Siraji Sacco to Support Contract Poultry Farming Again Siraji Sacco to Support Contract Poultry Farming Again
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Siraji Sacco to Support Contract Poultry Farming Again

A Laikipia Cooperative Society is advancing loans to farmers to venture into contracted chicken rearing.

 

As a contractor chicken keeper, the farmer will invest and build chicken rearing infrastructure and work closely
with a chicken production and processing company that Siraji Sacco will bring on board.

 

Laikipia County Revolving Fund has advanced the Sacco Kshs 7 million for on-lending to its members under the
chicken rearing venture.

 

Just like in any other business, the farmer will be given working capital by Siraji Sacco to buy the stock or
improve the breed.

 

We have a good working relationship with the county revolving fund and we will be partnering to support small-scale farmers by availing affordable credit through our micro-credit department. CEO Siraji Felix
Ochieng said.

 

The County Government Department of Trade, Tourism, and Cooperative has previously supported the Sacco by
availing funds through Laikipia County Revolving Fund in 2020 for a similar project.

 

Farmers groups were given improved kienyeji chicks from Kuku Yetu Company to rear them and resell them when they
mature. As of March 2020, the farmers had been supplied with 22,000 chicks but due to travel restrictions during
the lockdown, they could not supply the chicken to Kuku Yetu Company which is located in Nairobi. This
necessitated a survey to devise ways in which to mitigate such recurrence in the future.

 

The company was responsible for technical support and bought the chicken directly from the farmers. The money
would be deposited directly into the account of the farmers after deduction of the loaned amount.

 

The re-launch of the project is intended to increase the consumption of chicken meat, create employment and
increase the earnings of residents in the county. The farmer will be providing day-to-day care of the birds,
land, and housing on which they will be raised.

 

The benefit of chicken contract farming is that it eradicates about 95% of the risks from farmers. The move is
expected to motivate farmers to rear quality chicken in a sustainable way by giving the top priority to earn
more during the selling time.

 

The guarantee of the market is a huge incentive as there will be no cases of farmers being unable to sell their
chicken or having to sell at a loss. It will also enable small-scale farmers to diversify their business.

Read More

Finally, NTSA Licenses Laikipia Tuk tuk

By Jesse Mugo

Sagak Tech Enterprises Limited, the manufacturers of the locally made Four-wheeler tuktuk has had a flurry of activities in the past week following the licensing of their first six units.This milestone is as a result of concerted efforts
from the County Government of Laikipia’s innovation and enterprise development programme and other government agencies involved in the certification and licensing of locally manufactured products.
Steered by the great conviction of the county
boss HE Ndiritu Muriithi and an equally energized principal secretary at the State Department of Infrastructure Prof. Paul Maringa, the
inter-agency team has been able to support the
local entrepreneur to realize one of the country’s big four agenda of manufacturing at the
heart of Laikipia.
The first batch of six tuktuks from the assembly line in Nyahururu received their number
plates and logbooks on 12th August 2021.This means that the local manufacturer has been given the documents of title for the tuktuks after a process that has taken close to three years.

General Merchandise 

It means a lot for the manufacturer. From a transactional view, the manufacturer can now comfortably take deposits from interested customers who are now assured that the tuktuks from Sagak Tech Enterprises are fully licensed
by NTSA after full compliance with the requirements. The customers who had been making enquiries on the availability of the tuk-tuk in the market have now started streaming into the manufacturing plant seeking to be included in the growing list of customers who are buying direct factory price. From a finance perspective, the company’s ability to boost its working capital needs has been boosted since the complete vehicles are now in
a position to be presented as debenture securities to financial institutions in return for medium term financing.

Dedan Kimathi

The company is also in talks with local financial institutions and major banks in the country and is sure to lock some asset financing arrangements to make the vehicle easily accessible to the many interested businessmen across the
transport, agricultural and the general merchandise business.The firm is seeking a financing partnership with banks of up to 80% to enable customers with as little as kes 90,000 be able to start or upscale their transport business with a unit of the BJ-50 Tuk tuk with the balance being fully funded by a financial institution. The BJ-50 is an off-road tuk tuk developed and built with the Kenyan roads in mind. The firm has risen from humble beginnings having received a lot of support from Dedan Kimathi University of Science and Technology (DKUT).There were naysayers and negative critics who never believed in the dream of Samuel Njogu,the founder of Sagak Tech.

