-and-agribusiness

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4.2.3 Trade and Services Kisii is already a large market town, and trade is an essential component of its economy. This is due to the excellent location of the town, in close proximity to Uganda and Tanzania. National statistics show significant formal and informal trade patterns between Kenya and those two countries. As a result, Kisii hosts one of the largest markets in Kenya and the largest in the Nyanza region, the Daraja Mbili market. The increasing role of the market has supported the growth of the town as one of the largest urban areas in the region, and tertiary activities such as banking, higher education (9 institutions), health (14 hospitals and clinics), and the night economy have developed. As the city expands, those tertiary activities are likely to become increasingly important to its competitiveness. Consequently, understanding how to support and consolidate trade and the tertiary sector is crucial. The town centre faces similar congestion and planning issues, which has an impact on local businesses as well as on the general attractiveness of Kisii as a place to live. High housing cost and the lack of amenities (green spaces, pedestrian areas) could in the future deter graduates and skilled workers to live in Kisii thus affecting the development of tertiary activities.

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Strengths

Weaknesses

Strategic location in Western Kenya and good connectivity to national and international corridors.

CBD congestions impacting people and freight movements, including access to public transport.

A large marketplace with one of the largest markets in the region. Significant scope of supporting services (banking, higher education, health facilities). Growing urban population, supporting the growth of the service economy. Established 24-hour economy, with a growing bars and restaurant scene. PWD and youth groups are better engaged in this sector. Recently pedestrianised streets have supported better flow and created vibrant market side-streets.

Lack of parking space and logistics area. Some education institutes lack quality and programmes/ courses of adequate standards. Lack of marketing knowledge and information share in the sector. Poor infrastructure in the market (waste management, drainage, clay soils). Lack of pedestrian infrastructures in the CBD. Lack of leisure facilities that could improve the townâ&#x20AC;&#x2122;s attractiveness to business people, students and visitors. Lack of financial access and credit, especially for youth and women who lack asset ownership.

Challenges to address The lack of an updated and adopted urban plan and consequently lack of regulations enforcement, has led to an uncontrolled and inefficient growth pattern, which affects the trade and services sectors. Kisii Municipality suffers from high levels of congestions and the lack of space for trading activities (the main market unofficially extends to neighbouring roads) significantly limit growth.

The market also lacks basic infrastructure for trading, such as shelters, tarmacked roads, toilets, parking space, loading bays and logistical infrastructure. The urban centre faces similar congestion and planning issues, which has had an impact on local businesses as well as on the general attractiveness of Kisii as a place to live.

High housing cost and lack of amenities such as green spaces and pedestrian areas, could in the future deter graduates and skilled workers to live in Kisii thus affecting the development of tertiary activities.

Trade Resilience: Covid-19 Focus According to a study conducted by the Central Bank in June 2020 about 75% of SMEs will not pull through to July 2020. Measures imposed by the Government to contain the spread of Covid-19 such as curfew and lockdown have severely affected SMEs. The situation has been exacerbated by lack of credit buffers to SMEs to enable them to survive the lockdown period. In Kisii over 5,000 traders at Daraja Mbili have lost their livelihoods due to the closure of the market. Some traders have resorted to selling their wares along the streets to make ends meet.

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Table 4.3 - Trade and Services Action Plan Aim

Action

How to deliver

Improved conditions at the local markets

C1. Develop a logistics area to support market activities

As detailed under Focus Area 2, the existing industrial area should be developed as a logistic centre to support market activities, providing improved road access, space for parking, loading, storage, sanitation, boda boda servicing stations.

C2. Provide needed facilities and infrastructures at the market

The market area can be increased by acquiring surrounding land to expand and move Kisii to a market ecosystem that includes civic and event space for an improved offer. It can also support the hospitality sector where Kisii lacks community and leisure services.

A more liveable town centre

C3. Improve connectivity and amenities in the town centre

As detailed under Focus Area 1, several developments are needed in the town centre to make a step change in quality of life and sustainable mobility, whilst supporting the efficiency of Kisii’s market ecosystem, including: › A new river park and green corridors;

› New bypass roads to reduce traffic in the CBD;

› Increased capacity at the town market and redevelopment of market square;

› Extended non-motorised transport network;

› Streetscape improvements;

› Bus park upgrades and traffic management.

› Improved drainage systems to address urban flooding;

A cohesive business community

C4. Increase housing supply, including affordable housing

Increase housing supply in the town centre to address high housing costs. Specifically, there is a need to focus on housing for marginalised group, such as those living in informal settlements and youth groups. High housing cost will deter students and graduates to come to Kisii in the future. Better planning for the town centre as developed under Focus Area 1 should help release land for residential development.

C5. Support entrepreneurship through skills and capital

Based on business consultation interviews, businesses identified some key training requirements: › Digital skills › Exports and branding › Access to finance There is scope to develop business training programmes (accounting, marketing, stock management). This can be done with the support of local banks and the Chamber of Commerce. Digital skills will be critical in providing the capability to move Kisii’s trade and services ecosystem towards a resilient way of working, where the movement of goods and people can be demand responsive. E-commerce is an aspect of this where traders can access customers in Kisii, the region and beyond without the reliance on daily market access (for themselves and customers). This would support the income security of traders and provide incentives to offer value-addition products to grow online sales. Further, a move to a more cashless sector can be encouraged, M-Pesa transfers can be used across sales and service payments. Services such as boda boda provision can also be better regulated and demand responsive through a digital platform, where there is potential for an integrated system between traders, transport providers and customers. A digital platform that covers transport providers can reduce CBD crowding and provide opportunities for youth groups in managing and maintaining such a system. Further information on this is provided under the Development Framework.

C6. Promote exports through development of an Agri-industrial Board

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Barriers to export were noted among larger businesses. The proposed Agri-industrial Board (Action B5) could provide advice to businesses on export promotion, negotiate shared deals with brokers and develop a branding strategy around Kisii products. The Board could include local businesses, representative from the Chamber of Commerce, marketing experts and Kisii government trade officials.

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4.3 Value Chain Projects Identifying the UEP value chain opportunities for Kisii Municipality was a four stage process: › 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; › 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 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 Kisii, to provide weightings for final evaluation and identification; › 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.

4.3.1 UEP short-listed VCs The Technical Briefing Paper (Appendix B) sets out the assessment for the six shortlisted VC opportunities: banana pads; banana leaf products; avocado processing; avocado biopolymer; juice bottling; and

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milk processing. These six are summarised below, in advance of detailed sections on the prioritised VCs of banana pads (1) and banana leaf products (2): 1. Banana pads Banana fibres can be used to make a range of products including absorbent pads, rope, cardboard, tea bags, textiles and matting, though at present almost no stem fibre is collected and presents a missed opportunity. Given the overriding need for affordable menstrual hygiene products in Kenya, this VC is for the manufacture of sanitary pads. If fibre volumes are sufficient, diapers and incontinence pads could also be produced. 2. Banana leaf products There is now a technology for processing banana leaf to make trays, plates, cups and bowls while maintaining flexibility (crushability) and colour. This provides the opportunity to compete with the dominant plastics and recycled paper goods. This VC is to source fresh banana leaf locally and produce a range of formed wraps, trays, plates and cups. The target markets will be the national and export markets for disposable tableware (mainly fast-food markets), as well as the domestic market for horticultural packaging trays. 3. Avocado processing Kisii is well suited to avocado where it is grown widely, though the fruit continues to either be sold into the local market or to traders to export or send for processing elsewhere. With the strong supply base,

the first avocado oil extraction facility in the area was scheduled for development some 20km west of Kisii Municipality. Though largely completed, this facility was mothballed due shortages of Hass avocado, the preferred fruit for oil extraction. However, fruit production has since risen, with the County Government and other agencies providing Hass seedlings to farmers and production volumes should now be sufficient to support an oil processing facility in Kisii. In addition to oil extraction, the waste materials from the extraction process (stone, skin, pulp), can be turned into charcoal briquettes, to replace wood charcoal. This VC project is for an avocado processing plant, either building on the existing mothballed facility or a new facility. 4. Avocado biopolymer Following the establishment of an avocado oil processing facility in Kisii County, there would then be potential to utilise the waste stones from the plant to produce polymer resin. This VC is for a facility to produce biopolymers from avocado stones. During the initial phase, the biopolymer would be sold to fabricators, while at a later stage the polymer could be used to process the disposable items on site. There is also potential to produce a biopolymer plastic film from the avocado oil extraction residue (the waste pulp). This technology is at an early stage of development, and as yet there is no commercial-scale production. Given the broad agricultural base in Kisii and

surrounding counties, and the rapid progress in the development of a range of biobased polymers, this VC could be the first in a cluster of biobased polymer production sites. 5. Juice bottling Kisii County produces a wide range of fruit in substantial volumes, but there is no commercial-scale local processing, and post-harvest losses are substantial. There is then scope for a fruit processing plant, which would focus initially on juice bottling, with potential to expand into other products such as jams, concentrates, pulps, fruit leather. The key target fruits for this VC are passion fruit, oranges, guava, loquats, tamarillo and tomato. This VC is supported by the 2018-22 CIDP in which the County Government is committed to encouraging farmers to plant a range of fruit trees on their farms, to serve the dual purpose of increasing forest cover and providing an alternative source of food. 6. Milk processing Kisii County produces a substantial volume of milk, and production is set to increase as the County Government promotes improvements in zero graze management and the quality of dairy herd. However, much of the milk produced is wasted due to a shortage of cooling facilities and processing. While the County Government is expanding the number of cooling plants, the lack of processing capacity remains. There is then a need for milk processing capacity to provide a secure offtake for farmers, and produce shelf-stable goods

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such as UHT, condensed and dried milk. This VC project is for a milk processing facility in Kisii, that would focus on UHT milk processing and packaging initially, with other product lines to be developed in subsequent phases, such as cheese, yoghurt, fresh milk processing and bottling, powdered, dried and condensed milk.

4.3.2 UEP selection: prioritised VCs Two VCs: banana pads and banana leaf products have been selected for UEP prioritisation due to their ability to catalyse the industrial sector within the Municipality. They would make effective and sustainable use of the recent banana plant development, located by the Agricultural Training Centre. This plant was funded by the EU and County Government and will produce crisps, banana powder, hair pieces, and wine; providing fairer prices and opportunities for a large number of farmers. There is a key synergy in implementing a circular economy of produce and waste to and from farmers, and with an efficient transport and collection system. These VCs have been assessed against climate resilience and inclusion, scoring highly. These VCs have been assessed to have higher readiness for investment than the other short-listed VCs, and as such are suitable as initial anchor projects to spur further growth given their competitive advantage for Kisii County and within the agri-processing sector. The Technical Briefing Paper (Appendix B) included assessment for the further four shortlisted VC opportunities: avocado

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processing; avocado biopolymer; juice bottling; and milk processing.

› Providing an additional income source for banana farmers;

These VCs have high potential as next stage VC development and investment. These VCs would be able to utilise the developed infrastructure provision, collection network and waste systems for the banana VCs, and to use available land within Focus Area 3. These would suitably link to a developed ecosystem including a business incubator and Agri-Industrial Board.

› Supporting investment in green packaging and biopolymers by providing a ready market;

The two selected priority VCs are detailed in turn below.

Menstrual health hygiene is a major issue in Kenya which has a disproportionate impact on the poor. The problems stem from a combination of limited health education, lack of access to clean toilets, and lack of access to affordable sanitary products. This issue is highlighted by the fact that girls from poor families miss an estimated 20% of school days as a result of lack of sanitary products and poor facilities at school.

4.3.3 Banana pads: production of sanitary pads from banana stem fibre The fibre in the core of a banana stem is a highly absorbent material that is discarded after banana are harvested. The fibre is widely available, low cost and biodegradable. Small-scale production of banana pads has been established at a number of locations, and this VC is for the first commercial-scale facility. The key outcomes would include: › Supporting the provision of low-cost sanitary towels to schoolgirls in Kenya; › Providing low-cost sanitary towels and related products (e.g. incontinence pads and diapers) across Kenya; › Reducing the use of hydrocarbon based non-wovens (currently used in most sanitary pads);

› Providing a potential link to the EUfunded banana processing plant in Kisii, for joint collection of produce, thereby improving the economics of both facilities. Base assessment

There is potential to manufacture sanitary pads out of a range of natural materials, and a key material is banana stem fibre. This fibre is highly absorbent and available in Kenya in substantial volumes as waste material. A number of facilities to produce banana fibre-based sanitary pads have been established, but these are all relatively small-scale (self-help groups and cooperatives). This VC project is for commercial-scale manufacture of sanitary pads and similar products, such as pads suitable for use by elderly or sick people, using waste banana stem fibre from Kisii and neighbouring counties.

The Kenyan Government has a number of initiatives to address problems surrounding menstrual hygiene, and in 2017 announced a program to distribute free sanitary pads to every girl in public schools. The need for affordable menstrual hygiene products is not limited to schools, rather the impact on school-age girls highlights the importance of the issue. There is a wider need for affordable menstrual hygiene products for women in general, as well as similar products such as diapers and adult incontinence pads.

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At present almost no stem fibre is collected in Kisii or across Kenya. After harvesting banana fruit, the remaining stems and leaves are either left to rot in the field, burnt, cut and piled up for composting or used as animal feed. The useable fibres, which are located in the central fibre bundle, only account for a small part of the banana palm, estimated at around 2.7% by weight of an entire mature plant. After the fruit is harvested the stems can be cut down and trucked to the processing facility. There is also potential to extract the fibre bundles at central collection depots or on farm, thereby reducing transport volumes. There is a well-established supply network in Kisii and neighbouring counties, bringing in banana fruit from farmers and collection depots, into the city to supply local markets and the new banana processing factory (Figure 4.2). There is potential to build on this supply chain for the collection of banana stems and/or fibre bundles.

Figure 4.2 - Existing banana supply chain

Farms

Depots

Banana Fruit Collection Network

Sector supply chain

Banana Processing Factory: Flour, chips etc

Traders

Regional / National Markets

Local Markets

There are only a few banana fibre sanitary pad producers, but these are small-scale operations, and include: › Kutus Town, Kirinyaga, supported by ICOSEED (Integrated Community Organisation for Sustainable Empowerment and Education for Development); › Saathi facility in Gujurat India; › AFRIpads and Bananapads across Uganda; › SHE - bananapads in Rwanda.

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Competitiveness The proposed VC should be able to supply pads at a competitive price. The target factory gate price is KES 40 for a pack of ten standard pads with a projected breakeven price of KES 30 per pack (see section on indicative costs and revenues). Retail prices in Kenya range from the equivalent of KES 60 for a pack of ten (when buying bulk), to KES 110 per pack,

with an average of around KES 90 per pack, as shown in Figure 4.3. The target VC prices also compare favourably with the those of the smallscale banana pad producers. In Uganda banana pads are sold at the equivalent of US$ 0.70 to 0.72 for a pack of ten standard pads. This is in line with the selling price in Rwanda of US$ 0.70 per pack of ten.

Figure 4.3 - Competing sanitary pad prices Sanitary Pad Prices KES per pack of 10 standard equivalent 120 100 80 60 40 20 0 VC Breakeven

VC Target

Uganda/Rwanda

Production potential The provisional target capacity for the VC is 500,000 pads per day, totalling 125 million pads per year. This capacity provides for good economies of scale and can be supported by Kisii Countyâ&#x20AC;&#x2122;s banana farmers. Some 5 grams of absorbent banana stem fibre are used in a standard size sanitary

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Kenya: Low

Kenya: Average Kenya: High

pad, which supports the production of around 200,000 pads from each ton of fibre. Banana production in Kisii is estimated at 85,000 tons per year, and this would support the extraction of around 2,300 tons of fibre per year. If all of this fibre was used in the production of pads, some 450 million standard size pads could be produced each year.

There would then clearly be scope to increase capacity at the proposed facility, as the fibre requirement represents less than one third of the potential supply from Kisii County banana harvest, and there is also potential to source stem fibres from Nyamira and other neighbouring counties.

estimated at around 2 billion units per year. To combat the issues around affordability, in 2017 the Kenyan Government announced a program to distribute free sanitary pads to every one of the 4.2 million girls in public schools. In addition, VAT has been removed from sanitary pads.

Across Kenya, current banana production could support the supply of fibre sufficient to manufacture around 6 billion pads per year. This would be enough to meet the needs for pads for around 20 million women.

Demand for pads in Kenya is expected to grow ahead of population growth, in response to rising incomes and increased availability of free/subsidized products (under Government and donor schemes) and supplies of low-cost products from local producers (including this VC).

Demand outlook There is strong demand for sanitary pads in Kenya, and good demand growth in Kenya and globally. Worldwide the use of sanitary pads has been growing ahead of population growth, as pads become affordable to more women and they are changed more frequently. Globally there is a move away from the use of tampons towards pads and other items. Global use of sanitary pads is estimated at around 400 billion units per year, and they account for 44.5% of the global feminine hygiene products market by value4. As a result of this trend, the sanitary pad market is forecast to rise by over 7% per year in value to 2026.

The target market for the banana pads will be Kisii County and the rest of the region and Kenya. The target capacity for the proposed facility of 125 million units per year is sufficient for twice the population Kisii County. Locational analysis The total land requirement for the banana pad production facility is estimated at 2,100 sqm, which should allow room for future capacity expansion.

In Kenya the use of sanitary pads has been limited by affordability, with up to 25% of women and girls unable to afford sanitary pads (Journal of Womenâ&#x20AC;&#x2122;s Health in 2015). The current market for pads in Kenya is 4 Feminine Hygiene Products Market - Global Trends, Growth & Forecast to 2026: https://www.persistencemarketresearch.com/market-research/feminine-hygiene-product-market.asp

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Collection

Table 4.4 - Land Requirements

Element

Sqm

Delivery / dispatch

200

Outdoor storage

300

Processing fibre extraction

400

Covered drying

600

Production building

200

Storage: finished product

100

Other

300

Total Requirement

2,100

Value Chain opportunity The key activities for the facility comprise: › Sourcing and collection of banana stems; › Extraction and processing of fibres; › Production of sanitary pads; › Packaging and distribution. While the focus of the VC is on the production of sanitary pads, there is potential for producing incontinence pads and diapers, which would use the same production technology. Furthermore, with an established supply of fibres there is potential for producing higher value products such as yarns and textiles.

There is an established supply network for bringing banana fruit into Kisii and this network can be developed to bring in the banana stems and/or fibre bundles. The total volume of stems to be delivered to the sanitary pad production facility is estimated at around 93 tonnes per day. This volume could be reduced by 60% or more with extraction of the fibre cores taking place on the farms or at the collection depots. To support the collection of stems, four 5-tonne trucks have been included the project economics, though this could be reduced with pre-collection extraction of fibres, and/or integration with the existing fruit collection network.

Figure 4.4 - Process flow for banana fibre sanitary pads

Sourcing › Extraction of stem cores after harvesting bananas

Retting › Soaking in water or mild alkali solution › Air drying

Tuxing › Splitting stems to separate the fibre bundles

Cutting › Snipping into short lengths (rotary chipper)

Decorticating › Stripping out the fibres

Pulping › Mashing in water to produce a furnish

Processing The processing of fibre extraction is similar to that for bamboo, hemp, jute or flax. The fibre core is fed into a decorticator which is a simple hammer mill or similar technology that has a slow-motion beating action. Once extracted, the fibres are then cut into short lengths and the processing is then similar to paper pulp processing. The key steps in manufacturing the sanitary pads are shown in the figure below. The retting solution can either be plain water or a mild solution of sodium hydroxide, sodium carbonate or magnesium oxide. After extraction of the fibres, the remaining stems will be composted.

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Screening › Production of card layers through screening the furnish

Preparing › Rolling › Softening

Production › Forming › Layering › Cutting

Retting › Pack in user boxes (4-8) › Packing for dispatch

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Distribution and sales Total output of packaged products from the facility would be the equivalent to just over one 40ft container each working day. The distribution and sales of the pads can be divided into three categories: › General market: for the primary market, pads would be sold into the existing wholesale-retail network; › Tenders: the facility will respond directly to Government tenders for the supply of pads to schools; › Exports: an export partner will be sought to access premium price markets in Europe and North America. In addition to pads, the facility will produce compost (up to 45 tonnes per day, though substantially less if the fibre cores are extracted prior to collection). The compost will be deposited at a central pick-up site for free collection by farmers.

› Realistic market share - with the volume representing 6% of total Kenyan consumption, or around two years’ demand growth.

Figure 4.5 - Operating costs (2025)

300

Indicative costs and revenue Investment The total investment required is estimated at KES 300 to KES 350 million. Of this around one third will be for equipment and machinery (including vehicles), some 25% will be for buildings and site development, and the remainder will cover marketing, training and working capital.

Total annual operating costs are estimated at around KES 300 million by 2025, with around half of this going to farmers for the supply banana stems.

Revenue

250

Total annual revenues at full production are estimated at KES 500 million. This is based on a factory-gate sales prices of KES 40 per pack of ten pads.

200 150 100

Value added

50 0

Operating costs

Other

Manpower

Packaging

156

These costs are composed of: Manpower:

Capacity

› Head count of 70 in total;

The target capacity for the facility is 125 million sanitary pads per year. This capacity represents a balance between:

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

› Realising good economies of scale with an achievable level of investment; › Accessing supplies of banana fibre (requires only 27% of Kisii resource, and even less if sourced across the wider region);

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

350

KES million

› Additional employment costs of 25% of salary. Raw materials: › Purchase price of KES 250 per banana stem, based on collection from consolidation sites; › Packaging costs (plastic wrap and cartons) averaging KES 6.5 per pack of ten pads.

The supply costs for the banana stems and packaging materials, equates to KES 19 per pack of ten standard pads. Other inputs (labour, utilities, etc.) cost around KES 5 per pack. With a sales price of KES 40 per pack, the value-added is then around KES 16 per pack (or 40% of the sales price). Business environment and catalysts Co-location The banana pad facility would benefit from being located close to the existing banana fruit processing factory, as well as the proposed banana leaf processing facility. Co-locating the banana processing facilities should provide scope for reducing costs, as Figure 4.6, through the development of combined: › Collection network of fruit, fibre and leaf; › Processing of organic waste (composting, biogas, etc.); › Rainwater harvesting and storage; › Process water treatment.

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Figure 4.6 - Co-location links for banana product processing Farms

Table 4.5 - VC1 Infrastructure Assessment

Depots

Combined Collection Network

Fruit

Infrastructure

Key considerations

Water

Required for pulping and retting processes, hygiene and staff. Estimated maximum demand of 360m3/day but if efficient process were used this could be reduced to 12.5m3/day. Water recycling is a viable option considering a storage facility to ensure continuity of operation if there are water supply issues.

Banana Factory: Flour, chips etc

Estimated 305m3/day of wastewater to be recycled or discharged to public sewer. Kisiiâ&#x20AC;&#x2122;s current wastewater treatment plant should have enough capacity to treat this additional volume. Water and sewer network expansion for VC and industrial cluster would need to be considered.

Water Treatment Fibre

Banana Pads Factory: Fibre Processing

Solid waste

The estimated banana stem volumes, of which 2.7% is usable fibre for the production of pads, is estimated to produce 22,500 tons per year of organise waste. This can be used for composting or as animal feed. Staff will also generate waste, where this should be encouraged to be segregated at source and feed into an integrated waste collection system.

Composting Energy Leaf

Banana Packaging Factory: Leaf Plates, Wrap

General power and lighting demand for the buildings and process load could be in the region of 220-240kW. There should be enough spare capacity in the main substation, particularly once a proposed nearby new main substation is completed. As the grid is unreliable, solar PV should be installed on both the building roof and in the grounds. Battery storage is also recommended to provide continuity.

Backhaul of compost to farms

These co-location linkages also support farmersâ&#x20AC;&#x2122; incomes and sustainable operation by providing an affordable (potentially zero cost for those providing produce) source of compost to support crops, as well as providing efficient and affordable transport routes into the cluster (see Transport Proposals within Section 4.4.7).

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Infrastructure An infrastructure assessment was undertaken for the VCs (set out in Appendix B) which determined requirements and key considerations.

Transport

The VC will use the same routes as the banana plant. It is recommended the product is aggregated at collection centres and then collected by heavier goods vehicles (HGVs) for onward distribution to the facility. The B3 corridor will be critical for transporting materials and products in and out of the industrial area. Once current upgrades are complete, regular maintenance and storm water drainage will be necessary. A bypass would be necessary to avoid the HGVs congesting the CBD. A good public transport connection will be needed to the industrial area for the employees and farmers. Good end-to-end pedestrian facilities will also be necessary for access.

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These infrastructure assessments for the VCs have informed the development of climate resilient and inclusive infrastructure proposals for Focus Area 3, detailed in Section 5.4. Impact Beyond the direct employment of 70 people, the VC would provide farmers in the region with additional revenue of over KES 150 million per year, for the supply of banana stems which would otherwise have no or little value. Furthermore, the VC could form the basis for other manufacturing opportunities. Banana fibre is a material that has a wide number of applications, including yarns, rope, textiles, matting, bags, hair extensions and paper. Once the sourcing and primary processing of commercial volumes have been established as part of this VC, there is then potential to develop other lines of business. Potential partners As mentioned earlier in the section, there are a number of potential partners with experience of sourcing fibre and producing banana pads, albeit on a small-scale. In addition to these organisations, there may be some potential to work with manufacturers of traditional sanitary pads, such as Procter & Gamble (the world’s leading manufacturer) or Johnson & Johnson (who are one of the partners behind the SHE initiatives and have a manufacturing facility in Kenya). However, such companies may not be interested

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in a relatively modest venture that does not fit with their current market offering. It may be more fruitful to work with some of the challenger companies in the feminine hygiene sector that have been working on sourcing / developing sustainable products (e.g. plastic-free, organic, biodegradable, etc.). These companies, which include WeAreDame, TOTM, WhoGivesACrap and OHNE, could also provide good support on international marketing and sales of the pads. Inclusion and community benefits The banana pads project presents an opportunity to help solve one of Kenya’s major menstrual health hygiene, access to affordable sanitary pads. It is also estimated that the project will create 70 employment opportunities in addition to providing farmers in the region with additional revenue of over KES 150 million per year - this is key to improving household incomes and poverty reduction. For inclusivity and maximum benefits to the community, the following is recommended: › Define a specific percentage of the project’s employment and capacity development opportunities that should go to the SIGs; › Farming approaches or technologies should be affordable to avoid exclusion of low-income farmers; › Proper management of the processing water should be adapted to avoid

pollution of rivers and ensure community health and safety; › A gendered review of plantation tasks will be required to ensure women in Kisii do not suffer challenges faced by women in banana farming in other areas such as discrimination in employment, pay gaps, Occupational Health and Safety issues and sexual harassment.

