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Republic of Kenya
Nairobi County Sessional Paper No. …..of 2019
on
Nairobi City County Trade Policy, 2019
September 2019
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Table of Contents
1.1. INTRODUCTION ............................................................................................................................ 4
1.2. POLICY DEVELOPMENT PROCESS .......................................................................................... 5
1.3. GEOGRAPHIC LOCATION AND SIZE ....................................................................................... 5
1.4. ADMINISTRATIVE STRUCTURE .............................................................................................. 6
1.5. SOCIAL-ECONOMIC CONTEXT .................................................................................................. 7 1.5.1. DEMOGRAPHIC FEATURES ..................................................................................................................... 7 1.5.2. EDUCATION .............................................................................................................................................. 7 1.5.3. POVERTY LEVEL AND HUMAN DEVELOPMENT INDEX ...................................................................... 7
2.1. INTRODUCTION ........................................................................................................................... 9
2.2. POLICY AND LEGISLATIVE FRAMEWORK GOVERNING TRADE POLICY ................... 9 2.2.1. NATIONAL POLICY AND LEGAL FRAMEWORK .................................................................................... 9
1) The Constitution of Kenya ......................................................................................................................... 9 2) The County Governments Act, No 17 of 2012................................................................................. 10 3) The Companies Act, No. 17 of 2015.................................................................................................... 10 4) The Business Registration Service Act, No. 15 of 2015 .............................................................. 10 5) The Small and Micro Enterprises Act, No. 55 of 2012 ............................................................... 10 6) The Weights and Measures Act, Cap 513 ......................................................................................... 11 7) Industrial Training Act, Cap 237 ......................................................................................................... 11 8) Movable Property Security Rights Act, No. 13 of 2017 .............................................................. 11 9) Technical, Vocation Education and Training Act, No. 29 of 2013 ........................................ 11 10) The Small and Micro Enterprises policy, 2005 ........................................................................... 11 11) The Kenya Vision 2030 ......................................................................................................................... 11 12) The National Trade Policy, 2016 ...................................................................................................... 11 13) The National Industrialization Policy, No.9 of 2012 ................................................................ 12 14) The Green Economy Strategy and Implementation Plan, 2016–2030 ............................... 12 15) The Integrated Urban Development Plan for City of Nairobi, 2014 ................................. 12 16) The County Integrated Development Plan, 2018-2022 ........................................................... 12
2.3. INTERNATIONAL POLICY AND LEGAL FRAMEWORK .................................................. 12 2.3.1. THE MULTILATERAL TRADE AGREEMENTS UNDER THE WORLD TRADE ORGANIZATION
(WTO) 12 2.3.2. REGIONAL TRADE AGREEMENTS (RTAS) ....................................................................................... 13 2.3.3. BILATERAL AGREEMENTS BETWEEN KENYA AND INDIVIDUAL COUNTRIES ............................. 13 2.3.4. UN SUSTAINABLE DEVELOPMENT GOALS (SDGS) ........................................................................ 13
2.4. COUNTY CONTEXT ON TRADE ............................................................................................. 13 2.4.1. DESCRIPTION OF COUNTY GROSS PRODUCT ................................................................................... 14 2.4.2. MICRO, SMALL AND MEDIUM ENTERPRISES ................................................................................... 14 2.4.3. DESCRIPTION OF COUNTY’S TRADE OR ECONOMIC ACTIVITIES .................................................. 15
1) Manufacturing .............................................................................................................................................. 15 2) Tourism, Hospitality, Recreation and Leisure ................................................................................ 15 3) Financial services ....................................................................................................................................... 16 4) Information Technology and Communication ................................................................................ 16
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5) Shopping malls and centres .................................................................................................................... 17 6) Wholesale and Retail trade ..................................................................................................................... 17 7) Auto industry ................................................................................................................................................. 17 8) Transport and logistic services ............................................................................................................. 18 9) Education services ...................................................................................................................................... 18 10) Health Services ......................................................................................................................................... 18
2.5. GEOGRAPHICAL COMMERCIAL ZONING OF TRADE OR ECONOMIC ACTIVITIES 19
2.6. PRIVATE SECTOR STAKEHOLDER ORGANIZATION ..................................................... 19
2.7. POLICY RATIONALE ................................................................................................................. 20
3.1. INTRODUCTION ......................................................................................................................... 21
2.8. POLICY VISION .......................................................................................................................... 21
2.9. POLICY MISSION ....................................................................................................................... 21
2.10. POLICY PRINCIPLES .............................................................................................................. 21
2.11. POLICY MEASURES ................................................................................................................ 22 3.1.1. TRADE PROMOTION AND DEVELOPMENT ....................................................................................... 22 3.1.2. TRADE REGULATION ........................................................................................................................... 23 3.1.3. WHOLESALE AND RETAIL TRADE ..................................................................................................... 25 3.1.4. TRADE AND INVESTMENT ................................................................................................................... 28 3.1.5. TRADE AND URBAN SPATIAL PLANNING AND DEVELOPMENT .................................................... 29 3.1.6. TRADE AND ENVIRONMENT (GREEN GROWTH) ............................................................................ 30
4.1. INTRODUCTION ......................................................................................................................... 32
4.2. POLICY IMPLEMENTATION ................................................................................................... 32 4.2.1. INSTITUTIONAL FRAMEWORK ............................................................................................................ 32 4.2.2. PLANNING AND PERFORMANCE MANAGEMENT ............................................................................. 32 4.2.3. LEGAL AND ADMINISTRATIVE REFORMS ......................................................................................... 33 4.2.4. COLLABORATION WITH NATIONAL GOVERNMENT ........................................................................ 33 4.2.5. STAFF CAPACITY DEVELOPMENT ...................................................................................................... 33
4.3. POLICY MONITORING AND EVALUATION ........................................................................ 33 4.3.1. DESIGN OF INDICATORS ...................................................................................................................... 33 4.3.2. MONITORING AND EVALUATION FRAMEWORK AND SYSTEM ........................................................ 34
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Chapter 1
Background Information
1.1. Introduction Trade is a core pillar of economic growth and development. Trade contributes to
economic growth and development through facilitation of establishment and growth of
businesses and the private sector. The private sector in turn create employment, pay
taxes, which contribute to government revenue. Trade contributes to improvement in
standards of living and poverty reduction by enhancing of people’s purchasing power.
Trade is a determinant of human settlement as people migrate and settle in search of
employment or business opportunities. Human settlements have consequential
implications for spatial planning, mobility infrastructure, water and social amenities such
as education and health and eventually trade and commercial processes.
Nairobi City County, which is also referred to as the Nairobi City is the capital of Kenya.
As the capital city, Nairobi plays significant role as the leading commercial hub in
Kenya. It is also the largest city in east and central Africa in terms of economic output.
Nairobi contributes to 21.7% of Kenya’s Gross Domestic Product (GDP). Trade drives
the county’s economy and consequently the national economy. Trade development and
governance is therefore important to Nairobi City County and national government. As
globalization continues driving trends in economic activities such as trade and investment
and competition for investment location, Nairobi city county has strategically to adopt
policy measures to retain national and regional positioning as a leading commercial and
trade hub.
