Why Mt Kenya counties care more about the economy than politics

While endorsing Raila Odinga on Wednesday, Mt Kenya business and government leaders explained that the region cares more about the economy than politics. Why so?

The two largest sectors in the region in terms of employment are agriculture and trade. Agriculture employs 2.7 million people, while wholesale and retail trade employees are 690,000. Agricultural returns are generally low, in part because marketing arrangements have disadvantaged the farmer.

But the returns are also quite varied among counties. For example, gross value added per worker in agriculture is highest (at Sh605,000 per worker) in Nakuru and lowest (Sh104,000) in Embu. It is Sh151,000 in Kirinyaga, Sh154,000 in Murang’a and Sh246,000 in Laikipia.

And it is easy to see why. Quite a bit of agricultural production in Nakuru is mechanised. Flower and vegetable farming in Naivasha is technology intensive, compared to smallholder farming in Laikipia, Murang’a or Embu.

To increase productivity in Laikipia, for example, we are promoting irrigated smallholder agriculture, as well as micro and small feedlots.

Oddly though, most basic machines and tools – chaff cutters, grain dryers, pumps, basic irrigation equipment and so on – used by our farmers are imported. We import on average Sh24 billion worth of machinery and capital equipment, mainly from China, India and UAE, every single month! This unhelpful state of affairs is reinforced by laws such as the EPZ Act, which favour imported machinery over Kenyan-made machines.

Economic stimulus programme

By promoting domestic production of farming machines and tools, we will be growing our manufacturing sector. Currently, this sector is underperforming and employs only about 200,000 people in the entire region.

Increasing technology use in agriculture and MSMEs will boost production and create jobs. High labour productivity should increase real wages, which have remained stagnant for nearly 13 years.

The Kenyatta administration has taken the view that, to improve access to long-term capital to finance machinery, we require a bigger and better financial institution and has, therefore, launched the Kenya Development Corporation. Some of us are skeptical because no one bank has been good at everything from corporate to SME financing. However, it is a step forward.

In Laikipia, we are supporting 1,700 with everything from business planning to market access and finance. We have a Sh3.3 billion economic stimulus programme, including an energy cost rebate for qualifying manufacturing micro and small businesses.

Some 79 Laikipia-made products enjoy preferential procurement by the county government. We are also negotiating a one market concept for the 10 Mt. Kenya counties, to solve the issue of multiple business permits.

Most of the slogans being thrown around are devoid of detail. We should assess the various teams on one principal criteria: Will their strategies industrialise Kenya? For, no country has become rich without industry.

The writer is the Governor of Laikipia County. @NdirituMuriithi