The national government is consulting with county governments on the collaborative establishment of County Aggregation and Industrial Parks.
Trade Investments CS Rebecca Miano said the development and implementation of CAIPs is on a 50/50 basis between the two levels of government.
She said a formal call for Expressions of Interest slated for the third week of June is further expected to attract proposals from stakeholders.
Speaking on Wednesday during a consultative meeting with the Council of Governors, CS Miano said significant progress has been made in the construction of industrial parks in 18 phase I counties.
“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," Miano said.
The CS, however, expressed concern that despite the disbursement last month, some counties were yet to reach 5 per cent in construction progress.
"We have initiated further discussions with the counties below 5 per cent to encourage and assist them in resolving the issues affecting their progress," she said.
To fast-track the process, Miano's team has already developed proposals for Expressions of Interest in several areas including CAIPs management.
The team is also seeking stakeholder collaboration in the promotion of value addition to local agricultural and industrial products, construction of additional industrial warehouses and supportive infrastructure, and encouraging industrial investment in aggregation, value addition, manufacturing, branding, packaging, labelling and logistics.
The CS pointed out that CAIPs are intended to serve as a model for integrated industrial development whilst providing infrastructure services and a business-friendly environment.
She said the end goal is to attract investors and foster the growth of local industries by transforming agriculture and supporting Micro, Small, and Medium Enterprises (MSMEs) as outlined in Kenya Kwanza Administration’s Bottom-Up Economic Transformation Agenda (BETA).
According to CS Miano, CAIPs will propel the manufacturing sector through agro-processing industries, create employment opportunities for the youth, strengthen linkages between manufacturing and agriculture and enhance the volume of value-added products.
She said the aggregation parks will also boost farmers' incomes, increase foreign exchange and reduce post-harvest losses for Kenyans.
CS Miano affirmed that the generation of new value-added products would increase foreign exchange and spur economic development besides generating job opportunities.
She expressed regret that Agriculture sector's contribution to GDP has stagnated at around 7 per cent and despite Kenya being an agriculture-led economy, value addition to export agricultural and livestock products remains at 16 per cent.
