President William Ruto on Thursday officiated the signing of 16 Inter-Governmental Participation Agreements on the establishment of County Aggregation and Industrial Parks (CAIPs), in a move aimed at accelerating industrialisation and economic transformation at the grassroots level.
The agreements were signed at State House Nairobi as part of the government’s broader strategy to strengthen manufacturing, support local enterprise and create jobs through partnerships between the National Government and county governments.
Speaking during the event, President Ruto said the CAIPs programme would play a key role in transforming counties into centres of industrial growth and innovation.
“Our KSh8.5 billion investment in the development of County Aggregation and Industrial Parks is transforming our counties into engines of industrialisation, innovation, job creation and economic transformation,” said Ruto.
Joint Investment Between National and County Governments
The President noted that the programme is being implemented through collaboration between the national administration and devolved units, with each of the 34 participating counties receiving a joint investment of KSh500 million.
According to Ruto, the investments are designed to support grassroots industrial development while opening up new economic opportunities for farmers, small businesses and manufacturers.
“Through close cooperation between the National Government and county governments, we have jointly invested KSh500 million in each of the 34 participating counties, laying the foundation for grassroots industrial growth,” he said.
The government believes the initiative will help counties process locally produced goods, reduce post-harvest losses and increase earnings for farmers through value addition.
Focus on Manufacturing and Value Addition
The County Aggregation and Industrial Parks programme is expected to support sectors such as agriculture, manufacturing and trade by creating centralized facilities for storage, processing and packaging.
President Ruto said the initiative would empower farmers and strengthen local industries by improving market access and reducing reliance on raw commodity exports.
“This programme will empower our farmers, support manufacturers, strengthen local enterprise and create wealth across our counties,” he stated.
The Head of State further announced that the government is investing an additional KSh2.4 billion in common user facilities across the CAIPs programme.
Under the arrangement, approximately KSh150 million will be allocated to each facility to support county-specific value addition priorities.
The facilities are expected to provide shared industrial infrastructure including cold storage, processing equipment and packaging units to help lower operational costs for businesses.
Boosting Jobs and Economic Growth
The government has positioned the CAIPs programme as one of the flagship projects under the Bottom-Up Economic Transformation Agenda (BETA), which seeks to stimulate economic growth through agriculture, manufacturing, housing, healthcare and the digital economy.
Officials say the industrial parks are expected to create employment opportunities for thousands of young people while boosting investment in rural and urban counties alike.
The signing of the agreements now paves the way for accelerated implementation of the industrial parks in participating counties as the government intensifies efforts to decentralize manufacturing and economic development beyond major cities.
