Saturday, 1 September 2012

Kenya: Agriculture Holds Key to Coast Economic Growth

OPINION
The Government has singled out agriculture as one of the key sectors that will drive the growth of our economy. For this reason, we have consistently increased budgetary allocation to the sector. In the current financial year, Sh104 billion shillings, which is about 7 percent of the national budget has been allocated to the Sector, in support of recurrent and development expenditure.

The Coast region has greatly benefitted from the allocations we have made for the agriculture, livestock and water sectors. Regarding livestock development, farmers in the region earned Sh5.9 billion shillings from beef, dairy, poultry and bee-keeping products last year. This was made possible through the concerted efforts of the Government in re-opening K.M.C., New KCC at Miritini and improving disease control progammes.

To further develop this sector, the Government has rehabilitated the Mariakani Dairy Cooperative Society plant with additional processing capacity of 5,000 litres per day. My Government has this financial year allocated Sh1.4 billion for the establishment of a Coastal Disease Free Zone, completion of a Slaughter House in Garsen, rehabilitation of Mariakani Regional Vet laboratory to international standards and rehabilitation of satellite laboratories at Ukunda and Witu. I urge farmers to adopt improved livestock breeds for both dairy and beef farming.

There is also great potential for sugar industries in this region. I am pleased that the Kwale International Sugar Company will start producing sugar by March next year. This factory will cost approximately Sh18 billion. When fully operational it will employ about 3,000 people directly and another 11,500 indirectly. I assure Kwale International Sugar Company of the support of my Government in this venture. However, I urge them to recruit as many farmers as possible as out growers in order for them to benefit from the factory.

Last year, I directed the Ministry of Agriculture to start the process of establishing another sugar factory in the North Coast. While I am pleased that the preliminary feasibility studies have been completed, I call upon the Ministry of Agriculture, the treasury and other agencies concerned to speed up the process.

While lauding the efforts we have made in this region, more effort is needed to increase production. For example, while the region has a potential to produce coconut worth Sh13 billion the current production is worth Sh3.2 billion only. Similarly, while the region has the potential to produce cashew nuts worth over Sh1 billion, the current production is worth Sh280 million. In addition to these industrial crops, this region has high potential for horticultural crops.

Last year, horticultural crops earned the region Sh850 million. This is a small fraction of the existing potential. I urge farmers to devise ways and means of harnessing the unutilized potential and enhance income. The Government will continue to take more steps to create an enabling environment for increased production. In an endeavour to alleviate land problems at the Coast, the Government through the Ministry of Lands has undertaken various initiatives.

These include Land adjudication, settlement, regularizing land ownership, nullification and recovery of illegally allocated public land. Under the Squatter Programme, a total of 53,000 squatters have been issued with ownership documents in an area covering 250,000 acres. Equally important, a total of 4,000 titles have been issued to indigenous people located in various Swahili villages in Lamu.

Issuance of title deeds should be fast tracked.In the area of infrastructure, the dredging of the Mombasa Port is now complete. We are now receiving huge ships never seen in Mombasa before. This has made Mombasa a regional hub and major transport corridor. Construction of a second container terminal is set to begin in a few weeks time.

The terminal that will be nearly one kilometre long will cost Sh25 billion. The Dongo Kundu by-pass and construction of modern dual carriages and highways around Mombasa Island is set to begin at a cost of Sh30 billion shillings. This will also create new economic and social frontiers in this region.

We have also begun construction works on the second Port, as part of the Lamu Port - South -Ethiopia Transport Corridor. This will be Kenya's second development corridor after Mombasa-Malaba. It will create huge opportunities for this region, our entire country and provide a link to neighbouring countries.

We will also begin construction of the standard gauge railway line from Mombasa. This should cut the journey to Nairobi to just two hours.We will also be expanding the Mzima Springs water project in order to ensure a reliable flow of water in this area. To further boost the fortunes of small scale traders, more markets will be built to serve the fisheries sector. The markets will also enable locals to tap the market for tourists and other visitors.

Another intervention being made by the Government is in irrigation because of its huge potential. We are in the process of doubling the acreage under the Bura and Hola Irrigation Schemes. In the next one month, we will ground-break the start of an extra 25,000 acres of land under irrigation in the Bura project.

I wish to remind all Kenyans, that we must always maintain peace and security which is the foundation of our prosperity and democracy. We have just concluded the county peace fora and national peace conference. During these events, Kenyans were unanimous that we should embrace, co-exist and tolerate each other as one people and one nation.

We should never allow any negative forces to divide us along any lines. In this regard, I encourage all Kenyans to work with the Government and seize the emerging opportunities. This is especially critical as we devolve responsibility to the counties. Devolution is an important facet of development.

I advise you to elect responsible leaders who will guide you into an era of social cohesion and economic prosperity in the years ahead. Indeed, counties that will collaborate and partner within and between each other will derive greater economic dividends over those that work alone.

This is an excerpt of President Kibaki's speech at the official opening of this year's Mombasa International Show whose theme is "Enhancing Technology and Industry for Food Security and National Growth.
Original Article Here

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