Attune county, foreign ties to growth

As the nascent county governments settled down, many of them got into relationships with foreign investors.

Several costly trips were quickly organised targeting the industrial world in Asia and the Americas, ostensibly to develop ties with wealthy investors based there.

Counties hosted spectacular investment conferences, where they showcased resources and opportunities to hundreds of local and foreign guests.

At one of these, organised by Kisii, multi-million-shilling deals were signed with foreign investors that would have turned the prospects of the county. Homa Bay, Machakos and Meru also held theirs.

INVESTOR PARADES

However, after burning millions of shillings on top-notch investor parades, there is nothing to show for it.

It has become difficult to move the deals to the next level due to a bureaucratic blockade erected by the national government on how counties and foreigners should relate.

Some of the initiatives by foreign investors who have attempted to follow up on the deals have been sabotaged by powerful national government operatives, who suggested diversion of some of the projects to other counties, forcing an investor flight.

I agree that it is good to regulate such relationships to ensure the devolved units do not fall prey to syndicates by foreign tricksters.

In our midst are individuals, including leaders, who believe that every White man who comes over is an investor. Painful stories abound in counties, where deals with unscrupulous business people introduced by local conmen end up in huge losses.

For the country to move forward, however, investment by foreign business people must be encouraged. Borrowing new ideas and experience is the surest way to spur growth.

AVOID FRAUD

Through intergovernmental relations, the national government must come up with a way that will allow seamless interaction between counties and the investors. Counties should be guided to come up with internal mechanism of engaging foreign investors in order to avoid fraud.

The national government should, however, not be a hindrance to relationships between the counties and foreign investors.

Recently, some Chinese investors who had shown an interest in the fisheries sector in Kisumu are said to have developed cold feet after national government functionaries discouraged them from putting their money in the venture.

The national government must, however, put in place structures to make counties accountable for public funds spent in investments under this category. Of course, the constitutional watchdogs must come into play.

The other day I had an eye-opening trip to Vietnam, China and Taiwan.
In Taipei, Taiwan, I came across a fellow Kenyan who has established a winemaking business with his Taiwanese wife.

WINE BRANDS

Prof Kennedy Ondieki was among hundreds of investors who attended the Kisii forum in 2016 and he tagged along dozens of Taiwanese.

His company makes one of the most expensive wine brands on the island. I was shocked to hear that the wine, which is exclusively for the rich in Taipei and other five major cities in Taiwan, is made from green tea leaves from Nyamache, Kisii.

I noticed a huge interest in investment opportunities in Kenya by Taiwanese and Vietnamese business people, especially in green energy, agricultural, electronics and mechanical sectors.

Yet others were interested in East African hides and skins but cited poor skinning methods as a hindrance despite the availability of the raw material in many Kenyan counties.

Taiwan, a stable Asian state whose potential is appreciated by many African countries, including South Africa, is however wary of investments in Kenya due to Nairobi’s close relationship with mainland China, which it considers a diplomatic foe.

The island is still fighting for diplomatic recognition by the United Nations.

Meru has created a parastatal under a County Assembly Act. The Meru County Investment Authority is tasked with initiating relationships with the diaspora, local residents and foreigners.

This is the way to go. All counties must come up with salient structures capable of managing their relationships with genuine investors in order to industrialise.

What if in every electoral term each one of the 47 counties initiated at least one major investment that would employ 300 people?

Mr Ongiri is a communication expert and international relations Master’s student at the University of Nairobi. [email protected].