Nairobi city is host to international diplomatic organizations such as UN and its affiliate
bodies, foreign embassies and respective development organizations, World Bank, IMF,
European Union and offices for other international governmental organizations such as
African Union, COMESA and IGAD. These organizations contribute significantly to the
city’s economy through employment creation of local residents, supply of goods and
services to the organizations by residents and convening national and international
meetings in the city.
The Nairobi City County Trade Policy has been prepared therefore a strategic policy
instrument for trade development in the city. The policy provides a framework for
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promotion, development and regulation of trade in the county. The policy provides a
foundation for county development planning, budgeting, regulation and service delivery
in relation to trade. As the county is host to large, medium, small and micro enterprises,
the trade policy provides a balanced approach to addressing the challenges and issues
facing this business diversity.
1.2. Policy Development Process The process of developing this policy was anchored on constitutional underpinnings of
public participation, participatory democracy and stakeholder engagement. The process
of development of the policy entailed conducting review of research reports, policies and
laws related to trade and review of how other cities globally deal with trade within their
national governance structures. The process also entailed conducting consultations with –
National Government Ministry of Trade, Industry and Cooperatives, the National
Treasury and Planning and the State Department of Devolution
All county departments since trade cuts across all county sectors and departments
The private sector or business community including representatives from Kenya
National Chamber of Commerce and Industry (KNCCI), national and Nairobi
offices, Kenya Private Sector Alliance (KEPSA), Kenya Association of
Manufacturers (KAM), Jua Kali Associations, wholesale and retails markets,
public transport SACCOs and other business associations operating in Nairobi
Development partners
The views and recommendations of the public and private sector stakeholders were taken
into consideration when adopting the policy measures. A balanced approach to policy
direction and measures was adopted in order to ensure that the diversity and multiplicity
of public and private sector policy interests was integrated.
1.3. Geographic Location and Size Nairobi City County borders Kiambu County to North and West, and Kajiado to the
South and Machakos to the East. Nairobi City County is located between longitudes
36045’ East and Latitudes 1
018’ South and lies at an attitude of 1,798 metres above sea
level. The county has a total area of 696.1 Km2.
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Figure 1 Nairobi City County Map
Nairobi’s geographical location makes and being the capital city makes is the leading
trade and commercial hub in the country. The city is a key market for goods and services
produced from the neighbouring counties.
1.4. Administrative Structure The county consists of 17 sub-counties, namely Starehe, Kamukunji, Kasarani,
Roysambu, Ruaraka, Makadara, Embakasi South, Embakasi North, Embakasi Central,
Embakasi East, Embakasi West, Dagoretti North, Dagoretti South, Lang’ata, Westlands,
Westlands, Kibra and Mathare. There are 85 wards in the county, which are represented
to the county assembly by a Member of the County Assembly.
County development planning and service delivery is organized around the county
administrative units, with the ward being the lowest unit of development planning.
Administrative structure in these units will play key role in supporting the
implementation of the trade policy
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1.5. Social-Economic Context
1.5.1. Demographic features
The county total population in the county was 3,138,369 in 2009 and was 4,941,708 in
2018. It is estimated that the total population will be 5,433,002 and 5,958,338 in 2020
and 2022 respectively. The county population that is below 35 years is 77%. The labour
productive age bracket of 15-64 years is 65% of the total population. This is the
population that would ordinarily be engaged in economic activities as employees or in
self-employment. The county has an annual population growth rate of 4%, which is
contributed to by births and high rural-urban migration. The county is also characterized
as multi-racial and multi-ethnic.
The county’s has a population density is 4,850 persons per Km2.
1.5.2. Education
The literacy levels in the county are 98.3%, which is the highest in the country. This is an
indicator of the population above the age of 15 years that is able to read and write. This is
an indicator that the labour force (labour productive age group or 15-64 years) is literate.
This implies that the population would have good uptake of the trade policy measures
provided and adopted herein. The population would have a high uptake of information
based policy measures.
1.5.3. Poverty level and Human Development Index
The county population that may be classified as poor is 16.7%, which is the lowest in the
country. The national poverty level stands at 36.1%. This population would ordinarily be
living in informal settlements such as Kibra, Mathare, Huruma, Mukuru, Kawangware,
Korogocho and other satellite settlements. Whereas poverty levels in Nairobi are the
lowest in the country, county residents face a unique form of poverty commonly referred
to as urban poverty which is characterized by poor housing, unaffordability of adequate
quality food (nutritional) since most of the food consumed by households is purchased
from outlets, poor mobility and transport and lack of social safety nets. In addition, the
population is more vulnerable to economic shocks such as rise in food, housing, health
and transport prices.
The Human Development Index (HDI) is a summary measure of average achievements in
key dimensions of human development, a long and healthy life (life expectancy at birth),
knowledge (expected years of schooling) and a decent standard of living (Gross National
Index Per Capita). A Human Development Index of less than 0.550 signifies a low human
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development, 0.550 – 0.699 signifies medium human development, 0.700 – 0.799 for
high human development and 0.800 or greater for very high human development.
Nairobi City County has a Human Development Index of 0.64. This implies the extent to
which the county population meets the 3 criteria of HDI a long and healthy life,
knowledge and a decent standard of living. From the HDI categorization, the county has a
medium human development. This corresponds with the low poverty index.
Poverty and human development have implication for the population’s uptake of
engagement to economic activities such as trade and business. It also influences the trade
related issues such as access to capital, level of entry in business value chain, form of
business and trade activities engage in and utilization of trade related information.
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Chapter 2
Situational Analysis, Policy and Legislative
Context
2.1. Introduction The situational analysis for trade policy in the county is characterized by the governing
national and global policy and legal framework governing trade policy and the county
context on trade policy.
2.2. Policy and Legislative Framework Governing Trade Policy The policy and legal framework governing trade that has implications on this policy is
diverse. This section provides a summary of the national and international policy
framework, which has bearing on this policy.
2.2.1. National Policy and Legal Framework
1) The Constitution of Kenya
The Constitution lays the foundation for trade policy and trade development. Sustainable
development, which is one of the pillars of trade development is enshrined as one of the
national values. Other national values such as good governance, inclusiveness, social
justice, equity, democracy and participation of the people, transparency and
accountability have implications on the development, adoption and implementation of
trade policy measures. One of the objects of devolution under Art. 174 is to promote
social and economic development. The trade policy is one of the instruments for social
and economic development.
Under the Bill of Rights, trade policy is advanced in Art. 27 (equality and freedom from
discrimination), Art. 31 (privacy especially right not to have possessions seized), Art. 40
(protection of the right to property), Art 41. (labour relations) and the consumer rights
(Art. 46).
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Further, the Constitution assigns specific functions under Part 2 of the Fourth Schedule.
