3. Goals and Objective
The coastal regions of Kenya have a lot of potential to contribute to the economic
development of Kenya and the overall development of living conditions in coastal counties of
Kenya. Coast Development Authority has created an integrated development plan for the
entire Southern Coastal County. The main driver for development will be industrial
infrastructure which includes:
• a competitive deep see industrial port,
• a renewable energy power plant (See Water Osmosis) for electricity and fresh water
production.
• An industrial park which will help to exploit the hinterland through irrigation based
agricultural production and mining of rare minerals.
• The project will also develop a network of roads and railways in order to link production
places and enable a functioning value chain.
To enhance the lives of all residents in the Southern Coastal Counties, the Project will also
develop:
• several identified towns spread across the region by building modern comfortable living
quarters offering all modern amenities including
• schooling, hospitals and shopping alongside agricultural markets to offer the necessary
linkages.
4. Today’s Situation
The Southern Coast of Kenya is primarily creating income through tourism
and agriculture. The poor infrastructure in the county limits economic and
social development in those coastal counties.
- Southern Counties suffer from limited economic options (only tourism
and agriculture)
- Limited infrastructure development
- Population growth
- Challenges to coastal areas expected due to climate change.
5. Financial Strategy:
• The following strategies have been considered:
1. To work with loans from multilateral development banks
The advantage is the immediate availability of funds, favourable terms of
the loan.
The disadvantage is that the rating od the country will not improve that he
loans will be added to the already heavy debt burden of the country
2. To work with funds from private investors
The advantage is that the funds will be privately given.
The disadvantage is that search for funds could take a longer time
6. What are the estimated financing needs
for the country’s development?
In order to achieve the goals of this programme needs 6 Billion USD in
bank guarantees and overall 63 Billion USD in direct investments.
How will you access these?
• Through bank guarantees and private investors.
• The government has furthermore decided to declare the investment area
for the purpose of these investment into a tax free zone. Furthermore the
county government is not involved on an administrative level, but
investors work directly with a special facility on a national level.
• How will you work with multilateral development banks to address
barriers to accessing these sources of finance? The project has already
identified the Development Bank of Kenya as project partner. The
development banks are involved to the point of providing consultancy
for this endeavor.
7. Which sources of finance are available to you
international and domestically, from both
public and private sources?
The program can attract:
• Foreign direct investments
• Domestic direct investments
• Bonds and other securities
• Grants from development agencies.