4.3.4 Banana leaf products This value chain project is for a facility to produce a range of single-use plates, cups, food wraps and fresh produce trays (e.g. for green beans) from banana leaf. There is now a technology for processing banana leaf into a range of shapes while maintaining flexibility (crushability) and colour. This then provides the opportunity for natural palm products to compete with the dominant plastics and recycled paper goods. The key outcomes are: › Provides additional income for farmers for an untapped resource; › Source of bio-packaging material for local and export market (horticulture), reducing carbon footprint and production of plastics waste; › Improves the environmental credentials of Kenya’s fresh produce export offer; › Reduces Kenya’s imports of plastics; › Introduce potential links to banana processing plant/s, reducing costs through joint collection, waste processing, etc.

Base assessment A range of palm leaves are used as disposable food wraps, trays, bowls and plates. The most common being banana leaf used fresh as a food wrap, and adaka palm (areca nut) dried. While these products are both biodegradable, they have limitations: › Fresh banana leaf has a short shelf life - decaying rapidly and becoming brittle; › Adaka palm products are made from fallen dried fronds, but lack flexibility and colour, looking like low-quality recycled paper products; › The new technology, developed by Tenith Innovations, allows banana leaf to be formed into trays, plates, cups and bowls while maintaining flexibility (crushability) and colour (see Figure 4.7 and Figure 4.8). This then provides the opportunity for natural palm products to compete with the dominant plastics and recycled paper goods; › The potential markets for the product are substantial. Prime targets include horticulture packaging sector (e.g. trays for exports of green beans), and fastfood outlets in Kenya (for plates, cups and food wraps); › Large volumes of bananas are grown in Kisii County and the surrounding region, and the leaves could be readily sourced. Harvesting one leaf per banana palm would have little impact on overall fruit yields;

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ECONOMIC DEVELOPMENT

There is an established supply network for bringing banana fruit into the markets in Kisii and for the new banana processing factor, and there is potential to use this network for sourcing fresh banana leaf. This proposed VC supports a number of policies at national and local level, including: › National Sustainable Waste Management Policy: the 2019 draft policy from the Ministry of Environment and Forestry

identifies the need to reduce use of plastics, especially in packaging, and to use eco-friendly inputs where possible; › Kisii CIDP 2018-2022: supports raising value added in all areas, especially agriculture; › Big Four Agenda: priorities enhancing manufacturing, including in all areas of agri-processing.

Figure 4.7 - Banana leaf with and without processing

Banana leaf after 3 days

Processed leaf after 1 year

Processed leaf after 3 years

Sector supply chain

Competitiveness

Products from the VC would compete with a range of packaging. While some of these packaging products are fabricated in Kenya, almost all of the raw materials are imported:

Preliminary estimates show that the banana leaf packaging is competitive in many product areas. The average sales price for banana packaging from the facility is estimated at KES 80 per pack of 25 items, with a break-even cost of KES 43 per 25 items.

› Disposable fast-food packaging: this comprises a range of card cartons, wax paper wraps, treated card cups, and plastic cups and plastic trays. While some these products are fabricated within Kenya, the raw materials (paper, card and polymers) and imported; › Plastic trays for horticulture: these are generally fabricated in Kenya, but the raw materials (mainly food grade polypropylene and polystyrene) are imported;

Banana leaf after 3 days

Processed leaf after 1 year

Source: Tenith Innovation

Figure 4.8 - Banana leaf product examples

Processed leaf after 3 years

While the cheapest items on the market, standard disposable paper plates, have a production costs significantly below the banana leaf costs, other items are on a par or higher, as per below. More specifically the estimated production costs for the leaf packaging is such that it can compete in the key target markets of takeaway food trays and punnets (horticulture export trays).

› Card trays: these are moulded from paper pulp, competing with polystyrene trays. The pulp or finished product is usually imported.

Source: Tenith Innovation

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Production potential

Table 4.6 - Single-Use Packaging: Cost Comparisons

Estimated production cost

KES per 25 items

Disposable plats (9”) Polystyrene

Paper

Palm leaf

385

Takeaway food tray Sugar cane biodegradable

138

PET lined board

229

Kraft

Punnet 0.5 kg PET - clear

0.25 kg PET - clear

Cups 12oz: biodegradable PLA

129

12oz: PET coated Kraft

4oz espresso: PET coated Kraft

The target capacity for the banana leaf packaging facility is 50,000 items per day, some 12.5 million items per year. This target capacity is aimed at capturing significant economies of scale, while ensuring that the market size is not an issue. To meet this production capacity requires an input of 1.25 million palm leaves per year. Based on Kisii County’s estimated banana production of 85,000 tonnes per year, there are around 2.3 million mature banana palms in the County. Taking just one leaf from each mature palm, and making 10 packaging items with each leaf, the County has the potential to support the production of some 23 million packaging items per year. Harvesting more than one leaf per palm should be sustainable, and this together with the supply of leaves across the County and neighbouring region, could then support substantial future expansion in output from the facility.

Cash cost (covering opex only)

It is not expected that harvesting the palm leaves would have a detrimental impact on banana fruit yields, as the leaves can be taken around harvest time.

Break even

Demand outlook

Target price

The target markets will be the national and export markets for disposable tableware (mainly fast-food markets), as well as the domestic market for horticultural packaging trays.

Banana leaf - average across all items

Source: www.carterspackaging.com and www.cater4you.co.uk5 5 Cost estimates based on bulk, wholesale prices excluding taxes, less 100% mark-up on production costs.

fresh produce suppliers seek to improve their environmental credentials, and face increasing pressure to reduce waste. Worldwide, both of these markets are substantial, consuming billions of items per year. For example, global sales of disposable tableware are estimated at over $27 billion in 2019. A prime market target will be the horticulture export sector in Kenya, which faces pressure from supermarkets in Europe to improve the environmental impact of their packaging. The banana leaf packing could replace the plastic trays used for packing green beans for airfreight, as it is lightweight. Demand for packaging just for green beans is substantial, with individual companies requiring large volumes. For example: › LuiFarms export around 400 x 4kg boxes of green beans per day, using over 1 million trays per year; › Kenya’s total exports of around 34,000 tonnes of green beans each year, requires around 68 million packaging trays. Fast food packaging demand is also substantial in Kenya. For example, the 19 KFC outlets in the country require between 6 and 7 million individual packaging items per year. While not all of these items could be replaced by banana leaf products, many of them could: for example, food wraps, punnets and trays.

In general, these markets are moving away from polystyrene, as both fast food and

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Locational analysis

Collection

The total land requirement for the banana packaging facility is estimated at 1,800m2, which should allow room for future capacity expansion.

Banana leaf could be sourced through the same collection network as banana fruit for the EU-processing facility and/or the proposed banana pad facility.

The facility would benefit from being located close to the banana fruit factory and proposed banana pad factory. This would allow for sharing of transport network, utilities and waste processing.

Deliveries of leaves to the facility would be around five tonnes per day. This can be reduced to by around 60% if the leaves are de-stemmed at the farm.

Element

Sqm

Waste organics from the processing (trimmings), of around 2 to 3 tonnes per day, would be composted at the plant. The compost would be made available free of charge to farms.

Delivery / dispatch

200

Processing

Production building

200

Storage: finished product

100

Main steps in producing banana leaf plates, bowls, trays and cups, are outlined in Figure 4.9.

Table 4.7 - Land Requirements

Composting area Other Total Requirement

1,000 300 1,800

Value Chain opportunity The key activities for the facility comprise: › Sourcing and collection of banana leaf; › Washing; › Treating; › Cutting and pressing; › Packing and dispatch.

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Figure 4.9 - Banana leaf process flow

De-stemming

Washing

Pressing-cutting

Drying

Preserving Spray Solution

Packing

Distribution and sales

Indicative costs and revenue

The facility would produce to order, and target horticulture exporters and fast food chains. The sales team would include production technicians that would work with potential customers, designing the required packaging products. Finished product would be delivered directly to customers.

Investment

Capacity

Operating costs

The target capacity for the facility is 50,000 items per day, some 12.5 million per year. The facility will be designed to allow for future expansion, in particular allowing space for additional cutting and pressing machines.

Total annual operating costs are estimated to reach KES 22 million by 2025, split roughly equally between labour costs, payments to farmers for leaves and other operating costs, as shown in Figure 4.10.

The total investment required is estimated at KES 75 to 85 million. Of this, around 48% will be for buildings and site clearance, 17% for machinery and equipment, and the remainder will cover training, marketing and working capital.

Given the activities and requirements of the targeted customers, it is expected that they could place high volume orders representing a large share of the banana leaf facility’s capacity. The ability to increase capacity rapidly would therefore be of benefit.

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KES million

Figure 4.10 - Operating costs (2025)

Revenue Total annual revenues at full production are estimated at KES 40 million. This is based on an average factory-gate sales price equivalent to KES 80 for 25 items.

25.0 20.0 15.0

Table 4.8 - VC2 Infrastructure Assessment

Infrastructure

Key considerations

Water

Water is needed for process and hygiene requirements, including for washing the banana leaves, as well as staff. A total estimated demand is 8m3/day.

Value added

10.0 5.0 0.0 Other

1.0

Utilities

7.0

Manpower

7.1

Business environment and catalysts

Leaf Purchase

6.3

The packaging facility would benefit from being located close to the existing banana processing factory, as well as the proposed banana pad facility.

This is composed of: Manpower: › Head count of 28 in total; › Monthly salaries of KES 12,500 to KES 20,000 depending on skills; › Additional employment costs of 25% of salary. Raw materials:

Further, wastewater volumes will need to be recycled or discharged to public sewers, this is within the wastewater treatment plant capacity, particular where improvements are made (Water Proposals, Section 4). Solid waste

› Collection network of leaf, fruit and stems (fibre);

Energy

Other opex:

Infrastructure

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

An infrastructure assessment was undertaken for the VCs (set out in Appendix B) which determined requirements and key considerations.

General power and lighting demand for the buildings and process load could be in the region of 140-160kW. There should be enough spare capacity in the main substation, particularly once proposed nearby new main substation is completed.

› Processing of organic waste (composting, biogas, etc.); › Rainwater harvesting and storage;

Based on target capacity and on how much of the banana leaf can be utilised for new projects, approximately 412 tons/year of organic waste will be produced. A small quantity of waste will be generated by staff. Waste bins encouraging source segregation (mixed recyclables, organics, residual waste) should be placed throughout the facility, and this should be collected and taken to the designated waste facility.

Co-locating the banana processing facilities should provide scope for reducing costs through the development of combined:

› Purchase price of KES 50 for ten banana leaves, based on collection from consolidation sites.

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Some of the low water demand could be met by rainwater harvesting, given Kisii’s frequent rainfall. However, there is a need to connect the plant to the public water supply system for climate resilience and adaptability in case rainfall received is inadequate or infrequent. It is recommended that a a water storage facility is included to ensure continuity of operation if there are supply issues.

The cost of material inputs, predominantly banana leaf, is equal to around KES 13 per pack of 25 finished packaging items. With a sales price of KES 80 per pack of 25 items, the value added is in the range of KES 67 per pack of 25 items.

As the grid is unreliable, solar PV should be installed on both the building roof and in the grounds. Battery storage is also recommended to provide continuity.

› Process water treatment. Transport

Co-location of the industry with the banana pad plant would be preferred so as to utilise the same collection network. The products from the plant would comprise items of plates cups and trays that could be packed in a container for weekly delivery to market. Similar transport infrastructure considerations as the banana pad industry would apply.

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These infrastructure assessments for the VCs have informed the development of climate resilient and inclusive infrastructure proposals for Focus Area 3, detailed in Section 5.4.

For international sales and distribution, there are a number of packaging suppliers that are focused on plant-based products, such as Vegware (based on Edinburgh, UK) and NaturePac (based in St. Ives, UK).

Impact

Inclusion and community benefits

The initial benefits of the packaging facility would be the direct employment of 28 people throughout the year and spending of just over KES 6 million per year on sourcing banana leaves which would otherwise have little or no value.

The project will contribute directly to the Country’s efforts towards environmental conservation by producing eco-friendly single-use items that reduce use of plastics.

A growing number of new technologies for plant-based packaging solutions are being developed, and many of the materials used are available in Kisii County. For example, a biopolymer suitable for manufacturing disposable cutlery that is compostable can be produced from avocado stones, and insulated packaging suitable for hot foodstuffs can be made from bagasse (sugar cane process waste). The banana leaf packaging facility could then provide the catalyst for a cluster of plant-based packaging factories, benefiting from shared services, sourcing and marketing. Potential partners The technology partner for processing the banana leaf is Tenith Innovation of Tamil Nadu, India. For sales and marketing (and possibly production) in Kenya, there may be some benefit in partnering with one of the established plastics packaging fabricators such as RitePak or TechPaK, both based in Nairobi.

The packaging facility will also create employment opportunities and a market for banana leaves which would otherwise have little or no value - this contributes towards the SUED Programme’s job creation efforts. For inclusivity and maximum benefits to the community, the following is recommended: › Define a specific percentage of the project’s employment and capacity development opportunities that should go to the SIGs; › Ensure proposed farming approaches or technologies are affordable to avoid exclusion of low-income farmers; › Promote a gendered review of plantation tasks to ensure women in Kisii do not suffer challenges faced by women in banana farming in other areas such as discrimination in employment, pay gaps, Occupational Health and Safety issues and sexual harassment.

4.3.5 VC climate resilience Sensitivity This is a 100% agricultural VC, dependent on substantial banana crop in region, and as such a drop in banana crop could impact on future expansion. Weather events like flooding and high rainfall could render most parts inaccessible hence reduced input supply and delivery, which would particularly impact on the supply of fresh leaves for the leaf packaging process. Though dependant on a single product, high volumes are currently available, and overall, the sensitivity to climate change is rated as Medium. Climate Impacts Supply of the stalks depend on banana production, which requires sufficient water supply. Extreme weather events such as strong winds are already being experienced, and cause destruction to crops (logging). Increased prevalence of pests and diseases (especially those associated with stem rot), as a result of global warming has a direct impact on the crop health and vigour, hence impact on production. For banana leaf packaging, the VC depends on availability of fresh banana leaves. To achieve fresh leaves, production much be under sufficient water supply (no drought since serious water stress will cause wilting, affecting quality of leaves). Crop models show that banana yields are projected to increase in Kenya, while decreasing in many core banana producing countries, so climate change may actually

give Kenya a competitive advantage6. Rainfall variability is likely to increase, however, so there will be a need for farmers to efficiently manage water resources. Balancing projected increases in yield, and losses from extreme events, the overall impact of climate change on the VC can be classified as Neutral. Vulnerability Rating: With a sensitivity rating of medium, and an impact rating of neutral, the banana processing VCs are given a vulnerability rating of Medium. Adaptation Options: There are several good farming practices that can help farmers to adapt to increased variability in rainfall, and increases in temperature. These adaptation measures will help to ensure that smallholder farmers continue to be able to supply the banana processing plant, and as such can strengthen their livelihoods. Adaptation measures include: › Awareness of banana pest and diseases and how to control or avoid them; › Obtaining planting materials from certified sources; › Using drought and pest/disease resistant cultivars; › Increasing access to seasonal forecasts; › Soil and water conservation measures (including water use efficient irrigation methods).

6 Varma, V. and Bebber, D.P. (2019) Climate Change Impact on Banana Yields around the World. Nature Climate Change 9: 752-757.

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Resilience of the VC infrastructure

Access to the VC site is being improved through upgrades to the road network, which will reduce the risk of surface flooding stopping access. These upgrades, as well as the planning of internal access at the site will take changes in precipitation intensity, and maximum temperature into account.

The chosen site is not at risk of river flooding, and as a peri-urban site with green space in the vicinity is less sensitive to increases in temperature than more central areas. The design of the processing facility includes water harvesting, thus increasing the resilience of the plant to drought. The design of the buildings should take into account higher maximum temperatures to ensure thermal comfort, however, this is not a major risk.

The VCs have also been considered in how they fare under shock, such as Covid-19 or other supply disruption, and remedies to mitigate this, as presented below.

Figure 4.11 - Application of VC resilience measures Value Chain

Shelfstable products

Succeed in local/ Kenya market

Raise farmers’ cashflows

Quickly increase stocks

Locally supported technology

Circular economy

Banana Pads

✓

Banana Leaf Products

Partial

✓

✘

✓

The VCs perform well on these measures, especially banana pads, though they will need to be implemented and operated with these elements embedded.

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DEVELOPMENT FRAMEWORK

5. DEVELOPMENT FRAMEWORK 5.1 Introduction The lack of an approved and well managed spatial land use and urban development plan (such as an ISUDP) has had a significant detrimental impact on Kisii Municipality’s ability to respond effectively to its population growth and concomitant infrastructure needs. The Development Framework is therefore a mechanism within the UEP to direct proposed urban development, infrastructure and VC projects into the most appropriate areas of the town in order to create a foundation for future urban and economic development across the remainder of the Municipal area. Based on the diagnostics of Kisii’s socioeconomic conditions, urban typology, character and levels of infrastructure provision, as well as the economic sector priorities that have been set out, this chapter brings together project proposals that can support economic growth, maximise the impact of infrastructure provision and tackle the most urgent needs of the town in responding to the pressures of urban growth whilst building climate resilience and sustainability. A number of urban development and infrastructure projects have also been identified to address challenges across the wider Municipal area. The proposed projects have been assessed against social inclusion and climate vulnerability, with a number of adaptation measures

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identified to embed resilience and suitable approaches for including Kisii’s SIGs and providing income security across all groups. The Climate Vulnerability Assessment and Social Inclusion Study are appended to this report. The Development Framework structures, prioritises, and phases urban development in a coherent and coordinated manner with respect to three proposed focus areas. VC and infrastructure projects are then sequenced based on optimising their individual and collective impacts whilst aiming to minimise costs. Whilst each proposal may be implemented as a standalone project, effective linking and sequencing will create the highest impacts on future private and public investment potential.

needful areas. Furthermore, high level cost estimates have been done for the projects and these have been assessed in terms of the likely funding sources required be it public, private or a public/private partnership. Certain projects within the public funding orbit are proposed due to their potential catalytic effect of unlocking broader private investment opportunities within the areas they are implemented.

Section 6 sets out the approach to implementation of the projects within the Development Framework in more detail. 5.1.1 Key Components and Rationale Kisii is a vibrant, densely populated market town with acute congestion problems within its urban core. As noted above the lack of an ISUDP or forward thinking spatial planning document has meant that the

Figure 5.1 - Urban Context Plan

The Development Framework proposals are therefore organised around three key focus areas: › Focus area 1: Central Business District (CDB); › Focus area 2: Logistics and Support Facilities Area; › Focus area 3: Value Chains and Industrial Cluster. Projects within each Focus Area are presented below and have been premised on identifying some potential ‘quick wins’ which will enable short term infrastructure and economic benefits in the most

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town has grown incrementally and without direction. The urban context plan in Figure 2.3 (Section 2) provides an overview of the spatial and land use distribution of activities within the Municipal area. The town has a clearly defined urban core or CBD area, adjacent to the B3 road, which provides a range of commercial, institutional and civic uses as well as informal retail and market trading areas. Beyond the CBD are peripheral residential areas providing a range of housing options from low income informal settlements to medium and higher income housing. Encroachment of informal business activities into these areas is causing significant degradation of the urban environment. The UEP proposes measures and projects that address such issues and promote urban functionality and sustainable development across the Municipality’s key economic sectors. Enabling Kisii’s trade and services sector to sustainably grow and better support (more) local livelihoods requires de-congestion and appropriate land use within the CBD, as Focus Area 1, as well as improvements to the urban environment. This includes public and non-motorised transport, water, waste, drainage and energy provision and urban management for a better quality environment that supports a more integrated trade and leisure offering, alongside its education and service assets, where people will spend more time and income within Kisii’s centre, which becomes even more of a regional hub. As such, an area North of the CBD has been identified as offering the suitable

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location to cluster logistics and supporting facilities for Kisii’s markets, as Focus Area 2, where these services should be brought together in one location that can support the vision for the CBD. Industrial uses that were aspired and lightly developed here should be relocated outside the town centre to Focus Area 3 as an area for the agri-processing and industrial sector. Here, the benefits of co-location can be realised and value chain and industrial developments can actually catalyse further opportunity as there is the available land and ability to provide to-scale infrastructure. This area is in proximity to Kisii’s educational facilities and contains the agricultural training centre (ATC) and current banana processing plant, thereby offering a centre for the middle segment of the value chain to the agricultural sector. Produce can be collected and delivered in an efficient, low-cost manner and farmers can have access to supporting services in this area including an agri-services network and organic compost. The road network improvement between Focus Area 1, 2 and 3 is an important element. This allows goods to move from farmers to processing, and to Kisii’s markets and the wider region, borders and ports, without congesting the CBD and in a more resilient manner. The whole Development Framework, as reflecting this rationale, is presented in Figure 5.2 (next page). 5.1.2 Infrastructure proposals overview The bankable, climate resilient and inclusive infrastructure projects are detailed within each Focus Area with

their rationale, sub-components, impacts, estimated costs, delivery mechanisms, challenges and timelines. These proposals have been tested with the Kisii PSG and key stakeholders, utilising the SUED engagement process to inform their development. The infrastructure proposals have been developed to build on, enhance and refine ongoing works and current plans by the Municipality, County, IFIs and other organisations. These proposals, as Development Framework elements, can enable Kisii to meet its vision and provide sustainable socio-economic opportunities, as set out in Section 3. These opportunities will be more resilient in being framed within an integrated planning approach to development, climate change and inclusion. Table 5.1 below sets out the reference list for these proposals. Table 5.1 - Infrastructure Proposals

Focus Area 1

Sector Urban Design

Transport

Number

Proposal

Nyanchawa River Park

Market Square and Boulevard

Streetscape improvements

New bypass roads

NMT network provision

Upgrade main bus park

Transport management

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Focus Area 1

Sector

Number

Proposal

Water and sanitation

Water supply improvements

Sanitation improvements

Urban flood mitigation

Drainage masterplan and key roads

River revitalisation

Energy

Improve streetlighting

Energy efficiency for water

Waste

Integrated waste collection

Urban design

Spatial plan

Transport

Truck parking

Access roads to market

Closure of landfill

New landfill and waste centre

Biogas from landfill

Biofuels from abattoir

Water supply improvements

Sanitation improvements

Waste

Energy

Water

Urban design

Spatial plan and industrial site development

Water

Water supply improvements

Sanitation improvements

Rehabilitate renewable energy project

Solar power refrigeration

Road upgrade connecting to B3

Public transport facilities

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Energy

Transport

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Figure 5.2 - Overall Development Framework Plan showing the three Focus Areas and individual sector proposals

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DEVELOPMENT FRAMEWORK

5.2 Focus Area 1: CBD This focus area specifically supports the key sector of trade and services, and in turn the local markets for the VC outputs. Focus Area 1 provides the market areas and transport points for matatu and boda boda services, as well as urban services including retail, offices, banks and County offices. These assets are connected with the adjacent areas through outer ring roads and by-passes, some of which are currently under construction.

police station sites that can be relocated out of the CBD to free up land for more effective and appropriate uses, though it is also recognised these may be delivered longer term due to funding constraints.

More effective land use will support better market utilisation and the development of market buildings and plazas, with public space being opened up with associated pockets of parking.

Figure 5.3 - Development Framework: Focus Area 1: CBD

This focus area is where pertinent issues with congestion and traffic circulation, pedestrian access, poor public realm and open space and urban flooding will be addressed with infrastructure interventions. Figure 5.3 maps out the main interventions envisaged in the CBD. Transport interventions are important for taking non-market traffic out the CBD via outer ring roads and by-passes. There will also be a need for greater enforcement and behaviour change interventions to address traffic management, encroachment of public spaces and the lack of parking management. A green-blue corridor, linking areas with pedestrian walkways and open space, also provides protection for the river and the CBD from the â&#x20AC;&#x2DC;outer ringâ&#x20AC;&#x2122; of traffic. There is also a need for the introduction of sustainable urban drainage systems (SuDS) to manage storm water and protect existing and future assets. More effective land use is a key aspect for this focus area. There are the prison and

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5.2.1 Synergies

5.2.2 Climate resilience considerations

The character of an urban centre is driven by the perceptions of residents and visitors when using it. The arrival experience, the ease of movement and security, cleanliness, quality, public realm, services provision and good quality architecture are important elements in delivering an engaging urban environment that creates a vibrant “economic milieu” that attracts businesses and inward investment. Central to the vision for Kisii is such an upgrade in the urban environment to increase functionality and amenity and set the foundation for Kisii to act as a regional business and trade hub.

The area has notable occurrences of urban centre flooding that impact trading areas and transport routes. A green-blue corridor, linking areas with pedestrian walkways and open space, also provides protection for the river and the CBD from the ‘outer ring’ of traffic. The proposed upgrades to drainage infrastructure will reduce urban flooding which currently causes major disruption to the livelihood of traders and significant economic costs in remediation works as outlined below.

The following projects aim at enhancing the urban environment, supporting the key sector of trade and services and being catalysers for sustainable development. Integration between these elements will be critical for their individual and combined ability to deliver the local benefits and meet Kisii’s vision. Focus Area 1 is composed of interventions which need to be codesigned and delivered, to enable the step change in the urban environment whilst improving its economic functionality in a sustainable way - securing local access and income security and mitigating the impacts of climate change. As such, key synergies are considered with each proposal, whilst Section 5.2.10 sets out Focus Area 1 as a whole across an integrated project timeline.

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The following have been assessed as the key climate considerations for Focus Area 1.

Table 5.2 - Key Climate Considerations

Consideration

Comment

Potential opportunities

Urban drainage systems not well adapted to current and future climate risk.

Potential of flooding in the area caused by storm water

Implementing Sustainable urban drainage (SuDS) in key development areas.

Transport services vulnerable to current and future climate change

Transport services would be impacted by flooding

Implementing Sustainable urban drainage (SuDS) in key development areas.

Potential impact on the proper functioning of business and services due to power shortages

Power shortages are identified as one of the key risks that are magnified due to the food-water-energy nexus, with significant and immediate knockon effects

Increasing overall resilience of power system, through e.g renewable power options such as solar power or mini hydropower for water supply, treatment and pumping systems

Buildings and market areas not well adapted to current and future climate risk.

Buildings and market areas can be affected by temperature extremes and flooding.

The planning of future buildings in the area should take into account temperature extremes, and include suitable drainage systems.