Section 7 assigns the function of trade development and regulation to counties which
includes–
markets
trade licences (excluding regulation of professions)
fair trading practices
local tourism
cooperative societies
In addition, other functions with implications on trade include agriculture (especially
marketing) county health services (especially licensing of food undertakings), public
entertainment and public road transport.
2) The County Governments Act, No 17 of 2012
The County Governments Act provides for governance and administration of county
government. The Act provides for development and delivery of public services, which
include public services related to trade. Art. 120 of the Act obligates the county
government to develop and adopt a tariff pricing policy for guiding how the county
government adopts various tariffs. Most of the economic activities attract certain tariffs in
the form of charges, fees and levies.
3) The Companies Act, No. 17 of 2015
The Companies Act, No. 17 of 2015 provides for registration and governance of
companies. A Company is the core form of formal registration of business entities as it
addresses the liability issues and separation between owners and the business as distinct
identity. Business registration and governance form the core of engagement of the
business in economic or trade activities.
4) The Business Registration Service Act, No. 15 of 2015
The Business Registration Service Act, No. 15 of 2015 provides for the establishment of
business registration service that is responsible for registration of businesses.
5) The Small and Micro Enterprises Act, No. 55 of 2012
The Small and Micro Enterprises Act, No. 55 of 2012 provides for promotion of
development of Small and Micro Enterprises (SMEs) as well as regulation of SMEs. It
also provides for the establishment of SME fund for providing access to affordable credit
and capital for SMEs.
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6) The Weights and Measures Act, Cap 513
The Weights and Measures Act, Cap 513 provides for the regulation of measurements for
packed goods for sale, prescription of units of measurement, weighing and measuring for
trade and testing system for verification and standardization of measurement machines.
7) Industrial Training Act, Cap 237
The Industrial Training Act provides for regulation and management of apprenticeship
and industrial training. The Act provides for the process of provision of apprenticeship by
industries.
8) Movable Property Security Rights Act, No. 13 of 2017
The Movable Property Security Rights Act, No. 13 of 2017 provides for use of movable
properties as collateral for credit facilities. The Act provides the registration of movable
properties such as chattels, which form the bulk of SMEs affordable collateral.
9) Technical, Vocation Education and Training Act, No. 29 of 2013
The Technical, Vocational Education and Training Act, No. 29 of 2013 provides for the
establishment of technical education and vocational training. This includes establishment
and governance of training institutions. Technical and vocational education and training
is the core driver of labour integration and mobility in trade and economic activities
especially in self employment.
10) The Small and Micro Enterprises policy, 2005
The Small and Micro Enterprises, 2005 provides for the promotion of micro and small
enterprises. The policy provides for promotion and development of SMEs through
facilitation of access to credit and capital formalization, training and capacity
development and business development support.
11) The Kenya Vision 2030
The Kenya Vision 2030 provides for transformation of Kenya into a globally competitive
industrialized economy. Under the economic pillar, the Kenya Vision 2030 provides for
development of wholesale and retail trade, manufacturing, agro-processing and tourism.
12) The National Trade Policy, 2016
The National Trade Policy, 2016 seeks to transform Kenya into a competitive exports led
and efficient domestic economy. It seeks development and growth of domestic wholesale
and retail trade, growth of micro and small enterprises trade, and international trade. In
addition, the policy seeks to facilitate growth of e-commerce, human capital development
for trade, promotion of trade and environment and trade and finance.
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13) The National Industrialization Policy, No.9 of 2012
The National Industrialization Policy, No. 9 of 2012 provides for promotion of
development of industries for purposes of facilitating national industrialization. It
provides for development export oriented industrialization through prioritization of
industries such as agro-processing, textiles and clothing, leather and leather products, iron
and steel industry, machine tools and spares as well as pharmaceutical industry.
14) The Green Economy Strategy and Implementation Plan, 2016–2030
The Green Economy Strategy and Implementation Plan 2018–2012 provides for
mechanisms for the development of a green economy in Kenya through the promotion of
sustainable infrastructure, building resilience, sustainable resource management,
promotion of resource efficiency and social inclusion and livelihoods.
15) The Integrated Urban Development Plan for City of Nairobi, 2014
The Integrated Urban Development Plan for City of Nairobi, 2014 provides for urban
development planning and transformation which includes development of urban transport
infrastructure and traffic management system, sustainable urban waste management,
industrial development and development of urban/town centers in Nairobi.
16) The County Integrated Development Plan, 2018-2022
The County Integrated Development Plan, 2018–2022 provides for development of trade
and commerce through creation of enabling environment for domestic and investment,
regulation of business licensing, promotion of legal metrology and promotion of domestic
tourism. The development plan seeks to increase access to finance, improved sector
working environment, capacity development in the cottage industry, increased utility of
trading spaces and trade licensing reforms.
2.3. International Policy and Legal Framework
2.3.1. The Multilateral Trade Agreements under the World
Trade Organization (WTO)
The multilateral trade agreements under the World Trade Organization (WTO) such as
General Agreement on Trade and Tariffs (GATT), General Agreement on Trade in
Services (GATS), Agreement on Trade Related Investment Measures (TRIMS),
Agreement on Sanitary and Phytosanitary Standards (SPS) have implications on
domestics trade in the country and consequently the county. The agreements provides for
reduction of tariffs and elimination of non-tariff barriers within the domestic market that
may hinder international trade. They also provide for
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2.3.2. Regional Trade Agreements (RTAs)
The Regional Trade Agreements that have implications on trade policy in Nairobi County
are–
(a) Africa Continental Free Trade Area
(b) East African Community (EAC)
(c) Common Market for East and Southern Africa (COMESA)
(d) Economic Partnership Agreement between EU and EAC (which at global
level is referred to as EU-Africa Caribbean Countries)
The RTAs provide for further elimination of WTO level tariffs among the member
countries, free movement of capital, services and labour and elimination of non-tariff
barriers. The RTAs have resulted in importation of cheaper goods from neighbouring
countries, which are more competitive than locally sourced materials.
2.3.3. Bilateral Agreements Between Kenya and Individual
Countries
Bilateral agreements between Kenya and other countries have resulted in importation of
cheaper products or entry of workers from those countries who have competed for the
same market with the local operating in the same businesses.
2.3.4. UN Sustainable Development Goals (SDGs)
The policy seeks to implement –
(a) Goal 1: End poverty in all its forms everywhere
(b) Goal 7: Ensure access to affordable, reliable, sustainable and modern energy
for all
(c) Goal 8: Promote sustained, inclusive and sustainable economic growth, full
and productive employment and decent work for all
(d) Goal 9: Build resilient infrastructure, promote inclusive and sustainable
industrialization and foster innovation
(e) Goal 10: Reduce inequality with the country (county)
(f) Goal 11: Make cities and human settlements inclusive, safe, resilient and
sustainable
(g) Ensure sustainable consumption and production patterns
2.4. County Context on Trade Nairobi County is the commercial and industrial hub in Kenya. Trade is the leading
economic driver in the county. As noted above, Nairobi is the largest city by output in the
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region. The economic activities in the city can be described as consisting of diverse
sectors. The key sectors include manufacturing and processing, tourism and hospitality,
financial services, telecommunication, wholesale and retail, transport and logistics
services, auto industry, education and health services among others. The trade in Nairobi
City County may also be classified according to the level of formality, capitalization and
turnover in terms of large, medium, small and micro enterprises. Trade in the city is
geographically bound with different trade activities being prominent in specific localities.
