Lreb to turn to fresh produce export to boost regional economy

The Lake Region Economic Bloc will focus on boosting agricultural production through the adoption of modern farming techniques.

In a joint communiqué read by chairman Wycliffe Oparanya (Kakamega governor) on Wednesday, the regional entity, which comprises 14 counties, committed to scaling up irrigation, planting high-value crops, supporting farmers’ entry to the export market and enhancing extension services.

The development comes as the Kenya Airport Authority (KAA) is set to build a transit cargo and cold chain facility at the Kisumu International Airport (KIA).

Member counties are Kisumu, Kakamega, Nandi, Vihiga, Busia, Nyamira, Bomet, Kisii, Migori, Homa Bay, Siaya, Bungoma, Trans Nzoia and Kericho.

“We have today met for further consultation and to derive commitments towards accelerating the establishment of the Kisumu International Cargo Division,” Oparanya said.

They pledged to ensure their counties focus on consolidating and packaging agricultural produce for the export market. Oparanya spoke in Kisumu, accompanied by governors Anyang' Nyong'o (host) and James Ongwae (Kisii). Also present were deputy governors Susan Kikwai (Kericho) and Philip Kutima (Kakamega), as well as representatives of national government agencies and the private sector.

The key objective of Lreb is to leverage economies of scale towards optimising the utilisation of shared resources within the region. It seeks to facilitate access to wider markets nationally, regionally and internationally.

The bloc also seeks to steer economic growth by creating an enabling environment for trade and investment initiatives through enhanced partnership with the private sector—strengthening public-private partnerships.

To achieve this, Oparanya said the bloc is engaging government agencies to unlock the regional potential for export trade among farmers and fishermen.

Kenya Airports Authority, Kenya Railways Corporation, Kenya Ports Authority, Kenya Revenue Authority and Fresh produce Industry officials attended.

KAA is accelerating the development of cargo infrastructure and services within KIA to facilitate swift operationalisation of freight processing activities.

The project is expected to unlock the facility’s cargo handling potential and increase revenue in the Western Kenya region.

The expansion will be an essential element for the development of the region as it gives hope to farmers and fishermen through export business.

On January 15, 2021, officials from the fresh produce industry, national government agencies and the county government met in Kisumu to discuss cargo and commercial strategies to support the development.

At the same time, member counties were urged to establish agricultural parks for research and learning. This will steer the private sector towards opportunities that emanate from export trade facilitation and logistics.

The bloc, however, urged Agriculture Cabinet Secretary Peter Munya to withdraw the imposition of produce CESS of 0.25 per cent of the customs value of horticulture exports.

They noted that the tax will kill the horticulture industry that is struggling to recover from the impact of the Covid-19 pandemic.

“Similarly, the National Treasury should consider withdrawal of the minimum tax,” Oparanya said.

Fresh Produce Consortium of Kenya CEO Okisegere Ojepat appealed to governors to ensure farmers adopt horticulture production for export.

“We urge you to give us the needed produce so the cargo facility does not lie idle once established. If you don’t, we will source the same elsewhere to your disadvantage,” he said.

The country earned Sh151 billion from the export of fresh produce, according to Ojapat. He revealed that the USAID has set aside Sh6 billion to support horticulture production in nine counties under Lreb and appealed to farmers to take advantage of the funding.

Ojapat further encouraged farmers to organise themselves into groups to enjoy extension services and improve their yields.