Sh10bn to set up markets in two counties

About Sh10.3 billion will be used to set up a model farm produce wholesale and retail market in Murang’a and in Machakos counties.

According to senior assistant director of trade at the ministry of East African Affairs, Commerce and Tourism, Mr Jared Nyaundi, the two projects are in response to challenges cited by farmers and supermarkets in accessing farm produce.

The plan is also informed by the fact that farmers do not get value for their produce by selling them through middlemen.

“We need to set up an organised market place where producer business groups distribute their produce to wholesalers who then sell to retailers,” Mr Nyaundi told participants attending the second retailers forum in Nairobi, yesterday.

The wholesale hub model market in Maragua, Murang’a County, will be set up on 20-acres of land donated by the county government.

The market will be equipped with modern equipment to service retail outlets, especially in Nairobi and its environs.

A retail market model will also be set up in Athi River, in Machakos County, on 30-acres of land donated by the Export Processing Zones Authority. Designs for the Athi River retail market model is ready.

EMBRACE TECHNOLOGY

The two projects are expected to address the inefficiencies in supplies  and at the same time, create more jobs.

“The markets will be using modern electronic trading system,” Mr Nyaundi added.

There will also be hospitals, banks and a recycling plant.

“Both markets are expected to be completed by 2017 in order to improve the quality of trade for the export and other markets,” Mr Nyaundi noted.

Nakumatt Holdings Limited regional director, strategy and operations Thiagarajan Ramamurthy urged the government to ease the process of setting up manufacturing industries in Kenya in order to ensure that prices of products were brought down.

He also called on retailers to embrace modern technology and innovation in order to improve consumer shopping experience.

However, insight retail project director Titus Korir warned against aping each other’s innovations saying that this could negatively impact on some retailers.

“Depending on your target market, an innovation that works for one retailer could be a total flop for you,” Mr Korir said citing cases where some retailers have set up escalators for their customers only for them to turn away buyers because they are not used to such technology “especially in the rural areas,” he said.

“We all need to build resilience and sustainability to ensure we keep up with the changing demands as well as trends in the retail sector,” Mr Ramamurthy urged.