This section describes the County Domestic Product (GCP) and the predominant
economic or trade activities in the county.
2.4.1. Description of County Gross Product
The Gross County Product (GCP) is a measure of value created through production by all
economic agents in a county based on the appropriate economic indicators. This is an
economic measure that was initiated by the Kenya National Bureau of Statistics (KNBS)
in 2019.
From 2013 to 2017, the average contribution of Nairobi City County to the Gross
Domestic Product (GDP) was 21.7%. The county has the highest current price GCP,
which was at Ksh. 1,492,323 billion in 2017, 1,379,459 billion in 2016, 1,230,361 billion
in 2015, 1,107,647 billion in 2014 and 1,003,072 billion in 2013. Between 2014 and
2017, the county’s GCP growth remained stable at 5.6%. The county’s current prices per
capita GCP was Ksh. 212,498 in 2017 and Ksh. 211,055 in 2016. Manufacturing and
services sectors are the largest contributors to the county’s GCP.
2.4.2. Micro, Small and Medium Enterprises
According to the 2016 Basic report on Micro, Small and Medium Enterprises by Kenya
National Bureau of Statistics, there are 268,100 licensed Micro, Small and Medium
Enterprises (MSMEs) in the county out of which 83.8% are micro enterprises, 14.8% are
small enterprises and 1.4% are medium enterprises. At the same there are 782,500
unlicensed MSMEs. In terms of employment, the MSMEs employ 2,851,000 persons
with licensed micro enterprises contributing 741,500, small enterprises 750,700 and
medium enterprises 252,300 persons. Unlicensed micro enterprises employ 1,106,900
which would be classified as informal sector. Consequently, licensed enterprises
contribute to 61.2% and unlicensed enterprises contribute to 38.8%. The key economic
activities that most of the enterprises engage in are in manufacturing, wholesale and retail
trade, accommodation and food service activities and financial and insurance among
others.
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2.4.3. Description of County’s Trade or Economic Activities
The county trade is driven by diverse sectors and economic activities. The key economic
or trade activities include manufacturing, tourism, hospitality, leisure and recreation,
financial services, information technology and communication, shopping malls and
centers, wholesale and retail trade, auto industry, transport and logistics services,
education services and health services among others. The sectors and economic activities
provide employment to county residents, facilitate establishment and development of
businesses which make Nairobi City to be a regional trade and commercial hub. Industry
players in the sector are organized as large multinational companies or enterprises, large
national enterprises, medium, small and micro enterprises.
1) Manufacturing
Manufacturing the Nairobi is predominantly located in industrial area and Baba Ndogo
where the main manufacturers are located. A wide range of consumer products is
manufactured in Nairobi city. Key industries located in Nairobi include confectionery,
pharmaceutical, food processing, auto-assembly, ceramics, metal fabrication, iron and
steelworks, paints, dairy processing, water bottling, paper, packaging materials, edible
oils, chemicals, agro-processing, Nairobi city is a host to Export Processing Zones
(EPZs) that offer manufacture of goods for export market. There are also light industries
engaged in manufacturing are located in Kariobangi and metal works and fabrication in
Kamukunji.
Manufacturing is a leading employer in the county especially for the low-income earners
since most of it is labour intensive. Informal settlements such as Korogocho, Mukuru
have coalesced around manufacturing hubs.
2) Tourism, Hospitality, Recreation and Leisure
Nairobi City County is endowed with tourism attraction sites and cultural centers which
are of national nature, key among them being Nairobi National Park which consists of
animal orphanage and Nairobi Safari Walk, the National Museum which includes the
Snake Park and the National Archives.
The county landmark hospitality and entertainment facilities and services such as –
(a) Leading hotel brands e.g. Serena, Sarova Panafric and Sarova Stanley, Villa Rosa
Kempinski, Radisson Blu, Sheraton, Hilton, Movenpick, Sankara, Fairview,
Fairmont Hotel, Norfolk, Hemmingways, Best Western and The Tribe
(b) Leading restaurants brands e.g. Java House and Artcaffe
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(c) Meetings, Incentives, Conferences and Events products with Kenyatta
International Conference Center (KICC) leading in terms of hosting international
meetings for global bodies such as UN e.g. UNCTAD conference
(d) Leisure and recreation centers such as Uhuru Park, Uhuru Gardens, the Helipad
at Kenyatta International Conference Center (KICC)
(e) Cultural entertainment centers such as the Bomas of Kenya, the Kenya National
Theatre and art galleries
3) Financial services
The financial institutions have played a key role as intermediaries in trade activities
through provision banking services, access to credit and capital and facilitation of e-
commerce e.g. mobile banking and mobile money transfer. This has facilitated growth
and development of trade in Nairobi city. Nairobi is a national and regional hub for
financial services, which include–
(a) The Central Bank of Kenya
(b) The Nairobi Securities Exchange (NSE) and the stock/securities brokers
(c) All leading national and international banks operating in Kenya such as Kenya
Commercial Bank (KCB), Equity Bank, Cooperative Bank, Standard Chartered,
ABSA-Barclays Bank, NIC and Commercial Bank of Africa (the banks were in
the merger process at the time of developing this policy), Stanbic, Housing
Finance, Diamond Trust and I&M banks among others. The banks have created
auxiliary financial service providers who are agents of the banks.
(d) Microfinance banks or institutions such as Kenya Women Microfinance bank,
and Faulu Microfinance bank
(e) The leading insurance industry players such as Jubilee Insurance, AAR, UAP,
Britam, Heritage, Sanlam, CIC, Directline Assurance and Madison and insurance
brokers such as AON Minet.
(f) Mobile money lending companies
(g) Forex bureaus
(h) Other unregulated financial intermediaries such as Shylocks
4) Information Technology and Communication
Information technology and communication is one of the foundations of the county’s
economic growth and development. Most of the trade in Nairobi is dependent or
supported by Information Technology and Communication (ICT). Some of the key
players in the industry include –
(a) The main mobile service providers i.e. Safaricom, Airtel and Telecom and
companies providing IT support and retails agents to these companies
(b) International information technologies companies such as IBM, Oracle, Google,
Microsoft, Facebook and SAP
(c) Local IT software development companies with international brand such as
Seven Seas, Craft Silicon and Cellulant among others
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(d) IT Innovation hubs such as Nailab and ihub that provide incubation and support
system for IT entrepreneurs
(e) Other local Small and medium sized IT software developers and distributors and
retailers of IT equipment and software
This sector is one of the growing sectors for entrepreneurs and start-ups especially among
the youth.