The Licensing could not have come at a better time than now when the company has just unveiled their pick-up model. The pickup model that is fuel efficient and with a capacity load of one tonne will be a game changer in the local transport industry for hardware, supermarkets, hotels and other merchants in the retail and wholesale trade.
The pick-up attracted a lot of attention locally and across the country when it was sighted on its routine road test in Nyahururu town.Hundreds of people couldn’t hide their admiration for the pickup and also its versatility.
Loaded with a weight of 1 tonne, the pickup was easily making its way around the town to the admiration of the local public in the hometown of Nyahururu. It’s the solution for
Laikipia’s transport and logistics industry. Buy Laikipia, Build Laikipia.

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Steer Fattening is Steering Oramat Cooperative to Profitability

Laikipia has been a forte for beef production supplying over 2.6 million kg of meat annually.

According to Laikipia County Statistical Abstract 2020, beef farmers earned over Ksh 740 million. The County
Government has been encouraging pastoralists to adopt modern farming methods such as the feedlot system to
increase production.

To this end, the county has partnered with Oramat Lenaboisho Cooperative Society by advancing loan facilities to
them to support their cattle fattening activity. They are based in Borana Ranch Conservancy, where they are
provided with grazing land and hosting of their offices. Oramat can handle over 1000 steers through the system
annually.

Cattle fattening is a practice of livestock production that reduces the animal movements to enable them to
fatten within a short period of time. The Oramat has adopted this new cattle fattening technique, which has
boosted their members’s earning.

The cooperative has benefited from a Ksh 5 million loan from the Laikipia County Cooperative Revolving Fund.
With the initial loan of Ksh 2 million, they could buy 63 steers, eventually sold and repaid the loan. They
applied for a second loan of Ksh 3 million, bought 90 steers.

Through the fattening process, Oramat Cooperative seeks to address issues as drought and changing weather
patterns in Laikipia North landscape which affects the supply of feeds and water.

The cooperative is adopting proper pasture management to be able to supply the steers with adequate feeds during
the fattening period.

Oramat cooperative has been fattening cattle for a period of 4 years since it was registered as a fully fledged
society limited with 150 members. The cooperative operates on two tiers. One involves them going directly to the
communities to buy steers. The second one has individual community members or pastoralists bringing in steers
for the cooperative to fatten them on their behalf. The cooperative has made a turnover of Ksh 64 million in the
last four years.

Oramat buys steers from six communities surrounding Borana ranch. These communities are Chumvi, Ethi,
Ngarandare, Sanga, Lukusero and Makurian. The weight of the steers is measured, and they note the value of the
animal at this entry stage. They are fitted with microchip tags containing all identification numbers of the
owner.

This is important as it helps in identification of steers during payment time or in compensation claims in
case of an incidence where wild animals eat the steer. Oramat Chairman Wilfred Mejooli said.

The fattening period takes six months where at the end, the steers are put on a scale again to measure the
weight they have gained. The payment method that the cooperative uses ensure that the owners of the steers get
80% of the value gain.

The owners also set aside 10% for the insurance scheme. The rest 20% goes to the cooperative to cater to
operation costs involving grass and water management and herders’ salaries.

How the cooperative operates projects ray of hope to pastoralist communities. They see it as a model that
integrates modern rearing of animals, making it a profitable venture business.

We have been able to train our members on how to run cattle rearing as any other business by keepign records,
calculating operation cost. Mejooli said.

The cooperative wants to change how pastoralists communities see cattle keeping. In the future, they will
integrate a feedlot system where more steers will go through the system. The cooperative will be investing in
the establishment of a grass bank and developing of feed formula.

Read More

Rehabilitation Of Nairobi-Nanyuki Railway Line

The rehabilitation of the Nairobi-Nanyuki metre gauge railway commenced in Nairobi February, and reached Nanyuki in July 2020.

The Kenya Pipeline Company is spending Sh1.8 billion to help rehabilitate the Nairobi-Nanyuki Railway line, which will promote the economies of Mt Kenya and the Northern regions forming the Central Region Economic Bloc, CEREB.

Kenya Railways expects to generate more than Sh370.4 million per year from the revived 240km line.

The project cost an estimated Sh25 billion, with the national government paying about Sh3 billion, Kenya Railways, counties and other entities contributing.

Petroleum products being the key cargo, KPC will be charging about Sh 82,000 for a single 50-ton fuel tank, with a ton costing Sh 1,640.

