Nairobi — The government has begun consultations with the Council of Governors to facilitate the operationalization of County Aggregation and Industrial Parks (CAIPs). This collaborative effort aims to attract proposals from stakeholders, with a formal call for Expressions of Interest scheduled for the third week of June.
During a consultative meeting that brought together top officials from both national and county governments, Trade Investments Cabinet Secretary Rebecca Miano highlighted the significant progress made in constructing industrial parks in the phase I counties.
"The development and implementation of CAIPs is a 50/50 partnership between the National Government and County Governments," Miano stated. "The County Governments Additional Allocation Act, 2023, facilitated the recent disbursement of Sh1.125 billion from the National Treasury to the 18 Phase I Counties, with each receiving Sh62.5 million to expedite the implementation process."
To accelerate the process, Miano's team has already developed proposals for Expressions of Interest in various areas, including CAIPs management, equipping to promote value addition of local agriculture, and constructing additional industrial warehouses.
The Industrialization Cabinet Secretary noted that despite last month's disbursement, some counties are still below 5% in construction progress. "We have initiated further discussions with the counties below 5% to encourage and assist them in resolving the issues affecting their progress," she said.
CS Miano emphasized that manufacturing is crucial for economic development, employment creation, and generating new value-added products that increase foreign exchange. She pointed out that the sector's contribution to GDP has stagnated at around 7%, and despite Kenya being an agriculture-led economy, the export value added of agricultural and livestock products remains at 16%.
According to the Cabinet Secretary, CAIPs will propel the manufacturing sector through agro-processing industries, create employment opportunities for the youth, strengthen linkages between manufacturing and agriculture, and increase foreign exchange.
The County Aggregation and Industrial Parks serve as a model for integrated industrial development, providing infrastructure services and a business-friendly environment to attract investors and foster local industry growth.