5) Shopping malls and centres
The concept of shopping malls have revolutionized how business, leisure and
entertainment blend. Nairobi is a host to leading landmark shopping malls in the regions
such as the Village Market, the Hub, the Two Rivers, the Junction, Sarit, Yaya Center,
Garden City, Thika Road Mall, and the Galleria Mall among others. The malls have
provided growth in retail market especially restaurants, household goods and clothing.
They have also provided entertainment and leisure opportunities for local residents and
tourists.
6) Wholesale and Retail trade
The City has vibrant wholesale and retail industry due to its being an industrial and
commercial hub in the country. Wholesale and retail trade is a core economic activity in
the city and include–
(a) Leading retail supermarkets in the country such as Tuskys, Naivas, Carrefour,
Foodplus, Nakumatt, the Game Store, Choppies, Eastmatt, Quickmatt and
Cleanshelf supermarkets
(b) Agricultural/food products wholesale and retails markets such as Wakulima
market, Githurai market, Kangemi market, City Park and City Market
(c) Clothing and domestic products markets such as Gikomba, Toi, Muthurwa,
Nyayo, Kenyatta, Korogocho and Eastleigh markets
(d) Meat product markets such as Dagoretti, Burma and Kiamiko markets
(e) Ordinary wholesale and retail outlets and exhibitions across different regions in
the city which are the bulk of the trades and economic activities
(f) Temporary markets for items such as artifacts and curios which are commonly
referred to as Maasai markets which take place in shopping malls or county
designated market areas
7) Auto industry
The auto industry in Nairobi is very vibrant economic activity and is characterized by –
(a) Franchise Motor vehicle assemblers and dealers such as Toyota, Isuzu, DT
Dobie, Simba Colt, Car & General, Jaguar- Landrover Kenya, Honda, Ashok-
Leyland
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(b) Second hand (used) motor vehicles importers and dealers operating in car bazaars
across Nairobi
(c) Dealers in motor vehicle spare parts mainly operating along Kirinyaga road,
Ngara and Industrial Area
(d) Motor vehicle repairers operating along Kirinyaga road (Grogan), industrial area,
Ngara, Pangani and along various road reserves in town centers across the city.
The industry provides significant investment opportunities and employment in Nairobi.
8) Transport and logistic services
Nairobi is the national and regional transport and logistics hub (both air and road
transport) due to geographical location and investments. The industry consists of players
such as –
(a) Jomo Kenyatta International Airport (JKIA) and Wilson Airport and related
logistics services such as cargo handling, clearing and forwarding and transport
services
(b) Courier service forms such as DHL, Wells Fargo, Fedex, UPS, Aramex and other
courier service providers associated with public service vehicles e.g. 2NK, Coast
Bus and Mololine
(c) Public transport services operating within the city and inter-city
(d) Taxis services such as online taxi companies such as Jim Cab, Pewin Travel
Group, Uber, Taxify, Delight Cabs, Jatco Travels and Little Cab. In addition
there are other companies and individuals providing regular taxis
9) Education services
Education services are essential for the population residing in Nairobi County. The city is
endowed with public and private primary, secondary and tertiary education institutions.
The city is a host to international schools that meet education needs of international
expatriates and Kenya’s middle and upper class. These institutions play a key role in the
City’s economy through job creation, consumption of transport service, housing and
accommodation, cleaning services, security services, health and hospitality services. The
city hosts some of the leading universities in Kenya such as University of Nairobi,
Strathmore University, Daystar University, United States International University (USIU)
and Kenya College of Accountancy (KCA) University.
10) Health Services
As the capital city, Nairobi plays a leading regional role in provision of public and private
health services. The city hosts the leading hospitals in Kenya such as Kenya National
Hospital (KNH), Nairobi Hospital, Agha Khan University Hospital, MP Shah Hospital
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and Mater Hospital among others. Other key hospitals include Mathari hospital (the
leading psychiatric hospital), National Spinal Injury Referral Hospital, Mama Lucy
Kibaki Hospital, Nairobi West Hospital, Avenue Hospital Nairobi and Nairobi Women’s
Hospital. The city is also host to leading health research institutions such as Kenya
Medical Research Institute (KEMRI), Amref Health Africa and Center for Disease
Control (CDC), US. Nairobi also hosts leading emergency medical services providers
such as Amref Health Africa, Kenya Red Cross and St. Johns Ambulance.
The health service providers contribute to national and regional medical tourism where
people move to the city to seek medical care. The research institutions attract local and
international researchers and research based conferences. Consequently, the health
facilities and institutions promote trade in other sectors such as health professional’s
practice, transport, hospitality, housing and accommodation, pharmaceutical industries
value chain players, cleaning services and security services among others
2.5. Geographical commercial zoning of trade or economic activities Trade or economic activities in Nairobi are geographically spaced and situated in diverse
localities. The geographical distribution and zoning of trade and economic activities in
Nairobi is significant as it influences location of new business enterprises and mobility of
economic activities across diverse locations. Some of the notable geographical
commercial zones in Nairobi include–
(a) Industrial Area including Baba Ndogo and Kariobangi Light Industries
(b) Commercial Areas especially office and hotels locational areas and such as
Central Business District, Westlands, Upper Hill, Riverside
(c) Town centers or shopping centers which predominantly host retail trade e.g.
BuruBuru, Lang’ata, South B, South C, Lavington, Kilimani, Kileleshwa,
Embakasi, Kasarani, Githurai, Gigiri and Kahawa West among others
2.6. Private sector stakeholder organization Trade or economic activities are generally undertaken by the private sector. In order to
enhance private sector engagement with the county government or national government
and promote growth of enterprises participating in trade, the private sector or business
community has formed or organized itself around Business Member Organizations
(BMOs). The BMOs are formed based on–
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(a) Geographical location where economic actors are located e.g. countywide, town
center or streets
(b) Economic or commercial interests e.g. sector or industry based BMOs such as
Jua Kali Associations
(c) Branches or chapter of national BMOs
The BMOs have played a significant role in partnering with the county government on
diverse trade development initiatives and service delivery platforms.
2.7. Policy Rationale The rationale of developing and adopting this policy is to–
(a) Provide for a policy framework for implementing constitutional functions
assigned to the county in relation to trade
(b) Promote development of trade in the county so as to facilitate economic
growth and employment creation in the county
(c) Provide a policy framework for regulating trade
(d) Provide a policy framework for promoting Nairobi city as an investment
destination
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Chapter 3
Policy Framework
3.1. Introduction This chapter provides for the policy framework that shall govern trade in the county. The
chapter provides for the vision and the purpose of the policy, the policy principles that
guide the adoption of the policy measures and the policy measures. The policy measures
describe the direction the government and the stakeholders will pursue in order to
mitigate, resolve and address the policy challenges.
2.8. Policy Vision In terms of trade, the vision of Nairobi City is to be a leading city that is competitive in
trade and business environment, which is the best to start and grow business.
