Trade, Industrialization and Co-operative Development 2021-09-29T10:39:40+03:00

Trade, Investment , Industry And Cooperative Development

Departments

The Department of Trade is tasked with creating an enabling environment for traders within the county and beyond.

The department operationalized the Elwak Regional Market in September 2020. The market boasts of 216 ultra-modern stalls, 128 open table shades, parking lot for more than 200 vehicles, modern rows of toilets including for persons with disability and fire-fighting equipment.

This mega state-of-the-art facility was built in line with H.E Capt. Governor Ali Roba’s manifesto of economic empowerment to the residents of Mandera including women, youth, people with disabilities and special category groups. It also puts Mandera County firmly on the pedestal of increasing own- source of revenue generation.

Other markets projects constructed and operationalized by the County Government include: Mandera Youth Market, Mandera ESP, Khalalio Market, Sala Market, Rhamu Market, Ashabito Market, Rhamu

Market and capacities table

No. Market Before Devolution After Devolution
1. New Rhamu Market 0 56
2. Refurbished existing old Rhamu Market 0 58
3. Old Rhamu Market 55 55 refurbished
4. Mandera Bulla Jamhuria Market 184 184 refurbished
5. Banisa Market 16 16 refurbished
6. Eymole Market 0 24
7. Mandera Buspark 62 62 refurbished
8. Takaba Market 10 4 with shade
9. Khalalio Market in Mandera East Sub-County 0 24 stalls
10. Sala Market in Lafey Sub-County 0 24 stalls
11. Lafey Market stalls and open shade 24 24 refurbished
12. Wargadud Market 0 16
13. Refurbished Fino market in Fino ward 0 7
14. Mandera town ESP market 0 203 modern stalls and 32 open table shade.
15. Mandera Youth Market 0 58 modern stalls market with fully fledged restaurant, mosque and ablution block
16. Kutulo Market 0 24 stalls
17. Elwak SME Park Regional Market 0 216 ultra-modern stalls, 128 open table shade, and parking lot for over 200 vehicles, modern rows of

toilets including for PWD and

fire fighting equipment

18. Borehole 11 Market 0 16 stalls with shade
19. Ashabito Market 0 24
20. Rhamu Dimtu Market 0 16 stalls with shade
TOTAL STALLS 351 1,111

Revenue Collection

The hard nut of revenue was approached with optimistic attitude and charismatic leadership which evidently portrayed tremendous revenue growth within a short period.

The department embarked on this primary role of revenue collection after the CECM Finance and Economic Planning decentralized and handed over revenue streams to the ministry on 3 April 2020.

The revenue streams handed over to the ministry are as follows:

  1. Single Business Permit.
  2. Market Stall.
  3. Market Shades.
  4. Market Gate.
  5. Miraa Movements (only handed over in writing, still managed by Revenue Department).

Markets & market related collections are one of the areas where the ministry had a successful account in terms of management and collection. The department instituted thoughtful collections of outstanding and monthly rent to bring normalcy to pessimistic growth of debts in the government market.

The ministry managed to collect a total of 33,324,468 from January to December 2020.

The opportunities in this sector are that automation of revenue collection has minimized cases of revenue leakages hence improved revenue collections.

Decentralization of revenue and human resource to the department has enhanced proper control, supervision and accountability since there is no avoidance of collection responsibilities. Great working relationship with Mandera Municipality enforcement team has also enhanced compliance and enforcement in revenue collection.

Business Advisory and Counseling

The Department of Trade through its Sub county offices offers business advisory and counseling to the traders and great strides have been achieved. This is a day-today services we offer and it is either one-on-one or same interest group form. The following are major areas on which the traders were advised and counseled on:

  1. Bookkeeping and preparation of other financial statement, during these sessions the office discovered that most of the businesses are conducted in an informal way. There was no proper record keeping, none of the traders have or keep books of accounts for their businesses nor prepare any financial statement. This means that they don’t know if their businesses are growing or making profit at all.
  2. Business registration procedures where they were advised on procedures of registering their businesses. The County trade licensing procedures and processes. During the period traders were informed on ongoing business registration in the county.
  3. General trade and business matters which includes proper arrangement of merchandise at business premises

With an estimated share capital of over Sh1 million and total savings in bank accounts of close to Sh16.5m, the cooperative movement is on an upward trend as it marks 45 years post-establishment of the first Sacco. The total assets value for co-operatives in the county is approximately Sh13m, with an annual turnover of Sh7.5m, and total loans granted to members about Sh11m by the two conventional SACCOs .since their inception.

Registration of Co-operatives: The Department of Co-operative Development has registered a total of 3,804 members out of which youth are 35%, women 47% and elderly 18%. Few women are in management positions. The Department’s operations are based on performance in co-operative management and auditing, focused on promotion, formation and recommendation for registration of new viable co-operatives. The Department supports growth and development of strong, stable, viable and self-sustaining registered co-operatives.