SUED team assessment

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5.2.3 Poverty alleviation considerations Focus Area 1 is host to a large trade and services sector, driven in significant part by informal elements. Engagement with the Kisii Chamber of Commerce provided insight on the scale of formal business in this sector, where community business groups, and, moreso, households and individuals reflect the majority of trading activity. These traders rely on being able to access the market, to utilise the available space, and to trade daily for their livelihoods. This makes sector participants vulnerable to disruption. Shocks further impact the service economy (informal or otherwise), where public transport (boda boda and matatu) is a source of income for many residents. There is a large amount of informal trading and hawker activity within Kisii, with encroachment of space otherwise intended for vehicles, pedestrians or parking. Focus Area 1 proposals include urban planning, land repurposing and transport management to support its improved functioning. As such, proposals need to consider the impact on current traders and how they can be supported in successful relocations or alternative and formalised employment. The business survey also highlighted that limited access to finance was a barrier to growth, where this also provides a further vulnerability in the traders and service providers’ ability to recover and adapt to shocks, from urban flooding to pandemics.

The impacts of Covid-19 in Kisii have included the grounding of up to 90% of matatu fleets and a significant reduction in trade, with 23% reduced travel to retail and recreation1. This has significantly impacted incomes and access to food and key services for Kisii’s residents. This is particularly burdened by those with lowincomes and reduced mobility or affordable travel options, including small-holding agricultural producers. The response has included boda bodas meeting demand, though not always in a safe manner, and a formal Municipality intervention in land levelling and drain cleaning near Daraja Mbili to accommodate more traders in a socially distanced manner. Further space is being utilised, with mobile market points and a move to seven market days per week (daily markets) to help continue a level of trading and food access. Nevertheless, many who make livelihoods through informal trade will face poverty. There is a proposal to construct a new market space in Kisii that complies with Covid-19 social distance. Kisii’s informal settlements are also at risk due to building quality, cramped conditions, lacking running water and sanitation and lack of open space.

poverty alleviation) are provided. The merits reflect how the proposal has been designed to ensure these principles are met, whilst recommendations consider the next steps in implementation. 5.2.4 Urban Design Urban projects are multidisciplinary and integrate a wide range of diverse inputs into a strong, coordinated vision that underpins development. The urban design proposals have been co-developed with the transport and traffic proposals, where together they decongest the CBD and improve ease of movement, which is so important for residents, business and visitors, whilst sustainable urban drainage (SuDS) have been identified at key locations for Kisii’s development. Three proposals have been identified for Focus Area 1.

Going forward, Focus Area 1 interventions will need to build in resilience to a greater extent and in an inclusive way, whilst utilising lessons learnt, to ensure they are future proofed. Within each proposal detailed below, their merits and recommendations for climate resilience and social inclusion (including

1 SUED analysis of google data, https://www.google.com/covid19/mobility/

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1. Nyanchawa River Park

The Nyanchawa River Park runs along the western fringe of the CBD and separates the Nyanchawa residential estate from the town centre (Figure 5.4). It has a great potential to be an attractive part of the town and offer leisure and recreational activities, where there is a current lack of open space. The Municipality has identified a 1km stretch of this river for development, with a large area of public land readily available. However, it is currently overgrown, encroached with some informal settlers and polluted by waste. A linear river park will connect the Nyanchawa residential estate to the town centre (in under ten minutes) and revitalise the river and provide east-west green and blue links. This includes the introduction of terraces, cycling and walking paths, linked with stop-over points featuring leisure facilities such as picnic spots, sport and play areas and viewing points at strategic locations along the river. This can promote a healthier environment for the residents and visitors of Kisii and a viable alternative of walking and cycling access to the Daraja Mbili market, reducing traffic on the main roads. This proposal has several Figure 5.4 - Focus Area 1: Urban Design: Nyanchawa River Park

sub-components, with costs and impacts associated with the proposal’s delivery, along with potential mechanisms for delivery and funding. Section 6 sets out the approach to implementation in more detail for the Development Framework proposals. Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Overall strategy to outline location of activities and routes

› KES 100m

› Links residential areas to CBD

› County / Municipality / Donor funded projects

› Promotes sustainable travel and reduces emissions

› Planting and removing of trees and plants where required › Coordinate with waste and water management and transport › Detail flood risk assessment and rainfall quantities

› Enhances quality of life and healthier communities

› Ecology assessment

The proposal reflects both the Kisii climate change assessments, embedding climate resilience, and the recommendations of the Social Inclusion Study regarding SIGs and the income security across local groups. Climate resilience ✓ Use of sustainable materials in park development ✓ SuDS systems where applicable ✓ Improve sustainable and green routes and reduce motorised traffic and greenhouse gas (GHG) emissions ✓ Trunk sewer along river to be closed, with materials facilitating maintenance • Opportunity to comprehensively clear waste and support wider waste strategy and behaviour change • Flood risk planning to plan for potential changes in frequency and magnitude, given plausible climate future

Embedded into proposal

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• Recommendations

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Inclusion For inclusivity and benefits to the community the following is recommended:

Case Studies

✓ The park’s design to adapt humancentric standards that provide for everyone’s access and use including ramps • Plan for humane relocation of informal settlements located in area. This exercise would involve development of a resettlement plan providing new areas to move the settlements to and providing livelihoods restoration support • Development of the park will provide an accessible, green open space for relaxation which will enhance the quality of the community. The park will also be a good area for community conservation groups to engage in tree planting • Having access to open space becomes more pertinent in shocks such as that posed by Covid-19, especially for those living in cramped and poor quality settlements Challenges are identified for the proposal’s delivery and a consideration for its timeframe. Section 5.2.10 sets out the timeframe for Focus Area 1 as a whole.

Challenges

Addressing Challenges/Gaps

Time Frame

› Sanitation and waste dumping are likely to require further education and community participation

› Pre-feasibility study

Short to medium term

› Detail site survey required and land ownership information

› Can be implemented in phases as funding becomes available

› Some informal settlement in the area

› Seasonal water flows and flooding

Perreux River Banks - Paris, France Vegetal engineering, community participation, regeneration

› Installation around the river will require careful planning and management of river flows and avoid flooding › Attention to considerably deep topography › Ecological impact

Jurong Lake Gardens - Singapore Eco-driven, community participation, regeneration, completed

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Figure 5.5a - Focus Area 1: Nyanchawa River Park Design Proposal - Before

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Figure 5.5b - Focus Area 1: Nyanchawa River Park Design Proposal - After

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2. Kisii Market Square and Boulevard

Kisii town centre operates as a hub for businesses with students and visitors from the across the region to access market, education, service and health facilities, and has been rapidly growing. Access to the town has shaped the urban fabric, with priority given to private vehicles and public transport (matatus and boda bodas) with clusters of high density buildings and a road concentration creating an environment dominated by hard surfaces, congestion and with no open space. There is a strong case to develop access to high quality public realm, open space and improve the efficiency of available land. The proposal site is located in the heart of the CBD, consisting of the municipal market, parking and informal traders. The existing market structure is in disrepair and not used efficiently, with almost 70% unbuilt, and Kisii-Kisumu road, the main vehicular artery, to its west and Hospital Road to its east, identified as one of the central green network links. This location presents a unique opportunity to enhance the market and improve the site.

The proposal consists of: › Increasing the capacity of the current market (depending on demand) to up to 3 storeys; › Relocating current traders from the eastern side of the site into the new building; › Reconfiguring the western open space currently used as parking into a loading and unloading space, where parking will be consolidated through traffic management (Transport Proposal 4) and in Focus Area 2, with potential for a new bus stop; › Developing the empty area to the east of the market into a new civic space, with green areas for aesthetic appeal and drainage; and › Converting Hospital Road to a green boulevard, with walking and cycling, utilising its north-south connectivity and intersection with Kisii-Kisumu road as a green network gateway. A new civic square with year-round activities has the potential to be a catalyst for urban regeneration in the surrounding area adding further value to businesses operating in the town. A green boulevard can transform the interface between the business and the proposed market and open space. This proposal supports and enhances Urban Proposal 1: Nyanchawa River Park, in providing a high quality, pleasant, climate resilient urban street that acts as an alternative route for pedestrians to enjoy without the mainstream vehicular traffic, as part of a green corridor running 400-800m in either direction. These proposals are supported with Transport Proposals 1 and 2 linking to the road upgrades and improvements in non-motorised transport (NMT) provision, as well as to SuDS (Section 5.2.5 and 5.2.6) as part of a wider drainage plan.

Source: SUED team visit - Municipality market

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DEVELOPMENT FRAMEWORK

As existing

Proposed levels

Circulation from east to west

Kisii Market Square proposal option 1 - looking west

Kisi i-

Kisu m

Circulation from west to east

Kisii Market Square proposal option 1 - looking east

u Ro

spi

tal Ro a

Kis ii

-Ki

Ro a

Area: 5373.25mÂ˛ Traders: 767

spi

tal Ro a

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Kisii Market Square proposal option 1 - A street level view from Hospital Road looking west

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As existing

Proposed levels

Kisi i-

Kisu m

Circulation from west to east

Circulation from east to west

Kisii Market Square proposal option 2 - looking west

Kisii Market Square proposal option 2 - looking east

u Ro

spi

tal Ro a

Kis ii

-Ki

Ro a

Area: 5,427.41 mÂ˛ Traders: 775

spi

tal Ro a

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Kisii Market Square proposal option 2 - A street level view from Hospital Road looking west

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Figure 5.6a - Hospital Road looking north - Existing

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Figure 5.6b - Hospital Road Boulevard looking north - Proposed

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Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Market capacity to be assessed and new capacity determined (demand)

› KES 435m

› Improvement of market efficiency and urban fabric

› Typically, Public funded projects

› Develop Masterplan for the square, outlining solutions to existing problems › Integration of SuDS, permeable surfaces and rain gardens › -Street trees and planting to support SuDS implementation and aesthetic appeal › Provision of a finished footpath › Reconfiguring accesses to businesses and town square › Upgrade renewable streetlamps › Permeable paving for parking and footpaths

› Reduction in car use, - lower emissions and congestion › Support more and safer pedestrian and footfall movements, with widening and improved appeal

› Potentially: In partnership with local business › Private sector funding for development and operation of market

› Support active mode and healthy behaviours › Space for events and activities to encourage visitors and support revenue

Climate resilience

Inclusion It is recommended that the market square design adapts humancentric standards that allow easy access and use for everyone including PWDs such as ramps, raised crossings, and dropped curbs. ✓ Improvement of the market square will provide a better work environment, while its inclsuive design will offer everyone an equal and safe opportunity to participate in livelihood activities • The proposed relocation of the current traders from the eastern side of the site into the new buildings to be planned for well in advance. This should as a minimum include communication to the traders about the move, notice issuance and evacuation only when the holding building is ready to avoid livelihoods disruptions for the traders

Challenges

Addressing Challenges/Gaps

Time Frame

› Anticipated resistance to proposals - due to disruption to traffic and traders’ relocations

› Consult with traders and local groups

Short to medium term

› Sufficient funding available and effective contributions from private sector

› Pre-feasibility study

› Existing trees and public realm may need to be removed › Suitable parking reduction enforcement will be required

› Enhance benefits for the community › Detail site survey required and land ownership information

› Initial work will be to masterplan the market, assessing demand and engaging with local traders and businesses

› Impact on access to local businesses due to upgrades

✓ Sustainable materials to be used in upgrade ✓ Provision of SuDS at suitable points, reducing flood risk and mitigating intensity of rainfall ✓ Green space to reduce heat island effect • Flood risk planning to be undertaken The market development will also need to be cognisant of the potential need to adapt to meet measures during pandemic type shocks. Market spaces will need to be used safely and a plan should be in place for where some trade would be relocated to, ensuring that traders with lower economic agency are not burdening the impacts and that residents can access food and services that they need.

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3. Streetscape Improvement and Street Management

Case Studies:

Grey to Green Project, UK UK’s largest retrofit SuDS Scheme Transforming 1.3km redundant roads into attractive new linear public spaces

Congestion has been clearly identified as a central issue for Kisii town, where the CBD has two main highways passing through (the Kisii-Kisumu road (B3) and newly paved Daraja Moja - Nyamataro road). The CBD streets are dominated by motor vehicles and informal traders, further impacting pedestrian space and safety, as well as the quality of the air and urban environment. This proposal links to Urban Proposal 2 to enhance combined benefits, and its incremental development will connect to the Nyanchawa River Park, for a network of streets that are designed around people rather than cars. Green, active travel and pedestrian priority streets with crossings and traffic calming features are possible with the complementing management of vehicle access and on-street parking (Transport Proposal 4) and sustainable urban drainage (SuDS) provision as set out in Section 5.2.5).

Jeevanjee Garden & Dandora Streetscape, Nairobi - Kenya Increased land values, with safer and walkable streets

Figure 5.7 sets out proposed areas for streetscape improvements, showing how they interact with other projects and proposals for the urban centre. Streetscape improvements can initially be introduced on critical roads, and those with forthcoming upgrade. There is an opportunity to provide multiple uses across different days in the week, such as market and delivery days, where street vending can be accommodated in a ‘furniture zone’ on these streets with flexible use. Streets with high pedestrian flows are recommended to be considered earlier for such streetscape improvements. An illustrative sectioning of these streetscape improvements, with pedestrian sections, is demonstrated below for different areas of the CBD. Illustrative Kisii Road: Cemetery road with gaps to improve streetscape

Knoxville Market Square, USA Year-round activities, indoor market, mixed use, urban regeneration

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New York City, USA Increase in rain garden across town centre, with a notch in the curb to allow stormwater to flow in and plants to beautify the garden

      

Vehicle movement Parking Safe walking Cycling Public transport Street vending Space to meet

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DEVELOPMENT FRAMEWORK

Figure 5.7 - Urban Design Proposal 3: Streetscape Improvements

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Redesign of the B3 and Daraja Moja Nyamataro road; and then further selected streets:

› Capex of installation of pedestrian facilities, traffic calming KES 90m

› Support wellbeing and encourage walking and cycling

› Delivered by Kisii County Government through Kisii Municipality

› Reconfigure existing route with priority given to pedestrian use › Roadside parking replaced with expanded footpaths, dedicated space for trading and activities (e.g deliveries)

› Annual Opex of pedestrian facilities maintenance KES 9m

› Integration of SuDS, permeable surfaces and rain gardens

› Increase attractiveness and enjoyment of the streets, improving liveability › Support livelihoods of street traders › Reduce surface water run-off

› Street trees planting and street furniture to improve aesthetic

› Development Partners e.g. World Bank through the Kenya Urban Support Program › Private initiative of local businesses › Revenue from additional retail stalls › Potential for a Business Improvement District levy on owners and traders

Climate resilience ✓ Sustainable materials to be used in upgrade Residential Zone = 3m

Commercial Zone = 4m

✓ Provision of permeable surfaces and SuDS at suitable points, reducing flood risk and mitigating intensity of rainfall

High Intensity Commercial Zone = 7m

✓ Greening through tree planting ✓ Green space to reduce heat island effect • Flood risk planning to be undertaken Inclusion

BUS STOP

Frontage Zone ≥ 0.5m

Furniture Zone≥ 0.5m Pedestrian Cycling Zone ≥ 2m

Designated Road Space

Frontage Zone ≥ 1m

Furniture Zone ≥ 1m Pedestrian Zone ≥ 2m

Cycling

Designated Road Space

Frontage Zone ≥ 1.5m

Pedestrian Zone ≥ 4m Street Traders

Cycling

Furniture Zone ≥ 1.5m

Designated Road Space

This proposal sets the basis for the Transport Proposal 2 for NMT network provision, whilst street improvements would also support the better functioning of public transport with matatu and boda boda services (Transport Proposal 4).

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• It is recommended that the streetscape improvement adapts humancentric design standards that allow easy access and use for everyone including PWDs such as ramps, raised crossings, safe pedestrian crossings and dropped curbs • Current traders to be engaged with and relocated appropriately to support the continuation/ improvement of their trading activities This project will improve overall road safety and the town’s aesthetics.

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Challenges

Addressing Challenges/Gaps

Time Frame

› Existing buildings and public realm may need to be removed or altered

› Pre-feasibility study

› Medium to long term

› Detail site survey required and land ownership information

› B3 and Daraja Moja Nyamataro road is first focus, using existing works as an opportunity

› Installation likely to interrupt traffic flows › Funding

› Extensive stakeholder engagement required

› Then to other selected streets in CBD

Case Studies Las Marias - Pinto Salinas, Venezuela A small public square reclaimed from a potential dump site, completed. Laneways - Melbourne, Australia Urban regeneration of alleyways, retail uses, completed.

A visual of Laneways in Melbourne, Australia

5.2.5

Urban flood mitigation

Kisii town centre is a dense built up area that currently has limited drainage system in place. Drainage channels, culverts and side ditches along roads have not been developed to function as a network and they do not offer pollution management. In some locations they pose health and safety hazards such as slips, trips and falls due to the way they are constructed. In addition, the soil in Kisii is clay and therefore the infiltration capacity is very low. Therefore, after rainfall event, the rainwater runs off the surface causing surface puddles, health risks and localised floods.

1. Drainage Masterplan and Road Interventions SuDS in the town are generally capable of managing regular rainfall events, but localised SuDS features will not be suitable for managing large rainfall events. Therefore, an integrated drainage master plan using grey- green network will provide safe water conveyance capacity through the town. Pollutants should be removed from surface water before it reaches the rivers by providing a series of SuDS features (a combination of vegetated channels and bioretention areas (e.g. rain garden). These features should have suitable hydraulic capacity for the contributing catchment and be protected from sediment build up. The roads in this area are generally drained via existing concrete drainage ditches. The existing drainage channel’s ability to intercept, attenuate and treat surface water can be enhanced by adding vegetation and a permeable layer (such as aggregate to enhance storage and treatment capacity). To improve the drainage and water quality it is suggested to retrofit SuDS along Hospital Road, all the way to Kisii Hotel Road (south to north west) using a combination of swales and rain gardens integrated along both sides of the road to capture, store and convey rainwater. The following proposals can improve the surface water drainage system: › Provide two larger channels on both side of the existing road to intercept flows and to create a continuous conveyance of rainwater along the road. Outfalls are to be located at the Nyanchwa River; › Create local vegetated bioretention areas planted with native plants and trees. These features are visually attractive and may include seating, and efficient to manage local ponding of water.

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Sub-components

Estimated cost

Impacts

Delivery mechanisms

Challenges

Addressing Challenges/Gaps

Time Frame

› Drainage masterplan

› KES 10m › KES 4,500/m (feasibility to determine)

› IFI funded with consultant for study

› No records of current drainage network

› NGOs /World Bank KUSP programme

› Retrofitting SuDS elements require appropriate collaboration between community and Municipality

› Introduce 2 continuous channels (swales or filter drains) along Hospital road and Kisii Hotel Road

› KES 7.8m

› Improve safety, pollutant removal and ensure the system is providing full capacity to convey water.

› Medium term

› Open channels along hospital Road to be flattened and planted

› Municipality and local residence to maintain the system

› Connections between SuDS features (rain gardens) via pipes to pass below roads.

› The depth to protect the pipes from traffic is normally 1.2m or with concrete surround. Risk of damage by utility companies should be assessed

› Tile over road sides using permeable pavement blocks › Convert road islands and street planters to rain gardens

› KES 4,500 tiles/ sqm › KES 3,000 filter drains/m › Feasibility to determine › KES 4,000 excavation per m3; KES 1,600 trees and shrubs / sqm

› Contain the clay from entering the drainage channels › Provide multiple benefits i.e. water interception, attenuation and treatment › Prevent polluting the Nyanchwa and Riana rivers

Climate resilience • The present flood hazard level is expected to increase in the future due to the effects of climate change (high confidence in an increase in intense precipitation). Therefore, it is prudent to provide drainage and green infrastructure measures as part of an integrated catchment management to ensure the system is robust to manage river and urban flood hazard into the long term

› Funding - requires external capacity support

› Data of runoff volumes and flow capacity requirements

Case Studies Bridget Joyce Square, Australia Road, Main Basin and Bridge, UK Widening existing channels and adding plants such as trees and grass would provide additional water retention, attenuation and evapotranspiration. Having the wooden bridges in location where crossing is required will allow safe and inclusive access to all user groups especially PWDs2. Bioswales, Defined as Sloping Drainage Areas Filled with Vegetation These collect surface water runoff from roads and remove pollutants from it3. 2 Source: Robert Bray Associates, Neil Speakman · 2016 https://openhouselondon.open-city.org.uk/listings/6693 3 inhabitat.com/american-society-of-landscape-architects-highlights-479-green-infrastructure-projects/ use_tassafaronga_bioswales_high_res/

Inclusion ✓ SuDS system along Hospital Road and Kisii hotel road will improve pedestrian links and provide a safe and enjoyable route to support community cohesion, local attachment and lower crime levels ✓ The new roads layout, with the incorporation of SuDS features, will provide an inclusive new road layout to enable people from all groups to use, access and enjoy the CBD area

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2. River Revitalisation

In 2015, parts of Kisii town were inaccessible due to floods caused by heavy rains in an area to north of hospital road. Flash floods inundated Kisii town's Daraja Mbili market (see location in Figure 5.8) causing people to lose goods worth thousands of KES4. In 2019, Kisii-Kisumu highway flooded, and some vehicles were swept off the road at Lodada trading centre5. Figure 5.8 shows the confluence point where the River Nyanchawa and the River Riana meet. Both rivers have sections culverted near the confluence point which causes a flow restriction. This needs further hydraulic analysis to ensure that these culverts have the capacity to withstand high intensity events taking climate change into consideration. This area is of an economic importance to Kisii given Draja Mbili Market is located to the west of the Nyanchawa river and the proposed logistic area (Focus Area 2) is to the east, north of River Riana and where flooding can come at a significant cost including loss of livelihood and properties.

Green infrastructure measures, including planting a variety of vegetation and creating natural stream environments are used to preserve river ecosystems and promote wildlife growth to increase river biodiversity. Sustainable drainage facilities can also be integrated for creating a more liveable environment. Combining green infrastructure practices with conserving land in or around the floodplain is an effective way to manage and reduce the risk of river flooding and build resilience to climate change. Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Deculverting (daylighting) sections of the river

› Following concept and detailed design stage

› Restore the natural river flow with diverse in channel and bankside habitats

› Likely to require both public and private funding

› Provide offline wetland areas

Figure 5.8 - Confluence Point of Nyanchawa River and Riana River

River Riana

› Process to be led by the Municipality, with coordination through local business groups, property owners and vendors

This proposal links closely to the proposed sanitation improvements and the wider recommendations around facilitating a new waste management system, including awareness and community participation. Climate resilience

Draja Mbili Market River Nyanchawa

Given the rivers’ proximity to the town centre, the risk of river pollution is high. Higher levels of pollutants found in surface water received from various industrial and municipal waste discharges. These discharges constitute major source pollutants that adversely impact the river water quality6. Upstream measures such as adequate drainage system, incorporating blue-green infrastructure measures to protect the river from pollution needs to be considered.

The various interventions under this project are mainly driven by building resilience against climate change impacts. Incorporating Green Infrastructure and SuDS systems where applicable will reduce risk to flood and enhance the resilience of other interventions, such as pedestrian and cycling routes (Transport Proposal 3) and market improvements (Urban Proposal 2 and 3). Inclusion ✓ Provides an opportunity to engage water resource conservation groups in revitalisation efforts at a fee thus creating employment ✓ River revitalisation means improved environment and cleaner water for communities downstream

4 https://www.standardmedia.co.ke/article/2000182165/ﬂoods-daze-kisii-town-following-heavy-down-pour 5 nation.co.ke/counties/Floods-disrupt-transport-on-Kisumu-Kisii-road/1950480-5290334-format-xhtml-xifake/index.html 6 An Assessment of Some Physical, Chemical and Biological Characteristics of Nyanchwa - Riana River Flowing through Kisii Town in South West Kenya, April 2015

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DEVELOPMENT FRAMEWORK

Challenges

Addressing Challenges/Gaps

Time Frame

› Drainage and Sanitation system needs to be improved to collect waste and improve surface water quality before reaching he river

› Land ownership information required, with some private ownership in the area

› Ongoing and medium term

› Waste dumping is likely to require further education and community participation › Funding

› Information about existing culvert design › Installation around the river will require careful planning and management to retain river flows and avoid flooding › Attention to considerably deep contours

Case Study Los Angeles River Revitalisation Master Plan 32 miles of concrete lined channelised river was revitalised into a multi-purpose area that provides a green public space, improves the river’s flood capacity, water quality and restores habitats7.

5.2.6

Transport

1. Development of New Bypass Roads

The congestion issue for Kisii town is partly driven by the through traffic of major roads, where diverting traffic to alternate routes out of the CBD would reduce this traffic. Bypasses and slip road roads have been recently developed, including Hema road (B3 slip road) and Daraja Moja - Nyamataro road. However, additional alternative routes are required, particularly on the western side of the town. Corridors such as Suneka - Menyikwa, Bobaracho - Menyikwa, Daraja Moja - Daraja Mbili, and Daraja Moja - Nyamataro present potential routes, whilst they are in poor condition. The new bypass proposals cover the upgrade of 16km of road to bitumen standards to accommodate higher traffic flows, especially heavy goods vehicles (HGVs). Storm water drains, public transport and NMT provision, particularly in the built up areas along these corridors, would also need to be provided as well as traffic management, to divert HGV traffic generated by Focus Area 3. These are presented in Transport Proposals 2, 3 and 4. This proposal supports the functioning of the CBD as Focus Area 1 with decongestion, ease of market access and support land value. Further, it supports Focus Area 2 and 3 by increasing network redundancy and capacity to handle new trips generated to and from the VC industrial cluster and the logistics facilities for Daraja Mbili market.