Vivo Energy Kenya, which is the anchor client for commercial trains, intends to transport 14 million liters of fuel every month from Nairobi to its depot in Nanyuki. The company has set up an 11.5 million liter fuel depot in the town. The fuel depot, which is the largest outside Nairobi, will supply fuel to central, northern Kenya and southern Ethiopia.

The commercial trains are expected to generate Sh365 million in revenue.

Investors ferrying livestock from Laikipia County will be paying Sh730 per ton of cattle and Sh465 per ton of small animals.

Other cargo such as fertilizer, cereals, hardware and farm products among other general cargo will be ferried to and from Nairobi for Sh1,400 per ton.

Investors ferrying imports stocked in Nairobi will pay Sh20,000 per 20-foot equivalent unit (TEU) container from Nairobi to Nanyuki.

A trip from Nairobi to Nanyuki will cost passengers Sh200 and Sh1,000 for first-class coach.

The rail trip is the first in more than 20 years following the collapse of the services on the route in the 1990s and is expected to bring excitement to hundreds of tourists who are expected to board the train for a nostalgic cruise between Nairobi and Nanyuki.

Read More

Invest In Laikipia County

Laikipia County is among the top fastest growing counties in Kenya with a GDP growth rate of 8.9% against the national average of 5.6%. This is due to revenue collection that has been on a 3 year sustained growth indicating 35% increase for the financial year 2018/2019. According to Laikipia County Statistical Abstract 2020, the county indicates a steady growth with an estimate that Laikipia’s County Gross Product (GCP) was KES 89 billion in 2018 and KES 98 billion in 2019 at current prices. If Laikipia was one of the 217 countries or territories recognized by the United Nations, it would have ranked number 192 in GDP ranking globally in 2018, taking the slot occupied by Samoa, a global rugby powerhouse (World Bank GDP Ranking, 2019).

In its latest survey on overall county business environment for MSEs, the Kenya Institute for Public Policy and Research Analysis (Kippra) ranked Laikipia among the top five counties.

According to the figures in the statistical abstract, agriculture remains the main contributor to the Laikipia Gross County Product with an estimated input of Ksh. 35 billion, a 44 per cent of the total CDP share. Whole sale and retail business comes in second at Ksh. 7.132 million in 2017, up from Ksh. 4.3 billion in 2013.

Financial and Insurance activities and Transport and Storage come in second and fourth place with an estimated GCP of Ksh. 6.275 billion and Ksh 5.904 billion respectively in 2017, up from Ksh. 31.17 billion and Ksh. 3.17 billion respectively in 2013.

The main economic activity in the county include: ranching, crop farming, dairy farming, tourism and trade. Additionally, its location along the equator gives Laikipia County favorable climatic conditions for agriculture and pastoral farming. Laikipia has become a frontier for horticultural investment. County water expansion schemes such the Solio Water Project; a joint partnership between the County Government and the Water Sector Trust Fund – WSTF, has seen an influx of investor capitalizing on the new developments. According to the county’s 2020 statistical abstract, the land under irrigation has increased 15 times in a span of three years –- from 258 hectares in 2016 to 3,758 hectares in 2018 and 3,973 hectares in 2019.

The main crops grown include wheat, maize, beans, potatoes and vegetables. The main livestock types are cattle, goats, sheep and poultry. Nyahururu contributes to the county’s economic activity because it’s heavily involved in milk processing. Apart from agriculture, the various ranches are a major source of beef.

World Bank Data on Average growth of in counties relative to average national growth (2013-2017)

 LAIKIPIA INVESTMENT INCENTIVES

A one stop shop for all financial services

Laikipia county aims at improving the ease of doing business by eliminating barriers and reducing the procedures and cost of doing business within the county.

This has led to the establishment of Laikipia County Development Authority which offers investment projects services among which is the issuance of the required permits and licenses in a quick and centralized procedure.

Broadening Access to Capital/Enterprise Fund

Established in 2014, the Laikipia County Enterprise Fund’s purpose is to: (a) facilitate access to credit for business capital; (b) promote enterprise development among youth, women, persons with disabilities and needy persons; (c) facilitate the development of conducive and appropriate business environment for enterprise development; (d) enhance access to employment; (e) enhance enterprise skills development; (f) promote local economic growth. The fund’s core mandate is to extend loans to enterprises in the county and create employment opportunities in the private sector. The fund also seeks to impart entrepreneurial skills through training in enterprise and business development, availing technical assistance in product development and promoting economic growth through supporting innovations and developing cottage industries. The board manages the fund.