Pre-Co-operative Education Trainings: The Department has conducted pre-cooperative education trainings to potential members in preparation of viable proposed cooperatives based on their economic activities. Through the training, the Department conducted the formation of many new cooperatives in the last five months. Further, the requests were verified and forwarded a total of sixty-three (63) new proposed cooperatives from Lafey, Banisa and Kutulo sub-counties has been undertaken and forwarded to the State Department of Cooperative for registration and twenty-three were successfully registered. The Department has now embarked on online registration of new Co-operatives to enhance and ease the process of registration.

Capacity Building:

Created Eighty (80) new cooperatives, revived thirty six (36) inactive ones and registered one hundred and fifty eight (158) co-operatives and thirty nine (39) SACCOs.

The department has set up a Co-operative annual award to be celebrated during Ushirika Day for best performing cooperatives being awarded for various categories as a means to motivate the members and instill positive competition amongst the co-operative movement.

Purchase of two number Milk Equipment’s that includes Milk Pasteurizer, Milk cooler and Milk dispenser- The milk value addition equipment are an innovation that is instrumental to milk value addition through enhancing levels of hygiene, lengthening the shelf life and enabling better sales management through automation.

The Ministry of Trade, Investments, Industrialization and Co-operative Development comprises of two departments:  the Department of Trade, Investments and Industrialization, and the Department of Cooperative Development. The Department of Trade is responsible for the formulation, implementation of domestic trade development policy and promotion of retail and wholesale markets. It promotes growth, graduation, productivity and competitiveness of micro, small and medium industries.

The Department of Cooperative Development is responsible for registration and audit of co-operative societies in coordination of the national government. It settles co-operative disputes, inspections, inquiries, co-operative extension, education and training to mainstream good corporate governance in the co-operative sector.

Vision

To be a premier promoter of trade, investment and private sector development

Mission

To promote, coordinate and implement integrated socio-economic policies and programmes for a sustainable trade and investment, competitively innovative industrialization and infrastructure development with a vibrant commercially oriented co-operatives sector

Core Values

Our core values define who we are. They are the fundamental beliefs of our Ministry. They guide our actions and behaviour. They influence the way we work with each other – and the way we serve our clients and engage with our communities. For simplicity our core values can be abbreviated as TEAMCHEPI. The Core Values are:

  1. Teamwork and Passion for Results. We will relentlessly pursue timely attainment of targeted results at all levels through high level of coordination, networking and collaboration within staff.
  2. Equity and Equality. We will promote fairness and equal distribution of resources and services at the county levels.
  3. Accountability and Transparency: We will conduct our activities and lend services to our clients in a transparent and accountable manner.
  4. Mutual respect, Participatory Approach and Inclusiveness: We will be committed to consultations, joint and comprehensive partnership in all our affairs.
  5. Customer Centred service: Committed to uphold customer driven and focused service delivery.
  6. Honesty and Integrity: Promote openness, uprightness and reliability while executing our mandate.
  7. Efficiency and effectiveness: Promote high productivity, competence and usefulness of resources at all levels.
  8. Professionalism and ethical practices. All staff will uphold highest moral standards and professional competence in service delivery.
  9. Innovativeness and Creativity: Committed to innovativeness, inventiveness, resourcefulness and visionary planning and service delivery.

OBJECTIVES AND GOALS

Strategic Goals:

  1. Promote trade and investment
  2. Champion private sector development
  3. Achieving prosperity through vibrant co-operatives
  4. Industrial development and investment

Strategic Objectives:

  1. Improve service delivery, working environment and motivate staff
  2. Promote private sector development through enterprise and entrepreneurship development
  3. Promote growth and development of wholesale and retail trade
  4. Improve business environment, promote active investment climate and fair business practice
  5. Foster conducive linkages and collaboration mechanisms
  6. Strengthen and create vibrant co-operatives that contribute to the GDP
  7. Formulate and implement an appropriate policy and legal framework for the development of trade and co-operatives sector

