In a significant milestone for Kenya’s economic development, the Kenya Private Sector Alliance (KEPSA) has officially signed a landmark Memorandum of Understanding (MoU) with Kenya’s six Regional Economic Blocs. This partnership aims to accelerate inclusive development across counties, driving economic growth, job creation, and private sector investment.

The signing took place in Voi, Taita Taveta County, during the 6th Jumuiya Agribusiness and Blue Economy Investment Conference (JABEIC). The event was presided over by H.E. Gideon Mung’aro, OGW, Governor of Kilifi County and Chairperson of the Jumuiya ya Kaunti za Pwani. It marked the establishment of a framework that seeks to deepen collaboration between the public and private sectors at the county level.

Empowering Counties Through Regional Blocs

The six economic blocs involved in the agreement include:

1. Jumuiya ya Kaunti za Pwani (JKP): Representing coastal counties, including Mombasa, Kwale, Kilifi, Tana River, Lamu, and Taita Taveta.
2. North Rift Economic Bloc (NOREB): Covering counties such as Uasin Gishu, Nandi, and Turkana.
3. Lake Region Economic Bloc (LREB): Focused on counties surrounding Lake Victoria, including Kisumu and Kakamega.
4. Frontier Counties Development Council (FCDC): Representing arid and semi-arid counties.
5. Mount Kenya and Aberdares Economic Bloc: Covering counties like Nyeri and Kirinyaga.
6. South Eastern Kenya Economic Bloc (SEKEB): Encompassing Makueni, Kitui, and Machakos.

This collaborative approach addresses the growing need for harmonized policies and pooled resources, enabling counties to implement large-scale projects more efficiently and attract greater investment from both local and international private sector players.

Achievements of KEPSA in Regional Development

KEPSA’s partnerships with county blocs have delivered remarkable results in recent years. For example:

• Jumuiya ya Kaunti za Pwani (JKP): KEPSA has worked to improve agricultural value chains for crops like cashew nuts and coconuts. These efforts have led to a 15% increase in exports, boosting incomes for farmers and supporting over 50,000 households through enhanced irrigation infrastructure.
• North Rift Economic Bloc (NOREB): Initiatives to reduce post-harvest losses through maize value-addition programs have improved farmers’ earnings by 20%. Solar-powered irrigation systems have further increased agricultural productivity while promoting sustainable energy practices.
• Lake Region Economic Bloc (LREB): Collaborative projects have improved healthcare access by 30%, established eco-tourism initiatives that increased visitors to Lake Victoria by 25%, and launched awareness campaigns addressing maternal health and communicable diseases.

Leveraging Technology for Economic Transformation

A significant aspect of the MoU is the integration of data-driven decision-making through the Market Intelligence Hub. Developed in partnership with GIZ’s Digital Transformation Center Kenya, this platform consolidates data on public-sector bankable projects, enabling informed policy decisions and attracting investments.

According to Joash Gomba, Chief Technical Officer at Verus Africa, “The Market Intelligence Hub ensures actionable insights that align regional development goals with national priorities.” By centralizing information, counties can better identify opportunities and address challenges, fostering sustainable growth.

Strategic Focus Areas Under the MoU

The KEPSA-County partnership aims to address several critical sectors that influence Kenya’s socio-economic landscape:

1. Agribusiness: Encouraging climate-resilient practices, value-addition initiatives, and infrastructure development to support smallholder farmers.
2. Infrastructure: Investing in road networks, energy systems, and urban planning to improve connectivity and economic activity.
3. Healthcare: Expanding access to essential medical services and addressing community health issues, including maternal care and disease prevention.
4. Tourism: Promoting eco-tourism and cultural tourism to increase visitor numbers and generate revenue.
5. Education and MSME Innovation: Strengthening vocational training programs and fostering entrepreneurship among micro, small, and medium enterprises (MSMEs).

Public-Private Dialogue Mechanisms

The newly established KEPSA-County Regional Economic Roundtable is a key feature of the agreement. This platform will convene quarterly, rotating among the regional blocs, to facilitate targeted discussions on local priorities and challenges. Issues identified at the county level will be escalated to the National Roundtable Platforms, ensuring they receive attention from policymakers and stakeholders.

Eng. Patrick Obath, Chairperson of the KEPSA Foundation, highlighted the importance of such platforms: “These dialogues will align public sector goals with private sector expertise, promoting the establishment of common policies across counties and fostering competitiveness.”

Environmental Sustainability: The Kijani Initiative

KEPSA’s commitment to environmental sustainability was also evident during the signing event. In collaboration with Dow Chemicals and ChildFund, KEPSA Foundation planted over 500 trees at Taita Taveta National Polytechnic. This initiative is part of the Kijani Initiative, which aims to:

• Increase tree cover and combat deforestation.
• Establish orchards in schools to enhance nutrition and economic opportunities.
• Promote environmental awareness among students and communities.

The initiative spans six counties and underscores KEPSA’s focus on climate action as a core component of regional development.

The Economic Significance of Regional Blocs

Regional economic blocs are increasingly recognized as essential tools for development. By pooling resources and harmonizing policies, these blocs can:

• Attract large-scale investments that benefit multiple counties.
• Foster industrialization and value-chain development.
• Strengthen regional trade and position Kenya as a competitive global player.

A Collaborative Path to National Development

Since the inception of devolution in 2013, counties have emerged as critical drivers of Kenya’s GDP, contributing approximately 60%. The MoU signed between KEPSA and the six Regional Economic Blocs represents a turning point in leveraging this potential. It formalizes a framework that will not only enhance county-level development but also create a ripple effect across the national economy.

Carole Kariuki, CEO of KEPSA, aptly summarized the agreement’s significance: “By embracing collaboration and innovation across all sectors, we can transform Kenya’s counties into beacons of progress. This partnership is a testament to the power of aligning public sector goals with private sector capabilities.”

Conclusion: A Model for Inclusive Development

KEPSA’s partnership with the regional economic blocs signals a commitment to inclusive, sustainable development. Through structured dialogues, data-driven solutions, and strategic investments, this collaboration aims to address Kenya’s most pressing challenges, from unemployment and food security to infrastructure gaps and environmental conservation. As the partnership unfolds, it sets a benchmark for how public-private collaborations can catalyze progress in emerging economies.

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Photo source: Google

By: Montel Kamau

Serrari Financial Analyst

3rd December, 2024