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Upgrade of 16km of road to bitumen

› Capex of upgrading the road KES 724.9 million

› Eased access to the industries (Focus Area 3)

› Kenya National Government through the KeNHA, Kenya Urban Roads Authority (KURA) in Partnership with Kisii County

7 studio-mla.com/design/los-angeles-river-revitalization-master-plan/

› Drainage facility provision › Provision of safety and NMT consideration on built up areas along the corridors

› Annual Opex of the bitumen road KES 72.5 million › Capex of the drainage KES 507.9 million › Annual Opex of drainage KES 50.7 million › Capex of NMT provisions (5 km) KES 113.2 million

› Improved land use and value in the town › Decongest the town

› Safety and NMT facilities can be done by County in consultation with National Government

› Annual Opex of Sidewalks KES 11 million

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Climate resilience

Figure 5.9 - Transport Proposal 1: New Bypass Roads

✓ Alleviate town traffic congestion, improving air quality ✓ Storm drainage provision in road upgrades to mitigate urban flooding risk, to be based on projected increases in rainfall intensity

This bypass was recently paved but lacks storm water drains, pedestrian walkway, ped crossing and other traffic calming features

• Use of road material that can withstand projected temperature rises Inclusion Access to transport infrastructure is a key contributor to addressing social exclusion. This project will provide safe, accessible by all walkways and public transport facilities in built-up places along the bypasses. This will promote safety for all, including women and PWDs. Hema road (B3 slip road)

Challenges

Addressing Challenges/Gaps

Time Frame

› To alleviate air and noise pollution with increased vehicular volumes

› Pre-feasibility and feasibility studies

› Immediate

› Funding

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› Traffic impact understanding due to this new road

› Essential enabling infrastructure development

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2. NMT Network Expansion

Figure 5.10 - Urban Design Proposal 3: Footpath Analysis

A crucial element of improving Kisiiâ&#x20AC;&#x2122;s streetscape (Urban Proposal 1) is in enabling a non-motorised transport (NMT) network. A significant proportion of trips below 2km are on foot, and all public transport and some private vehicle trips start and end their trips as pedestrians. Yet less than 2km of street network is observed to have usable footpaths (Figure 5.10) and cycle tracks are non-existent. Even busy market streets lack safe and continuous footpaths and safe pedestrian crossings, forcing people to walk on the road, next to speeding motorised vehicles or on unpaved edges. The lack of footpaths and insufficient light at night further endangers walking as a mode of transport. As a result, low pedestrian volumes are observed on many parts of the network, where boda boda use is more prevalent even for short walkable trips. The SUED team has undertaken an analysis of peak hour pedestrian flows and footpaths. This revealed a total of 6km streets with some footpath provision and 2km where there is a good quality of provision (at least 2m wide and with paving), as shown below in Figure 5.11. There are high pedestrian flows occurring within the CBD around Hospital road and a 2km stretch of the Kisii-Kisumu road, where the pedestrian network is incomplete. A 1.8km stretch of the Daraja Moja - Nyamataro road is currently being upgraded which presents an opportunity to incorporate essential urban street features. Pedestrian flow analysis has also revealed a gender disaggregation to pedestrian traffic, with more women walking around the Daraja Mbili market, preferring to use boda boda, and men near centres of light industrial use in North and industrial area of CBD. Kisii pedestrianised market streets; World Bank

This proposal seeks to expand the pedestrian network and increase its convenience, accessibility, comfort and safety to encourage the uptake of walking for healthier travel behaviour among the residents and support decongestion. Improvements to the pedestrian network are being made courtesy of Kenya Urban Support Programme (KUSP) under the World Bank, which can be expanded upon to realise a more comprehensive network. The proposal will target critical streets in the CBD and as market access routes, to ultimately provide a network of walking and cycling spaces to promote active transport, support business growth and general accessibility within the town. Continuity, comfort and safety are the governing principles here. The SUED team has also analysed streets for their rights of way (ROW) and scale, to propose street types across the CBD. Streets that are less than up to 6m wide can be re-worked into pedestrian priority streets, where: drains are covered to maximise on-space; vending spaces can be marked; traffic calming through pedestrian islands of varying shapes, sizes, located within the right-of-way; junction improvements;

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street furniture, to promote attractive public space making; no permitted HGV access; and parking where space permits. Roads wider at 6m - 12m can accommodate dedicated and physically separated spaces for NMT, within a shared space typology; designated spaces for meeting points and street vending; traffic calming with at-grade crossing facilities for pedestrians; and parking provided if space permits. Figure 5.11 - Urban Design Proposal 3: Street and ROW Analysis

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Detailed design of streetscape as per urban design proposal 3: Sidewalks, planned vending spaces, drainage facilities, Street furniture

› Capex of footpath (20 km) installation KES 226.5 million

› Increased safety and access for pedestrians

› County Government i.e. Kisii County through Kisii Municipality

› Traffic calming features of pedestrian islands / crossing facilities

› Annual Opex of the footpaths KES 22.7million

› Junction improvements and pedestrian crossing features

› Capex of drainage facilities KES 317.4 million

› Annual Opex of the drainage facilities KES 31.7million

› Reduce traffic congestion by increased walking › Improve air quality by increased walking › Walking can improve health and fitness

› International Organisations like World Bank and others › Private initiative of local businesses

› Increased footfall to businesses along the network

Climate resilience ✓ Encourage modal shift to sustainable travel, reducing congestion and improving air quality Inclusion ✓ Provision of a safe and accessible NMT network will enable equitable access for all by addressing inequalities associated with motorised transport ✓ It is anticipated that NMT will create a culture change where walking is perceived as an acceptable means of movement in the city hence health benefits to the populace • It is recommended that NMT facilities follow principles of universal and humancentric design to ensure they enable access by PWDs

Overall, 20km of streets are present in the CBD which suit NMT provision, with need for regular crossings and with segregation between a frontage zone with street-side activities, a pedestrian zone with continuous walking with at least 2m width, and a furniture zone for landscaping, lighting, furniture, bus stops, signs, vending and private property access. Transport Proposal 4 picks up some of these supporting elements for traffic management.

NMT provision is particularly pertinent with shocks such as Covid-19, where this provides alternatives to public transport use and helps mitigate against a longer-term shift to individual public transport, which can overwhelm the network, or private vehicles, as an unsustainable legacy. Challenges

Addressing Challenges/Gaps

Time Frame

› Installation likely to interrupt traffic flow

› Pre-feasibility stage

› Short to medium term,

› Public consultation

› To be integrated with urban design proposals

› Funding

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3. Upgrade of the Main Bus Park

SUED Team Visit: Matatu Overspill

The existing bus park located within the CBD has far surpassed its capacity, leading to vehicular spill-over onto adjacent roads and intersections, which interrupts traffic flow and exacerbates the acute congestion issue. The bus park is located along a gentle sloping terrain which is constrained in space but can be harnessed into a two-level station, with accesses provided through Cemetery road and Sansora Street to improve traffic circulation. The proposal for a two-level park would require the integration of the NMT network (Transport proposal 2) and require road intersections improvements at the bus park, upgrade of the retail spaces, provision of streetlighting and drainage facilities within the station. An upgraded bus park can enhance the capacity and improve the quality of users’ experience. This would support trade and improve public spaces within the town. As public transport demand increases with time, consideration will need to be given to developing new bus parks outside the CBD to support growth of urban area and travel demand. These would be suitably located along major public transport corridors such as the Kisii - Kilgoris, Kisii - Nyatieko, Kisii - Kisumu and Kisii - Nyamira road. The SUED team has assessed public transport flows, as below. Figure 5.12 - Transport Proposal 3: Bus Park Upgrade

Resilience to shocks: Covid-19 focus The Covid-19 pandemic has had a significant impact on Kisii’s matatu provision, with fleet owners grounding over 90% of their fleet, this has damaged incomes for those providing an important local service, whilst boda boda have filled some of the gap. Wider traffic and demand management will be important levers to support provision under such shocks in the future. Beyond streetscape features and CBD decongestion, supporting proposals for transport management are identified below (4).

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Redesign for a multileveled bus terminus, with incorporation of NMT facilities, drainage, streetlighting, and vending space

› Design and Capex of upgrading the bus stop KES 500 million

› Support future growth and public transport demand increase

› Kisii County Government delivered by Kisii Municipality

› Junction improvements, provision of new bus stops on key roads

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› Annual OpEx of the bus terminal KES 50 million

› Increased footfall to support adjacent businesses › Increase revenue for businesses adjacent to the bus park › Increase of sustainable transport options

› Private Public Partnerships (PPP). › Maintenance responsibility, Kisii Municipality

› Increase revenue for Municipality / County

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Climate resilience

Figure 5.13 - Transport Proposal 3: Public Transport Flows

✓ Supporting demand increase for public transport, reducing congestion through need for private vehicle use Inclusion The bus park improvements will: ✓ Enable continued use of matatus for those accessing markets 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 retail space within the bus park area ✓ Be iintegrated with the walkways in the town, to ensure everyone, including PWDs, will be able to access and use it

Challenges

Addressing Challenges/Gaps

Time Frame

› Will cause disruption to public transit

› Pre-feasibility study

› Short-term to medium term, facilitating public transport capacity in parallel with urban proposal design

› Upgrade likely to interrupt traffic flow › Funding

› Public consultation

› Longer-term for public transport service plan

As public transport demand increases with time, consideration will need to be given to developing new bus parks outside the CBD to support growth of the turban area and travel demand. These would be suitably located along major public transport corridors such as the Kisii - Kilgoris, Kisii - Nyatieko, Kisii - Kisumu and Kisii - Nyamira road. The SUED team has assessed public transport flows, shown in Figure 5.13.

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High volume corridors (500 pph) require higher capacity passenger service vehicles to avoid over reliance on boda bodas, with public transport priority measures and facilities such as stops and shelters. Drop and pick up stops will be required in the CBD along Kisii - Kisumu road and Hospital Road, manned by traffic officials. Ultimately, a public transport service plan for Kisii is required to rationalise services and improve speed and reliability of service.

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4. Transport Management - Supporting Proposals Supporting the three transport proposals for Focus Area 1 are: Traffic Circulation Rationalising street sections, by equitably delineating spaces for each road user, can minimise conflict between road users and improve circulation through the CBD where Transport Proposal 1 enables heavy traffic to be taken out of the CBD to the bypass and slip roads and this should be encouraged, whilst HGVs will not be permitted on the narrower streets. This supporting intervention will make it possible to maintain the current traffic movement system on most streets, with strategic street rationalisations to accommodate all road users. All street sections with ROW less than 6m should be converted to pedestrian priority streets (as per Transport Proposal 2) and 6 -12m can be converted to shared spaces within a proposed street typology. In future, the viability of a one way circulation system could be explored through a comprehensive traffic survey and physical street design proposals that self-enforce the desired traffic circulation pattern. Traffic circulation and adaptation is important for the road network’s resilience to disruptions. Being able to close off some streets, pedestrianise others and use one-way systems where useful is an important feature to build in buffers and adaptability to the system. An efficient demand management approach would support this, such as that proposed for boda boda below. Junction Improvements Across Kisii, intersections lack signalling. The SUED team has identified the presence of T-type junctions and roundabouts across the CBD. Roundabouts organise vehicle movements, however these junctions lack pedestrian elements such as crosswalks, refuge islands, and pedestrian signals. T - type intersections generally have high corner turning radii that are difficult for pedestrians to cross and encourage speeding by motor vehicles. These issues also add to the management challenges faced by traffic police manning the intersections. It is recommended that: › T-type junctions to incorporate tighter radii (4m - 6m), refuge islands and medians to reduce conflicts between pedestrians and vehicles; › Increase the level of the carriageway and pedestrian crossing to that of the footpath to improve safety and convenience, compelling vehicles to slow down and give priority to pedestrians;

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› As vehicle volumes grow, traffic lights will need to be installed. The layout of the junction will need to be designed with a signalling plan; › For roundabouts, pedestrian elements such as crosswalks, refuge islands, and pedestrian signals should be incorporated. Boda Boda Management Boda bodas face challenges in road safety and driving etiquette, but they also provide essential low-cost mobility for many urban residents. In many cases, rapidly increasing boda boda demand is a direct result of the failure to provide adequate public transport services. A nuanced response is therefore recommended - including alternatives, especially NMT and public transport (Transport Proposal 2 and 3), and encouraging regulations and enforcement measures that improve service quality, efficiency and safety. As the NTSA Act 2014, there is a requirement for boda boda operators to organise themselves in SACCOs, which guarantee the identities of motorcyclists and provides intermediary between motorcyclists and banks and motorcyclists and motorcycle owners. These organisations can be empowered to purchase motorcycles for their members to ride, ensure driver training, offer credit to members and attend to the safety and security of the motorcycle sector through proactive steps such as providing helmets and reflector jackets which display operator and SACCO details to assist in identification. The County

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In terms of income security and inclusion, young riders, who may otherwise have had little other income generating options, can be trained in the roll-out of the demand technology to support job creation. Such a digital intervention could provide a legacy benefit in being applicable to a longerterm shift toward more digital cities. Partly as a response to the Covid-19 shock, people may move to more home working, online shopping and shared mobility in the future. Building a digital platform here can provide the learning and soft infrastructure for wider applications to support the movement and consumption of goods and services. This can be applied to matatus as well to form the basis of learning for digital business applications, as noted in the Sector Action Plans.

Digital Transport Demand Management Traffic in Nairobi, Kenya, is a major challenge. Cars can spend hours stuck in gridlock, and there are limited sources for up-to-date traffic information. Ma3Route was launched to provide crowd-sourced information on traffic around Nairobi through a website, mobile application, and text messages. Government, which is charged with the responsibility for issuing operation permits, should also maintain a database of operators to manage supply. It is common for boda bodas to cluster around high intensity commercial areas, while being harder to find in residential areas, indicating a fleet management problem. The municipality can leverage Information technology (IT) systems that aggregate boda bodas to optimise the supply and use of boda boda fleets while improving user convenience. Innovative aggregation services such as Safe Boda in Kampala, SafeMoto in Kigali, and Uber Boda in Nairobi combine the convenience of boda bodas with measures to monitor driving safety. These services can be deployed for both passenger and delivery services. Enrolling on any of these platforms usually requires operators to provide national identification, PSV driving licence and up to date vehicle registration and inspection documents. By mandating operators to register on such platforms, the usage data from these companies such as trips, crashes and complaints provided in a standardised manner can enable Kisii County to better regulate the transport sector, track safety and security issues more closely and evaluate how the sector is performing over time. Overall, when integrated with good public transport, boda bodas can enhance mobility and economic access while simultaneously reducing the dependency on private vehicles to meet daily travel needs.

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The initial financing for Ma3Route came from a competition run by m:lab East Africa, an innovation hub in Kenya founded with support from infoDev8. 8 https://www.infodev.org/profiles-women-digital-and-agribusiness

Parking Management One of the relate issues to CBD congestion is with uncontrolled parking, where this takes up space from pedestrians, opportunity for streetscape and for public transport flows and stops. The SUED team has undertaken analysis of Kisiiâ&#x20AC;&#x2122;s parking, finding areas of over demand (town centre) and areas with some available capacity (nearby streets). Analysis has identified 700 spaces across 3.5km of CBD roads, with identified opportunity for a further 300 spaces. Management of parking (and non-parking) areas will be critical to enforce and embed new behaviours, and to drive a revenue stream for the Municipality. It is recommended: â&#x20AC;ş Clear designation of parking and no parking areas is a prerequisite for enforcement; â&#x20AC;ş Parking areas should be allocated after providing adequate space for pedestrians, cyclists, trees and landscaping, and street vending;

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› All pedestrian areas should be protected from unauthorised parking encroachment through bollards; › Parallel parking orientation is preferable as it occupies least space; › Parking bays should have a maximum width of 2m and length of 5m. The same area can be used for perpendicular two-wheelers parking; › Parking fees should be set according to demand, with higher fees in areas with higher parking demand; › Revenue gained from parking fees should be used to fund visible street improvements such as footpath maintenance and tree planting, helping to establish local buy-in for the parking management measures. In terms of Freight parking: › Restrict the entry of heavy vehicles into central business district during the day. Logistics park provided for HGVs (Focus Area 2); › Manage the loading and unloading of goods in CBD to minimise transport disruption. Loading activities should happen behind buildings.

5.2.7 Water and Sanitation Water and sanitation interventions are not contained to individual Focus Areas, but rather improve the infrastructure and operational systems to enable a step change in water and sanitation provision for Kisii’s residents and businesses. The following proposals are also referenced within Focus Areas 2 and 3. Recognising that the sector’s relevance to SUED’s key principles is particularly acute within the CBD, the detail for the proposal is set out here in Focus Area 1. This is due to the higher density of the CBD and its extensive areas of low-income residents and degraded urban environment, resulting in higher and wider felt impacts where provision is unaffordable, unsustainable, inefficient or lacking resilience.

1. Water Supply Improvements The new water supply works for Kisii was recently commissioned and will provide adequate water resource to the town until 2030. This is a huge opportunity for the economy and for the wellbeing of the population whom previously experienced severe water shortages. However, additional improvements must be made to the water system to fully realise the benefits and ensure that it is sustainable. This proposed improvement comprises the following 3 components: Expansion of the distribution systems to new customers that can now be served with the additional water The expansion should include increasing both household connections and water kiosks, which serve low-income areas where people may not be able to afford a household connection. The public water supply will deliver better quality water than alternative water sources, such as water from vendors who source water from unprotected sources. Access to cleaner water will reduce water borne disease and associated health costs. New business should also be connected to the system. The company should ensure that all new customers are metered. This will reduce water wastage and enable the company to monitor usage. Programme of re-connections - with improved billing and collection The water utility Gusii Water and Sanitation Company (GWASCO) has approximately 9,000 registered customers, of these accounts only 3,0009 are active due to the past poor service. With the new water supply works, service will improve, and the company should implement a programme of re-connections. In parallel, a new billing system for the company will reduce commercial losses and increase revenues. This will allow the company to improve their financial sustainability, to invest in maintenance, to expand the system further and to provide subsidies where appropriate to those that cannot afford access.

9 Interview with Managing Director of GWASCO. SUED Field visit, December 2020

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Pipe network investment GWASCO has high non-revenue water (NRW), estimated at 44-46% compared to the regulators target value of 25%10. Physical losses are thought to be high due to the aging pipe network, but a large proportion of NRW is attributed to commercial losses such as theft from illegal connections, under reading from poor quality meters and problems in the billing software. Investment in the old and dilapidated pipe network, where it cannot withstand the new pressures of the new water supply or for areas with high leakage, is important. This should be implemented alongside a campaign improving metering and conservation of water use. Improvements to the water supply system bring benefits across the whole municipality. All proposed projects are in-line with the GWASCO Strategic Plan (2017-22).

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Expand distribution systems

› KES 180m

› Better access to good quality affordable water service for all

› Reconnections and billing and collection improvements

› KES 90m across three Focus Areas

› Reduction in NRW

› KES 36m across three Focus Areas

› Gusii water and sanitation company/ PPP partners/ IFI/Lake Victoria South Water Works Development Agency

These water supply improvements are enhanced by Energy Proposal 2, to help GWASCO reduce costs through energy efficient and renewable energy water pumping stations to serve Kisii. Climate resilience

› Improved meter management systems and utility sustainability › Environmental benefits due to less abstraction › Increased revenue to the water utility, for re-investing and maintenance

Water Vendors in Kisii

✓ Improves the sustainability and reliability of water supply service ✓ Increasing the revenue of GWASCO, this supports their resilience to operate with disruptions or unexpected events such as droughts, floods and pandemics ✓ Reduces pressure of water abstraction by reducing NRW • NRW can be further enhanced through metering and NRM awareness campaigns to consumers to promote conservation • Recommendation - the Municipality to ensure climate change is fully factored into water management and investment plans, given increased variability in rainfall and potential moisture stress increases (under higher emissions scenarios) - to enhance supply security for future decades

10 Impact report, Issue 11, WASREB (2019)

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2. Sanitation Improvements

Inclusion and Pro-Poor Focus Collection of water is often the responsibility of women. By providing better access through a connection or kiosk close to home, women free up time for other activities such as income generation or caring for families. Persons with disability will also have closer services. The provision of better-quality water should reduce the occurrence of water borne disease, which impacts more on children under-five, the frail, the elderly and the poor, whom often struggle to afford healthcare and therefore suffer disproportionally. People who can’t afford a connection to the public water supply often have no alternative than to purchase from water vendors which is often at a higher price than from the water company. Providing access through regulated water kiosks will make water more affordable and better quality. Alternative employment options need to be considered for water vendors who may lose their livelihood due to an expansion in the public water supply. The issue of affordability becomes ever pertinent with a shock such as Covid-19 where informal settlements lack running water to undertake basic hygiene measures.

Challenges

Addressing Challenges/Gaps

Time Frame

› Capacity

› Lacking capacity of GWASCO to implement and operate the billing system effectively - where partners can support this

› Short-term achievable but long-term given operational capability

› Funding

› SUED or other funds to meet the significant gaps In GWASCO - and especially until operations are more efficient

› Billing and customer metering improvements will be required first (short term) while network extension are medium to long term

Only 13% of households are currently connected to the sewerage system whilst the sewage treatment works is only running at around 25% of capacity11. This proposal sets out to improve sanitation services through the extension of sewers (both trunk and secondary) and the construction of ablution blocks at markets, densely populated areas and informal settlements. To encourage people to connect to the sewerage system, GWASCO have a subsidies scheme in low-income areas. Individuals construct a toilet facility and the water company connects them to the sewer line. This arrangement means the household can ensure that the design of the toilet is accessible for their family, whilst it is a pro-poor intervention in issuing subsidies for those toilet constructions that meet the utility’s standard. There is scope to significantly expand the sewer network connectivity. The Kisii business consultation suggested that inadequate toilet facilities exist in the market, considering the number of traders and visitors12. It is understood that water supply and toilets will be provided in the new market, however there is a need for these services to be located near all trader areas. The ablution blocks will be connected to the existing sewer network where possible and otherwise have local septic tanks. Though the Municipality has a sewer network, its old and dilapidated. There is also increased frequency of manholes surcharging leading to wastewater overflows into streets and public spaces. It is critical to address the technical challenges related to the sewerage handling capacity of the network. For Focus Area 1, the proposal is for trunk sewer and secondary sewer expansion, to reduce the current overload of wastewater conveyed by the currently under sized sewers. Further, ablution blocks should be provided in areas of need covering public spaces, market and commercial areas. Toilets Constructed under the GWASCO Subsidies Scheme

11 Interview with Managing Director of GWASCO, SUED Field Visit, December 2019 12 Kisii Business Consultation, SUED, December 2019

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Figure 5.14 - Sanitation Proposal 1: Supply Improvements for Focus Area 1 and 2

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Sewer network expansion

› KES 145m

› Improved revenues for the local utility

› Funding by IFI/Donors/ GoK

› Ablution blocks

› KES 41m

› Improved sanitation access and coverage

› Using revenue generated from connection charges

› Health benefits across population

› Gusii water and sanitation company/ PPP partners/ IFI/Government of Kenya/ Lake Victoria South Water Works Development Agency

› Sewer nuisance and leakage reduction › Affordable sanitation for all

Climate Resilience Focus Climate change is increasing localised flooding. During flood events poor sanitation systems can be overwhelmed and lead to sharp increases in diarrheal disease. Increasing the capacity of the sewer system will reduce the number of these events, and as such will not only improve environmental and public health in the town but will build resilience against the impacts of climate change. The proposed wastewater system interventions should be designed with utmost emphasis on climate resilient materials for construction and in equally, robust climate change resilient design approaches. Specifically, the design should include an allowance for increased capacity needed to deal with increased intensity of rainfall, as well as an assessment of the performance of the system under more extended dry periods. Source: SUED team based on GWASCO Strategic plan 2017-22

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Inclusion

5.2.8 Energy

Sanitation improvements will:

Energy interventions are not confined to individual Focus Areas, but rather improve the infrastructure and operational systems to enable a step change toward more sustainable and efficienct energy provision for Kisii’s residents and businesses. Energy proposals are presented where most suitable within the three focus areas, recognising where the sector’s relation to SUED’s key principles is most pertinent, such as in where significant gaps exist to provision being inclusive and resilient, and where operation would be focussed.

✓ Improve public health and reducd diarrheal disease, with associated health care cost reduction which is often a significant burden on low income groups ✓ Increase toilet access, which is private and clean, and protects individual’s dignity It is recommended that the GWASCO subsidies scheme be continued, to make connections to sewer system and good quality toilet construction affordable, with flexibility to modify the toilet to meet the needs including child, elderly or PWD adaptations. Covid-19 has highlighted the risks from lack of access for low-income groups and informal settlements, who rely on public services. Challenges

Addressing Challenges/Gaps

Time Frame

› Capacity - in GWASCO to effectively implement projects internally

› Detailed feasibility to establish baseline scenario and immediate upgrade needs

› Ablution blocks could be short term

› Funding gap -, especially for sewer network expansion, will require external funding

› Significant sewer upgrade and trunk mains expansion will be long term projects and require significant investment

1. Improve Streetlighting This proposal aims to compliment the current streetlighting program and ensure coverage to all main streets in Kisii and to 100% of public streets. Kisii has expanded rapidly in recent years, spreading trade activity across the road network alongside a growing night economy. The determined vision for Kisii captures inclusivity and improved liveability, where streetlighting is a crucial provision for safety, comfort and access alongside the proposed urban and transport proposals. For example, Urban Proposal 3 for streetscape improvements recognises the need to have space for streetlighting and furniture alongside safe pedestrian and NMT mobility (Transport Proposal 2). This would support the continued operation and increased revenues for Kisii’s businesses including the market areas, where trade can continue past daylight hours and the overall appeal is enhanced for more residents and visitors. Additionally, the proposal is to review and improve the efficiency of light fittings to reduce energy usage and energy costs, and to review the overall maintenance budgeting and procedures to ensure that all installed streetlighting is adequately maintained to remain operational. This would involve review of the current streetlighting plans by the Municipality and Kenya Power and Lighting Company (KPLC) to ensure coordination with proposed urban development plans. These plans should be augmented 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. Technology choices for lamps in new and existing streetlights can be reviewed to ensure these are most efficient and that there can be focussed upskilling for lamp maintenance. There would also need be a review and update for the current contractual arrangements between the Municipality and the utility providers, with the aspiration to improve the economic situation for both parties to protect the long term maintenance of installed streetlights.

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Climate resilience

SUED Team Visit: Kisii Town Centre Solar Streetlight

✓ Use of more efficient light fittings will reduce the use of electricity and reduce GHG emissions • 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 Inclusion ✓ Better streetlighting will improve safety at night, particularly benefitting for women with a safer environment ✓ Supports the market to be able to operate for longer hours, improving the economic outlook for the market traderts • Opportunity to upskill local people in system maintenance

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Design study to ensure suitable coverage of target area, utilising review of current plans and arrangements

› KES 150,000 per pole13, KES 3.75m-5m per km, depending on spacing

› Improved security in Kisii at night

› Partnering with Municipality to coordinate and plan activities

› Equipment review and selection › Development of new commercial plan (procurement, deployment, implementation, maintenance)

› KES 37.5-45m estimated total based on part coverage to new areas, part reworking of existing areas

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

› Partnering with equipment specialists to determine technology solutions

Challenges

Addressing Challenges/Gaps

Time Frame

› Achieving buy-in from municipality, KPLC, KeNHA

› Review current implementation plan

› Short term to complete coordination, Short to medium term to complete implementation

› Review current commercial and technical arrangements between Municipality, KPLC, KeNHA › Engagement with stakeholders with detailed implementation schedule and benefits outline

› Maintenance capacity building programme to ensure continued operation of systems

13 Africa and solar powered street lights, accessed 29th July 2019 https://www.engoplanet.com/single-post/2019/07/22/Africa-and-Solar-powered-Street-lights

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Case Study Quezon City, Public Lighting Delivery Models - Philippines Quezon City had been actively exploring and implementing upgrades to its street lighting system, where public safety was an ongoing concern. The Mayor created a Task Force to look at installation, repair and maintenance of streetlighting. This body oversaw an initiative to expand night-time lighting coverage across the city, which illuminated 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 budget savings. The city funded a study to determine the feasibility of upgrading their streetlighting to more efficient technology, comparing 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 streetlighting, while LED luminaires, which were quite expensive at the time of the study, would only be suitable for new installations A constraint to the conversion was the split ownership of the assets and the flat rate charged by Meralco on a portion of the assets. 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 5.7 million (KES12.6m). 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 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.

