Patrick Mayoyo
24 June 2008
Nairobi — An ambitious multi-million-shilling investment initiative intended to turn Kisumu into a western Kenya business and tourism hub will be rolled out on Tuesday.
The initiative is part of the Government's Vision 2030. An artist's impression of what the Kisumu town will look like after it is converted into a regional business and tourism hub. In what is expected to be the biggest investment in a single town in the country in recent times, Kisumu is set to have a five-star hotel with 400 rooms, two three-star hotels with 300 rooms each, and an international conference centre with facilities to accommodate more than 2,000 people.
In addition, the lakeside town will have a metropolitan railway system, an ultra-modern office park consisting of multi-storey commercial buildings, a car-parking to accommodate 2,000 cars, a shopping mall, a business process outsourcing (BPO) park, a floating restaurant and facilities for recreation.
The Lake View Resort City initiative, being modelled like the Sun City of South Africa, is the brainchild of the Kenya Railways Corporation, which is set to jointly implement the project with a consortium of foreign and local investors.
Feasibility study
KR chairman Jonathan Mturi confirmed that the Lake View Resort City was underway and a feasibility study had already been undertaken.
Mr Mturi said once the initiative had been presented to stakeholders and they are sensitised about its viability and benefits, KR would go ahead and start working on plans on how to implement it.
However, a KR official who talked to the Nation on condition that he is not named because he is not authorised to speak to the media, said the development and financing of the Lake View Resort City was expected to be a joint venture between KR and other investors, while the metropolitan railway system would be developed by KR and other stakeholders through franchising - build operate and transfer (BOT), joint venture or long term franchise.
"The proposed Lake View Resort City will be located on the Kenya Railways land measuring 20 acres, on the shores of Lake Victoria. It will be situated between Jomo Kenyatta Highway, Bank Street, the Railway Station and the State Lodge. The site is sandwiched between Kisumu Port and Nyanza provincial headquarters," he said.
He said the initiative was in line with KR's mandate and the Government's Vision 2030.
Following the Rift Valley Railways taking over the operation of train services, KR has remained with the responsibility of managing the concession, management of non-conceded assets and promotion, facilitation and participation in metropolitan mass transit systems.
The corporation also has the mandate to develop the national railway network, develop and manage the inland waterways and manage the Railway Training Institute.
"As part of the corporation's mandate, KR has developed a strategy to create exciting and innovative property developments. One of the key developments is Lake View Resort City on the shores of Lake Victoria in Kisumu City," he said.
The KR manager said the Lake View Resort City was expected to not only transform Kisumu as a destination of choice for both leisure and conference tourism but also provide commercial and business opportunities for the residents of the town.
He added that the project was implemented would lead to the creation and stimulation of value adding activities in the region, creation of job opportunities in construction, hospitality, travel, marine sectors and other related fields.
Business centre
The official said the provision of high quality office space in the town will not only attract government, private sector and NGOs but also provide high quality business and trading premises for local businesses. "The BPO park will transform Kisumu into an international business centre," he said. Kisumu is an attractive city on the shores of Lake Victoria that was established as Port Florence, the terminal of Uganda Railways, over a century ago. The town has over the years grown into a trade and transport hub. Kisumu's prosperity gained momentum after the formation of East African Community but its fortunes declined soon after the collapse of the community in 1977.
The town is poised to regain its former status, especially after being named one of seven Africa Millennium Cities under The Millennium Cities Initiative. The ambitious plan has elicited excitement in both the business, tourism and political circles, with key players in the sectors welcoming it. They say the plan would create businesses and job opportunities. Among those who have given a nod to the project is the secretary of Kisumu City Business District Association, Dr Carey Onyango, and the manager of Lake Victoria Tourism Forum, Mr Francis Omondi. Dr Onyango said KCBDA would support any initiative that has the potential of creating business and jobs, but said such developments should ensure the local residents had a stake in them.
"In principle, we welcome anybody who wants to invest in Kisumu and create business and job opportunities, but such investments should deepen the local level of ownership," he said. Mr Omondi said the planned five-star hotel, two three-star hotels and an international conference centre would open up conference tourism in western Kenya.
"You know, Kisumu has been very popular with conference tourism, but has been lacking adequate accommodation and conference facilities. But this initiative is likely to address this shortcoming," he said. The envisaged developments are also expected to be a major boost to Government plans to reopen the western Kenya tourism circuit.
The Western Kenya Tourism Circuit comprises Nyanza and Western provinces and parts of Rift Valley. The major tourist attractions in the region include Lake Victoria, the second largest fresh water lake in the world, and the source of River Nile. Others are Mt Elgon National Park, Kakamega Forest National Park, Ndere Island National Park, National Museums of Kenya, Impala National Park, Saiwa Swamp National Park and Ruma National Park. The western Kenya tourism circuit received a major boost recently when the Kenya Airports Authority announced that it was set to modernise and expand the airport at a cost of Sh3 billion.
KAA managing director George Muhoho said a Chinese company had been awarded the tender to expand the airport's two-kilometre runway and also expand and modernise the passenger terminus
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