Naivasha shakes off ugly past to become an investment hub

Flower Business Park General Manager James Waweru showcases a flower farm. [Antony Gitonga, Standard]

In the past decade, Naivasha has hogged news headlines for all the wrong reasons.

Located just 90 kilometres from Nairobi and on the shores of Lake Naivasha, the town has been synonymous with crime and macabre killings.

One of the events that still sticks out like a sore thumb was the story of the ‘Naivasha vampire’, a man who abducted women and sexually abused them before drinking their blood.

At one time, the town was compared to Russia where ‘things that don’t happen, happen’ before concerted efforts by security personnel, church leaders and residents helped turn the situation around.

While we cannot say the town is now free from crime, it is important to acknowledge its emergence as an investment hub.

Shun dark past

Presently, investment and tourism opportunities cannot be talked about without mentioning Naivasha town.

According to data from the Ministry of Tourism, Naivasha is ranked second after Mombasa in terms of the number of tourists it attracts and the top hotels it hosts.

Naivasha is home to over 50 flower farms including Oserian, V-D Berg, Maridadi, Finlays, Panda, Shalimar, Nini and Longonot Horticulture.

Other key investments include Keroche Breweries, Roka Industries which produces Kenya Cable, Mashwa Breweries, Solinic Solar company and Plantec Limited, which is currently Africa’s leading producer of vegetable and fruits seedlings, among other businesses.

From geothermal power to beer making and flower farming, the lakeside town has regained its fame as investors seek a chance to showcase their prowess and production capabilities.

However, it is the agricultural and manufacturing sectors which have seen the town shun its dark past and become one of the hottest places to invest in.

According to economic expert Washington Ochieng', the availability of key resources like cheap geothermal power, vast land and accessibility to Nairobi have contributed to the influx of investors in Naivasha.

“Currently the biggest challenge facing manufacturers is the high electricity charges and if they can get it cheaper in Naivasha using the geothermal power, then this is the place to be,” he says, adding that the coming years will see companies relocate from Nairobi, Thika, Mombasa and Eldoret to Naivasha.

Vast and affordable land around Naivasha has also worked to its advantage, with many towns already running out of expansion spaces.

One million roses

In the last one year, the town has continued to attract investors after the government set aside 1,000 acres for the Naivasha Industrial Park located a few kilometres from Mai Mahiu town. This has pushed the Naivasha-based Flower Business Park to embark on a Sh1 billion expansion plan as demand for fruits and vegetable seedlings continues to rise.

The park, which has employed 4,500 workers, started from scratch to the current seven flower farms and a multi-billion seedlings plant, and it is seeking to double its production from the current one million roses a day.

And kilometres away is the Industrial Park in Mai Mahiu that has left tongues wagging, but for all the right reasons.

The management of Kedong Ranch has been instrumental in the formulation of the park after donating the 1,000 acres for the special economic zone and resettling hundreds of affected families on another 4,000 acres.

Extension of the Standard Gauge Railway line from Nairobi to Mai Mahiu-Naivasha and next to the industrial park has turned out to be a major incentive to the investors.

During the launch of the SGR in Mai Mahiu two months ago, President Uhuru Kenyatta announced that a local entrepreneur had agreed to set up a textile factory within the industrial park.

According to Naivasha Deputy Commissioner Mathioya Mbogo, the multi-million Inland Container Depot (ICD) is complete.

The commissioner adds that an extension from the Standard Gauge Railway line to the ICD had also been completed. This means that cargo can now be ferried all the way from Mombasa to Naivasha SGR terminus.

A few kilometres from the park and within Kedong Ranch, Akiira Geothermal Company has acquired 1,000 acres and are in the process of putting up a Sh9.8 billion geothermal plant.

“This project, apart from producing clean energy, will go a long way in addressing the issue of cheaper electricity and creating more job opportunities,” said the company's spokesman, Anthony Kahindi.

And before the dust settles, Danish Brewing Company EA has agreed to put up a Sh4.5 billion plant on the industrial park. The company produces brands like Tuborg, Carlsberg, Holsten, and Kronenbourg beers, as well as Somersby Cider.

“Once fully operational, the company will employ around 350 Kenyans directly and will produce 12-15 million cases of beer annually with sorghum from over 17,000 local farmers,” according to Trade CS Peter Munya.

Earlier in the year, Chinese company Jiangsu Lianfa Group committed itself to opening another Sh5b textile plant with hundreds of youths set to be employed.

And it’s more goodies for the town after Pakistani’s Maxim Agri Company and Oserian’s Two Lakes Industrial Park signed an agreement to establish a Sh1b high quality cattle feed plant at the park.

The contract was signed by Maxim’s General Manager Muhammad Salman and Oserian Company Finance Director Tim Ndikwe.

Job opportunities

Mr Salman said the company has been exploring how it could enter the East African market and Naivasha had emerged as the most suitable investment destination.

Nakuru Governor Lee Kinyanjui says the upcoming projects will positively impact the county and Naivasha town.

The Kenya National Chamber of Commerce and Industry Naivasha branch chairman Stephen Thuo says the number of investors keen to invest in the town will not only create job opportunities, but also increase wealth.