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The government of Kenya has kicked off the construction of a network of county aggregation and industrial parks (CAIP) across the country.

CAIPs are special zones being set up in Kenya's 47 counties as a joint venture between the national and county governments to spur industrialisation and increase exports of locally produced goods.

On 30 August, President William Ruto presided over the groundbreaking ceremony for a CAIP in the Likuyani constituency in Kakamega, western Kenya. It was the fourth such ceremony to be held under the CAIP programme.

The parks are expected to reduce post-harvest losses and provide value addition centres for agricultural products as well as storage facilities. They will also help link local traders with their national and international counterparts.

According to Kenya News Agency (KNA), each county government is expected to allocate KSH250 million (US$1.7 million) towards the initiative in the current financial year, which will be matched with a similar amount from the national government. 

Value chains have been identified for each CAIP according to the potential of each county. The plan for the Kakamega CAIP is to invest in value addition for maize, producing corn oil and biofuel, processing sunflower for edible oil and animal feed, manufacturing products such as banana flour and jam, and extracting oil and cosmetics from avocados, said Kakamega Governor Fernandes Barasa.  

KNA reported in mid-August that 25 county governments have so far identified land and advertised tenders for the construction of CAIPs, citing Principal Secretary for the State Department for Industry Juma Mukhwana. Construction will be carried out in two phases. Counties that have their allocations in place on time will be given priority in the first phase.

According KNA, each CAIP will have a minimum of four manufacturing sheds measuring 4,000 square metres, which will be located near production areas to serve farmers and primary producers, and will be used for harvest collection, storage, sorting, primary processing and value addition. They will also have an aggregation centre measuring 4,000 square metres, which will have a cold storage facility to prevent post-harvest losses. 

KNA says the government has partnered with the African Export-Import Bank and the African Development Bank (ADB) to fund the purchase of equipment to be installed at the facilities. It is also looking for private sector firms to take up the running of the facilities once completed.

The CAIP project is in line with the government’s Bottom-Up Transformational Economic Agenda (BETA), which aims to stimulate growth at the grassroots level. The Kakamega CAIP is the fourth aggregation and industrial park to be launched this year.

On 28 August, President Ruto oversaw the groundbreaking ceremony for a CAIP at Sangalo in Bungoma County, and on 25 August he was at Sironga, in Nyamira County. 

Kenya’s first CAIP broke ground in Nasewa, in Busia County on 11 August.  

Am happy to report that Busia county becomes the first county in Kenya to implement the transformative Agenda through the launch of County Aggregation and Industrial Park at Nasewa. pic.twitter.com/dzAqcxFEW1

— H.E Dr Paul Otuoma (@HonOtuoma) August 11, 2023

Top photo: Groundbreaking ceremony (Source: Twitter/X @WilliamsRuto)