2.9. Policy Mission In relation to trade, the mission of the Nairobi City County is to promote and facilitate
trade and business development through adoption and implementation of effective
regulations and efficient and sustainable trade supportive service delivery.
2.10. Policy Principles The trade policy is based on the following principles–
(a) Free enterprise by promoting market allocative efficiency in the demand
and supply of goods and services within the county mandate on trade
policy
(b) Business friendly environment that minimizes regulatory burden on
private sector
(c) Predictability of trade regulatory framework including licensing and
inspections
(d) Inclusivity and non discrimination of all economic actors irrespective
of social and economic structures as well as inclusion of private sector in
public policy process related to trade
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(e) Sustainable development in ensuring that trade contributes to wealth
and employment creation while ensuring consumption and management
of resources does not jeopardize access to the same resources by the
future generations
(f) Innovation by promoting advancement, acquisition and adaptation of
trade related innovation
(g) Collaboration and networking among businesses, between county
government and the private sector and between county and national
government
2.11. Policy Measures
3.1.1. Trade Promotion and Development
Context and issues
Trade is undertaken mainly by private actors as individuals or corporate entities.
Individuals or entities are responsible for initiation and developing their enterprises
irrespective of the operating environment. However, there are diverse individuals or
entities that face diverse market barriers and challenges such as entry barriers, exit
barriers, industry competition (whether fair or unfair competition) among others. Some of
these barriers include –
(a) Inadequacy of skills and technical knowhow on business management and
industry related issues
(b) Lack of access to capital especially for capital intensive industries
(c) Lack of business premises or operating space especially for the youth and new
industry entrants
(d) Lack of exposure to markets
(e) Low innovation or inaccessible technology relevant for businesses
(f) Complex supply value chains
(g) High competition and effects of globalization
(h) High defaults in trade credit which has resulted in financial distress for many
traders and collapse of some businesses
(i) Lack of affordable credit
Policy Objective
To increase entry and sustainability of enterprises into various industries
Policy Measures
In order to promote and develop trade, the county government shall –
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(a) In collaboration with national government and relevant stakeholders establish a
vocational and technical training programme suitable for business individuals or
enterprises for purposes of technical skills acquisition
(b) In collaboration with the private sector and relevant stakeholders–
(i) Establish and provide relevant business development services
(ii) Provide or facilitate training and capacity development for enterprises for
purposes of promoting business growth and sustainability
(iii)Establish business development centers to provide business development
services and support
(c) In collaboration with the private sector and relevant stakeholders promote the
culture of entrepreneurship and facilitate establishment of –
(i) entrepreneurship development programmes
(ii) business coaching and mentorship for entrepreneurs
(iii)business or trade incubation programme and centers
(d) Promote and facilitate trade or business innovation adaptation and e-commerce
especially for small and micro enterprises
(e) In collaboration with national government and private sector, carry out industry
or sector specific research and analysis to establish existing market entry barriers
related to the trade policy or industry practices and initiate policy and legislative
measures to reduce or eliminate the barriers
(f) Establish a database for individuals and entities conducting business in the
county, disaggregated on the basis of such attributes such as industry, large,
medium, small or micro enterprises
(g) In collaboration with the private sector, establish programme for industry
relevant market linkages and collaboration among the private sector players
(h) In collaboration with national government and relevant stakeholders establish a
mechanism for effective and efficient repayment of trade credit among traders in
the county and enforcement of the same
(i) There shall be established a County Trade Development Fund to provide
affordable credit to small and micro enterprises and developing business
incubation processes, and which shall be administered by representatives from
public and private sector
(j) There shall be established the County Trade Advisory Council consisting of
government and private sector, including representation from commercial or
industrial districts as provided under this policy, for purpose of promoting
public-private dialogue, public-private partnership and collaboration
(k) The county government shall establish measure for Aid coordination for all
financial Aid or technical support the county receives from development
partners.
3.1.2. Trade Regulation
Context and issues
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Section 7 of Part 2 of the Fourth Schedule assigns to the county trade regulation
functions. Trade regulation relates to matters such as weights and measures, unfair
trading practices, licensing, inspections and compliance. The county and business
community faces several challenges including–
(a) Unfair trade practices such as operating businesses in areas designated for other
businesses, deceptive advertisement and misinformation, deceptive trade
practices
(b) Tampering with odometers and scales
(c) Selling goods in packages and quantities that do not comply with Weights and
Measures Act
(d) Establishing competing businesses by employees in proximity e.g. next door to
their previous employers upon departure from employment
(e) Advertising products with intent to sell them at different price or quantity that the
advertised price
(f) Misleading facts as to quality of the products being sold
(g) Unpredictable business inspections regime
(h) Unpredictable and business disruptive enforcement mechanism and procedure for
non compliance with business or trade laws and regulations
Policy Objectives
(a) To enhance increase transparency, accountability and efficiency in enforcement of
trade or business related laws
(b) To increase compliance with fair trade practices laws and regulations
Policy Measures
In order to mitigate the challenges related to trade regulation, the county government
shall–
(a) Enact, implement and enforce unfair trade practice law and weights and measures
in accordance with the national standards and international best practices
(b) Develop and adopt standard operating procedures for carrying out business
inspections for the purpose of ensuring compliance with county laws or national
laws as may be prescribed
(c) Establish a business regulation unit that shall be responsible for implementing and
enforcing trade or business related laws
(d) Promote and facilitate compliance with county related laws and enforcement of
county laws related to trade and business
(e) Develop the Tariff Pricing Policy in accordance with the County Governments
Act that shall guide the process of designating fees, levies and charges
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(f) Develop legal framework for regulating trade in residential areas and prohibiting
certain economic or trade activities that are incompatible with residential areas
(g) Establish a comprehensive and integrated business licensing automated system
(h) Publish all trade or business related regulatory requirements and compliance
expectation in the county website, which shall continuously be updated
(i) The county government shall in collaboration and consultation with the private
sector adopt regulatory framework for promoting, facilitating self-regulation on
specific matters as may be prescribed
(j) Levy such fees, charges and levies on economic activities as may be appropriate
provided that the county government shall adopt the principles of equity, fairness,
cost-benefit balance, reasonableness, implications on cost of doing business in
adopting such fees, charges and levies.