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2. Energy Efficiency Support for Water Supply This proposal concerns the provision of new efficient pumps and renewable energy solutions to the water pumping stations that serve Kisii. Currently, the town’s water utility GWASCO is experiencing high electricity bills, which impacts its revenue and therefore its level of service provision with low income residents and areas bearing this burden with lacking connections. This proposal would require a baseline exercise to determine pumping requirements, operating costs and equipment state alongside the calculation of future demands and operating costs. Options analysis should be undertaken to determine the most suitable energy efficient pumps and control equipment, considering value for money and feasibility, and to identify the renewable energy technology which can power the facility. Beyond the boundaries of the Municipality, there is potential to rehabilitate a large scale renewable energy provision - Energy Proposal 1 for Focus Area 3 - and potential interactions and learning can be explored for this proposal. Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Baseline study, demand calculation and options analysis

› KES 9-15m

› Reduced water company pumping costs

› Partner with water company to coordinate activities

› Selection of new pumping equipment

› IFI/ donor finance

› Potential to pass this on to the consumer

› Partnering with energy services company to undertake improvements to pumping systems.

› Design of new renewable energy system › Development of procurement and deployment plan › Maintenance plan

› Funding (eqpt, installation):

› Reduced carbon emissions associated with water sector

› Partnering with renewables specialists to determine solutions › Maintenance - capacity building programme to ensure continued operation of systems

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Climate resilience

5.2.9

✓ Reduces energy needed for pumping, to reduce electricity bills for GWASCO and reduce GHG emissions

1. Integrated Waste Collection System

• Recommend the choice of pumping equipment should be informed by energy efficiency considerations, as well as operational performance under high temperatures, to ensure that increases in extreme temperatures do not adversely affect service provision • Recommend that the calculation of future demand includes an assessment of the longerterm sustainability of water supply, including potential decreases in availability in dry climate scenarios Inclusion ✓ Providing GWASCO with an economically viable source of water supply can reliably provide this basic service to all inhabitants in Kisii • Opportunity to focus capacity building and upskilling for system maintenance and operators, this can be focussed on unemployed groups and SIGs

Challenges

Addressing Challenges/Gaps

Time Frame

› Effort needed to obtain comprehensive data on current situation

› Baseline exercise important first step

› Short to medium term

› Partnering options to be explored to meet funding needs

› Funding

Case Study Campinas Energy Management Program, Brazil The city of Campinas in Brazil established an energy management program, including specific energy efficiency improvements, as a part of operational management to improve the overall operational efficiency and to enhance financial performance. In their Capivari water treatment plant they installed variable speed drives, improved pumping efficiency, replaced old pumping equipment with more energy efficient pumps and optimised pumping operational schedules. These energy efficiency measures resulted in annual energy savings of 1.8GWh and KES 20m with an investment of KES 130m, for a simple payback of about 6.5 years.

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Waste

Kisii’s current landfill site is beyond its planned capacity and this purpose will be moved to a new site at Nyateiko, which is proposed to be developed into a waste centre as a transformative intervention for Kisii’s resource use and waste system. This project is set out in detail within Focus Area 2 below. A critical element to this transformation is the implementation of an improved, efficient waste collection system. This proposal is across the three focus areas, whilst its initial impact will be most significant and challenged in Focus Area 1 due to the high density and current issues with waste collection. 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, with 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 with clarity on the collection process and timetable. Collection and transportation of solid waste generated at household, commercial and industrial level in the municipality is mainly undertaken by the County Government in collaboration with the private sector. There are currently only two refuse collection vehicles and two tractors for the collection of waste within the county; these vehicles are expected to service the twenty-plus market centres across the county. This fleet has inadequate capacity to collect the increasing quantities of waste generated. The procurement of new waste collection vehicles, containers, offices etc. are stated within the Kisii Municipality Solid Waste Management Plan. 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 bugs. It is noted that the containers and the refuse collection vehicles would need to be compatible. Further, this system will rely on the road traffic circulation management and use of new bypass roads that will decongest the CBD and enable vehicles to access sites to collect in an efficient manner - the success of this system relies on Transport Proposal 1 and 4. The new waste collection system should integrate with the existing waste collection operating across the 5 zones within the municipality. Some of these zones have established collection vehicles and routes. Though, whilst there is support from private groups, there is need for further collaboration between the County Government and private organisations to manage solid waste. The Municipality want to engage national recycling organisations to look at how to do segregation at source and work with those recyclers so they can buy the waste from the new centre.

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Estimated cost

Impacts

Delivery mechanisms

› KES 5.3 million to KES 10.6 million annually

› Encourage source-segregation (residual, recyclables, organic) reducing waste volumes to landfill

› Introduction of Private Public Partnership (PPP) into waste collection effort

› The municipality have allocated KES 70.4 million towards waste infrastructure › Funding: IFI/ Donor Finance › Revenue generating aspects: valuable waste streams to be segregated e.g. metals, plastic

› Increased formal employment in the waste sector as catchment increases › Increased public awareness on waste and recycling, including segregation and on the waste collection process › Reduced illegal dumping of waste and improved sanitation › Provides an increased level of service and engages community and private sector › Higher quality materials which can be sold to recycling brokers

› Gain support from NGOs, community groups, waste pickers › Funding for PPE, collection carts, training and wages for the CBOs, etc › Maintenance responsibility of Municipal Government

Inclusion and Pro-Poor Focus Challenges

Addressing Challenges/Gaps

Time Frame

› No formal recycling in place

› Obtain funding for new collection infrastructure

› Short term and ongoing

› 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

› Provide adequate training and support systems

› Making relevant step ups once road improvements are implemented

› Convert existing infrastructure › Launch public awareness campaign

› Very low levels of containerisation of wastes deposited - causing nuisance and negative health and environmental impacts

Climate resilience ✓ A collection and management system for waste, with the discouragement of informal dumping and open-burning will bring significant health and environmental benefits for Kisii ✓ Improves sanitation and flood and surface water management capability by reducing waste streams into water streams and across the urban environment • The reliance on a strong transportation network needs to be carefully considered, as the introduction of more waste collection vehicles and collection routes would increase traffic on the roads and GHG emission. It is recommended these routes are managed in their timing to not add to peak traffic, whist lower emission vehicles could be explored

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Case Study

Job Opportunities

Developing an Integrated Waste Management System (Kampala, Uganda)

There is an opportunity to create more jobs within a formalised waste sector which can include PWDs, women, and youth groups. There are also a number of existing collection groups which operate in Kisii: Nyakwengata Women Group, Novena Youth Group, Sabuka Women Group, Chris Siong’o, Muungano Youth Group.

In Kampala, 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. 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.

It is recommended that these groups are engaged and integrated into the new system. The informal sector is significant here, where waste pickers’ livelihoods is also based on the current landfill site albeit with limited and insecure income and extensive occupational risks. These individuals and families would need to be supported generally with relocations (further waste proposals), whilst roles in the new system could be part of a sector formalising process to provide income security through wages and protect wellbeing for future generations with appropriate training and equipment. The use of appropriate waste containers and closed type refuse collection vehicles is recommended as it would reduce local environmental impacts and nuisance and improve local residents’ quality of life and city scape. That would have positive secondary impacts on local economy and provide stimulus for local investment.

Source: Waste Pickers Alliance, Uganda

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5.2.10

Focus Area 1: Scheduling

The scheduling for Focus Area 1’s proposals needs to be cognisant of the impact on Kisii’s traders, to ensure their operations are not disrupted as this would negatively impact incomes and their support for the CBD and market upgrades. Service providers’ operation and possible disruption also needs to be considered as well as severance issues for Kisii’s residents in accessing key urban services and markets. Some of the Focus Area 1 proposals are significant upfront interventions, whilst others reflect incremental improvements or ongoing provisions. Infrastructure projects should be sequenced based on optimising their individual and collective impacts whilst aiming to minimise costs. Each proposal may be implemented as a standalone project, though effective linking and sequencing will create the highest impacts on future private and public investment potential. Figure 5.15 below sets out how the proposals are recommended to be delivered over time and how they interact with each other.

Figure 5.15 - Focus Area 1 Schedule

Immediate

Short Term Year 1-2

Urban

Medium Term Year 3-5

1. Nayanchawa River Park

2. Market Square & Boulevard - Masterplan

2. Mobilisation and trader relocation of market and boulevard

3. Streetscape: critical roads

3. Streetscape: next roads 1. Masterplan and key roads

Flood Mitigation

Transport

Longer Term

2. River revitalisation 1. New bypass roads 2. NMT provision 3. Bus station upgrade

3. Public transport service plan

4. Junction improvements 4. Transport management, traffic circulation, parking management, boda boda management Water & Sanitation

1. Billing and customer metres

1. Network extensions

1. Ablution blocks Waste

2. Sewer network extensions

1. Integrated waste collection 1. New Street lighting

Energy 2. Water energy efficiency

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5.3 Focus Area 2: Logistics and Supporting Facilities

Figure 5.16 - Development Framework: Focus Area 2: Logistics and Supporting Facilities

The area north of the CBD and currently known as the industrial zone is identified for repurposing into a logistics and support base as Focus Area 2. The aim of creating this area is to support the Daraja Mbili market and the wider urban environment in and around the CBD. This area will provide dedicated parking and servicing facilities to the market which are well managed and well maintained. It will also host other uses such as sanitation facilities, waste management sites, boda boda/matatu servicing stations and dry/cold storages. The separation of these facilities from the core urban area will reduce congestion and establishes a strong case for this proposal. This focus area will support the functionality of Kisiiâ&#x20AC;&#x2122;s markets, and the key sector of trade and services. Daraja Mbili market is a key asset as one of the regionâ&#x20AC;&#x2122;s largest markets and, with the forthcoming new market building and traders relocations, it needs to be accessible and well-serviced to ensure its sustainable operation and future growth. The proximity of the site to the river means that there is a need for a detailed flood risk assessment needed for the site, including modelling of changes in frequency and magnitude due to climate change. The current landfill site is also considered within Focus Area 2 where its relocation to Nyatieko as a new waste facility is an important element to the areaâ&#x20AC;&#x2122;s repurposing. This area can support the

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wider urban environment, where parking space has been encroached and is not well managed and where there are challenges to waste management and collection due to space and congestion. Enforcement will also be important to ensure it maintains its intended use, rather than further encroachment as has occurred elsewhere. These facilities also provide Kisii with revenue generating opportunities, which was identified by stakeholders as a priority element of the evaluation criteria (KOM workshop), as well as local employment. Figure 5.16 maps out the main projects envisaged in this focus area. 5.3.1 Synergies This area was previously subject to industrialisation led by Kenya Industrial Estates, though there has been a lack of supporting infrastructure to enable its success and plots have remained underutilised, with a few warehouses, or used for other purposes including car mechanics and a bakery. The whole Development Framework for Kisii proposes that industrial uses are moved from the urban centre to support decongestion and to Focus Area 3 where there is the space and opportunity to efficiently provide the supporting infrastructure needed, to be catalysed by the banana plant and SUED VC projects for the development of industrial clustering. There is a need for careful consideration of impact mitigation here due to proximity to the river and the green corridor area, therefore an ecological and flood risk

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assessment will be required. Further, the traffic and pedestrian flow and routes for the market areas and their goods will support how Focus Area 2 links to the proposed road and NMT network upgrades. The effective development of Focus Area 2 helps realise the opportunity to create a better functioning, high quality environment for Focus Area 1. 5.3.2 Climate resilience considerations Buildings in the area are primarily located along the Industrial Area Road, whilst it is recognised there is a need to upgrade the road linking to Daraja Mbili (Transport Proposal 2). A few minor roads and tracks also run through the area. The terrain in the area is generally flat. The Riana River is located to the south of the Industrial Area Road. There are also approximately 10 small water bodies located alongside the Industrial Area Road. Over 20 culverts are found in the area. There are no forested areas. A water main is situated to the north of the area in close proximity to the ‘Truck Parking & Logistics Area’ and ‘Landfill biogass for cooking’ site. The sewer trunk main runs adjacent to the main river. There are over 30 utility poles found in the area. Key climate considerations are shown below. The proximity of the site to the river means that there is a need for a detailed flood risk assessment needed for the site, including modelling of changes in frequency and magnitude due to climate change.

Table 5.3 - Key climate considerations

Consideration

Comment

Potential opportunities

Clustering of buildings along main road

Potential to cause heat island effect

Opportunity to plant native tree species to provide shade

Roads as surface water and diffuse pollution pathways

Potential for localised flooding and contamination/ sedimentation of local water sources

Provision of road drainage (SuDS) and water discharge treatment points

Riana River

Increased flood risk

Avoid building new infrastructure projects in close proximity to river

Close proximity of river and sewer trunk main

Surface water flooding could cause sewer main to overflow resulting in contamination of river (and drinking water source)

Ensure any increase in demand on sewer main is mitigated in design

Absence of forested areas

Absence of shade. No mitigation for heat island effect

Opportunity to plant native tree species to provide shade

Existing utility infrastructure

Utility poles vulnerable to high winds

Rainwater harvesting for toilet flushing

Water infrastructure projects must be designed to meet water demand of new developments under normal and peak conditions (e.g. hot temperatures) SUED team assessment

Within each proposal detailed below, their merits and recommendations for climate resilience and social inclusion (including poverty alleviation) are provided.

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5.3.3â&#x20AC;&#x192; Urban Design

Figure 5.17 - Focus Area 2: Proposed Conceptual Sub-Division

1. Focus Area 2 Spatial Plan Urban design is critical to the effective re-purposing of the areaâ&#x20AC;&#x2122;s uses and role, in enabling it to support the Daraja Mbili market and the wider urban environment, especially in the absence of any spatial plan for Kisii. The provision of dedicated parking and servicing facilities, which will need to be well managed and well maintained, alongside uses including sanitation facilities, waste management, boda boda/matatu servicing stations and dry/ cold storages, will be supported with clear urban design and sub-division of the land. This area can be self-sufficient from an infrastructure perspective. An indicative plan that incorporates existing plots and high-level plot subdivision will help facilitate investment attraction and the packaging of land for development. This will consequently provide revenue generating opportunities as well as local employment. The following infrastructure proposals for Focus Area 2 provide the detailed interventions across transport, waste, energy, water and sanitation, where these are suitably framed by the urban design approach to ensure an effective development of the area to be able to meet its aims.

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Climate resilience • The proximity of the site to the river, and previous flood events in the area, mean that a flood risk assessment for the area is essential. The flood risk assessment should include modelling of changes in flood frequency and magnitude under different plausible climate futures as outlined in Appendix D Inclusion • Proposal to adapt humancentric universal design standards that allow access and use by all including PWDs e.g. provisions for access ramps, raised crossings, dropped curbs and other required interventions to be considered right from the beginning • Proposal to be well lit for safety and access of all gender, age groups and (dis)ability • Facility to be served with sanitary facilities including those accessible by PWDs Challenges

Addressing Challenges/Gaps

Time Frame

› May require some land acquisition

› Pre-feasibility study

› Funding

› Land use and availability confirmations

› Medium term, as Focus Area 1 elements are underway, and the relevant road and traffic interventions begin

› Infrastructure upgrade Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Industrial Road upgrading

› KES 1.2bn warehouses, site and landscape works, cold and dry storage

› Easy service and parking access to Daraja Mbili market

› Design, Build, Operate, Maintain

› Internal road and SuDS infrastructure › Repurposing of some land uses and high-level plot subdivision › Flood mitigation measures

› Segregated waste management and sanitation facilities

› Enforcement of orderly, rational development, given what has happened before

› Traffic modelling and environment assessment › Significant stakeholder engagement

› Public infrastructure, private or PPP investments

› Decongestion of CBD › Revenue generation and local employment

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5.3.4 Transport

1. Truck Park Facility

The town has no existing truck parking facilities and these vehicles are often haphazardly parked along road shoulders and sidewalks where they obstruct other road users and intensify traffic congestion. This project is intended to effectively manage freight movement within the town centre, by providing space for HGVs to park and offload goods into storage from which they can be loaded into smaller vehicles for delivery within town. The operation of the logistics park would need to be coordinated with measures that restrict the entry of heavy vehicles into urban areas during the day. In addition, in order to minimise disruption for other transport system users the loading and unloading of goods in urban areas should be limited to identified areas in a drop-off manner and a reduction in truck turn-around times. To regulate axle loading and avoid damage to the road network, either fixed or mobile weight bridges should be introduced in the logistics park to prevent overloading. Current approach to truck parking in the CBD

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Design of the truck parking facility, with incorporation of drainage, water and sanitary systems, footpath facilities and streetlighting › Design of loading and offloading bays › Junction designs

› Capex of truck parking facility KES 100 million › Annual Opex of the truck parking facility KES 10 million

› Opportunity to accommodate future growth › Opportunity to provide more efficient operations such as access and safety › Improved efficiencies by reducing truck turn-around time

› County Government financing i.e. Kisii County › Public private partnership e.g. Industrial and Commercial Development Corporation (ICDC) › Local truck owners’ associations

Climate resilience • Reduce truck delays, idle time and traffic congestion, to reduce emissions from base case • Requires smart management of the truck access and use times to not adversely impact the decongestion and traffic reduction of Focus Area 1 • Trucks should be limited to select, suitable corridors to reduce damage to the road network and reduce maintenance costs • The design of the site needs to reduce the risk of flooding disruption, with warehouses situated on higher terrain further from the river, and drainage provided to move water off the site • Prudent to undertake a detailed flood assessment around the Daraja Mbili market area, and develop operational contingency plans for the truck park Inclusion ✓ This logistics centre plan will support traders in the market and town, and as growth is facilitated ensure goods can access markets from agricultural producers, supporting income security

This facility would be supported by the proposed transport management measures (Transport Proposal 4, Focus Area 1) in junction improvements and parking management.

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✓ The logistics area will be integrated with the walkways to the market and town area, to ensure everyone, including PWDs, can access it Challenges

Addressing Challenges/Gaps

Time Frame

› Funding

› Pre-feasibility study › Public consultation

› Short to medium term › Depends upon the urban development proposals to best schedule

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2. Upgrade Access Roads to Daraja Mbili Market

The access roads to the market are narrow and unpaved, making them inaccessible during the rainy season. Storm water drains, on these access roads are non-existent, making the area vulnerable to flooding which affects road infrastructure and leads to costly repair and maintenance works. This project targets the upgrade of 2.3km of road around the Daraja Mbili Market. These roads need to be upgraded to bitumen standards to support all weather access particularly for lorries/vans ferrying goods to the area. In addition, access for vendors and customers needs to be provided through the incorporation of pedestrian facilities, public transport stops and storm water drains.

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Upgrade of 2.3km of road from earth to bitumen

› Capex of upgrading the road KES 104 million

› Eased access adjacent land uses i.e. industries

› Delivered by Kisii County Government

› Annual Opex of the bitumen road KES 10.4 million

› Better and safer pedestrian access

› Provide drainage facilities › Provide NMT and safe pedestrian crossing

› Improved land value

› Safety and NMT facilities can be done by County in consultation with National Government

› Capex of the drainage KES 73 million

Current poor condition of roads in Focus Area 2 and Daraja Mbili vicinity

› Annual Opex of drainage KES 7 million

Climate resilience ✓ The diversion of traffic from the CBD alleviates congestion in the town centre which can improve local air quality and lower GHG emissions from the transport sector ✓ Storm drainage provision and management can mitigate urban flooding risks and lessen infrastructure damage and associated maintenance costs • Drainage features will need to be designed taking into account increases in rainfall intensity, thus increasing resilience to climate change Inclusion ✓ Supports access to Daraja Mbili for traders, residents and vehicles, with walkways to ensure everyone can access the market • The walkways should be integrated with the walkways in the town, to ensure everyone, including PWDs, can access the market without unreasonable difficulty Challenges

Addressing Challenges/Gaps

Time Frame

› Increased air and noise pollution due to potential of increased vehicular volumes

› Pre-feasibility and feasibility studies

› Immediate, as is essential enabling infrastructure

› Funding

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› Traffic impact understanding due to this new road

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5.3.5

Waste

1. Closure of Existing Landfill

This is needed because the existing landfill is located in a socially sensitive area, opposite Nyambera Primary School and is over its capacity. It was only intended to be a temporary dumpsite and is therefore unmanaged and poses a health risk to adjacent residents and communities (through potential contamination of water sources), as well as an environmental risk through landfill gas contributing GHG emissions. Furthermore, its operation causes significant degradation to the natural resources of the area with the pollution of surface water bodies, groundwater aquifers and soils. Waste from the existing dumpsite will be transferred to the new dumpsite at Nyatieko, a site identified and being taken foreward by the Municipality. The existing site can therefore be properly capped and restored. This would mean that the land would become usable again either as a recreational park/outdoor space or for future development. Current landfill site, centrally located and over capacity

› Monitoring systems for leachate contamination on impacted groundwater and surface waters; › Geotechnical works for improvement of soil stability to minimise erosion, allow for site user safety; › Landscape restoration works, with potential backfilling at selected areas; › Planting of appropriate vegetation for contaminated soil remediation, soil stability and landscape and habitat restoration; › Fencing and capping works for potential exclusion (high contamination risk) areas; › Landfill gas extraction or containment systems, as appropriate (Energy Proposal 1 below); › Fire protection works, as appropriate; and › Drainage and hydraulic works, as appropriate.

Climate Resilience Focus The existing dumpsite contributes to the town’s GHG emissions through the production of landfill gas (methane) from decomposition of waste. Closure of this dumpsite, and allocation of a new properly managed site will help reduce uncontrolled and unmonitored GHG emissions into the environment. Excavators and waste vehicles will be required to dig-up the waste and transport it to the new landfill, as well as for the earthworks required for site restoration and remediation.

Closure of the existing site should include the following to ensure a sustainable and safe approach and one which leaves the land in a state to be re-purposed:

An earthworks plan (including current and future landform) will need to be in place following the undertaking of appropriate surveys and site investigations. It would include the consideration of nearby water sources which could become contaminated (further) by the displacement of significant amounts of waste. The earthworks plan should also consider the types of wastes that may be buried within the existing dumpsite such as hazardous material (e.g. refrigerators) that has the potential to emit harmful contaminants (such as ozone depleting chlorofluorocarbons (CFCs) into the environment.

› Excavation and haulage of dumped material to new landfill; › Removal of debris from adjacent locations; › Surveys and Site Investigations; › Remediation works for contaminated soils;

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Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Excavation and haulage of dumped material to new landfill

› KES 106 million to KES 207 million)

› Improved ground and water quality in Kisii

› Funding: IFI/ Donor Finance

Kibarani Dumpsite Restoration and Relocation, Mombasa14

› Site remediation and restoration works

› KES 26.6 million to KES 106 million

› Reduces methane production in the landfill

› Private Public Partnership (PPP)

Kibarani Dumpsite in Mombasa received approximately 2,200 tonnes of solid waste per day for the last 50 years but has recently been transformed into a public recreational park.

› Improves local air quality › Provides employment to aid with excavating, removing, and capping

› Support from NGOs, community groups › Maintenance responsibility of Municipal Government

Inclusion There is an opportunity for job creation, albeit temporary, to operate excavators and vehicles transporting waste to the new landfill. It is recommended that: • Consideration be given to informal waste pickers whose livelihoods are based at the existing dumpsite, as there is an opportunity to formalise their roles and integrate them into the new landfill and waste management centre (Waste Proposal 2), which may also be integrated with the existing cleaning groups operating in Kisii (Focus Area 1, Waste Proposal 1)

Case Study

The dumpsite was moved to Mwakirunge, approximately 20km from Mombasa town. There have been concerns over its distance from Mombasa town, as it is estimated that 45% of waste does not reach the designated dumpsite, and instead is littered along the roads and railways near the old Kibarani dumpsite. Whilst garbage collectors have been procured to aid the collection of waste from residences, there is uncertainty as to whether the waste actually makes its way to Mwakirunge dumpsite or is simply dumped in any convenient location. This is potentially due to the short timescales in which the Kibarani dumpsite was ordered to be closed by the county governor and the distance of the new site from the old. The Kibarani dumpsite employed more than 1,000 youths, women and children as waste pickers, most of whom have informally moved to Mwakirunge to work at the new dumpsite. Through investment from private stakeholders, the existing dumpsite at Kibarani was transformed into a green public space with trees, recreational areas, and a playground. This has drastically improved the visual and odour-related aesthetic of the area, in addition to boosting tourism. 14 Daily Nation, Kenya: https://www.nation.co.ke/kenya/counties/mombasa/joho-s-plan-to-move-kibarani-dumpsite-gives-way-to-new-crisis--36032 https://www.theeastafrican.co.ke/magazine/Restoring-Mombasas-lost-allure/434746-5463778-13r1qeu/index.html

• Users of the existing dumpsite will need to be informed during its closure; this may be done through community engagement and signage and should be made aware in plenty of time ahead of the dumpsite closure Challenges

Addressing Challenges/Gaps

Time Frame

› Need to be mindful of employment and social impacts on informal sector that live and work on the existing dumpsite

› Capacity of existing landfill (waste tonnage) vs. capacity of new landfill

› Short to medium term

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› Obtain funding for site remediation and restoration works

› Parallel with start of the waste management centre

› Construction of new landfill required to receive remediated waste

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2. New Landfill and Waste Management Facility

A new sanitary landfill is needed in Kisii as the existing dumpsite is intended to be closed (Waste Proposal 1). A site (15 acres in size) has been acquired by the county at Nyatieko for developing the new sanitary landfill and integrated waste management centre. This will include sorting areas for different recyclable waste streams, and equipment for different waste streams e.g. composter for organic waste, balers/ shredders for recyclables as needed. The area is intended to be fenced off maintaining more access control and security at the site. The Municipality have emphasised that waste management is a key focus of the budget for this year, and they are keen to get the waste management centre operational by the end of FY 2020/21. The Municipality have engaged national recycling organisations to look at how to implement segregation at source and work with those recyclers so they can buy waste from the new centre. Commissioning a new waste management facility will include: › 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 Figure 5.18 - Nyatieko Site for Waste Management Centre

Climate Resilience Focus This project will mitigate the existing impacts on greenhouse gas emissions in Kisii through the uncontrolled and unmonitored emission of methane (landfill gas) from the existing dumpsite. 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. The site acquired for the new waste management centre is flat, and not in proximity to any rivers or water sources, minimising the risk from flooding. Trees provide protection from strong winds, and the open nature of a lot of the surrounding areas reduces fire risk. 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 site is accessed via a feeder road that is currently only earth/ dirt road. This could cause issues with access during the rainy season, however, the municipality plans to upgrade the surface to bitumen as the landfill site is developed, which would increase reliability of access. We recommend that appropriate drainage measures are also incorporated into the upgrading of the road. 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.