Financial Linkages

Laikipia county government has partnered with several financial institutions with an aim of expanding financial services to the investors. Through this partnership, investors gain extensive infrastructure and systems, access to funds and opportunities for portfolio diversification, trainings and financial management services. In June 2020, the county signed an MoU with the KCB Group to provide funding of up to Ksh2 billion in form of interest cost subsidy and partial guarantee, targeting at least 5,000 businesses and 60,000 farmers. To be eligible, one must prove they are residents and own business or are farming in Laikipia County. The county government also unveiled a US$2.81M (Ksh 300 million) Enterprise Fund with the Cooperative Bank of Kenya to offer affordable financing to Saccos and business within the county.

The lending scheme will see cooperatives getting a subsidized interest rate of 5% down from the bank’s normal lending rate of 12% to 7 % per annum.

Business Development Services

The county also has an innovation and development program whose aim is to augment innovations, boost job creation and foster economic growth in Laikipia. The program offers access to financial services, trainings, access to certification and licenses, marketing and information services, trade fairs and exhibitions among others.

The program is currently working with more than 200 startup companies and 22 partners. The start-ups bestride agriculture, manufacturing, ICT and Engineering sectors. The partners range from academic institutions like DeKUT and Laikipia University to Government agencies like Numerical Machining Complex, regulatory bodies like KIPI, KEBS to private institutions like AMSCO and Gearbox and even donor-funded organizations like Kenya Climate Innovation Centre, among others. The program offers training programs, marketing and exposures, product certifications, product design and development, mentorship, financial access, incubation arrangement, among others. The partners have been crucial to the program in offering different services to the entrepreneurs.

Key Partners

Kenya Climate Innovation Center (KCIC) Muwuarak TTI KCB Foundation
Numerical Machining Complex (NMC) Standard Media Group Equity Foundation
Kenya Bureau of Standards (KEBS) Royal Media Services Ministry of ICT (Ajira Digital)
AMSCO ICPAK DeKUT
Kenya Institute of Management KIPI Laikipia University
Laikipia County Development Authority Laikipia Enterprise Fund ICDC
Chandaria Innovation Business

School

Cooperative Bank of Kenya

KIRDI KIE

KCB

THE REAL ESTATE SECTOR

Laikipia County is home to a picturesque landscape, diverse with natural beauty, extensive natural resource, abundant wildlife including the sought after ‘big five’ and hundreds of bird species. Conservancies and ranches like the Ol pajeta, Lewa, Ol jogi, among others have made the county a focal point for tourists visiting game reserves in Laikipia and Samburu counties.

Lured by good weather that prevails all year round, game in those conservancies, Europeans particularly the British are either settling in the county or buying holiday homes around Nanyuki and Nyahururu towns.

Most of the white settlers buying up property are soldiers or tourists who loved the county’s climate, its people and natural beauty and want to experience it all over again.

The upgrading of the Great North Road to a dual carriageway between Kenol and Marua, and the revival of the old metre-gauge railway line from Nairobi to Nanyuki is expected to further boost growth.

The town’s proximity to Isiolo is also expected to spur further development as some investors opt to put up stores in Nanyuki and transport items to Isiolo for sale.

Land prices in the county’ urban centers such as Nanyuki town are highly dependent on proximity to roads and the central business district, and as a result of high demand from developers, have risen as much as 10-fold in the last seven years, with a quarter acre going for Sh25 million compared to seven years ago when the same size was being sold at about Sh2.5 million.

An acre within the town is at an average price of up to Sh100 million, while on the outskirts it costs approximately Sh1.6 million.

Cytonn Investments reported that Nanyuki real estate market recorded an average rental yield of 4.7 percent for the residential sector, 7.6 percent in the commercial sector and a capital appreciation of 4.7 percent in the land sector, compared to the Nyeri market average of 5.1 percent, 6.3 percent, and 19.1 percent, respectively.

Factors Driving Real Estate Investment in Laikipia County

Over the last 5-years, Laikipia has witnessed increased real estate activities in the town and its environs driven by:

     Tourism

The county hosts key tourist attractions such as the Ol Pejeta Conservancy and Mount Kenya National Park. The town thus acts as a major tourist circuit to Mt. Kenya and the Northern Region, enhancing demand for hospitality services which continues to promote the hospitality sector,

    Growth of Small and Medium Enterprises (SMEs)

The informal sector constitutes an estimated 98 percent of business in Kenya, contributing to 83.4 percent of jobs as per the 2018 KNBS Economic Survey.

