Laikipia County’s planned issuance of a KSh 1.16 bond has received approval from the Kenya’s National Government Cabinet.
This will be Kenya’s first municipal bond since the entry of devolved system of Government.
Laikipia Government was granted a seal of approval from the Cabinet, allowing the local authority to borrow KSh 1.16 billion through issuance of a domestic infrastructure bond at a market determined coupon.
The approval was made in accordance to procedures set out under the Public Finance Management Act No 18 of 2012.
The objective of the infrastructure bond is to finance implementation of projects including provision of water for agricultural production and improvement of the business environment by upgrading markets and town infrastructure; which will provide additional jobs to residents of Laikipia and improve their household income and livelihoods.
About 10 towns in Laikipia are targeted for an upgrade with street lights, paved walkways, and sewerage lines, making them attractive for new businesses.
The bond will accelerate and enable the county to have access to funds for development which will accelerate the growth of the local economy. Smart towns will provide a better quality of life while at the same time building on local assets.
Laikipia county intends to accelerate the area under irrigation, the establishment of feedlots, and fish production. Availability of water will enable Laikipia households to start kitchen gardens not only to improve their nutrition but also for sale.
This will elevate residents who will have adequate water to carry out economic activities such as tomato growing in Wangwachi, Gatirima, and Kariunga.
With enough water for production, Laikipia will be taking advantage of its vast land to grow enough crops and rear adequate numbers of livestock for local and export markets.
For road networks, opening up transport corridors across Laikipia will enhance connectivity. This will create a linkage between farmers and the market to ensure they access the market easily.
Achieving all-weather roads in the county will reduce the travel time and enable faster movement of perishable produce from farms. Transport infrastructure is a key enabler of economic takeoff. A robust transport network will also attract investment in the county.
The County’s Sewerage systems will be expanded to be in tandem with the growing population and the general process of urbanization.
While achieving smart towns is the end goal, there is a need to have smart towns that have a good sewer system. It will improve urban planning as it will equip them with a proper hygiene waste disposal system.
A good sewer system improves the value and quality of land, solves sanitation problems, and creates a conducive livable environment.