Inclusion ✓ Opportunity to create more jobs within a formalised waste sector which can include PWDs, women, and youth groups. Providing salary, equipment and training ✓ Engagement with national recycling organisations to investigate how to do segregation at source and work with those recyclers so they can buy the recovered recyclable materials from the new centre, providing revenue streams and opportunity for upskilling new employees • Informal waste pickers at the current landfill should be incorporated into a more formal role at the new facility • Also a number of cleaning groups which already operate in Kisii - Usafi Youth Group, Muungano Minto Youth Group, Egesangio Youth Group, Kiareni Youth Group, Nyakwengata young women’s group - these groups should be engaged to cooperate with operations at the new waste management centre

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Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Construction of new engineered landfill cells

› KES 106 million to KES 426 million)

› Improved ground and water quality around Kisii

› Funding: IFI/Donor Finance

› Construction of landfill gas collection and process system for biofuels

› KES 3 million initial feasibility study

› Reduces emissions, improves local air quality

› Revenue generating aspects: biofuel is a marketable product and can be sold

› KES 25-50 million initial start-up costs

› Provides employment › Extraction of value from waste stream › Reduction in deforestation › Protects natural resources (water and soil) › Combats desertification and soil erosion › Protects public health

› Opportunity for private or public sector to collaborate with informal sector › Employment of local SME’s and building contractors in the construction and operation of the sanitary landfill

Challenges

Addressing Challenges/Gaps

Time Frame

› Ensuring new dumpsite does not become uncontrolled/ unmanaged

› Undertake appropriate surveys and site investigations to ensure good quality of works

› Short to medium term

› Need to be mindful of employment and social impacts on informal sector that live and work on the existing dumpsite › Coordinating with Municipality program for landfill closure › Development of financial case to ensure program is affordable for residents and therefore ultimately sustainable

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› Obtain funding for construction of new engineered landfill cells › Capacity assessment of existing landfill (waste tonnage) vs. capacity of new landfill

Case Study Oum Azza landfill, Meghreb, Morocco15 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. Informal sector waste collectors who were originally working at the Akreuch dumpsite were organised into a cooperative, supported by the World Bank, and organised into teams that pick out different types of recyclables. Each employee is paid the same monthly salary, 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%) by 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. 15 The World Bank, Morocco lets nothing go to waste (2016); Country report on the solid waste management in Morocco (2014)

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5.3.6 Energy

1. Landfill Biogas for Cooking

The relocation of the current landfill site and development of a sanitary landfill and waste management centre presents the opportunity to cap the current site and capture the landfill biogas at a dedicated location at the new waste facility. Normally, landfill biogas is captured and fed into a gas engine where it is turned into electricity. However, the need for additional electricity generation is not a priority in Kisii. 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 Kisii 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 Transforming Energy Access (TEA) program. This project has three proposed components: › Treatment of the landfill site to capture the landfill gas

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Detailed study of landfill to determine initial waste volumes and potential biogas outputs - for technical design

› KES 3m initial feasibility study

› Reduction in GHG emissions

› Partnering with Municipality to coordinate and plan activities

› Initial program design (incl. operation plan, financial modelling, customer service model) › Social and environmental analysis › Development of implementation and operation plans (procurement deployment, revenue collection, maintenance etc.) › Landfill site treatment › Bottling facility build

› A gas bottling facility with storage › Set up of a customer sales system As such, this proposal provides a synergy to the Waste Proposal 1 and 2, whilst it should be integrated with Energy Proposal 1 below - in utilising the same customer infrastructure to minimise costs. 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, referred to in the case study below.

› KES 25-50m initial start-up costs › KES TBC for bottling facility

› Extraction of value from waste stream › Reduction in health incidents through improved indoor air quality › Reduction in deforestation

› Partnering with local/ regional solution providers to determine appropriate technical and commercial solutions › Maintenance capacity building programme to ensure continued operation of systems

Climate resilience ✓ Converts methane emissions, which would have been released through the natural decomposition of landfill waste, into less harmful carbon dioxide through the combustion process whilst cooking ✓ Limited project climate risks in the construction and operation of the bottling plant, next to the Nyatieko landfill site - area is flat, without proximity to water sources, whilst trees provide protection from strong winds, open nature of area reduces fire risk • The building construction should consider increases in maximum temperatures in Kisii, with design to ensure that it does not exceed thermal comfort limits for workers, through active or passive cooling Inclusion ✓ Typically, firewood gathering for use in domestic cooking is undertaken by women, which is significantly time consuming, whilst compressed gas or liquid fuels that replace wood fuels will last many days in domestic canisters. This provides an opportunity for women to make use of their time savings for socio-economic purposes (employment, training, business running) to improve livelihoods, income security and economic agency • Consider affordability of bottled biogas at feasibility and initial design stage

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Challenges

Addressing Challenges/Gaps

Time Frame

› Coordinating with Municipality program for landfill closure

› Knowledge on program and intentions of landfill relocation

› Short to medium term

› Development of financial case to ensure program is affordable for residents and therefore ultimately sustainable

› Utilising series of technical, implementation and environmental and social studies in developing project design and operating model

› Finding a suitable developer/ operator

› Dependent on existing landfill relocation › Depending on assessed needs for landfill site treatment and facility design and build

› Funding

2. Abattoir Waste Processing for Biofuels

There is a significant energy rich waste stream that is created by the existing abattoir. This creates an opportunity to utilise this waste stream and capture the energy by converting the waste into a higher value product. An effective use for the biogas would be to bottle it and sell it to domestic consumers to use for cooking. Currently the majority of Kisii residents use either kerosene or wood/charcoal fuels. This processing and bottling facility would be well located next to the abattoir on Cemetery Road. This project has three proposed components: › Set up of the biogas digester to convert the waste into biofuel; › A gas bottling facility with storage; › Set up of a customer sales system, in conjunction with Energy Proposal 2.

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.

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Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Detailed study of abattoir to determine initial waste volumes and potential biogas outputs to inform technical design

› KES 3m initial feasibility study

› Diversion of a hazardous waste stream to create higher value product and reduce landfill

› Partnering with Municipality to coordinate and plan activities

› Initial program design (incl. operation plan, financial modelling, customer service model) › Social and environmental analysis › Development of implementation and operation plans (incl. procurement, deployment, revenue collection, maintenance etc.)

› KES 15-50m initial start-up costs › KES for build (TBC)

› Reduction in deforestation

› Partnering with local/regional solution providers to determine appropriate technical and commercial solutions

› Reduction in health incidents through improved indoor air quality

› Maintenance capacity building programme to ensure continued operation of systems

› Reduction in greenhouse gas emissions

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Climate resilience ✓ Converts methane emissions, which would have been released through the natural decomposition of abattoir waste at the landfill site, into less harmful carbon dioxide through the combustion process whilst cooking ✓ Consider environmental risks from location - being adjacent to the proposed abattoir where the site is within 150m of a river though is 7m higher than the river with reasonable open space to absorb flood waters. The site should be developed to ensure there is low risk of flooding, including a 20% allowance for increased flood height from climate change • The building construction should consider increases in maximum temperatures in Kisii, with design to ensure that it does not exceed thermal comfort limits for workers, through active or passive cooling Inclusion ✓ Enables time savings for women from not needing to gather firewood daily, which can be used for socio-economic purposes (employment, training, business running) to improve livelihoods, income security and economic agency ✓ Opportunity for farmers to provide waste for the biodigester for producing biofuels to reduce environmental impact and offer a further income stream from excess farm waste • Consider affordability of bottled biogas at feasibility and initial design stage Challenges

Addressing Challenges/Gaps

Time Frame

› Achieving buy-in from abattoir operator

› Current status of abattoir and its waste streams to inform project

› Medium term, to utilise the set up for Energy Proposal 1 with landfill biogas

› Development of financial case to ensure program is affordable for residents and therefore ultimately sustainable › Finding a suitable developer/ operator › Obtaining funding

› Potential for biogas to be accepted as a cooking fuel local engagement

Case Study Keekonyoike Slaughterhouse, Kenya16 The Keekonyoike Slaughterhouse found an innovative way to produce affordable biogas, using a specialised bio-digester for waste from the community based Maasai slaughterhouse, and package it for distribution all around the country. To facilitate transport, the firm stores the fuel in recycled cylinders and used tires, reducing even further the environmental impact of the operation. The first biogas plant is expected to cut methane emissions by more than 360,000 kilograms per year (the equivalent of almost 2,000 passenger vehicles). Indeed, "bottled" biogas (biogas compressed into a cylinder) has huge potential in Kenya: Farmers can directly produce it, recycling the waste from their farms, as well as use it for their cooking needs, and thanks to the bottling process, can sell the excess on the local market, generating income while saving the environment. Keekonyokie is a company that runs an abattoir that slaughters about 100 cows per day to meet the meat demand in Nairobi and its environs. In 2008, with the support from GTZ, the company constructed two 20-foot-deep biogas digesters that would help manage the abattoir waste, which was becoming a menace and a health hazard. Within a short time, the biogas being produced from the digesters was more than the company could absorb, hence the company considered the compressing and bottling of the excess biogas. To test the technical and commercial viability of their idea they approached the Kenya Climate Innovation Centre (KCIC) in October 2012. Thanks to the services provided by the KCIC, Keekonyokie refined its product and entered the national market. The first cylinders were available at an initial cost of KES 3,700 for the 6kg-cylinder and KES 700 for a single refill - exactly half the cost of a similar quantity of LPG. The initial production capacity for the bottled biogas was 100 cylinders per day which will be available through outlets in Kiserian, Ngong and Ongata Rongai. As it is, the indicative demand for the gas is much more than what can be produced. Keekonyoike now has a 30-acre piece of land where they want to put up an abattoir that is five times bigger than the current plant, which will translate to five times more biogas production. The potential of this locally relevant solution is significant and goes way beyond the reduction in methane emissions. A group of talented women from Kenya’s largest slum, who produced yogurt to earn income, are planning to replace firewood for Keekonyoike’s bottled gas in the sterilisation process of their yogurt. The women are also considering partnering with Keekonyoike and becoming distributors of the bottled gas in the slum in recognition of its immense value to the urban poor, who struggle to gain access to clean and affordable fuel. They are sure that this affordable and portable form of biogas will be a big hit in their local communities. 16 Community slaughterhouse turns waste into portable biogas, accessed 9th July 2020, http://insideoutpaper.org/solving-local-problems-with-local-solutions-1/

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5.3.7

Water and sanitation

Water and sanitation interventions are not contained to individual Focus Areas, but rather improve the infrastructure and operational systems to enable a step change in water and sanitation provision for Kisiiâ&#x20AC;&#x2122;s residents and businesses. The detailed components for water supply and sanitation improvements, as infrastructure and operational interventions, are detailed within Focus Area 1. Some of the specifics for Focus Area 2 are set out below.

1. Water Supply Improvements Additional improvements must be made to the water system to fully realise the benefits from the supply expansion and ensure that it is sustainable. This proposed improvement comprises the following 3 components: Expansion of the distribution systems to new customers that can now be served with the additional water The public water supply will deliver better quality water than alternative water sources, such as water from vendors who source water from unprotected sources. New business and services within Focus Area 2 should be connected to the system. GWASCO should ensure that all new customers are metered. This will reduce water wastage and enable the company to monitor usage. Programme of re-connections - with improved billing and collection With the new water supply works, service will improve, and the company should implement a programme of re-connections. In parallel, a new billing system for the company will reduce commercial losses and increase revenues. This will allow the company to improve their financial sustainability and enable investment in maintenance. Pipe network investment Investment in the old and dilapidated pipe network, where it cannot withstand the new pressures of the new water supply or for areas with high leakage, is important to address NRW. This should be implemented alongside a campaign improving metering and conservation of water use. These water supply improvements are enhanced by Energy Proposal 2 (for Focus Area 1), to help GWASCO reduce costs through energy efficient and renewable energy water pumping stations to serve Kisii. Section 5.2.7 also provides the proposed network interventions across Focus Area 1 and 2.

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Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Expand distribution systems

› KES 150m

› Better access to good quality affordable water service for all

› Gusii water and sanitation company/ PPP partners/ IFI/Lake Victoria South Water Works Development Agency

› Reconnections and billing and collection improvements

› KES 90m across three Focus Areas › KES 36m across three Focus Areas

› Reduction in NRW

› Improved meter management systems and utility sustainability › Environmental benefits due to less abstraction › Increased revenue to the water utility, for re-investing and maintenance

The issue of affordability becomes ever pertinent with a shock such as Covid-19 where informal settlements lack running water to undertake basic hygiene measures. Challenges

Addressing Challenges/Gaps

Time Frame

› Capacity

› Lacking capacity of GWASCO to implement and operate the billing system effectively - where partners can support this

› Short-term achievable but longterm given operational capability

› Funding

› SUED or other funds to meet the significant gaps in GWASCO - and especially until operations are more efficient

› Billing and customer metering improvements will be required first (short term) while network extension are medium to long term

Climate resilience ✓ Improves the sustainability and reliability of water supply service ✓ Increasing the revenue of GWASCO, this supports their resilience to operate with disruptions or unexpected events such as droughts, floods and pandemics ✓ Reduces pressure of water abstraction by reducing NRW • NRW can be further enhanced through metering and awareness campaigns to consumers to promote conservation • The Municipality to ensure climate change is fully factored into water management and investment plans, given increased variability in rainfall and potential moisture stress increases (under higher emissions scenarios) - to enhance supply security for future decades Inclusion ✓ Providing time savings for other activities such as income generation or caring for families ✓ Closer services for PWDs ✓ Reduce occurrence of water borne disease ✓ Access through regulated water kiosks will make water more affordable and better quality • Alternative employment options need to be considered for water vendors who may lose their livelihood due to an expansion in the public water supply

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Climate resilience

2. Sanitation Improvements This proposal sets out to improve sanitation services through the extension of sewers (secondary, rather than trunk sewers in Focus Area 2) and the construction of ablution blocks at markets, densely populated areas and informal settlements. Section 5.2.7 sets out the proposed new pipelines and ablution blocks across Focus Area 1 and 2. Though the Municipality has a sewer network, its old and dilapidated. There is also increased frequency of manholes surcharging leading to wastewater overflows into streets and public spaces. It is critical to address the technical challenges related to the sewerage handling capacity of the network. The proposal aims to reduce the current overload of wastewater conveyed by the currently under sized sewers. Further, ablution blocks should be provided in areas of need covering public spaces, market and commercial areas, where there is currently a significant lack in Focus Area 2.

✓ Reduce number of flood events ✓ Improve environmental and public health • The proposed wastewater system interventions should be designed with utmost emphasis on climate resilient materials for construction and climate change resilient design approaches, specifically for an allowance for increased intensity of rainfall and more extended dry periods Inclusion Sanitation improvements will: ✓ Improve public health and reduce diarrheal disease, with associated health care cost reduction which is often a significant burden on low income groups ✓ Increase toilet access, which is private and clean, and protects individual’s dignity

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Sewer network expansion

› KES 21m

› Improved revenues for the local utility

Funding by IFI/Donors/ GoK

› Improved sanitation access and coverage

Using revenue generated from connection charges

› Health benefits across population

Gusii water and sanitation company/ PPP partners/ IFI/Government of Kenya/ Lake Victoria South Water Works Development Agency

› Ablution blocks

› KES 63m

› Sewer nuisance and leakage reduction › Affordable sanitation for all

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Challenges

Addressing Challenges/Gaps

Time Frame

› Capacity - in GWASCO to effectively implement projects internally

› Detailed feasibility to establish baseline scenario and immediate upgrade needs

› Short term ablution blocks

› Funding gap especially for sewer network expansion, will require external funding

› Longer term for significant sewer upgrade and trunk mains expansion will be long term projects and require significant investment

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5.3.8

Focus Area 2: Scheduling

The scheduling for Focus Area 2 needs to respond to the development of Focus Area 1, where it is critical to providing the enabling infrastructure of market road access and truck parking in the decongestion for the CBD. Focus Area 2 also supports the proposed market square and links to the new bypass roads and proposed NMT network development. The wider spatial plan for Focus Area 2 needs to come early, whilst this will be best implemented once Focus Area 1 road and traffic interventions are underway, where these will help shape the truck parking approach and locale for storage and loading facilities. The scheduling for Focus Area 2 may be driven by the demands of Focus Area 1, though the proposed relocation of industrial uses out of the town centre and to Focus Area 3 provides a corresponding driver. Focus Area 2 needs to be carefully incorporated within the wider development framework so this process can be staged appropriately as land is developed. The closure of the existing landfill site can be taken forward in the relative short term once the land is secured and prepared at the new site at Nyatieko. One of the first needs for Focus Area 2 is an ecological and flood risk assessment, in light of climate change modelling, and mitigation outlines due to its proximity to the river and the green corridor area. Figure 5.19 below sets out how the proposals are recommended to be delivered over time and how they interact with each other.

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Figure 5.19 - Focus Area 2 Schedule

Immediate

Urban

Transport

Short Term Year 1-2

Focus Area 1 Development: Bypass roads, NMT provision, traffic management (junctions, parking), market square; green corridor

Medium Term Year 3-5

1. Spatial Plan: Land re-purposing, internal road and drainage

1. Spatial Plan: Storage and unloading points

1. Market access roads

2. Truck parking

Water & Sanitation

Waste

Longer Term

1. Billing and customer metres

1. Network extensions

2. Ablution blocks

2. Sewer network extensions

1. Closure of existing landfill 2. New landfill and waste center Integrated waste collection (Focus Area 1)

Energy

1. Landfill biogas

2. Abattoir biogas

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5.4 Focus Area 3: VCs and Industrial Cluster Focus Area 3 is beyond the urban core and is based on the premise of developing a cluster of value chain opportunities and other associated industrial development. The area is within a rural setting to the south east of Kisii CBD. Building density is currently low in the area, whilst a ‘B’ road (Kisii-Kisumu Road) is situated to the south of the area and runs from Kisii CBD to Kisumu. This location enables a number of industries to start to develop following early win growth opportunities through the VCs establishment and operation. A clustering approach supports a cost effective and efficient introduction of infrastructure provision including power, waste management and water supply. The area will build on existing assets including the Agricultural Training Centre (ATC), the banana processing facility, the coffee plantations and site of the old bottling plant (which is public land). This cluster will also benefit from being located close to the main higher education facilities, offering opportunity for knowledge spill-overs and access to students for employment and training opportunities. Specifically, Focus Area 3 is proposed to include: Focus area 3 can also provide: › A ‘business incubator’ for smaller value chain opportunities and technology driven agri-processing for graduates and SMEs to take forward; and

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› An agriculture services centre providing support on finance, market linkages and information, best practices, along with product and export support to local farmers and suppliers. The location is also beneficial due to its access to the trunk road network and the planned upgrades for the road links to/ from Nairobi and the Tanzania and Uganda borders with the Kisii-Nyamira Road (C21) and Kisii-Kisumu Road (B3).

There is an opportunity to co-locate employment centres within Focus Area 3 and serve these with consolidated public transport routes to and from residential areas, thereby improving accessibility for the workforce and addressing fare and seasonality route issues. Figure 5.20 - Focus Area 3: VC and Industrial Cluster

Potential sites were considered for the location of the VC projects and initial industrial development, where the identified site in Figure 5.20 was selected on the basis of stakeholder engagement, urban analysis and the benefits of colocating with the existing banana plant. 5.4.1 Synergies This location will keep extraneous traffic and congestion out the urban centre, freeing up Focus Area 1 for trade, business and services use. The industrial area to the north of the CBD (now proposed as Focus Area 2) has not been fully or appropriately utilised, so the development of this focus area will take industrial uses away from the urban centre and provide a light industrial zone supported by a critical mass of industrial related infrastructure. This relocation of pure industrial uses to the urban periphery will also protect the river and wider urban environment, as well as free up CBD land for more appropriate development. The industrial site will benefit from easy access to the CBD for retail and distribution of the various production lines.

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5.4.2 Climate resilience considerations Focus Area 3 is located to the south east of Kisii CBD. The Kisii-Kisumu road to the south of the area is described as being in ‘poor’ condition and runs across hilly terrain. Several minor roads and tracks also run through the area. Land further to the south east of the area is significantly steeper than the remaining land, further supporting the selection of the northern site for the VC and industrial cluster. A tributary of a main river is located in the area to the north of Proposed Site1 and flows from north-west to south-east. There are no water bodies located in the area. Forested areas are found in pockets and along the boundary of the area. A water main runs through the area and there are over 50 utility poles located within the vicinity.

5.4.3 Poverty alleviation considerations

Table 5.4 - Key climate considerations

Consideration

Comment

Potential opportunities

Rural setting/low building density

Less vulnerable to extreme heat than urban areas

Provision of shading utilising vegetation/landscaping

‘Poor’ road surface conditions

More sensitive to damage from extreme heat/heavy rainfall events

Use of durable road surfacing materials and suitable drainage.

Roads as surface water and diffuse pollution pathways

Potential for localised flooding and contamination/ sedimentation of local water sources

Provision of road drainage and water discharge treatment points (SuDS)

Steep areas

Landslide risk caused by extreme heat/heavy rainfall events

Avoid building new infrastructure projects in close proximity to steep areas

Forested areas

Increase wildfire risk during periods of extreme heat/ drought

Increasing overall resilience of power system, through e.g renewable power options such as solar power or mini hydropower for water supply, treatment and pumping systems

Existing utility infrastructure

Utility poles vulnerable to high winds Water infrastructure projects must be designed to meet water demand of new developments under normal and peak conditions (e.g. hot temperatures)

Rainwater harvesting for toilet flushing and irrigation

Kisii County is an important agricultural production area for the western region of Kenya, owing to its advantageous climate and rainfall. The income generating opportunities for farmers have though been limited where there has been a lack of processing to enhance product values, where rather produce is sold in Kisii’s local markets and to buyers who then add value outside the county. As well as aiming to drive income security through agriprocessing VCs and industry in Focus Area 3, there is a need to future proof the sector against climate change impacts which would put agricultural livelihoods at risk. These have been set out in Section 2.3.4 and above, with extreme rainfall events, drought, extreme temperature events and wildfire risks. There is also a lack of irrigation within Kisii County, which will be a positive intervention to mitigate against unreliable rainfall and provide opportunity for re-use. Effective infrastructure provision and planning for Focus Area 3 should ensure access to the VC and industrial cluster for Kisii’s farmers in an effective delivery system, whilst utilising processing waste for farmers to re-use to support their sustainable production within a circular economy. Within each proposal detailed below, their merits and recommendations for climate resilience and social inclusion (including poverty alleviation) are provided. Section 4.3.3 also sets out these principles for the VCs.

SUED team assessment

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5.4.4â&#x20AC;&#x192; Urban Design

Figure 5.21 - Conceptualised Industrial Cluster

The site for Focus Area 3â&#x20AC;&#x2122;s early development for industrial clustering was carefully chosen based on availability of vacant plots, accessibility to the plot, vicinity to emerging industries such as banana processing plant and appropriate distance from the city-centre. The proposal compliments existing communities and small business and seeks to create a small community cluster where infrastructure, schools and population can be concentrated. The industrial site spreads across 5Ha and it is accessible from the CBD in 12 min drive. In the future, Focus Area 3 has potential to create a trade corridor which will allow for smaller scale retail/office/light industry units to be co-located in this zone and further contribute to business vibrancy in Kisii. The urban design elements for Focus Area 3 and the early development plots are critical in setting a sustainable, effective and appealing environment for an industrial cluster that will serve its businesses, workers and local communities well. Further amenities included are the green and blue infrastructure which are fundamental to the industrial cluster. These will contribute to create a desirable and attractive business and working environment, further attract investors and ensure natural site features are integrated in the development plans. The layout has been flexibly designed to accommodate larger or smaller properties and adapt to market demand. The cluster is split into development blocks.

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Sub-components

Estimated cost

Impacts

Delivery mechanisms

Challenges

Addressing Challenges/Gaps

Time Frame

› Masterplan to be developed for the Focus area 3 Industrial Cluster

› KES 880m

› Enhances the local economy with modern manufacturing, and mixed-use amenities

› Private investor

› May require some land acquisition

› Pre-feasibility study

› Funding

› Appropriate Market Study

› Opportunity for immediate investment and development

› Public service authorities

› Short to medium term to facilitate early stages of VC projects and enable further development

› On site internal roads and network infrastructure (water, power, sanitation, ICT, SuDS › Blue & Green Infrastructure

› Design Build Operate Maintain (DBOM)

› Site Survey

› Introduce a strong value addition industrial zone for Kisii › Opportunity to enhance an isolated community

Climate resilience ✓ The chosen site is not at risk of river flooding, and as a peri-urban site with green space in the vicinity it is less sensitive to increases in temperature than more central areas • Ensure adequate access to and from the site, and internally to the site during heavy rain, where drainage will need to be incorporated throughout the site, and design to take into account increase in extreme rainfall events Inclusion ✓ There is an opportunity to enhance an isolated community, with local economic opportunities alongside transport linkages that enhance mobility to the CBD ✓ Blue-green infrastructure that enhances quality of life ✓ Proposal to adapt humancentric universal design standards that allow access and use by all including PWDs e.g. provisions for access ramps, raised crossings, dropped curbs and other required interventions to be considered right from the beginning ✓ Proposal to be well lit for safety and access of all gender, age groups and (dis)ability ✓ Facility to be served with sanitary facilities including those accessible by PWDs

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5.4.5 Water and sanitation Water and sanitation interventions are not contained to individual Focus Areas, but rather improve the infrastructure and operational systems to enable a step change in water and sanitation provision for Kisii’s residents and businesses. The specifics for Focus Area 3 are set out below, with reference to Section 4.2.7. Further, the VC projects have identified the required water needs for pulping and retting processes, hygiene and staff where this will be supported by water treatment and recycling with a storage facility to support resilience, as per Section 4.3.1 and 4.3.2.

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Expand distribution systems

› KES 170m

› Better access to good quality affordable water service for all

› Gusii water and sanitation company/ PPP partners/ IFI/Lake Victoria South Water Works Development Agency

› Reconnections and billing and collection improvements › Reduction in NRW

1. Water Supply Improvements

› KES 90m across three Focus Areas › KES 36m across three Focus Areas

› Environmental benefits due to less abstraction › Increased revenue to the water utility, for re-investing and maintenance

Additional improvements must be made to the water system to fully realise the benefits from the supply expansion and ensure that it is sustainable. This proposed improvement comprises the following 3 components: Expansion of the distribution systems to new customers that can now be served with the additional water

› Improved meter management systems and utility sustainability

Climate resilience

The public water supply will deliver better quality water than alternative water sources, such as water from vendors who source water from unprotected sources. The VC projects, new business and services within Focus Area 3 should be connected to the system. GWASCO should ensure that all new customers are metered. This will reduce water wastage and enable the company to monitor usage. Water supply should be extended to the industrial area, as is demonstrated below in Figure 5.22 with proposed new lines, new ablution blocks and new tanks.