There is an increase in the number of SME’S due to the county’s economic stimulus package for business and the ease of business registration as it now takes a maximum of 2 weeks. Laikipia hosts several of these companies such as Mawingu Networks that require office space and housing for the employees, hence drive the demand for real estate.

    Devolution

Decentralization has opened up major towns across the 47 counties attracting government institutions, private investors and entrepreneurs across all the county headquarters.

This has increased the urbanization rate hence attracting financial institutions such as Absa Bank, ECLOF Kenya and Faulu Kenya, to the county level to tap into the unbanked population.

The positive demographics, attributable to devolution have thus, created demand for office space, retail space and residential units to host investors and government officials.

    British Army Training Unit Knya

The British Army Training Unit Kenya (BATUK) is a training support unit of the British Army located in Nanyuki under long-standing cooperative agreements with the country. The presence of the same has resulted in a growing demand for housing by the army officers mainly hosting their families in the town.

     Residential Sector 

The key residential areas in the county are distributed within the urban centers of Nanyuki, Nyahururu, Rumuruti and Kinamba, and mainly comprise of owner-built and occupied stand-alone houses, as the market lacks institutional developers.

The residential housing development market in Nanyuki is still nascent with most of the estates, having existed for less than 3 years. The key drivers of the growth include; the British Army station, government decentralization, urbanization and growth of the middle class in the region.

The residential market in and around Nanyuki town is mainly rental, as most of the investors target foreigners on long term stay of approximately 2 years.

  Commercial Sector 

The commercial sector in Laikipia is yet to record entry of quality commercial space especially in the office sector where most of the offices are classified grade C and below.

The last 2-years have seen the establishment of new buildings such as the Bemwaki Towers and Ubii Plaza, but some lack modern facilities such as lifts.

The retail sector has two formal shopping malls, Nanyuki Mall and Cedar Mall with some of the key retailers being Tusky’s, Chandarana FoodPlus Supermarket and American fast food restaurant chain, Kentucky Fried Chicken (KFC).

   Land Sector 

Land prices in Laikipia is highly dependent on the proximity to the main roads and proximity to the CBD.

In Nanyuki’s CBD, the land price is relatively high and sells at an average price of up to 100 million shillings per acre.

An acre sells at an approximately 1.6 million shillings for an acre in the outskirts costs. Most of the land in the county is utilized as ranches that are privately owned and could be as large as over 100 acres each. Despite having several ranches, the market has continued to embrace the selling of plots mainly quarter acres and eighths of an acre with several property agents having entered the market.

The plots for sale recorded average annual sales of 45.8%, attributed to a growing demand for development land in the area fueled by speculations for higher property value boosted by the opening of the Northern Corridor.

    Holiday Homes 

Built on rustic, glamorous natural features such as mountains, wilderness and water bodies, holiday options in Laikipia have diversified and expanded; with some developers giving investors property with controlled access to wildlife as well as other amenities such as golf courses, luxurious resorts, cottages and spas among others.

Nanyuki hosts key tourist attractions such as the Ol Pejeta Conservancy and Mount Kenya National Park, making the town a major tourist circuit to Mt. Kenya and the Northern Region.

This has continued to create demand for hospitality services and facilities, thus the development of holiday homes such as Maiyan Homes and the Mt. Kenya Wildlife Estates.

Of the total land mass, arable land constitutes 1,984 square kilometres with non-arable land constituting 7,456 square kilometres. Water masses occupy 22 square kilometres and urban areas at 243.3 square kilometres. There are 7 distinct land use patterns heavily influenced by the climatic conditions and the ecological zones. These include pastoralism, mixed farming, irrigated cultivation, ranching, among others

Laikipia County Land Use Map

    The Agriculture sector

The county is heavily dependent on rain fed agriculture. There is potential of 203,965 hectares for irrigation in the medium potential areas. There are 22 operational small-scale irrigation clusters mainly in the southern and western parts of the County at Jikaze, Mutaro, Munanda, Gatitu Muthaiga, Mutara, South Imenti, Thome, Mwiyogo, Nkando, Nturukuma, Nyambogichi, Mukima, Marura, Gakeu, Mia Moja, Melwa, Pesi, Ngarengiro, Ngarachi/Thigio and Wangwaci.

