First millennium city has much to offer EA region

In 2006, Kisumu city was declared the world’s first millennium city by the United Nations thereby thrusting the lakeside town into the world’s spotlight as a place of huge investment and tourism potential.

But then, the tremendous model for economic reforms, which saw global investors such as the Asian community flocking the town to invest immensely and exploit the natural resource potential has been gradually disrupted by the death of powerful industries and continuous pollution of Lake Victoria.

However, its declaration as the third largest city in the country after Mombasa and Nairobi has still made her a prospective international business magnet.

As a business hub of the East African Community (EAC), the county boasts of a strategic location, a critical factor in the  development of regional trade and economic growth for Kenya.

INTERNATIONAL FLIGHTS

Besides, the recognition and focus has led to small airports being transformed into an International Airport in preparation for regular international flights.

The airport was elevated to an international status in February 2012 by the former President Mwai Kibaki.

According to Mr Israel Agina, Director of Business Development in the Kenya Chamber of Commerce based in Kisumu, the opening of the international Airport and the underway plans to revive marine transport in Lake Victoria is set to position  this county as a sports tourism destination in Africa.

‘‘Strategically Kisumu is closer to both Jinja and Port Bell in Kampala, Mwanza and Bukoba in Tanzania which  makes it an ideal location for  major goods transportation to the great lakes regions which includes Rwanda, Burundi, Democratic Republic of Congo, Southern Sudan and Tanzania,’ says Mr Agina.

With the kind of prospects that await the city, it will put Kenya in the ranks of the fastest growing economies in African continent.

Once marine transport in Lake Victoria is developed, Mr Agina says it will hasten movement of goods coming from Mombasa through Kisumu to Malaba and then to the great lakes region and beyond.

The county  also hosts the Lake Victoria Basin Commission (LBBC), a body responsible in coordinating the sustainable development agenda of the lake basin in East Africa and the Lake Victoria environmental management programme (LVEMP) to manage the natural resources.

Even as the investments opportunity are being availed in the county, the major projects such as the signing of Sh400 billion agreement between the Kisumu County government and a Canadian company to revive transport system in Lake Victoria.

This is likely to boost the transport sector through ship navigation.

Under the deal, the Canadian-based Intercontinental Maritime Company will bring in 22 ferries to ply the routes that were once covered by the stalled MvUhuru, a Kenya Railways Corporation train ferry that run between Jinja, Mwanza, Musoma and Kisumu.

Besides, the investor will rehabilitate the dilapidated Kisumu Ports and dry docks at the Kisumu pier.

‘‘Much as the Kisumu Airport is not handling  international flights yet, I strongly believe that when time is ripe for  these flights, it  will ease the movement of horticultural products  including  exportation of fish in Lake Victoria and flowers from Kakamega County, ’’ notes Mr Agina.

OUTSKIRTS

Kisumu County is also witnessing construction boom in terms of real estate development and housing.

The county is enjoying a property boom home ownership sector, thanks to the on-going infrastructural projects in the outskirts of the town.

Data from the Central Bank of Kenya indicates that 10 per cent of the Sh61 billion loans extended to the housing sector within a period of six months between January to June 2011 showed that Kisumu property market has fully recovered from the 2008 post-election violence that damaged the town’s reputation as a safe investment destination.

Further, the huge interest for use by major influencers around the world is expected to be a centre of commerce and diplomacy in the East and Central African region.

‘‘With the prospective international business ventures in the lakeside city, the region is likely to increase the development of trade’’, says County governor Jack Ranguma.

The Governor assures the residents that the city will use its premeditated location in the East African community (EAC) as a way of easing trade for the neighbouring countries such as Uganda, Tanzania and Rwanda.

RAILWAY TRANSPORT

The national government through the Kenya Railways Corporation (KRC) is also working to revamp the Kisumu railway.

The line, currently not functional was first built in 1901 as part of the Kenya Uganda Railway.

However the revamp is in line with the realization of Vision 2030 development plan.

Mr Agina says the Sh1.5billion project will significantly reduce the cost of freight and also decongest major highways.

Kisumu being within easy reach of eastern African countries; it makes it a natural hub for trade and a strategic transport route in the East Africa region.

The standard gauge railway will provide a direct rail link to Kisumu international airport and other bordering towns such as Mombasa to Malaba, thus easing the delivery of goods within a short period of time.

This will further speed the delivery of products from Mombasa to other countries.

It will also reduce the number of days taken by the heavy trucks and increase efficiency in terms of goods delivery.

The railway will link the airport with the commercial business district and a business park for light manufacturing and assembly points.

This is expected to be completed by 2017.