Good tidings beckon as Kenya goes after treasure buried at sea

The cover of a little-known 2017 government report shows a little boy lifting the canvas of the sea to reveal a stash of cash.

The “Rediscovering the Road to Prosperity” report was compiled by the nine-member Blue Economy Committee established in 2016 (converted into a standing implementation committee last year) by President Uhuru Kenyatta. Chaired by the Chief of Defence Forces, Gen Samson Mwathethe, its mandate was to analyse the range of water-based economic activities and point out the opportunities for Kenya.

Its work has enabled Kenya to “begin the journey to recovering a lost dream”, as the President said at the launch of the Blue Economy Revitalisation Programme at Liwatoni, Mombasa County, in November.

“Recovery” and “revitalisation” are now the buzzwords for government economists on the Blue Economy, itself a new term covering fisheries and aquaculture, maritime transport and logistics services, extractives industries and culture, tourism, leisure and lifestyle.

SLUMBER

But the move has met much resistance from vested local and international business interests that have been profiteering from the nation’s erstwhile slumber.

In the 1990s, for instance, more than 10,000 Kenyans worked as seafarers with a further 3,000 employed at a fish processing facility in Liwatoni. All these jobs disappeared as Kenya failed to keep up with global training standards and a competitive shipping industry.

But that is being corrected through strategic approaches such as the revitalisation of the Liwatoni Fisheries Complex and Seaweed Farming in Kibuyuni, Kwale County; mapping and repossession of privatised fish landing sites; establishment of Kenya Coast Guard and the Bandari Maritime Academy; and revival of the Kenya National Shipping Line (KNSL).

CREATE JOBS

That will create jobs at the coast and around Lakes Victoria and Turkana, save foreign exchange and open new economy streams. Kenya pays Sh304.7 billion to foreign shipping lines yearly and spends Sh37 billion on “destination charges” — mainly cleaning, documentation, accessorial fees and container deposits.

The country’s maritime transport services are worth Sh73 billion, fisheries Sh48.8 billion and tourism Sh57 billion. This considerable wealth has largely remained unregulated, denying Kenyans jobs and stunting the economy.

Fishing ports in Shimoni, Mombasa, Kilifi and Lamu can create an estimated 12,000 jobs and add Sh20 billion to GDP. The Blue Economy revival is expected to create 144,190 jobs to total 236,555 — from the current 92,000. Some of the jobs and incomes will come from fishing and diversification of tourist packages.

Kenya’s new fangled dalliance with the Blue Economy is informed by events such as South Africa unlocking Sh170 billion in investments over 18 months after intervening and the desire to enter Mombasa into the “Leading Maritime Capitals Report”, which is dominated by metropolises such as Singapore, Oslo, London, Rotterdam, Hamburg, Tokyo and Hong Kong.

TRAINING

The contribution of the sector to GDP is expected to grow from $21 million to over $300 million.

A key anchor of this strategy is the revival of the KNSL, which has been moribund for more than 30 years. The government, and Mediterranean Shipping Company (MSC), its pre-existing strategic partner since 1997, agreed to restructure and reorganise the KNSL to develop Kenya’s capacity in the shipping industry, transform Mombasa into a regional transshipment and logistics hub and provide the much-needed sea time (practical training) and jobs to youth.

It is this arrangement that is being criticised as opaque by interested parties and their proxies. But, confronted with a youth bulge, the government is determined to diversify the economy, revitalise old industries and create new ones, expand the revenue base and expand job opportunities.

Col (Rtd) Oguna is the Government of Kenya Spokesperson. [email protected]