The main crops grown include maize, beans, wheat, potatoes and vegetables. Maize covers about

51 per cent of the total planted area. Crop farming is mainly undertaken in the western and south western parts of the county due to favourable weather conditions. Upscaling efforts are in place to promote other crops such as millet, sorghum, sunflower and black beans (dolichos). There is an emerging trend of increased horticulture and floriculture production both at large-scale and small-scale levels. This constitutes production of cut flowers, tomatoes; French beans, chillies, watermelons, cabbages and onions. There are efforts of up scaling fruit production such as avocado, orange, mango, bananas and pineapples. There are four small maize milling plants in Nanyuki and Nyahururu supporting value chain on maize and wheat.

    Acreage under Food Crops and Cash Crops

The agriculture sector employs up to 60 per cent of the total labour force in the county.. Expansion of hectarage is constrained by high cost of farm inputs such as fertilizer, certified seed, weeding labour and demand for mechanization. There are county and national programmes that aim at reducing the burden on farmers through provision of subsidized fertilizer, certified seed and occasionally pesticides for the control of armyworms, quelea birds, millipedes, locusts and Maize Lethal Necrosis Disease (MLND).

There is high agricultural potential in the county supported by highly arable farming lands particularly in the southwestern parts of the county. Over 20 per cent of the county’s total land is arable. The total area under food crops was 80 per cent of total cultivated area totalling to 63,428 hectares in 2017.

    Average Farm Sizes

Majority of the farming households are small-scale holders whose average farmland size is 0.81 hectares mainly used for food production. The average farm size for large-scale holder is 8.09 hectares and which are mainly used for wheat and maize production.

   Main Storage Facilities

Granaries are a common storage facility at household levels. The government through the National Cereals and Produce Board run stores at Doldol, Nyahururu and Nanyuki. At institutional levels, food stores are common particularly in schools on the school feeding programmes. At the household level, especially in the rural areas about 20% of harvested cereals are lost through pests.

    Apiculture

Bee keeping is one of enterprise undertaken by pastoralists and farmers practicing mixed farming. It is practiced in farm woodlots, perimeter fences and in forests for pollination. Honey as a main product is harvested using traditional log hives and only a few farmers use the modern hives such as Langstroth and Kenya Top Bar Hive (KTBH). In harvesting, most use traditional gears (fire for smoking) which are destructive to the bees occasionally killing the queen. Towards value addition, there are 5 co-operative societies that are at basic levels of packaging honey and related byproducts.

    Aquaculture (Fish farming) and Blue Economy

Fish farming is practiced mainly in Laikipia West and Laikipia East sub-counties. The predominant species is tilapia and a small component of clarias (catfish) culture. Production infrastructure comprises of approximately 1,401 fish pods with an average of 1,000 fish stock capacity. There are 125 water reservoirs viable for capture aquaculture.

Main Livestock Types and Facilities 

Livestock production is dominant in most parts of the county with 45.8 percent of households owning livestock. The main livestock types are cattle, goats, sheep, poultry, camels, donkeys, pigs and rabbits. The estimated livestock population is 72,860 dairy cattle, 221,760 beef cattle 350,888 sheep and 397,610 goats. Others include poultry, camels, donkeys, rabbits and bees. Livestock infrastructure comprises of 50 holding grounds, stock routes, out spans, two public and two private slaughterhouses, 7 auction yards and 35 slaughter slabs. Milk processing is done at Nyahururu KCC and Countryside processing plant. There are seven milk-cooling plants run by dairy co-operative and individual groups.

Ranching

Ranches in the County produce high quality beef stock. They also undertake Boran breed embryo transfer for the national and regional market. There are 32 private ranches, one government ranch and 13 group ranches. The ranchers and the neighborhood cluster-grazing committees have a functional model allowing vulnerable households to graze in the ranch during drought on agreed monthly fees.

INVESTING IN FEEDLOTS

Many policy analysts and farm experts are concerned about the impact of increased population in Kenya which has more than doubled the demand for food. According to the Food and Agricultural Organization for the United Nations (FAO), the demand for beef alone has increased by 300% over the last decade.

Agriculture supports up to 80% of Kenya’s population and generates almost all the country’s food requirements, which in turn depends on rainfall (UNDP annual global report 2017). However only about 12% of Kenya’s landmass is of medium to high agricultural potential. Most of Kenya (80%) is classified as arid and semi-arid making these areas only suitable for marginal crop production and livestock farming.