3.1.3. Wholesale and Retail Trade
Context and Issues
Wholesale and retail trade is a leading sector in the county. The county plays a key role in
supply value chains in food products, agricultural products, finished products. Wholesale
trade takes place mostly in markets such as Wakulima market or through distribution and
warehouses/depots. Retail trade takes place in supermarkets, open-air markets or semi-
enclosed markets e.g. Gikomba, Nyayo or Toi markets, retail outlets commonly known as
exhibitions, or in the ordinary retail shops. The wholesale and retail trade experience the
following challenges–
(a) Inadequacy of wholesale and retail public markets which has resulted in
proliferation of hawking and informal trade and congestion in the operational
public markets
(b) Poor physical infrastructure in the public markets such as roads, water and
sanitation, electricity, waste management and storage facilities, which prevents
sustainable growth of the markets as drivers of wholesale and retail trade
(c) Persistent conflicts on management of public markets such as Gikomba coupled
with persistent arson attacks
(d) Poor governance of the markets and presence of middlemen operating within the
markets which negatively affects operations of the markets
(e) Weak operation of market forces of supply and demand in determining of prices
especially in food and agricultural wholesale products
(f) Weak linkage between the farmers and wholesalers in the county for purposes of
developing the value chains in food market
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(g) Low uptake of technology and innovation in the wholesale and retail trade
especially in the public markets
(h) Proliferation of informal trade and hawking in the city which has increased
encroachment of business areas where other licensed businesses operate
(i) Proliferation of retail trade along road reserves, illegal worksites and other non-
designated areas. These structures are often demolished by public authorities in
the event of roads expansion and recovery and further utilization of public or
private land where the worksites operate unlawfully in public or private land
(j) Sub-optimal utilization of space in the public markets due to poor planning and
infrastructure development
(k) Multiple licensing requirements for wholesale and retail traders which increases
compliance burden for business
Policy Objectives
(a) To enhance the growth of wholesale and retail trade and integration of informal
retail trade in the formal overall wholesale and retail trade
(b) To improve regulation of trading and business operations areas for retail trade
Policy Measures
In order to mitigate the challenges related to wholesale and retail trade, the following
policy measures shall be adopted–
(a) The county government shall in collaboration with the private sector register
persons and entities engaged in wholesale and retail trade and maintain a
database
(b) All persons or entities engaging in wholesale or retail trade whether formal or
informal shall be registered with the county for purposes of facilitating planning
and efficient service delivery
(c) The county government shall, in collaboration with national government and
private sector–
(i) Designate, delineate, survey and gazette all public wholesale and retail
markets and maintain title deeds for each market
(ii) Designate specific markets for wholesale trade only
(iii)Establish an automated or online platform or trading and operational
system for management of trade in the wholesale markets
(iv) Redevelop and upgrade the wholesale and retail public markets into
modern markets for purposes of increasing the capacity and optimal
utilization of the scarce land space
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(v) Develop and adopt, where appropriate public-private partnership for
upgrade and infrastructure development of the markets
(vi) Promote establishment of business parks as the modern wholesale and
retails markets
(vii) Develop infrastructure in the markets which shall include development
of all weather roads and pavements, waste management system, drainage
and storm water management, public lighting, reliable water supply,
sanitation and security among others
(d) There shall be established –
(i) management committees for each wholesale or retail market which shall
consist of traders in the respective market and the county government
(ii) rules and by-laws for co-management and co-governance of wholesale
and retail trade markets which may include self-regulation
(e) Each wholesale or retail market shall establish a sustainable waste management
system
(f) The county government shall in consultation and collaboration with national
government and wholesale and retail traders –
(i) classify markets in the county
(ii) designate temporary retail markets, areas where such markets may be
situated and schedule days and durations when such temporary markets
may be held and the permitted products that may be traded
(iii)organize, promote organization or facilitate trade fairs, exhibitions and
trade festivals for designated products, sector or industries for purposes of
promoting trade
(g) Subject to the Public Finance Management Act, the county government shall
designate at not less than 30% of the fees and charges collected from the markets
for defraying operational costs of management and maintenance of the markets
including infrastructure development and maintenance
(h) Where a wholesale market has been established, retail trade on similar products
offered in the wholesale trade market shall be prohibited
(i) There shall be established a legal framework for regulating and managing
informal trading and hawking which shall include–
(i) Regulation of trading areas for informal trade and hawking
(ii) Promoting integration of informal trade in the formal trade value chains
(iii)Designation of specific trading areas or zones for informal trade
(iv) Providing specific training and capacity building for traders operating in
the informal trade so as to facilitate business growth and integration in the
formal sector
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(v) Creating a conducive business environment for informal trade
(j) There shall be established a trade alternative dispute resolution committee which
shall consist of government and private sector for purposes of resolving disputes
between county government and wholesale and retail traders
(k) The county government shall promote development of organized retail trade in
neighbouhoods or residential areas
(l) The county government shall in collaboration with national government facilitate
capacity development for wholesale and retail traders on public procurement so
as to be integrated into public procurement system and processes
3.1.4. Trade and Investment
Context and Issues
Trade and investment is a driver of movement of capital, goods, services and labour.
Kenya is the fifth Foreign Direct Investment (FDI) destination in the region after Uganda,
Rwanda, Tanzania and Ethiopia. Local or foreign investment promoted emergence and
growth of industries and trade and employment creation. Whereas the national
government is responsible for coordinating investment promotion, the county government
is responsible for creating an enabling environment at local level for promoting
investment. Globally, cities compete for FDI inflows and investment establishment
locally and internationally. Nairobi city faces some challenges as a trade and investment
destination such as –
(a) Low physical infrastructure development for supporting investments e.g. reliable
water supply, usable arterial roads, drainage and storm water management,
sustainable planning and management of built environment, waste management
and environment management
(b) Poor spatial planning and enforcement of planning zoning and development
control
(c) Insecurity and low public safety
(d) High fees and charges for medium and large enterprises
(e) Poor transport and mobility which hinders labour productivity and movement of
goods and services within the city
(f) Weak forward and backward inter-linkages and integration between foreign direct
investments and local county traders
Policy Objectives
To improve trade and investment climate and increase investments in the county
Policy Measures
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In order to address the issues and challenges related to trade and investment, the
following policy measures shall be adopted–
(a) The county government shall in collaboration with national government and
relevant stakeholders –
(i) carryout research, audit and assessment of investment climate gaps and
weaknesses in Nairobi City County
(ii) develop and implement a county investment climate reforms strategy and
plan
(b) The county government shall in collaboration with national government and
relevant stakeholders–
(i) designate and delineate land for establishment of business parks and
special economic zones or investment processing zones
(ii) development of appropriate infrastructure for supporting the business
parks of special economic zones
(c) The county government shall, in collaboration with national government and
investors promote and facilitate establishment of backward and forward linkages
between investors and local county traders
3.1.5. Trade and Urban Spatial Planning and Development
Context and Issues
Save for e-commerce, trade takes place within physical locations. Such locations may or
may not be the appropriate designated places for carrying out the type of businesses.
