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    What Eldoret's City Status Means for Residents, Investors

    Brian
    By Brian Nzomo
    - August 05, 2024
    - August 05, 2024
    AnalysisKenya Business newsPublic Policy
    What Eldoret's City Status Means for Residents, Investors

    Eldoret town has become Kenya’s fifth official city after Nairobi, Kisumu, Mombasa, and Nakuru, after it was conferred with city status by President William Ruto.

    • •The conferment ceremony was expected to be done Thursday 8th August but Uasin Gishu governor Jonathan Bii moved it to August 15th, saying that changes were made to align the ceremony with the winners’ gala of the Kenya Music Festivals hosted at the Moi Girls High School.
    • •According to Section 5 of the Urban Areas and Cities Act, Eldoret will need to formulate a concrete city development plan that will be undertaken by the municipal board – which may lead to structural modifications precipitated by new directives in land use management and spatial planning.
    • •The act also mandates that cities to invest in long-term infrastructure such as paved streets, street lighting, markets, better roads, and waste management services which may force residents and business to adjust promptly to strict directives geared to achieving these upgrades.

    While an elevation to city status directs more investments from the national government, Eldoret will be have to ramp up its internal resource mobilization that will effectively fund operations and projects meant to maintain that status.

    Uasin Gishu collected KSh 1.09 billion in then final three-quarters of the last financial year, according to a report from the Controller of Budget. The county also expects to receive KSh 8.4 billion from the shareable equitable revenue as highlighted in the 2024/2025 national budget. Infrastructure and municipal administration are part of the highest priorities in the county’s KSh 9.8 billion budget.

    Eldoret’s city status could enable the county government to raise internal-based revenue set to cover the county’s expenditure deficit to KSh 1.2 billion. That is if the status translates to the influx of investors and private sector businesses. However, if these plans are not quickly realized, the municipal board may hike license fees for businesses, parking fees for PSVs, and developers’ permits.

    The county is referred to as the bread basket of the nation, producing much of the country’s agricultural produce. Since its foundation, it has been a hub of agriculture-based processing and inputs sale. Eldoret is also the president’s home ground and rides on the pride of successful athletes who hail from the county. It also has the Eldoret International Airport and hosts the Main Campus of one of Kenya’s biggest universities – Moi University.

    The conferment of city status will make the municipality more visible for corporates, which may see arise in population from job-seekers and smallholder businesses. This is likely to mount pressure on the available amenities such as hospitals, schools, housing, and access to water. The county will nee to leverage on partnerships with the private sector to ensure that many of these services will be available to respond to the expected population density. Failure to do so, may see the city degenerate into worse conditions plaguing other chartered cities.

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