Regions such as Laikipia provide the bulk of meat consumed in the country which is produced via two main streams: large scale dairy-meat commercial ranching and small scale dairy-meat production. In both systems, production is pasture based. Droughts are the major constraints to rain-fed agricultural production in in such ASALs. FAO estimates that rain-fed crop farming in the semi-arid areas of the country have a 25-75% risk of crop failure while the arid regions have a 75-100% risk of crop failure. Therefore, pastoralists and marginal agriculturalist in the ASALs are considered to be the most vulnerable to the effects of droughts because their livelihoods rely heavily on climate performance with a very weak economic base. The most adversely affected by drought is the agricultural sector, which has obvious implications on food security

To solve this potential food crisis, there is a safer food production alternative-raising animals in feedlots. Feed lot beef production is a technical word for confining animals, in a relatively small space and feeding them on the best food ratios to be ready for the market in the shortest time possible. This can vary from 60 – 120 days. But it has to begin with already grown animals that only need to optimally gain weight so that they are ready for slaughter in a short time. This is majorly high carbohydrate diets, sufficient proteins and optimum mineral salts. During this period, these animals depending on age and nutrition can gain between 50 – 200 kilos.

Benefits of lot feeding

The main benefits of lot feeding are greater control and flexibility in the production and marketing of livestock.

Specific benefits include the:

  • Ability to finish animals when pasture feed is deficient in quality and/or quantity.
  • Ability to meet a wider range of markets.
  • Reduction of stocking pressure on-farm during dry conditions without having to sell animals in poor condition.
  • Option to increase breeder numbers on-farm in proportion to the number of turnoff animals placed in a feedlot.

 Major factors influencing the profitability of lot feeding are:

Feeder livestock must be produced with the feedlot’s or intensive finishers goals and strategies in mind. Producers considering supplying to feedlots or intensive finishing systems can significantly improve the performance of their livestock when on feed by following any necessary preparation requirements of the feedlot they wish to supply.

Examples of pre-feedlot program activities include yard weaning and pre-feedlot vaccination (such as vaccinating against respiratory diseases).

Pre-feedlot programs vary between feedlots so it is important that producers check with the intended feedlot to understand their pre-feedlot program requirements.

 CONTRACT FARMING 

Contract farming generally involves a pre-agreed price between the investor or company and the farmer. The agreement is defined by the commitment of the farmer to provide an agricultural commodity of a certain type at a time and a price and in the quantity required by a committed buyer, mostly a large company.

Because farms with limited means to improve or expand often seek off-farm income, contract production could be considered an emerging contributor to individual farm economic sustainability in Laikipia.

The main crops the county targets are cereals, pulses, vegetables, fodder, herbs, trees, cattle, goats, rabbits and poultry production.

Advantages for Investors

  • Contract farming with small farmers is more politically acceptable than, for example, production on estates
  • Working with small farmers overcomes land constraints
  • Production is more reliable than open-market purchases and the investing company faces less risk by not being responsible for production

More consistent quality can be obtained than if purchases were made on the open market

 FINANCIAL SERVICES

In terms of total assets, the Cooperatives sector continues to dominate the financial system with 132 SACCOs followed by 34 insurance companies, 25 banks, and 8 microfinance institutions respectively with most financial services concentrated within the main urban centers Nanyuki Nyahururu, Rumuruti and Kinamba townships. There are with 3 FOSAs in the county and 3 main mobile money service providers. Agricultural Finance Corporation runs two branches in Nanyuki and Nyahururu. The county established two funds namely Laikipia Enterprise Fund and Laikipia Cooperative Revolving Fund whose aim is to grow businesses and the economy by expanding allocation of at least KES 300 million per year to ensure people have access to capital resources for investment.

 THE SMART TOWN INITIATIVE                                                                                 

Smart Cities harness the benefits of innovation and information technology by improving the lives of their inhabitants and by becoming more streamlined, efficient and sustainable. Some of the example focus areas include intelligent urban transport management systems and infrastructure, digitization and electrification of transport infrastructure, move to sustainable energy systems, efficient buildings, better air quality, and use of technology to improve and make more affordable health services and social care. 

What is a ‘Smart Town?

