IIA PROJECT REVIEW MEETING GRACE HOUSE RESORT HOTEL, NAIROBI, KENYA SEPTEMBER 11 TH -12 TH 2014

1. IIA PROJECT REVIEW MEETING GRACE HOUSE RESORT HOTEL, NAIROBI, KENYA SEPTEMBER 11TH -12TH 2014 BY MR. DANIEL ASHERPROGRAMME OFFICERCUTS AFRICA RESOURCE CENTRE, NAIROBInairobi@cuts.orgwww.cuts-international.org

2. OUTLINE Introduction Investment Promotion Reforms in Kenya Investment Incentives for Kenya Kenya India Bilateral Trade Agreements Kenya –India Export& Import Levels Community Survey Results Family Size & Distribution Perception on Tata Company Population Migration Impact Conflict among Community Members Impact of Land Acquisition Impact on Infrastructure and Gender Impact on Employment and Business Environment Benefits to Resident/Housed Community Members/Workers on the Economic Situation Environmental Impact & Areas for Intervention by Company Non Community Analysis Recommendations

3. INTRODUCTION • Kenya is situated in the Eastern part of the African Continent. • It is almost bisected by the equator. • Ethiopia and Sudan border it to the north; • Uganda to the west; • Tanzania to the south; • Somalia to the northeast; • Indian Ocean to the southeast.

4. INVESTMENT PROMOTION REFORMS IN KENYA Include:- • The introduction of a case management system to increase efficiency & cost effectiveness of commercial disputes resolution, • easing of business start-up through an ambitious licensing reform program:- • elimination of 110 business licenses and the simplification of eight, • reduced time & cost of obtaining building licenses & registering a company, by reducing the time it takes to get the memorandum and articles of association stamped, • merging the tax and value added tax registration procedures and digitizing records at the registrar, • speeding up cross border trade through implementation of an electronic cargo tracking system and linking it to KRA electronic data interchange system for customs clearance • Introduction of competition among land valuers (allowing private practitioners) which has led to a faster turnaround of one week instead of one month for a land valuation.

5. INVESTMENT INCENTIVES FOR KENYA A number of key strengths make Kenya a desirable investment destination including:- • Excellent connectivity to major world-wide hubs and time zones that make it easy to work with most continents. • Nairobi is the undisputed transportation hub of Eastern & Central Africa and the largest city between Cairo and Johannesburg. • Port of Mombasa is the most important deep-water port in the region, supplying the shipping needs of more than a dozen countries. • A deep pool of educated & skilled manpower have made country the manufacturing, commercial and financial hub in Eastern and Central Africa. • A leading tourism, wildlife and safari destination. • A fully liberalized economy:- • No exchange or price controls. • No restrictions on domestic and foreign borrowing by residents and non-residents. • The most developed stock market in the Eastern and Central African region i.e. the Nairobi Stock Exchange (NSE). • An attractive and comprehensive package of incentives offered to investors.

6. INVESTMENT INCENTIVES FOR KENYA CONT… 7. A strong & cooperative relationship between the governments, the private sector and development partners makes it conducive to attracting investments. 8. Membership to regional trading blocs of COMESA and the EAC, 9. Beneficiary country under the preferential trade enhancing schemes offered by the AGOA legislation of the USA and the ACP-EU Cooperation and various bilateral cooperation agreements 10. Proximity to Eastern Africa and Central African Market. These two have a land area larger than China and a population larger than that of the U.S. 11. A relatively well developed manufacturing base in the Eastern African region. 12. Potential for exploration and exploitation of mineral resources. 13. Favorable weather /Climate as well as attractive and diverse social/cultural environment. 14. A relatively well developed infrastructure • The use of mobile (cell) phones for doing business and telemarketing. • Fixed lines and wireless mobile lines are relatively inexpensive. • The electrical current in Kenya is 240 volts, 50 hertz (cycles per second).

7. KENYA INDIA BILATERAL TRADE AGREEMENTS

8. KENYA –INDIA EXPORT& IMPORT LEVELS

9. COMMUNITY SURVEY RESULTS

10. FAMILY SIZE & DISTRIBUTION

11. PERCEPTION ON TATA COMPANY

12. POPULATION MIGRATION IMPACT • Due to search for employment in the company. • Natural Resources Endangered • Job opportunities to locals no longer assured Mostaffected is water.

14. IMPACT OF LAND ACQUISITION

15. IMPACT ON INFRUSTRUCTURE AND GENDER

16. IMPACT ON EMPLOYMENT AND BUSINESS ENVIRONMENT

17. BENEFITS TO RESIDENT/HOUSED COMMUNITY MEMBERS/WORKERS ON THE ECONOMIC SITUATION:- A number of benefits have accrued to the community as a result of the company existence including: 1. Employment:- • Job opportunity to the youths, women, men and the old (including professionals’ jobs at the plant and manual laborers within the facility. 2. Education:- • Established Education facilities within the company including primary schools and training facility for new staffs. • The company provides scholarships to best students performers within the community and specifically from the company’s primary schools to pursue further education at secondary and university levels.

18. Health Services:- • Health service provision to the community members but at perceived exorbitant rates according to the community members. 3. Housing:- • Good housing facilities to the community members who double as workers as over 90 percent of the neighbourhood are absorbed as either professional or unskilled staffs and housed together with their families at the company’ premises. 4. Security:- • Security benefits to the community as there is established community policing working hand in hand with regular police post at the company to ensure security of the community at the company and the facility environs.

19. 5. Other Business opportunities:- • Benefits of available banking services at the facility where they are able to undertake transaction for their socio-economic needs. • There is a bee hive of economic activities within the company environment as community members outside the plant employments are engaged in various business activities including banking, hotels, shops, butchery, production of cultural artefacts, bars et al for the community. 6. Water services: • The company has ensured access to quality drinking water to the community drawn all the way from Mau hills.

20. 7. Infrastructure:- Roads: • Better road network including tarmac and rail transport that linked the community and the company and facilitates movements of persons and goods hence promoting business. However the tarmac road is quite dilapidated but the company is already doing some renovation on it. Electricity: The community enjoys a wide network of main electrification owing to the utility’s demand from the plant and its population. However those community members outside the company premise are yet to be connected to the main grid despite line passing through their ranches.

21. ENVIRONMENTAL IMPACT & AREAS FOR INTERVENTION BY COMPANY

22. NON COMMUNITY ANALYSIS

23. RECCOMMENDATIONS

24. Thank youdoa@cuts.orghttp://www.cuts-international.org/ARC/Nairobi/