CORE FUNCTIONS

  •  Registration and audit of co-operative societies in coordination with National Government;
  • Settlement of co-operative disputes, inspections and inquiries;
  • Co-operative extension, education and training;
  • Mainstreaming good corporate governance in the co-operative sector;
  • Co-operative research and development;
  • Promotion of co-operative ventures, marketing, innovations, value addition and investment.
  • Registration and audit of co-operative societies in coordination with National Government;
  • Settlement of co-operative disputes , inspections and inquiries;
  • Co-operative extension, education and training;
  • Mainstreaming good corporate governance in the co-operative sector;
  • Co-operative research and development;
  • Formulation and implementation of domestic trade development policy;
  • Promotion of retail and wholesale markets;
  • Development of Micro, Small and Medium Enterprises;
  • Private sector development;
  • Promotion and facilitation of intra, inter-county and cross border trade;
  • Promotion of use of E-Commerce;
  • Promotion of consumer protection, Uniformity in Trade measurements and Fair trade practices;
  • Regulation of Weights and Measures;
  • Trade development and regulation, including – markets; trade licenses (excluding regulation of professions).
  • Promotion of co-operative ventures, marketing, innovations, value addition and investment.
  • Promote growth, graduation, productivity and competitiveness of Micro, Small and Medium Enterprises/ Industries;
  • Conduct resource endowment mapping and promote investment opportunities in the regions;
  • Implementation of industrialization policy;
  • Value addition processes and coordination of the management of all industries in the County;
  • Facilitate financing mechanisms including supplier credit, equipment leasing and rentals and Public Private Partnership.

ACHIEVEMENTS

The achievements of the County Government of Mandera in Trade and Cooperative Development during this era of devolution are enormous.

Trade Development Sector

Market Infrastructure: Before the advent of devolution, there were five (5) main markets with three hundred and fifteen stalls (315), five ESP shade. The County Government has increased the number of markets by building fifteen (15) new modern markets with six hundred and ninety-two (692) stalls, three bale shades with a capacity of one hundred forty-two stands (142).

Modernization of the Market Infrastructure ongoing like the Multi-million shillings Elwak SME Park. The facility is a modern state markets with two hundred and ten( 210) stalls, one hundred and twenty six (126) bales shade, forty milk/meat section, fifteen eateries and parking yard, that will provide a good business environment to the locals and a business hub centre for cross border trade.

Stalls and capacities

County Business Mapping: The Ministry has developed a sample template for businesses and conducted business registration for all businesses in Mandera East, Mandera South, Kutulo and Lafey sub-counties, and a total of five thousand two hundred and sixteen (5,216) businesses were registered. The data is currently in the process of been analyzed into different categories once all data from the remaining three sub-counties is received. This will enable understand and compile the challenges faced by the businesses so that prompt solutions are sorted.

 Entrepreneurial trainings:  During the period, the department conducted fifteen (15) entrepreneurial training for business startups, trade partners and young upcoming entrepreneurs through development partners. The overall objective of the training is to equip trainees; business Startups and  as well as traders with the basic concepts of entrepreneurship and knowledge of business planning essential to the success of the entrepreneur of a small business. It’s aimed at inculcating entrepreneurial culture in the society as key to self-development.

Business Advisory Service: With the inception of county government, a total of two thousand three hundred and fifty (2,350) business traders were offered business advisory services and counseling in county through the Sub County Trade Offices.

The County Trade Development Fund:

The much-awaited Mandera County Trade Development Fund (MCTDF) was launched by his Excellency the Governor of Mandera County Government in July 2019 and the total amount of the Fund is 368,000,000 (three hundred and sixty-eight million shillings).

The Mandera County Trade Fund was established by Mandera County Trade Development Fund Act, 2014 as enacted into law by Mandera County Assembly. The Fund’s policies, regulations and the implementation template are in place.

The MCTDF Board and the seven sub-county committees have been recruited and gazetted.

The Mandera County Trade Development Fund will be distributed among the 30 wards. This will be done in the basis of fairness and equity across all the wards as the County Government recognizes that the different wards have different and unique set of challenges and opportunities.

The La-Riba (non interest) revolving fund was established to answer the call for the expansion of access to   financing for the promotion of SMEs growth at county level for economic growth and the need to generate gainful self-employment.

The application form is toiler-made and is serialized for each ward and has been distributed to all the 30 wards. The application was enormous. Mandera East sub-county was the highest sub-county with the most applicants with 339 groups, followed by Mandera South 165, Mandera West with 135, Lafey with 94, Banisa with 83 and Kutulo with 35. These applications will soon undergo scrutiny. The disbursement of the fund is planned for March 2020 Insha’Allah.

Cooperative Development

With an estimated share capital of over Sh1 million and total savings in bank accounts of close to Sh16.5m, the cooperative movement is on an upward trend as it marks 45 years post-establishment of the first Sacco. The total assets value for co-operatives in the county is approximately Sh13m, with an annual turnover of Sh7.5m, and total loans granted to members about Sh11m by the two conventional SACCOs .since their inception.

Registration of Co-operatives: The Department of Co-operative Development has registered a total of 3,804 members out of which youth are 35%, women 47% and elderly 18%. Few women are in management positions. The Department’s operations are based on performance in co-operative management and auditing, focused on promotion, formation and recommendation for registration of new viable co-operatives. The Department supports growth and development of strong, stable, viable and self-sustaining registered co-operatives.