A smart town can be defined as having the following attributes and facilities;

  1. To be well planned to cater for public facilities now and in future (schools, churches, stadium, cemetery, public toilets, reliable water supply, industrial park, land bank for future expansion, sewage lagoons, landfill areas, bus parks etc.).
  2. Paved Roads and a well-planned and working Drainage system.
  3. Using new technologies to transact business and the use of renewable energy.

The best Strategy for Smart Towns would be;

  • Planning where development should or should not go can help a rural community encourage growth in town, where businesses can thrive on a walkable main street and families can live close to their daily destinations.
  • Policies that protect the rural landscape, help preserve open space, protect air and water quality, provide places for recreation, and create tourist attractions that bring investments into the local economy.
  • Policies that support walking, biking, and public transit help reduce air pollution from vehicles while saving people money.

The focus on smart growth strategies to meet three main goals:

  • Support the rural landscape by keeping working lands viable and conserving natural lands
  • Help existing places thrive by taking care of investments and assets
  • Create great new places by building lively and enduring neighborhoods where people want to live.

To turn any town from current situation to ‘Smart Town’ takes a lot of time, effort and money. Towns in Europe and other developed countries that are hundreds of years old are still trying to achieve 100% compliance with the Smart Town tag.               

 Why should investors bank on smart towns?

    Getting ahead of the curve on innovative business strategies

With the rise of smart towns, more companies will have the opportunity to develop game-changing strategies. Retailers, restaurants and other service providers can use real-time data to analyze likely consumer choices and adjust pricing accordingly.

    Drawing top talent and driving competition.

The workers who will add the most value over the longer term want to live and work in places that offer them affordable, sustainable housing, timely and safe transportation and a clean and pleasant atmosphere. The more we invest in smart cities, the more likely businesses will be able to draw the people they need to succeed. It also spurs competition: smart cities will allow for reduced spending on operations, transportation and communications to refocus on developing and marketing services or products. Smart cities are best positioned to accommodate growing populations, cut down on traffic, provide water and energy efficiency improvements, reduce infrastructure expenses, modernize public transportation, and provide everyone a greater standard of living         

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Scientists Harvest Eggs From Near-Extinct Northern White Rhino

Scientists racing to save the northern white rhino from extinction have harvested 10 more eggs from the last two females alive.

Scientists racing to save the northern white rhino from extinction have harvested 10 more eggs from the last two females alive, which they hope will help create viable embryos that can be incubated by other rhinos acting as surrogates.

Neither of the remaining northern white rhinos on Earth — a mother and her daughter — can carry a baby to term, so scientists want to implant the embryos into southern white rhinos instead.

The last male northern white rhino, named Sudan, died in Kenya’s Ol Pejeta Conservancy in 2018.

The northern white rhino once wandered through east and central Africa but, as with other rhino species, its numbers plummeted due to heavy poaching.

Northern white rhinos – now the world’s most endangered mammal – have hairier ears and tails, are shorter and stockier and have different genes than their southern cousins.

Scientists first harvested eggs from the females a year ago, as part of a team from the Ol Pejeta Conservancy, Kenya Wildlife Service, Italian-based Avantea Lab, the Czech Republic’s Dvůr Králové Zoo, and the Germany-based Leibniz Institute for Zoo & Wildlife Research.

Scientists perform the oocytes extraction from Najin, the oldest of the two northern white rhinos at the Ol Pejeta Conservancy near Nanyuki, Kenya on Aug. 18, 2020.Ol Pajeta Conservancy / Rio The Photographer / via Reuters

They produced three pure northern white rhino embryos that are now frozen. But the scientists realized they must synchronize implanting embryos with the reproductive cycle of the surrogate mothers. The more embryos they have, the better.

One potential snag is that humans do not know how to detect when the time to insert the embryo is right.

Enter the romantic decoy. A southern white rhino bull will be sterilized, transported to Ol Pejeta and set loose among potential surrogate mothers. His response will signal when they are on heat.

“Thanks to his activities we would be able to identify the right time for inserting the embryo,” team coordinator Jan Stejskal, from Dvůr Králové Zoo, told Reuters.

“We start early in the morning, the first female is immobilised and then the procedure lasts for about two hours,” Stejskal said of the egg harvest.

The eggs are so delicate they must be immediately flown to a laboratory in Europe in an incubator hand-carried by a scientist.

“If you want to start a population of the northern white rhino, one baby is not enough, you need as many babies as possible,” Stejskal said

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