Situation Analysis & Competitive Advantage
Real Estate, Trade and Logistics - The Kenyan Context
Touted as one of the fastest-growing economies in the world, Kenya has often been referred to as the economic hub of East Africa with favourable trade memberships, improved infrastructure, and pro-business reforms being the key drivers underpinning this economic development.
To entrench the country’s strategic positioning as a regional hub and improve the efficiency of logistics efficiency, the National Government is implementing a number of policies and significant transport infrastructure projects.
The establishment of the Kenya Transport and Logistics Network (KTLN) to oversee the country's rail, pipeline, and port operations is a proactive policy effort by the government to enhance Kenya’s competitiveness in the region.
This policy framework was designed to catalyze the infrastructure projects in the sector including the upgrading of the existing road and highways network in the transport corridor connecting Kitale to South Sudan, the expansion work at the Port of Mombasa, the construction of the Lamu Port, the construction of the standard gauge railway as well as the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) Corridor , a US$23billion multi-modal project aimed at providing deeper economic integration between Kenya, Ethiopia, and South Sudan
Kenya’s Direction of Trade - Exports in millions of USD
Real Estate, Trade and Logistics in Turkana County
Turkana County is the
second-largest county in Kenya covering an area of over 77,000 square
kilometers and accounting for 13.5 percent of the country’s total land area.
Located in the North West, Turkana County shares a border with Uganda, South
Sudan, and Ethiopia.
This strategic location positions Turkana County as a critical gateway to the East African sub-region and the Great Lakes region to facilitate regional trade, promote regional integration as well as interconnectivity.
2018 saw the County record average t rade inflows of USD 3.45 million . This mostly consisted of vegetables and beverages. Trade outflows consisting of food, basket products, and livestock averaged USD 432 thousand in the same year.
Trade and logistics continue to play a significant role in driving the local and national economy. Employing an estimated 190,000 people. , the sector hosts a variety of domestic and foreign investment opportunities for both formal and informal players. These opportunities are guaranteed by increased demand from a growing middle class as well as improved trade and logistics infrastructure that facilitate the movement of goods in and across the country
Land plays a significant role in the decision to invest in trade and logistics.
With most of the in Turkana County held under the community land ownership system, the Turkana County Government, through the Department of Lands, has developed Spatial Integrated Development Plans to guide investors on the strategic locations where they can set up their investments.
The Turkana County Investment Promotion Unit, through advisory services, is also on hand to support investors to identify strategic parcels of land for investment.
To enhance the County’s competitiveness, the Turkana County Government has championed investor-friendly policies and has strategically invested in interventions that are designed to unlock opportunities across the County including:
Direct investment of USD 41.6 million between 2018 and 2022 for the effective planning, development, and management of infrastructure, as well as the efficient delivery of services to the County’s urban centers. This includes the designation of municipal status to Lodwar town and Kakuma town, as well as the implementation of the land registration strategy and integrated spatial plans to designate specific parcels of land for investments
Direct investment of USD 58 million to support enterprise development through the establishment of biashara centers, enhance the governance structures of cooperative societies as well as the legal framework to promote the equitable participation of women, youth, persons living with disabilities, and refugees in socio-economic activities
Investment in improving the security and access infrastructure to tourism sites in and around the county. This includes the LAPSSET corridor Resort City project, the rehabilitation and upgrade of the Eldoret-Kitale-Lodwar-Nadapal road and the rehabilitation of the 22 airstrips and airports in the county
Improved telecommunication infrastructure to enhance phone and Internet connectivity
Upgrading the Lodwar and Lokichoggio airports under the LAPSSET Project as well as the rehabilitation of airstrip infrastructure
Rehabilitation and routine maintenance of over 2,000km of intra-county roads connecting Lodwar to Lokichar, Lokichoggio, Kalokol, Kakuma, and Lokori
Rehabilitation and upgrade of inter-county roads including the 500km A1 tarmac road from Kitale to Nadapal - the border of Kenya and South Sudan
Areas of Opportunity
The Turkana County Government has established partnerships with the Kenya Investment Authority, the LAPSSET Corridor Development Authority , and the Kenya National Chamber of Commerce and Industry. Through these partnerships, the County Government, in consultation with stakeholders, is constantly profiling and documenting domestic as well as foreign direct investment opportunities in Real Estate, Trade, and Logistics
In line with the Kenya Vision 2030, the National Government’s Big 4 Agenda, and the County Government’s mid-term development plan, the Turkana County Government invites interested investors and mid-sized startup enterprises to participate in and develop opportunities in:
Development of industrial parks in Kakuma and Kalokol and an Export Processing Zone in partnership with the County Government and the Export Processing Zone Authority
Sand harvesting and processing plant for construction materials, glass, and ceramics
Development of commercial, industrial and residential property along the A1 transport corridor in line with the integrated spatial plans
Development of a water transport system connecting Turkana and Marsabit. This is to be done in partnership with the Kenya Maritime Authority
Last-mile Internet Service Providers to connect consumers spread across the urban centers
Transport and commodity trading opportunities with South Sudan, Ethiopia, and Uganda
Establishment of sales, service, and maintenance infrastructure for boda boda motorcycles
Procurement and spillover opportunities from the LAPSSET project