Transport and storage new backbone of Kisumu economy

Written by Oral East Africa

Investors who put money in the transport and storage sector in Kisumu over the last few years made the best bet on the fastest growing segment of the county.

Transport sector in Kisumu has grown 72 percent over the last four years to Kes65.4 billion surpassing agriculture as the main income earner.

Infrastructure upgrades, including turning the Kisumu airport into an international airport, extending its runway by 3000 metres, and buidling a new terminal with a capacity to handle 500,000 visitors and use of the port city to expand East African trade has boosted fortunes.

Tourism PS John Ololtuaa and visitors disembark the water bus to Ndere Island. A water bus safari is one of the enjoyable tourism experiences at Lake Victoria.j

The Kisumu port is part of a port network on the shores of the Great Lake INyanza which includes Mwanza, Musoma, and Bukoba in Tanzania and Entebbe and Port Bell in Uganda it provides the main transport and logistics node.

The port can receive and process over 4,000 tons of freight daily bound to other East African nations i.e., Tanzania, Uganda, Rwanda, Burundi, and even the eastern part of the Democratic Republic of Congo.

New backbone

It is the most important city after Kampala in the greater Lake region with great potential for consolidation, deconsolidation, distribution, transport services, warehousing, distribution via road, rail, air & maritime logistics platforms.

Small-scale fish trader at Kisumu Dunga Beach market

Agriculture remains a key income earner in the county rising 26.5 percent to Kes52.5 billion supported by the lake economy that supports the fishing and fish processing industry-previously the County’s main economic activity.

Agriculture is a common economic activity with sugar industries such as Muhoroni, Chemelil, and Kibos employing a large number of County residents. The rice irrigation industries also employ large numbers of Kisumu County residents.

Kisumu’s manufacturing sector has also show signs of growth with its value generated jumping 38 percent over the four years to Kes39.5 billion. The county has a total of 27 manufacturing industries, 16 bakeries, 12 Jua-kali associations, and 10,500 Jua-kali artisans.

Manufacturing powerless

Jumbo Mattress Company established a factory in Ahero while other new entrants into Kisumu include Foam Mattresses Company, Mayfair Holdings, and United Millers.

Despite this growth the city manufacturing base is limited by investment in electricity that is currently valued at only Kes7.6 billion having grown from Kees6.8 billion four years prior.

Generator operating at a small business in Kisian shopping center due to erratic power

Western Kenya has a huge problem of erratic electricity despite the fact that current Kakamega Govenor Fernandes Barasa headed Ketraco, the state electricity distribution firm, that has failed to construct the high voltage line from Olkaria through Lessos to Kibos substation with a capacity of 1200mw.

Canceled Adani

The project was meant to facilitate reliable and stable power to the Lake Basin Economic Block Counties that including: Bungoma, Busia, Homa Bay, Kakamega, Kisii, Kisumu, Migori, Nyamira, Siaya, Trans Nzoia, Kericho, Bomet, Nandi and Vihiga. The project would also strengthen the National Grid and facilitate a reliable and stable power supply to Kisumu Seaport and its environs.

It would also facilitate power trade between Kenya, Uganda, and Rwanda. Lessos substation will be connected to Tororo via the Lessos – Tororo transmission project (Kenya – Uganda interconnector).

Last year, the government signed a $900 million power transmission deal with Adani Energy solutions to construct the 371 kilometers transmission line and five substations in eastern and western Kenya under a public private partnership model.

The deal has since been cancelled over allegations of corruption against the Indian businessman Adani which may leave Western behind even in this new bold shift into the digital age.