Town centers or shopping centers have been instrumental in retail trade in proximity to
residential areas or commercial locations. Spatial planning has the potential to organize
economic activities to maintain sustainable urban development, or may result in chaotic
and unplanned establishment of trade or business activities. Spatial planning and urban
development may determine the vibrancy of the local economy e.g. operation of
businesses at night. Nairobi City County faces several challenges related to urban
development and planning–
(a) Poor spatial planning and enforcement of zoning laws development control plans
(b) Proliferation of unplanned settlements in areas that are designated for trade
(c) Proliferation of trading or economic activities on non designated areas such as
road reserves
(d) Unplanned and un-coordinated development in town centers or shopping centers
which has resulted in shopping centers losing their core role of facilitating retails
trade in residential localities
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Policy Objectives
(a) To increase compliance with spatial plans and development control in relation to
trade
(b) To promote sustainable planning and growth of specific trade centers and
localities
Policy Measures
In order to mitigate the challenges identified, the following policy measures shall be
adopted–
(a) In accordance with the spatial planning principles, the county government shall in
consultation with national government and private sector –
(i) carryout assessment or feasibility study for classification of different
trading areas in the county for purposes of declaring and delineating
relevant places as appropriate trading areas
(ii) classify, designate, delineate and gazette trading areas in the county as
commercial or industrial districts, mixed development districts, town
centers or shopping centers, industries or sector based districts, and in any
other relevant category
(iii)regulate economic activities allowable in each respective areas and adopt
appropriate development control plans
(iv) declare the commercial and industrial areas as Special Planning Areas in
accordance with the National Physical Planning Act (or Spatial Planning
Act), prepare and adopt appropriate Spatial plans for the Special Planning
Areas designated
(v) Redesign and upgrade through establishment of urban renewal and
regeneration programme, all town centers or shopping centers so as to
enable them provide retail trade opportunities
(b) Invest and provide adequate security and public safety infrastructure to enable
retail trade to be carried out at night
(c) Initiate a programme of sustainable operation of economic activities on road
reserves which shall include elimination of encroachment of non designated
businesses from road reserves
(d) There shall be established appropriate trade area based committees consisting of
government and private sector to promote and provide platform for public-private
dialogue and collaboration
3.1.6. Trade and Environment (Green Growth)
Context and Issues
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Trade or economic activities should be carried out in a manner that promotes sustainable
environmental management and conservation. Trade processes should not engage the
environment and contribute to externalities such as pollution, over-extraction of natural
resources so as to meet the rising consumption demands. The county faces the following
challenges related to trade and environment–
(a) Pollution of environment through poor waste management processes
(b) Over-exploitation of natural resources
(c) Utilization of energy inefficient production processes
(d) Excessive consumption of products
Policy Objectives
To promote realization of green growth and green economy
Policy Measures
In order to mitigate environmental challenges related to trade, the following policy
measures shall be adopted–
(a) The county government shall, collaboration with national government and
relevant stakeholders –
(i) Promote and facilitate the adoption of clean and renewable energy
utilization by traders or businesses
(ii) Promote and facilitate zero waste aspiration and circular economy in
relation to solid waste management
(iii) Promote and adopt legal measures under development control laws, for
utilization of green technologies in built areas
(b) The county government shall in collaboration with relevant stakeholders design
and develop green spaces across the city for purposes of improving environment
and promoting the city as a green investment destination
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Chapter 4
Policy Implementation, Monitoring and
Evaluation
4.1. Introduction This chapter outlines the mechanisms for implementing, monitoring and evaluating the
policy. For intended policy outcomes to be achieved, there is need for effective policy
implementation, monitoring and evaluation. This will require strong institutional
development, inclusion of stakeholders in governance, legal and administrative reforms
and integration with the county performance management system.
4.2. Policy Implementation
4.2.1. Institutional framework
There shall be established an interdepartmental committee on trade which shall consist of
departments responsible for –
(a) Trade
(b) Finance
(c) Economic Planning
(d) Urban planning and development
(e) Enforcement
(f) Health
(g) Roads
(h) Transport
The committee shall be responsible for coordinating implementation of this policy.
4.2.2. Planning and Performance Management
Implementation of the policy shall be undertaken through development of trade sectoral
plan (or sectoral plan dealing with trade). In accordance with the County Governments
Act, the trade sectoral plan shall be part of the County Integrated Development Plan
(CIDP 2018-2022). The county Medium Term Expenditure Framework (MTEF) and the
County Fiscal Strategy Paper shall adequately cover the strategies and programmes
provided under the trade sectoral plan. The sectoral plan shall be implemented annually
through the annual development plan.
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Implementation of this policy shall be integrated with the county performance
management system through the sectoral plan. The annual performance contracting and
targets for respective departments responsible for implementation of this policy shall be
aligned to activities and programmes in the trade sectoral plan so as to ensure
complementarity and inter-sectoral approach in implementing this policy. Data related to
policy implementation shall be collected on a continuous basis in order to inform
decision-making by the county executive and other sector stakeholders.
4.2.3. Legal and Administrative Reforms
In addition to programmes and projects to be designed under the trade sectoral plan (or
sectoral plan dealing with trade), appropriate legal reforms related to trade shall be
undertaken. There shall be prepared for enactment or adoption laws, guidelines,
standards and frameworks. Key among them shall be enactment of County Trade Bill and
other Bills relevant to the implementation of this policy.
4.2.4. Collaboration with National Government
As stipulated under Article 6 and 189 of the Constitution, the county government shall
institute measures to cooperate, collaborate, consult and partner with the national
government in implementing this policy as well as implementing national policies, laws
and standards related to trade. In this regard, the department responsible for trade shall
initiate intergovernmental collaboration mechanisms with the national government
ministry responsible for trade and other agencies responsible for matters related to trade.
4.2.5. Staff Capacity Development
The department responsible for trade shall in collaboration with the department
responsible for human resource management and the County Public Service Board
resource the department as well as other county departments responsible for
implementing this policy, with highly qualified professional staff in line with respective
policy measures. In addition, the department responsible for trade and department
responsible for human resource management shall develop and facilitate continuous
professional and capacity development for all relevant officers in various departments
responsible for implementing this policy.
4.3. Policy Monitoring and Evaluation
4.3.1. Design of indicators
In order to ensure effective implementation of this policy, there shall be a continuous
monitoring of the results of programmes and activities undertaken to implement this
policy. The department responsible for trade
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shall in collaboration with national and county stakeholders design the core outcome
indicators to be adopted in measuring the results of implementing this policy. The
indicators shall measure key variables such as growth in trade and business and
improvement in trade regulatory environment among others.
4.3.2. Monitoring and evaluation framework and system
This policy shall be evaluated in accordance with overall county monitoring and
evaluation framework, standards and system. The following requirements shall apply in
regard to policy monitoring and evaluation–
a) The department responsible for trade shall designate staff to be responsible
for coordinating monitoring and evaluation of implementation of this
policy.
b) In each period of 3 months, the department responsible for trade shall
prepare a report on the progress made in implementing the policy, which
shall be submitted to county executive committee for consideration and
decision-making.
c) There shall be annual policy review, which shall involve all trade
stakeholders. The review shall provide feedback on successes, progress and
challenges related to policy implementation and whether policy outcome
have been met in each year. The policy review report shall be submitted to
county executive committee for consideration and decision-making
d) The policy shall be evaluated at the end of each period of 5 years to assess
the extent to which policy outcomes have been realized including policy
impact
e) The department responsible for trade shall disseminate policy evaluation
reports to county trade stakeholders.
f) The Trade Advisory Committee shall support the department responsible
for trade in monitoring, reviewing and evaluating this policy and advising
on appropriate policies and programmes to be adopted