✓ Improves the sustainability and reliability of water supply service

Programme of re-connections - with improved billing and collection

• The Municipality to ensure climate change is fully factored into water management and investment plans, given increased variability in rainfall and potential moisture stress increases (under higher emissions scenarios) - to enhance supply security for future decades

A new billing system for the company will reduce commercial losses and increase revenues. This will allow the company to improve their financial sustainability and invest in maintenance. Pipe network investment Investment in the old and dilapidated pipe network, where it cannot withstand the new pressures of the new water supply or for areas with high leakage, is important to address NRW. This should be implemented alongside a campaign improving metering and conservation of water use. These water supply improvements are enhanced by Energy Proposal 2 (for Focus Area 1), to help GWASCO reduce costs through energy efficient and renewable energy water pumping stations to serve Kisii.

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✓ Increasing the revenue of GWASCO, this supports their resilience to operate with disruptions or unexpected events such as droughts, floods and pandemics ✓ Reduces pressure of water abstraction by reducing NRW • NRW can be further enhanced through metering and awareness campaigns to consumers to promote conservation

Inclusion ✓ Providing time savings for other activities such as income generation or caring for families ✓ Closer services for PWDs ✓ Reduce occurrence of water borne disease ✓ Access through regulated water kiosks will make water more affordable and better quality • Alternative employment options need to be considered for water vendors who may lose their livelihood due to an expansion in the public water supply

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Challenges

Addressing Challenges/Gaps

Time Frame

2. Sanitation Improvements

› Capacity

› Lacking capacity of GWASCO to implement and operate the billing system effectively - where partners can support this

› Short-term achievable but longterm given operational capability

This intervention is a mix of sewer expansion and ablution blocks, there are no trunk sewers needed as the area is less populated and current sewer networks seem adequately sized to evacuate wastewater from this area.

› Funding

› SUED or other funds to meet the significant gaps in GWASCO - and especially until operations are more efficient

› Billing and customer metering improvements will be required first (short term) while network extension are medium to long term

Figure 5.22 - Water Supply and Sanitation Improvements for Focus Area 3

Though the Municipality has a sewer network, it is old and dilapidated. There is also increased frequency of manholes surcharging leading to wastewater overflows into streets and public spaces. It is critical to address the technical challenges related to the sewerage handling capacity of the network. The proposal is for trunk sewer and secondary sewer expansion, to reduce the current overload of wastewater conveyed by the currently under sized sewers. Further, ablution blocks should be provided in areas of need covering public spaces, and Focus Area 3’s commercial and service premises. Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Water storage for production facilities

› KES 59m

› Improved revenues for the local utility

› Funding by IFI/ Donors/GoK

› Improved sanitation access and coverage

› Using revenue generated from connection charges

› Ablution blocks › Sewer network expansion

› KES 107m

› Health benefits across population › Sewer nuisance and leakage reduction › Affordable sanitation for all

› Gusii water and sanitation company/ PPP partners/ IFI/ Government of Kenya/Lake Victoria South Water Works Development Agency

Source: SUED team based on GWASCO Strategic plan 2017-22

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Climate resilience

5.4.6 Energy

✓ Reduce number of flood events

1. Rehabilitate Large Renewable Energy Project

✓ Improve environmental and public health

Kenya to a large degree is still reliant on hydroelectric power stations to generate power. This is particularly true of the south-west of the country. However, hydro-electric power plants everywhere are experiencing problems, as the effects of climate change alter rainfall patterns that significantly reduce their outputs. Also, some of the oldest plants require significant rehabilitation, to overhaul old equipment and upgrade to modern technology. A rehabilitation program can also help to future proof plants against the future effects of climate change.

• The proposed wastewater system interventions should be designed with utmost emphasis on climate resilient materials for construction and climate change resilient design approaches, specifically for an allowance for increased intensity of rainfall and more extended dry periods Inclusion Sanitation improvements will: • Improve public health and reduce diarrheal disease, with associated health care cost reduction which is often a significant burden on low income groups • Increase toilet access, which is private and clean, and protects individual’s dignity Challenges

Addressing Challenges/Gaps

Time Frame

› Capacity - in GWASCO to effectively implement projects internally

› Detailed feasibility to establish baseline scenario and immediate upgrade needs

› Short term ablution blocks

› Funding gap -, especially for sewer network expansion, will require external funding

› Longer term for significant sewer upgrade and trunk mains expansion will be long term projects and require significant investment

The Gogo hydropower plant is located to the south-west of Kisii. It was commissioned in 1958, with an installed capacity of 2MW but for various reasons it has a current output of about 1MW and often fails entirely. A number of studies have been undertaken that look at rehabilitation of the plant and the network to provide up to 20MW. However, in SUED interviews with KPLC, it was indicated that the project has stalled. Additionally, it is unknown if these studies took into account the potential future effects of climate change such as the reduction of water inflow to the reservoir. This project has three proposed components: › Review of current plans to determine progress and status of the project; › Review of proposed expansion of capacity in line with climate change effects on hydrology; › Development of route forward. This project is intended to improve sustainability and resiliency of the power plant, and by doing so will improve the livelihoods of residents through avoided power cuts. As such, this proposal is critical to Kisii’s key sectors of industry and agri-processing, agriculture and trade and services. It will also help improve the finances of the power generator and the network operator by providing lower maintenance costs and consistent revenue generation. This project is outside of the Kisii Municipality area, at 25km south-west from Kisii, but feeds into the grid that serves Kisii and improves its service facility and financial outlook. This proposal has a significant funding requirement, whilst its benefits in securing energy provision for businesses and households would be significant in combined value.

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Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Review and consolidation of previous studies

› KES 15m to review/ update studies

› Determine future local climate change effects

› KES 25m to complete design,

› Additional climate resilient renewable energy generating capacity added to local network

› Coordination with KenGen, KPLC and other interested parties to determine appropriate climate resilient solution

Climate resilience focus Inclusion

› Initial technical design, economic, social and environmental analysis › Development of implementation plan (incl. procurement, deployment)

› KES 1-1.5bn to complete implementation

› Improved power supply to local businesses and communities

✓ Indirect effect on improving social conditions, where improving the resiliency of the hydroelectric plant will reduce power outages and contribute to improved commercial activity, improved ability to deliver services and education, and improved safety at night ✓ Potential for the creation of jobs, some of which could be targeted at employing youths through an upskilling program

Challenges

Addressing Challenges/Gaps

Time Frame

› Alignment of existing programmes

› Utilise information and update current and former prefeasibility studies

› Medium term to long term

› Attraction of finance to complete implementation of rehabilitation works

› Understand commercial agreements

› Stand-alone project but dependent on collaboration with KPLC, KenGen

Climate Resilience This project has consideration of climate change at its core. Firstly, by increasing the power output from a renewable energy source which could offset electricity produced by fossil fuels, and secondly, by ensuring that the hydro-electric plant is resilient against the future effects of climate change. There are no clear trends in rainfall in western Kenya, however, rainfall has become more variable, with both increased drought and flood risk. Climate projections show increasing temperatures, and likely intensification of rainfall during the rainy seasons. Under lower emissions scenarios rainfall totals may increase, however, with greater levels of warming decreases in rainfall during the first rains, and an increase in moisture stress, are likely.

Further, it is recommended that the VC project buildings have solar PV installed on roofs and in the grounds, as well battery storage to provide continuity (Section 4.3.1 and 4.3.2).

There is a clear need to model inflow to the reservoir under different climate scenarios, and to stress test it against hot and dry scenarios to ensure that even under adverse conditions the project remains viable. It would also be advisable to assess increases in siltation resulting from more intense rainfall. We note that climate risks to this project are high, and that there is a need for a full climate resilience analysis at design and feasibility stage, under component 2 of this project.

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Case Study Qairokkum Hydropower Climate Sensitive Rehabilitation, Tajikistan In 2014 the EBRD financed the first phase of the modernisation and rehabilitation of the 126MW Qairokkum hydropower plant. Located in northern Tajikistan, it supplies electricity to 500,000 people. Constructed in the early 1950s, Qairokkum had been well maintained, nevertheless, most of the plant’s mechanical, electrical and electronic components have reached the end of their lifetime, and equipment breakdowns are reported more often. Like many other countries Tajikistan is already experiencing changing climate conditions; average temperatures are rising, precipitation patterns are changing and glaciers are retreating. These shifts could have a significant impact on Tajikistan’s hydropower sector. Depending on how the climate develops, water inflows into the reservoirs may alter. This in turn will affect the hydropower sector’s ability to generate electricity in the future. Given that 98 per cent of Tajikistan’s electricity originates from hydropower, these trends could have a serious effect on the population’s living standards and the economy as a whole. The Qairokkum project used an innovative approach by incorporating climate change considerations into the investment design. Experts modelled future hydrology of the water inflow into Qairokkum’s reservoir under different climate change scenarios. This served as a basis for selecting the most suitable rehabilitation design across the range of possible projected climate change scenarios. The impacts of this project extend far beyond the rehabilitation of a hydropower plant. Incorporating climate change considerations into investment design will significantly improve Qairokkum’s resilience to Tajikistan’s changing climate. It will also secure a reliable electricity supply for the people of the Sugd region. Barki Tojik’s management and staff will learn to identify climate change risks associated with hydropower and how to deal with them. Integrating this know-how into the company’s business operations will optimise electricity generation and dam safety, thereby helping Barki Tojik move towards international best practice. This is a pilot project. It provides important lessons for hydropower in Tajikistan and across the region and could be replicated in future hydropower investments.

2. Solar Refrigeration Systems

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 by between 2 and 21 days, which reduces postharvest 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. The revenue goes towards maintenance of the facility and employment of a facility manager. The proposal for Kisii’s agricultural sector is to provide solar powered refrigeration systems 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 make up a significant proportion of the farmers in the Kisii area, though all farmers can use the facilities. This project has several proposed components: Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Baseline study of livestock holdings producing milk, current status of storage facilities and refrigeration needs

› KES 750k per system17

› Reduced crop spoilage leading to higher revenues for small farmers

› Partner with regional/ county government to coordinate activities

› Establish areas that would benefit from solar refrigeration › Design of the systems as well as a procurement and deployment plan › Deploy to selected agricultural holdings

› Actual: KES 11.25m based on max 15 systems

› Employment opportunities for women and vulnerable groups

› Partnering with local solution specialists to determine appropriate deployment › Maintenance capacity building programme › Maintenance responsibility of individual farmers › Funding of equipment and installation by IFI/ donor finance

17 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

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Climate Resilience and Income Security

Case Study

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 milk before it can reach market. As both extreme, and average, temperatures in Kisii have increased, and will continue to do so under all emissions scenarios, the incidence of high temperatures causing 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.

Solar Cold Stores in Wakatobi and Pacitan, Indonesia

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, where this could be targeted towards women and vulnerable groups as other providers have done. There can also be capacity building with selected farmers to ensure maintenance of systems. Shocks and supply chain disruptions, such as that experienced with Covid-19, further build the case for this proposal where being able to store and prolong shelf life of food, potentially as supply buffers, supports the security of producers’ income and households’ food supplies.

Challenges

Addressing Challenges/Gaps

Time Frame

› Effort needed to obtain comprehensive data on current situation

› Lacking knowledge of current situation - baseline study important

› Short to medium term

Contained Energy successfully developed and deployed stand-alone, off-grid, 100% solarpowered 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 VRLA 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.

› Obtaining funding

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5.4.7 Transport

1. Upgrade Road Connecting B3 with Kisii-Nyamira Road

The industrial area is proposed near the Banana Processing which is located along a stretch of road which connects Kisii - Kisumu road (B3) and Kisii - Nyamira road. This road is narrow, unpaved and is not capable of accommodating HGVs expected to travel to and from the industrial cluster. To improve connection and accessibility, this proposal seeks to upgrade the road to bitumen standards and incorporate storm water drainage and NMT facilities. In addition, access to the main roads surrounding the industrial cluster can be improved by upgrading the internal feeder road network to cover about 4km of roads as shown in Figure 5.23. Figure 5.23 - Focus Area 3: Proposed Roads Upgrade

This improved road network is critical to support the proposed banana collection network to the VCs and industrial cluster, as set out in Section 4.3.1 and 4.3.2. The total volume of banana stems to be delivered to the sanitary pad production facility is estimated at around 93 tonnes per day, where this can be reduced with the extraction of the fibre cores taking place on the farms or at collection depots and the VC project has included the provision to four 5-tonne trucks to meet this need.

Sub-components

Estimated cost

Impacts

Delivery mechanisms

› Upgrade of 4km of road from earth to bitumen

› Capex road upgrade KES 181m

› Eased access to the industries

› Drainage facility provision

› Annual Opex of the bitumen road KES 18m

› Better and safer pedestrian access

› Kisii County Government financing

› NMT facilities provision

› Capex of drainage KES 127m › Annual Opex of drainage KES 12.7m › Capex of constructing sidewalks KES 90m › Annual Opex of sidewalks KES 9m

› Improved land value

› Kenya National Government through the Kenya National Highway Authority (KeNHA) in Partnership with Kisii County › Safety and NMT facilities can be done by County in consultation with National Government

This proposal is a necessary enabler for the VC projects’ operation as well as Transport Proposal 2 below, in ensuring the industrial cluster is accessible for Kisii’s residents for employment opportunities and Kisii’s, and the wider area’s, producers to access income generating opportunities. Climate resilience ✓ Improved connectivity will aid traffic diversion from the town, reducing congestion, supporting cost savings in energy consumption ✓ Bitumen standard roads are much more resilient surfaces, significantly reducing disruption due to surface water flooding and deterioration in adverse weather ✓ Storm drainage provision on roads will address risks of increased extreme rainfall events and increase the resilience of the road to serve the industrial cluster

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Inclusion and income security ✓ Banana processing will provide improved livelihoods for many small-scale farmers, ensuring more regular access to the industrial cluster has a clear poverty reduction benefit ✓ Provision of safe and universally accessible walkways, drainage facilities and public transport facilities will enhance access for all • New road works can also create employment opportunities for neighbouring communities through local labour engagement during construction and maintenance of the roads • Road network resilience is critical to ensure both security of farmers’ incomes and households’ food supplies, including shocks as Covid-19 and logistic and trade disruptions

Challenges

Addressing Challenges/Gaps

Time Frame

› Increased air and noise pollution due to increased vehicular volumes in area

› Pre-feasibility and feasibility studies

› Immediate term

› Funding

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› Traffic impact understanding due to this new road

2. Public Transport Facilities Along Upgraded Road The VC projects will be located along the road that links Kisii - Kisumu road (B3) to Kisii - Nyamira road. Presently, no public transport service operates in the area. Therefore, in addition to the road improvements proposed good public transport facilities and connection to the industrial complex will be necessary for employees, residents, visitors, farmers and traders travelling to and from the facility. This will also require the provision of good end-to-end pedestrian facilities to enhance access to the complex. The proposal is for the route to provide 5 sheltered bus stops and 3 sheltered boda boda stops, linking to the current route provision around Kisii urban centre. Figure 5.24 - Focus Area 3: Proposed Public Transport Routes and Stops

› Essential enabling infrastructure development

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Sub-components

Estimated cost

Impacts

Delivery mechanisms

› 5 sheltered bus stops

› Capex KES 5m

› Better access to the facility by bus

› Kisii County through the Kisii Municipality

› 3 sheltered bodaboda sheds

› Annual Opex KES 0.5m › Capex KES 1.5m › Annual Opex KES 0.15m

› Improved bus facilities along the new corridor › Better access by boda-boda services

5.4.8 Waste management As set out in Section 4.3, the VC projects will suitably be co-located and there is a key synergy in implementing a circular economy of produce and waste to and from farmers, with an efficient transport and collection system. Farmers would be able to freely access compost as an output of the organic waste produced from agri-processing. It is proposed that a composting area of 1,000 sqm would provide the capacity for the banana VC organics waste scale. The pads facility will produce up to 45 tonnes of compost per day, or substantially less if the fibre cores are extracted prior to collection, and the banana leaf products will produce around 2 to 3 tonnes per day. This links with the wider proposal for a new Landfill and waste facility (Section 5.3.5). This will include sorting areas for different recyclable waste streams, and equipment for different waste streams, which could include a composter for organic waste as required.

Climate resilience ✓ Better quality public transport services and facilities encourages shifting from private car use which lessens the GHG emission and air pollution • Sheltered bus stops will provide shade and should be constructed from materials which minimise thermal gain to ensure that extreme temperatures are not a concern Inclusion • Physical accessible transport infrastructures are key in addressing social exclusion, especially where these facilities are integrated with walking routes and universal access designs that support the mobility for all including PwDs • New road works can also create employment opportunities for neighbouring communities through local labour engagement during construction and maintenance of the roads Challenges

Addressing Challenges/Gaps

› Increased air and noise pollution due to increase vehicular volumes

› Pre-feasibility and feasibility study

› Attract matatu services on the new road › Funding

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› Bus route rationalisation

Time Frame › Medium term › Delivery of the bus stops can be phased. Not all are needed at the same time. The development can be informed by demand growth

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5.4.9

Focus Area 3: Scheduling

The schedule for Focus Area 3 is supported in its potential earlier realisation as it builds upon current assets located here with the recently operational banana processing plant, providing the opportunity to develop and utilise an efficient collection system for agricultural produce. However, the UEP aspiration is for Focus Area 3 to be a highly productive centre for agri-processing and to spur further industrial activity, by making use of land availability, and as such considered scheduling will be important to ensure the spatial plan for the industrial area is well developed and that enabling site infrastructure, including internal roads, road linkages and site preparation, is well designed and underway before further interventions come online. Section 4.3 also set out the specific infrastructure needs for the proposed VC facilities, including water storage tanks and building solar PVs. The integrated waste collection and new landfill and waste centre proposals should be incorporated into the operation of these VC facilities. Figure 5.25 opposite sets out how the proposals are recommended to be delivered over time and how they interact with each other.

Figure 5.25 - Focus Area 3 Schedule

Immediate

Urban

Medium Term Year 3-5

Transport

Water & Sanitation

Waste

Longer Term

1. Masterplan 1. On site internal roads and network infrastructure (water, power, sanitation, ICT, SuDS

Energy

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Short Term Year 1-2

1. Road upgrade to B3

1. Green and blue infrastructure

2. Public transport network - incremental with demand

1. Billing and customer metres

1. Network extensions

2. Ablution blocks

2. Sewer network extensions

1. Integrated waste collection

2. Solar power refrigeration

1. Large scale renewable energy

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6. IMPLEMENTATION PLAN 6.1 Introduction Effective urban and economic planning by strong, empowered city governments is critical to the successful functioning of cities. City governments’ central role in the coordination of actors that shape urban development and economic growth is becoming even more important as governments are required to respond to existing and emerging challenges. Planning plays a critical role in guiding and controlling land use, urban form, infrastructure and service delivery as well ensuring resilience of the urban system. A number of other factors also impact on the ability of cities to respond to risks and development needs and ensure future resilience against climate change, supporting livelihoods. 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. Kisii Municipality is lacking an integrated spatial planning strategy. This will be a crucial next step for the Municipality in enabling the proposed Development Framework through land designation, ownership and development regulations and permissions; and the management of spaces considering vehicle access, parking, trading and open space.

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Such a planning strategy will also guide the Municipality in being resilient under the event of future socio-economic disruption. It will support the Municipality in responding effectively, and in a coordinated manner between departments, to adapt the transport network, land use, economic ecosystem and supply chain as required. The following sections discuss relevant considerations across partnerships, funding and scheduling for the proposed VC and climate resilient and inclusive infrastructure projects and the wider economic development plan. Crucial aspects to the implementation of these are capacity building and recommendations for social inclusion and climate resilience which are provided further below. An effective implementation plan for the Kisii Municipality UEP will support the realisation of benefits including: › Increase in formal employment, with the value chain agri-processing projects across operation, packaging and management, and the associated supply chain of goods transportation and trade; › Value uplift of Kisii’s agricultural sector, with agricultural training for diversification and enhanced production, supported by an effective collection and distribution network and a digital platform for sellers;

› Value uplift of Kisii’s agri-processing and industry sector, with opportunities for Focus Area 3 to catalyse further industry with an education and skills board and business incubator system that will attract further investment; › Value uplift of Kisii’s trade and services sector, through existing individuals and enterprises and with the attraction of investment. Improved urban environment and revenue generating services within Focus Area 2 provide employment and income opportunities, whilst capacity building across digital, exports and financial access for the SME community will support sustainable sector growth; › Socio-economic opportunities across society, providing employment access, business and Municipality contract opportunities for those from SIGs and those currently facing a lack of income security; › Improved attractiveness of Kisii as a trade hub and leisure destination, supporting footfall and visitor experience and driving opportunity for related leisure offerings where people are encouraged to spend more time and income within Kisii’s centre; and

› The uplift of land values within the CBD where land is clearly designated and developed in an appropriate manner, with supporting infrastructure and urban services (power, water and sanitation, waste), to provide a base for Kisii to consider business improvement districts.

6.2 Partners and 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 Kisii Municipality and its various departments maintain good relations with the County Government and various communication channels exist vertically. Nonetheless, the Municipality should implement a plan of regular communication (e.g. periodic meetings and/or reporting)

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to keep the County Government appraised of progress and developments on SUED projects and to ensure that efforts are coordinated across the County. 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 role out of supporting climate resilient and inclusive infrastructure and their associated costs. Horizontal governance recommendations The following are likely to support the effective implementation of the UEP: › Involvement of stakeholders in steering committees & working groups: Kisii 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; › Thematic working groups: Kisii 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 Kisii 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;

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› An Agri-Industrial board (as per the Sector Action Plans) would be able to coordinate actions across agriculture, processing, trading and export, representing local businesses, the Chamber of Commerce, marketing experts and Kisii Municipality and County Government trade officials. This would aim to more effectively track strategic objectives, identify and address skills shortages, exchange information and support production marketing and negotiation; › Partnership should start with the creation of an Education and Skills Board that would coordinate efforts between TVET institutions and universities, relevant local/regional businesses and Kisii County Government (as per the Sector Action Plans). Kisii County Government should inform stakeholders of new development projects and consider how local skills can be utilised. Local/ regional businesses should inform about skills shortages and work together with education institutions to develop adapted curriculums including potential apprentice schemes; › A mapping exercise should also be undertaken to identify the existing relationships and partnerships that exist at both a 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 DFID, the World Bank and other multilateral institutions have ongoing programmes within Kisii County which will provide synergy with the SUED programme and potential for partnerships. Examples include the DFID Youth Empowerment Programme, implemented by World Vision and TEAM, which is focused on youth employment and involvement in decision making. Working with the County Government, the technical training curriculum will be reviewed, providing a synergy to the proposed UEP Education and Skills Board (Agri-processing sector plan), whilst the Programme supports social inclusion with the sharing of public expenditure information and engagement between government and youth groups. The World Bank’s Kenya Urban Support Programme (KUSP) could provide an important partnership, supporting proposed urban improvements. The World Bank has already supported implementation of pedestrianised market streets within the CBD, which has improved the market environment and ease of movement.

Business improvement districts A popular concept for the establishment of zonal organisation is the formation of Business Improvement Districts (BID). A BID is a business-led partnership (nonprofit organisation) run by and for its members in a defined geographical area with a remit to invest collectively to improve their environment. These organisations are funded by a mandatory levy agreed between members and set priorities for local investment such as cleaning, safety, improvement of the local area and promotion, and building local networks supporting local supply chains. In the context of Kisii Municipality, the nature of partnership can be enhanced with public sector involvement to help direct and attract additional funding for public realm and infrastructure improvements. Key benefits of this approach are an accountable, proactive and flexible approach, whilst bringing wider regeneration benefits. BIDs have often been implemented in regard to retail and trade areas, to ensure the area remains appealing to customers and supports businesses’ operation within this space. The proposed Kisii Market Square and Boulevard project could be a suitable pilot for a BID, as well as subsequent streetscape improvements, where this would help realise the potential benefits of an improved urban fabric with enhanced footfall, active mode access and flexible leisure offerings which support business revenue. It would be in the business communities’ interests to coordinate

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to ensure an appealing environment is maintained for residents and visitors from the wider region. Value Chain partners For the banana pad VC, there are a number of potential partners with experience of sourcing fibre and producing banana pads, albeit on a small-scale. These include: › Banana pads in Uganda, one of the first small-scale banana pad projects; › ICOSEED pad production project in Kutus Town, Kirinyaga; › Saathi Enterprises in Gujurat, India, working on scaling up operations; › SHE (Sustainable Health Enterprises) supporting a number of projects in Rwanda (under the go! Brand). In addition to these organisations, there may be some potential to work with manufacturers of traditional sanitary pads, such as Procter & Gamble (the world’s leading manufacturer) or Johnson & Johnson (who are one of the partners behind the SHE initiatives and have a manufacturing facility in Kenya). However, it may be more fruitful to work with some of the challenger companies in the feminine hygiene sector that have been working on sourcing / developing sustainable products (e.g. plastic-free, organic, biodegradable, etc.,). These companies, which include WeAreDame, TOTM, WhoGivesACrap and OHNE, could also provide good support on international marketing and sales of the pads. Further, an export partner should be sought to access premium price markets

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in Europe and North America. For the banana leaf products VC, there may be some benefit in partnering with one of the established plastics packaging fabricators such as RitePak or TechPaK, both based in Nairobi to support on sales and marketing. For international sales and distribution, an international packaging supplier focused on plant-based products could be sought.

6.3 Implementation costs and delivery Table 6.1 summarises 1) the implementation costs and delivery for the climate resilient and inclusive infrastructure projects across the three Focus Areas, and 2) the anchor Value Chain projects prioritised for Focus Area 3. 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 for infrastructure and Section 4 for the VCs. 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.

