Other Investment Sectors
Other investment sectors under review by the county and the Investment Promotion Board include:
o Financial Services
o Environment and Natural Resources
o Pharmaceutical Sector
The Pharmaceutical Sector
Kenya is currently the largest Producer of Pharmaceutical products in the Common Market for Eastern and Southern Africa (COMESA) region, and this is as a result of the Governments’ Efforts to promote local and Foreign Investment in the Sector.
Opportunities in the Pharmaceutical Sector include but are not limited to the following;
· Set up pharmaceutical manufacturing industries which can produce drugs and Vaccines
· Production and Provision of medical gases generator plants
· Production of Medical Equipment and Maintenance
· Provision of specialized diagnostic services
· Multipurpose chemical plant for bulk production of intermediate inputs such as paracetamol and aspirin
· Manufacture of medical tools such as syringes
· Disposal of medical waste
Aviation provides significant economic benefits to the Kenyan economy and its citizens, some of which are unique and essential to the operation of modern economies. Kenya, being the second largest aviation market in Africa after South Africa and one of the top developing aviation markets on the continent, offers great opportunities for new investors in aviation.
Machakos County which borders Nairobi county and adjacent to Jomo Kenyatta international airport has several investment opportunities in aviation.
Some of investment opportunities in aviation include;
· Setting up Aviation schools
· Aviation consultancies.
· Cargo freight services
· Tourist flight services
· Setting up factories to manufacture navigation aids equipment
The County Government in collaboration with the National government is committed to the provision of quality education, training and research to the people of Machakos and for all Kenyans. This is in line with Vision 2030 that singles out education and training as the vehicle that will drive the country into becoming a middle-income economy.
The county aims at enhancing the quality of education offered in tertiary institutions to ensure learners acquire competencies and skills that will enable them meet the human resource aspirations of Vision 2030 and also to diversify the courses offered to make them modern and relevant in order to ensure that the graduates are competitive in the local, national and international job markets.
There are over 916 public primary schools in the county with an enrolment of about 355000 children. There are about 270 secondary schools in the county which reflects a disproportionate relationship between primary school and secondary school investment strategy.
Some of investment opportunities in education sector include;
1. Construction of new secondary schools
In order to address the inadequate physical facilities at secondary level there is need to construct more schools and expand and rehabilitate the existing ones. Thus, construction of private secondary schools offers excellent opportunities for investors in this sector.
2. Opportunities in Higher Education
There is a high demand for university education in Kenya. Out of the 174290 secondary school leavers who qualified to enter university in 2016, only 80000 were admitted to public and private universities, forcing many able parents to send their children overseas. There is therefore a great investment potential for private investors in the higher education sub-sector. Opportunities in this area include
· Investment in construction of private universities and infrastructure
· Supply of equipment and teaching facilities
· Set up manufacturing centres for training equipment focusing in university education
3. Establishment of Technical & Vocational Education Training (TIVET) institutions
This is an area where support and investment is required. The demand of skills training is higher than the supply. Given that out of about 550,000 students who completed secondary education in 2015 only about 80,000 had access to university education. The rest had to seek opportunities in TIVET institutions which have a capacity of 70,000. Therefore, there is an opportunity for Investment in
· Construction of extra TIVET institutions to carter for the high demand
Training equipment and
infrastructure manufacturing to support these institutions
Environment and Natural Resources
The sustainable management of the environment and natural resources in the county is critical for economic growth and development. There exists a wide range of priority investment areas within this sector ranging from climate change prediction and adaptation, catchment protection, sustainable exploitation of economically viable mineral resources.
Some of the investment opportunities in this sector include;
There are huge investment opportunities in Solid waste management in the county especially in Mavoko, Machakos town and other major towns in the county.
Specific areas of investment interests include
· Recycling of waste (paper, glass, plastics, metals)
· Disposal of hazardous waste
· Sewerage system infrastructure construction and maintenance services
· Solid Waste Management Infrastructure construction and maintenance services
Kenya’s economy being mainly natural resource-based is highly vulnerable to climate change and variability.
Potential areas for private investment include;
· Construction works for dams and pans
· Drilling of boreholes
· Establishment of a centre of excellence in climate change issues
· Promotion of education, training and public awareness relating to climate change
· Carbon trading, Kenya has low carbon emissions and therefore welcomes
· Natural resource harvesting
A good percentage of the county’s mineral resource is yet to be explored and exploited. Most of the minerals still remain unexploited due to inadequate knowledge on their status, economic viability and appropriate mining technologies. Limestone marbles occurring widely in various parts of the county are the major minerals exploited for use in cement and construction industry. Others include diatomite, gypsum, bentonite, kyanite, garnet, beryl, muscovite, magnesite and coal.
Some of the opportunities in this sector include;
· Mineral exploitation
. Value addition through direct or joint venture partnerships
F inancial Sector
Financial sector is a world full of investment opportunities in Machakos County. With more banks per head than other major African markets, Kenya is a world leader in financial services and mobile money technology. Opportunities beckon across East Africa and beyond, and capital can be raised swiftly to meet evolving regulatory requirements. Banks have realised that what works in Kenya could be a platform for growth across neighbouring countries and further afield, and a race for new customers means expanding branch networks both in Kenya and in the EAC region.
According to figures published by CBK, the banking sector is growing and profitable. The sector is ahead of minimum reserve requirements. The banking sector’s overall balance sheet grew by 21.4% to KSh3.6trn ($39.6bn) in June 2015, up from KSh3trn ($33bn) a year earlier. Total income reported during the year across the sector increased by 13.7% from KSh199bn ($2.2bn) in June 2014 to KSh226.3bn ($2.5bn) in June 2015. Measured bypre-tax profits, profitability improved by 8% from KSh71bn ($781m) in the period to June 2014 up to KSh76.9bn ($845.9m) for the period to June 30, 2015.
As the busy Kenyan market continues to grow and mature, and with clear sights towards the huge potential of the region and the rest of Africa Machakos county welcomes both foreign and local investors to enter the market by investing in the county. There are numerous monetary institutions in the county that are in dire need of investors.
Opportunities in financial sector include,
· Capital markets
· Pension schemes
· Mobile banking
The water sector in Machakos county offers good investment opportunities given that, as the economy expands all sectors will require huge supply and efficient use of water.
Water scarcity has been a major problem in Machakos County yet the two largest rivers in Kenya (Athiand Tana) pass through the County. So far, only 34.7% of the County residents have access to improved water sources. This is very low as compared to the figures by WHO/UNICEF Joint Monitoring Programme for Water Supply and Sanitation, where the report, Progress on Drinking Water and Sanitation 2012, noted that at the end of 2010, 89% of the world’s population used improved drinking water sources. This was one per cent more than the 88% Millennium Development Goal target.
Development of water storage capacity is therefore of the highest priority for the department of Water and Irrigation.
Investment opportunities in this sector include;
· Construction of dams
· Drilling of boreholes
· Supply of piped water to homesteads
· Setting up a Water bottling firm