Pre-Co-operative Education Trainings: The Department has conducted pre-cooperative education trainings to potential members in preparation of viable proposed cooperatives based on their economic activities. Through the training, the Department conducted the formation of many new cooperatives in the last five months. Further, the requests were verified and forwarded a total of sixty-three (63) new proposed cooperatives from Lafey, Banisa and Kutulo sub-counties has been undertaken and forwarded to the State Department of Cooperative for registration and twenty-three were successfully registered. The Department has now embarked on online registration of new Co-operatives to enhance and ease the process of registration.

Capacity Building:

Created Eighty (80) new cooperatives, revived thirty six (36) inactive ones and registered one hundred and fifty eight (158) co-operatives and thirty nine (39) SACCOs.

The department has set up a Co-operative annual award to be celebrated during Ushirika Day for best performing cooperatives being awarded for various categories as a means to motivate the members and instill positive competition amongst the co-operative movement.

Purchase of two number Milk Equipment’s that includes Milk Pasteurizer, Milk cooler and Milk dispenser- The milk value addition equipment are an innovation that is instrumental to milk value addition through enhancing levels of hygiene, lengthening the shelf life and enabling better sales management through automation.

Reasons for Investing in Mandera

  1. MARKET POTENTIAL: A big local market with a population of 1.2 million people. In addition, Mandera’s strategic location makes it a gateway to the huge market in Ethiopia, Somalia and the Middle East.
  2. ABUNDANT RESOURCES: Mandera County is endowed with natural resources such as gypsum, oil, natural gas, soda ash and limestone. Preliminary exploration reports indicate the county could have as much as 1.6 billion barrels of crude oil deposits.
  3. EASE OF DOING BUSINESS: A responsive administration committed to improving infrastructure and eliminating bureaucratic processes, regulations and trade barriers.
  4. POLITICAL STABILITY: Collaboration between leaders and security agencies has created peace and stability.
  5. ADEQUATE LAND: Plenty of productive agricultural land which can be developed for industrial and infrastructural projects like airports.
  6. LABOUR: Plenty of skilled and unskilled human resource.
  7. WATER: The River Daua which stretches for 160 kilometres has great opportunities for irrigation, hydropower and setting up of water bottling plants.
  8. LIVESTOCK: Traditionally the main economic activity in the region, the livestock sector is being developed for meat, cheese, milk and leather exports.
  9. GREEN ENERGY: Immense potential for wind, solar and biofuels to meet the growing demand for energy.
  10. HEALTH: The county is served by a Level IV hospital. Opportunities exist for the provision of health-relevant services such as diagnostic technology, medical supplies, paramedic training, medical tourism, telemedicine and multi-specialist healthcare centres. Others are healthcare financing, medi- cal insurance, gyms and health clubs, ambulance and medical airlift services.
  11. TRADE: Potential for a dry port , supermarkets and major wholesale and retail chains is high.
  12. ROADS AND PUBLIC WORKS: The development of new roads and the upgrading of the existing networks will promote investments in transport, petroleum and gas stations, bitumen and ballast production, road building equipment, lorries for hauling sand and a dry dock.
  13. INDUSTRIALISATION: Potential exists for investments in large-scale industries as well as cottage industries and medium-sized plants. Industries can set up in plastics, oil extraction, steel and cement factories, electronics, confectionary and bakeries, tile and roofing materials, gum arabic process-  ing plants, fruit and juice processing.
  14. LAND AND HOUSING: Mandera has expansive virgin tracts of land suitable for agricultural production. There is room for well-planned and controlled urbanisation, ideal for investors in real estate and decent housing for residents, workers and investors.
  15. EDUCATION: Mandera, southern Ethiopia and southwestern Somalia do not have a single institution of higher learning. The confluence of an immense need and available resources presents an immediate opportunity for specialized institutions, private universities, management training schools, computer colleges, international schools and associated products/services such as provision of teaching materials.
  16. ICT: Mandera County is in a unique position to harness information communications technology (ICT) capacity and potential for investors to establish a ‘Silicon Valley’ in the Horn of Africa region. This will help modernize the delivery of services and means of production. Investors in fibre-optics, in- ternet, voice and data service providers can benefit from the huge population requiring these services. There are investment opportunities in mobile telephony, cyber cafes and ICT villages, computer assembly plants, software development and sale of accessories.
  17. FINANCIAL INSTITUTIONS: Opportunities exist for financial institutions to invest in Mandera. Only two banks — Kenya Commercial Bank and Equity Bank have branches in the county. The county has no credible insurance firm.

Director for trade, investments and industrialization

THE MANDERA COUNTY TRADE DEVELOPMENT FUND REGULATION, 2019
THE MANDERA COUNTY TRADE DEVELOPMENT FUND ACT, 2014
The Mandera County Trade Development Fund (Amendment) Act, 2019