Table 6.1 - Implementation Costs and Delivery

Total estimated CAPEX for the UEP Development Framework: Focus Area 1 CAPEX:

KES 3,480 million

Focus Area 2 CAPEX:

KES 2,300 million

Focus Area 3 CAPEX:

KES 2,900 million

VC CAPEX:

KES 440 million

In terms of the funding scale between private (PPP), public and other sources, the following is provisionally estimated Focus Area 1 CAPEX:

50% public sector led (County, CGoK, providers), 25% private and PPP, 25% donor funding

Focus Area 2 CAPEX:

25% public sector led, 60% private and PPP, 15% donor funding

Focus Area 3 CAPEX:

5% public sector led, 70% private and PPP, 25% donor (SUED) funding

Whole CAPEX:

30% public sector led, 50% private and PPP, 20% donor

In terms of the cost scale over time, the following breakdown is estimated given the individual project schedules: Short-term CAPEX:

KES 4,100 million

Medium-term CAPEX:

KES 2,900 million

Long-term CAPEX:

KES 2,100 million

At a Development Concept level, the project implementation is summarised as:

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Table 6.2 - UEP Implementation Costs and Delivery - Climate resilient and inclusive infrastructure and Value Chain Projects

Title

Description and Sub-Components

Delivery Partners and Sources of Funding

Cost in KES

Expected Benefits

Timescale

Public Private Sector Potential business support as a business improvement district (levy) and private investment for operation and as market develops

CAPEX total: KES 435m

› Catalyse urban regeneration, increase land value

› Market square (1,800 sqm, 3 storeys)

› Improved space for traders and informal sector to develop activity

Immediate for Masterplan to guide development and other projects. Short-term for mobilisation and relocation, in advance of development

Focus Area 1: CBD Urban: Market Square and Boulevard

› Masterplan › Increasing market capacity and relocating traders › Civic space › Green boulevard at Hospital Road

› Square (8,280 sqm KES 402m › Streetscape and hospital road KES 33m

› Increase footfall for business incomes › Enhance quality of life for all residents › Reduce car use supporting air quality and decongestion › Civic event space to boost revenue generation

Transport: New bypass roads

› Upgrade of 16km of road to bitumen › Drainage facility provision › Provision of safety and NMT consideration on built up areas

Public Sector Funding Kenya National Government through KeNHA and KURA in Partnership with Kisii County

CAPEX total: KES 1.345bn › Road = KES 725m › Drainage = KES 507m

› Town decongestion and improve journey reliability to Focus Area 3 industry, market efficiency

Short-term, year 1 onward

› Improve land values

› NMT provisions for 5km = KES 113m › Annual OPEX at 10% of CAPEX Urban: Nyanchawa River Park

› Clearing area and planting › Flood risk and ecological assessment › SuDS provision

Donor Funding With Municipality lead in delivery

CAPEX total: 110m (8.2Ha)

› Enhance quality of life and promoting sustainable travel

Short-term potential

› Support footfall and business revenue increase

› NMT provision

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Title

Description and Sub-Components

Delivery Partners and Sources of Funding

Cost in KES

Expected Benefits

Timescale

Urban: Streetscape improvements

› For critical roads first: B3 and Daraja Moja-Nyamataro Road

Public Sector and Donor Funding Potential partner World Bank Kenya Urban Support Programme

CAPEX total: KES 90m

› Support wellbeing and encourage walking/cycling

For identified roads: B3 and Daraja Moja - Nyamataro Road

› Increase appeal and liveability for all residents

Short-term for critical roads; Medium-term onwards for further roads across CBD

› Reconfigure route with pedestrian priority › Expand footpaths and space for trade › Integrate SuDS

Potential BID and private investment (levy)

› Support livelihoods of street traders › Reduce surface water run-off

› Street planting and furniture Transport Supporting: Traffic circulation

Support traffic movement system: 1. Strategic street rationalisations for all road users and minimise conflict (wider than 6m)

Public Sector Funding County Government, with KeNHA and KURA

Supporting proposal, uncosted

› Road decongestion and resilience

Short-term initiate, then ongoing

› Better use of CBD space › Revenue stream for Municipality

Short-term initiate, then ongoing

Short-term into medium-term

2. Pedestrian priority streets (less than 6m) Transport supporting: Parking Management

Designate parking areas and enforce, meet demand whilst allowing space for active travel, trade and street furniture

Municipality Revenue Stream To make this cost neutral or raise funds for wider street improvements

Supporting proposal, uncosted

Transport: NMT Provision

› Design and plan according to streetscape interventions: sidewalks, furniture, vending space

Public Sector Funding Potential partner World Bank Kenya Urban Support Programme

CAPEX total: KES 545m

› Increased safety and access for all

› 20km footpath = KES 227m

› Reduce traffic congestion

› Drainage facilities = KES 318m

› Health and wellbeing

› Drainage facilities › Traffic calming and junction improvements

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› Annual OPEX at 10%

› Improve air quality › Increased footfall to businesses

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Title

Description and Sub-Components

Delivery Partners and Sources of Funding

Cost in KES

Expected Benefits

Timescale

Energy: Streetlighting

Suitable coverage for targets areas, with appropriate equipment and deployment

KPLC and Municipality Municipality to coordinate. Potential equipment specialist partners and maintenance capacity building programme

CAPEX total: KES 45m

› Improved security in Kisii at night

Short-term coordinate, then medium-term add new lighting

› Longer operation of market areas and a safer night economy › Increase business revenue

Waste: Integrated Collection

Driven by the new Landfill and waste facility, an upgraded collection system with appropriate equipment, collection points and capacity building

Municipality Funding For equipment as per budget and procure service. Municipality, with community groups, likely to operate

Non-CAPEX, uncosted

Sanitation: Ablution Blocks

Meet sanitation needs for traders, visitors in CBD, with connections to network or septic tanks (in advance of network extension)

Donor Funding To meet shortfalls in GWASCO financials

CAPEX total: KES 41m

Drainage: Masterplan and Road Interventions

Drainage Masterplan and road interventions: flatten and plant channels on Hospital Road, introduce channels on Kisii Hotel Road, add permeable tiled paving and develop road gardens

Donor Funding With NGOs and World Bank Kenya Urban Support Programme

Costs captured under transport new bypass roads and urban masterplan

Municipality and community groups to maintain

› Improve quality of urban environment › Revenue stream for Municipality

› Improved sanitation access and coverage

Short-term initiate, formalise in medium-term and ongoing

Medium-term, year 2 onwards

› Health benefits across population

› KES 8m continuous channels on Hospital and Hotel Roads › Sqm unit costs for tiles (KES 4,500)

› Improve safety, pollutant removal, stop clay entering drainage channels, prevent pollution of the rivers

Medium-term

› Reduce urban flooding, enhance resilience of economic activity

› Filter drains (KES 3,000) › Planting (KES 1,600)

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Title

Description and Sub-Components

Delivery Partners and Sources of Funding

Cost in KES

Expected Benefits

Timescale

Drainage: River Revitalisation

› Deculverting sections of the river

Public Private PPP Funding County Government with maintenance responsibility Kisii Municipality, coordinate with local businesses

Supporting proposal, uncosted

› Environmental resilience, restores the natural river flow with and bankside habitats

Medium-term

Public Private PPP Funding County Government with maintenance responsibility Kisii Municipality

CAPEX total: KES 500m

Transport: Bus Station Upgrade

› Provide offline wetland areas

› Multileveled bus terminus, with incorporation of: NMT facilities, drainage, streetlighting, and vending space

› Supports Nyanchawa River Park and quality of life

Annual OPEX 10%

› T-type junctions to incorporate tighter radii, refuge islands, increase level and pedestrian crossings, traffic lights

Medium-term

› Increased footfall and revenue to support adjacent businesses

› Junction improvements, new bus stops on key roads Transport: Junction Improvements

› Support future demand for public transport for all social groups

› Increased sustainable travel Public Sector Funding Kenya National Government through KeNHA and KURA in Partnership with Kisii County

Supporting proposal, uncosted

› Safer travel for all users

Medium-term

› Encourage walking and cycling

› Roundabouts with pedestrian crosswalks, refuge islands, and signals Transport: Boda Boda Management

Registration and coordination of boda boda operators, with equipment, training and develop digital platform

SACCO Led Initiative With coordination between boda boda operators and riders

Supporting proposal, uncosted

Energy: Water Energy Efficiency

Design and implement new pumping equipment and renewable energy system

Utilities Funding Collaboration between GWASCO and energy services, with potential renewable specialist partners and maintenance capacity building programme

CAPEX total: KES 15m

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› More responsive public transport system › Boda boda rider income security › Reduce water leakage and costs for GWASCO, which can pass onto consumer › Reduced carbon emissions

Medium-term initiate, then ongoing

Medium-term onwards, implemented for longer-term water projects

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Title

Description and Sub-Components

Delivery Partners and Sources of Funding

Cost in KES

Expected Benefits

Timescale

Water: Network Extensions

Distribution system extension with pipeworks, supported with e-connections and effective billing

GWASCO Utilities Funding Potental partners from IFI/ Lake Victoria South Water Works Development Agency, where funding gap

CAPEX total: KES 206m

› Increased GWASCO revenue, to reinvest

Long-term

› Reconnections at KES 90m across Municipality

› Access to quality and affordable water for all

› NRW reduction at KES 36m across Municipality

› Environmental benefit from less abstraction

› Focus Area 1 network investment KES 180m Sanitation: Network Extensions

Distribution system extension with pipeworks, supported with re-connections and effective billing

GWASCO Utilities Funding Potental partners from IFI/ Lake Victoria South Water Works Development Agency, where funding gaps exist

CAPEX total: KES 145m

› Increased GWASCO revenue, to reinvest

Long-term

› Access to sanitation for all › Health benefits across population › Environmental benefit from reduced leakage

Focus Area 2: Logistics and Supporting Facilities Transport: Market Access Roads

› Upgrade of 2.3km of road from earth to bitumen › Provide drainage facilities › Provide NMT and safe pedestrian crossing

Public Sector Funding Kenya National Government through KeNHA and KURA in Partnership with Kisii County

CAPEX total: KES 177m

› Eased access adjacent land uses i.e. industries

› Road upgrade at KES 104m

› Better and safer pedestrian access for all

› Drainage at KES 73m › Annual Opex - 10%

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Short-term - enabling infrastructure

› Improved land value, including CBD where area is decongested

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Title

Description and Sub-Components

Delivery Partners and Sources of Funding

Cost in KES

Expected Benefits

Timescale

Waste: Close Existing Landfill

› Excavation and haulage of dumped material to new landfill

Public Sector and Donor Funding Support Kisii County with effective approach to closure, with additional donor funding and support from NGOs

CAPEX total: KES 220m (mid-range)

› Improved ground and water quality in Kisii

Short-term Depending on new site progress

› Site remediation at KES 26-106m

› Employment opportunities to aid with excavating, removing, and capping

Public Sector and Donor Funding May be opportunities for private partners and national national recycling organisations for waste segregation and extracting value from the centre’s waste

CAPEX total: KES 310m (mid-range)

› Segregated waste management and sanitation facilities

Short-term begin

› Revenue generating aspects: biofuel and value extracted from waste streams

Ongoing and increasing integrated waste system

› Site remediation and restoration works

Waste: New Landfill and Waste Centre

› Construction of new engineered landfill cells › Construction of landfill gas collection and process system for biofuels

› Excavation at KES 106-207m

› New landfill cells at KES 106-426m

› Reduces methane production in the landfill › Improves local air quality

› Employment generation, informal sector opportunities › Improved ground and water quality, protecting natural resources (water and soil)

Depends on new site progress (Municipality and County)

› Reduces emissions, improves local air quality › Reduction in deforestation › Protects public health Transport: Truck Parking

› Truck parking facilities - for market delivery, exhauster and waste services › Access and junction improvements › Loading bays

Public Private PPP Funding Partners potential with Industrial and Commercial Development Corporation (ICDC) and local truck owners’ associations

CAPEX total: KES 58m

› Accommodates future growth and effective market operation

› 3 spaces for delivery, 10 spaces for exhauster

› Improved access and safety

› 500sqm facilities building, landscape screen facing road with school

Short-term to medium-term, depending on masterplan development

› Annual Opex - 10%

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Title

Description and Sub-Components

Delivery Partners and Sources of Funding

Cost in KES

Expected Benefits

Timescale

Energy: Landfill Biogass

A gas bottling facility with storage, with technology design

Public Private PPP Funding Municipality partnering with solution providers with technical expertise

CAPEX total: KES 100m

› Reduction in GHG emissions

Short-term to medium-term, depending on new landfill site

› For biogas storage/bottling › Further elements captured under Waste: New landfill and waste centre

› Extraction of value from waste stream › Reduction in health incidents through improved indoor air quality › Reduction in deforestation

› Start-up costs KES 50m Urban: Spatial Plan and Development

› Internal road, drainage and site infrastructure › Repurposing of some land uses and high-level plot subdivision

Public Private PPP Funding Design, Build, Operate, Maintain delivery mechanism

CAPEX total: KES 1.2bn

› Service and parking access to Daraja Mbili market

› Retained warehouses: KES 3.2m

› Decongestion of CBD

› Retained abattoir: KES 3.2m

› Landscape buffering to river

› Revenue generation and local employment

› Cold and dry storage facilities (12,500 sqm): KES 480m

› Warehouses for local businesses › Amenities to warehouses

Medium term, as Focus Area 1 elements are underway, and the relevant road and traffic interventions begin

› Warehouses for local businesses (11,500 sqm): KES 293m

› Cold and dry storage

› Landscape buffering (28,400 sqm): KES 428m Sanitation: Ablution Blocks

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Meet sanitation needs for Focus Area 2 operators and businesses, with connections to network or septic tanks (in advance of network extension)

Donor Funding To meet shortfalls in GWASCO financials

Total CAPEX: KES 63m

› Improved sanitation access and coverage › Health benefits across population

Medium-term, as Focus Area amenities being provided

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Title

Description and Sub-Components

Delivery Partners and Sources of Funding

Cost in KES

Expected Benefits

Timescale

Energy: Abattoir Biogas

A biodigester and gas bottling facility with storage, with technology design

Public Private PPP Funding Municipality partnering with solution providers with technical expertise

Captured under Waste: New landfill and waste centre Start-up costs KES 50m

› Diversion of a hazardous waste stream to create higher value product and reduce landfill

Medium-term, as Landfill site and biogas project underway

› Reduction in greenhouse gas emissions › Reduction in deforestation › Reduction in health incidents through improved indoor air quality

Water: Network Extension

Sanitation: Network Extension

Distribution system extension with pipeworks, supported with re-connections and effective billing

GWASCO Utilities Funding Potental partners from IFI/ Lake Victoria South Water Works Development Agency, where funding gap

CAPEX total: KES 150m

› Increased GWASCO revenue, to reinvest

Connections and NRW aspects covered in Focus Area 1

› Access to quality and affordable water for all

GWASCO Utilities Funding Potental partners from IFI/ Lake Victoria South Water Works Development Agency, where funding gap

CAPEX total: KES 21m

Long-term

› Environmental benefit from less abstraction › Increased GWASCO revenue, to reinvest

Long-term

› Access to sanitation for all › Health benefits across population › Environmental benefit from reduced leakage

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Title

Description and Sub-Components

Delivery Partners and Sources of Funding

Cost in KES

Expected Benefits

Timescale

SUED Programme with Potential for Other Public and Private Funding Involvement Potential partners with existing and alternative producers

CAPEX total: KES 300 - 350m

› Direct inclusive employment of 70 people

Short-medium term

Around one third for equipment and machinery (including vehicles), some 25% will be for buildings and site development, and the remainder will cover marketing, training and working capital

› Provide affordable and sustainable sanitary solutions

Focus Area 3: VC and Industrial Cluster VC Project: Banana Pads Facility

Collection and processing of banana stem fibre to produce sanitary pad products, for local, regional and international markets

› Provide farmers with additional incomes › Form the basis for other manufacturing opportunities › Drives indirect opportunities with trade, transport and services › Support investment in green packaging and biopolymers as a ready market

VC Project: Banana Leaf Products Facility

Facility to produce a range of single-use plates, cups, food wraps and fresh produce trays (e.g. for green beans) from banana leaf.

SUED Programme with Potential for Other Public and Private Funding Involvement Potential partners with existing and alternative producers

CAPEX total: KES 75 - 85m

› Direct inclusive employment of 28 people

Around 48% for buildings and site clearance, 17% for machinery and equipment, and remainder for training, marketing and working capital.

› Provide farmers with income where otherwise little or no value

Short-medium term

› Develop new technologies for plant-based packaging solutions for use in Kisii County › Provide the catalyst for a cluster of plant-based packaging factories › Drives indirect opportunities with trade, transport, services › Reducing plastics use in Kenya and improve environmental credentials of fresh produce exports

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Title

Description and Sub-Components

Delivery Partners and Sources of Funding

Cost in KES

Expected Benefits

Timescale

Transport: Road Upgrades

› Upgrade road connecting B3 with Kisii-Nyamira Road

Public Private PPP Funding

CAPEX total: KES 400m › Road upgrade: KES 181m › Drainage: KES 127m › NMT: KES 90m › Annual Opex 10%

› Eased access to the industries

Immediate term - enabling infrastructure for the cluster

CAPEX: KES 880m

› Enhances the local economy with modern manufacturing, and mixed-use amenities for value addition

› Upgrade of 4km of road from earth to bitumen, drainage and NMT facilities provision › Site access

Urban: Spatial Plan and Development

› Development of processing facilities, industrial ad warehouse units with amenities and utility provision through land re-purposing. Facilitate effective transport and collection system

Public Private PPP Funding Design, Build, Operate, Maintain delievry mechanism with private investor. Public authority services

› Industrial units (11,500 sqm): KES 736m › Warehouses (2,250 sqm): KES 144m › Basic amenities to both

› On site internal roads and network infrastructure (water, power, sanitation, ICT, SuDS)

› Better and safer pedestrian access › Improved land value

› Opportunity for immediate investment and development

Short-medium term - to facilitate early stages of VC projects and enable further development

› Opportunity to enhance an isolated community › Segregated waste management and sanitation facilities

› Blue & Green Infrastructure

› Decongestion of CBD › Revenue generation and local employment

Energy: Solar Refrigeration

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Provide solar powered refrigeration systems to local farmers who currently have no access to a cold store

Donor Funding In collaboration with County Government and specialist solution providers

CAPEX total: KES 12m

› Reduced crop spoilage, higher incomes for small farmers

Based on 15 systems

› Employment opportunities for women and vulnerable groups

Short-medium term

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Title

Description and Sub-Components

Delivery Partners and Sources of Funding

Cost in KES

Expected Benefits

Timescale

Transport: Public Transport

Provide public transport offering on upgraded road - 5 sheltered bus stops and 3 sheltered boda boda stops, linking to the current route around Kisii urban centre

Public Sector Funding Kisii County Government through Municipality

CAPEX total: KES 7m

› Better access to the industries by bus

Medium-term

Distribution system extension with pipeworks, supported with re-connections and effective billing

GWASCO Utilities Funding Potental partners from IFI/ Lake Victoria South Water Works Development Agency, where funding gap

CAPEX total: KES 170m

› Increased GWASCO revenue, to reinvest

Connections and NRW aspects covered in Focus Area 1

› Access to quality and affordable water for all

GWASCO Utilities Funding Potental partners from IFI/ Lake Victoria South Water Works Development Agency, where funding gap

CAPEX total: KES 168m

› Increased GWASCO revenue, to reinvest

› Network extension KES 107m

› Access to sanitation for all

Water: Network Extension

Sanitation: Network Extension

-Distribution system extension with pipeworks, supported with re-connections and effective billing

› Improved bus facilities along the new corridor › Better access by boda-boda services Long-term

› Environmental benefit from less abstraction

› Ablution blocks KES 59m

Long-term

› Health benefits across population › Environmental benefit from reduced leakage

Energy: Renewable Energy

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Rehabilitate Gogo hydropower plant, located to the southwest of Kisii Municipality, with feasibility and design studies for best route forward

Public Private PPP Funding Coordination with KenGen, KPLC and other interested parties to determine appropriate climate resilient solution

CAPEX total: KES 1-1.5bn Estimate, will depend on upfront studies

› Additional climate resilient renewable energy generating capacity added to local network

Long-term

› Improved power supply to local businesses and communities

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6.4 Scheduling

Figure 6.1 - UEP Development Framework Schedule

Section 5 set out a scheduling plan for each respective Focus Area, reflecting the key interactions between different projects. The synergies for each Focus Area are also described in relation the whole Development Framework. Figure 6.1 opposite demonstrates the full set of proposed VC and infrastructure projects, showing where implementation would suitably begin.

Immediate

Focus Area 1

Short Term

Medium Term

Longer Term

Market Square & Boulevard Nyanchawa River Park Streetscape improvements Masterplan and key roads New bypass roads

River revitalisation

Drainage masterplan and key roads Bus station upgrade

Public transport service plan

Junction improvements Transport management: traffic circulation, parking management, boda boda management Ablution blocks

Network extensions

Integrated waste collection New streetlighting

Water energy efficiency

Spatial plan and development

Focus Area 2 Market access roads

Truck parking

Closure of existing landfill

New landfill and waste facility Landfill biogas

Abattoir biogas Network extensions

Anchor Value Chain projects

Focus Area 3 Masterplan

VC and industrial cluster development

Units, internal roads, network infrastructure, amenities

Road upgrade to B3

Public transport network - incremental with demand Solar power refrigeration

Large scale renewable energy Network extensions

Key

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Urban

Flood Mitigation

Transport

Water & Sanitation

Waste

Energy

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6.5 Funding 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 development. Philanthropic and NGO grant funding could also be leveraged through initiatives such as businesses dedicating 1% of profits

to corporate social responsibility (CSR) initiatives. Examples of projects could include tree planting, provision of or access to recreational facilities such as Nyanchawa River Park or 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 urban streetscape improvements and urban drainage solutions. 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. 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. Presented below is a snapshot of the available climate change funds that cover climate adaptation and mitigation. It is important to note the following: › The VC and infrastructure projects have had climate change resilience actions embedded in their proposals, and further recommendations have been made, as per Section 4.3.3 and the Section 5 Focus Area project details. This will aid the projects in accessing funding by demonstrating their significant contribution to climate change actions. › Successfully accessing resources from these funds depends on a good understanding of the funder’s perspective and procedures. 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 guidance18 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.

18 http://pubdocs.worldbank.org/en/222771436376720470/010-gcc-mdb-idfc-adaptation-common-principles.pdfIMPLEMENTATION PLAN 126

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The National Treasury is the Kenyan National Designated Authority (NDA) for the GCF and developed the Kenya National Green Climate Fund (GCF) Strategy19 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. 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 is the National Implementing Entity (NIE) for Adaptation Fund in Kenya. 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 Ministry of Environment and Forestry is Kenya’s GEF Operational Focal Point. The Special Climate Change Fund (SCCF): 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 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 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 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 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. County Mechanisms 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. With DFID’s support, a Kisii Climate Change Policy and draft Climate Change Bill is being led and considered by the County Executive and will be provided to the County Assembly. The fund seeks a ringfencing of 2% of the development budget for climate change resilience and to

19 The Kenya National Green Climate Fund (GCF) Strategy https://www.gcfreadinessprogramme.org/sites/default/files/GCF%20Coordination%20Strategy%20Report.pdf

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leverage donor and private sector financing into climate change projects in the County. The fund has criteria including the need for a wide benefit realisation across all social groups to address exclusion and to encourage social relations; the support of the economy, livelihoods and important services on which people depend; and to enhance resilience to climate change adaptation and, where possible, propose mitigation measures. It is recommended that the climate resilient and inclusive infrastructure SUED projects are used to drive a capacity building exercise across Kisii County in advance of implementation and that the CCCF can be a potential source of funding for these and other adaptation measures.

6.6 Recommendations for Capacity Building 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,

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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. 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.

open space and SuDS maintenance, will support the Municipality in responding to its resident and business needs as well as monitor impact of these services. The development of an integrated spatial development plan would be supported with registries on land use and ownership, infrastructure assets and service provision, to better plan and respond both in normal times and during future shocks. 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.

Covid-19 lessons

Climate resilience

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 Kisii Municipality, where a cross-sector taskforce would be a recommended structure.

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 6.5) should be improved.

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

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. Economic opportunities and Value Chains 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 Countyâ&#x20AC;&#x2122;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.

6.7 Recommendations for Social Inclusion Across the Development Framework of climate resilient and inclusive infrastructure projects, and the economic development plan with VC projects, inclusion has been embedded into their development, design, prioritisation and proposed implementation, alongside specific recommendations for delivery. Section 5.2-5.4 provides inclusion and poverty

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alleviation considerations for each Focus Area and their respective individual projects, and Section 4.3.1 - 4.3.2 considers the inclusion and community benefits of the 2 proposed VC projects, following detailed assessment as part of the Social Inclusion Study which is provided in Appendix C. Developing Kisii into a gender and socially inclusive Municipality will require all the Programme stakeholders to consistently make decisions that promote nondiscrimination. It is recommended that inclusion interventions apply an integrated approach that covers social, spatial and economic dimensions.

› The introduction of new climate resilient approaches or technologies that support income generation, such as crops and for farming, should be affordable to avoid exclusion of low-income groups; › Provide green, safe, inclusive infrastructure that enables all (including PWDs) to perform at their optimum or from the same level as everyone else; › SUED to establish a Gender and Social Inclusion Implementation Unit, which will work under the leadership of the UEP implementation manager to ensure inclusivity proposals in the UEP are implemented and monitored.

In summary, key recommendations include: › Ensure participation of all in the UEP planning, development, implementation and monitoring, and decision making. Stakeholder engagement is a live process for the Programme; › Commit to always engage SIGs and give them a chance to be informed, to contribute to decision making, and actively give views on and participate in matters that affect them; › Increase SIGs’ employability by building their capacity, ensuring groups can be the trained on the VC processing elements, infrastructure service and operation, and bid preparation; › Setting aside a specific percentage of the Programme’s employment and capacity building opportunities should go to the youth, women, elderly men, PWDs and the Nubian community;

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6.8 Recommendations for Climate Change and Resilience Similarly to social inclusion, climate change and wider resilience has been embedded into all aspects of development, design, prioritisation and proposed implementation for the UEP. Section 5.2 - 5.4 provides the climate change and resilience merits and recommendations for each Focus Area and their respective individual projects. Section 4.3.3 provides assessment of climate change resilience for the 2 proposed VC projects, following detailed work as part of the Climate Change Vulnerability Assessment which is provided in Appendix D. In summary, key recommendations include:

› Good farming practices to support adaptation to increased variability in rainfall and increases in temperature. These adaptation measures include: › awareness of banana pest and diseases and how to control or avoid them; › planting materials from certified sources; › drought and pest/disease resistant cultivars; › increasing access to seasonal forecasts; and › soil and water conservation measures (including water use efficient irrigation methods). › Implementing Sustainable urban drainage (SuDS) in key development areas, where drainage planning considers climate change; › Use of durable road surfacing materials and with SuDS provision;

› The design of the processing facilities to include water harvesting, increasing the resilience of the plants to drought; › The design of the buildings to take into account higher maximum temperatures to ensure thermal comfort.

6.9 Next Steps Following the completion of the UEP, during the next phase of the SUED Programme the proposed projects will be developed further 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 climate advisers: ›

› Provision of shading, utilising vegetation and landscaping across the urban area with low building density and for boda boda and matatu stops; › Increasing overall resilience of the power system, through renewable power options such as solar power or mini hydropower for water supply, treatment and pumping systems; › Avoid building new infrastructure projects in close proximity to river, with a detailed flood risk assessment to be undertaken for Focus Area 2;

will help remove or amend policy and regulatory constraints to private sector led urban development and growth

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)

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