There’s potential if Sironga Industrial Park is built

The proposed site for the construction of the Nyamira Integrated Agro-Industrial Park at Sironga. PHOTO/Courtesy.

The proposed setting up of Sironga Industrial Park in Nyamira is a blessing in time for the economy of the county and its neighbours.

Even so, it can only be a success if the planners and implementers have the ultimate goal and good intentions for the success of the multi-billion project.

Nyamira has not had such a great project within its borders over the years.

The park is putting great expectations and interest on both the locals and potential investors. 

Outlying regions like the scenic Manga, the green tea villages of Kebirigo and Borabu stand to benefit from these investments.

The industrial park will present economies of scale whereby units located in the industrial estate can adopt a centralized buying and selling ideology.

The requirement for raw materials and components can be pooled together and bulk purchases made.

Such bulk purchases would be eligible for quantity discounts resulting in lower costs and boost the economy of Nyamira.

Similarly in the case of sales, the produce of local products such as pottery and farming can be pooled together and sold.

This would better returns to a great extent.

This kind of centralized buying and selling would enable the community to enjoy high scale economies.

There is expected opening of economies of glomeration (the benefit of reduced production costs because of concentration of industries).

The benefits from agglomeration in the case of this industrial park will need availability of skilled labour, presence of repair, maintenance and service facilities, availability of components and presence of financial services.

The finished products of one unit might be the raw material for another unit.

Since the units will be located close by, it will result in savings in terms of transportation costs for the purchaser and an assured market and reduced selling cost for the seller.

And since the government provides land for setting up industrial estates at affordable costs, the initial investment need is less.

This means that industrialists can acquire assets on hire-purchase or on lease and benefit from higher output.

 Infrastructural facilities and amenities such as electricity, water, roads, telecom among others are readily available in industrial estates.

Entrepreneurs need not to spend their time and money to get electricity connection, water supply and telephone connection, banks and post offices.

These facilities are in industrial estates and they will facilitate business transactions to a great extent.

Therefore, production can commence immediately without any wastage of time and other requisite resources.

Research for markets

The Nyamira community, with an industrial estate can cooperate among themselves and undertake joint research.

Such research can be for exploring new markets, new sources of supply of raw materials, better processes, among others.

They will share best practices relating to quality standards and related investments.

Such co-operation would benefit all the member units.

This is so because the initial investment is low and all the basic and supporting infrastructural facilities are readily available.

Therefore, entrepreneurs can focus their full attention on the business and growth.

It is expected that the industrial estate at Sironga will create more employment opportunities and increase the mobility of labor.

Since many of the units are labor intensive, there are opportunities for both skilled and unskilled workers.

Industrial estates provide employment to the local youth.

Thus, the needs and aspirations towards the completion of Sironga industrial park will need dedication of skill and availability.

You can also read: Nyamira Gubernatorial aspirant gives hints on wealth creation

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Dr. Nyakundi is a Biomedical Technologist, Cinical Engineer, and Administrator based in the US. He is a Nyamira County Gubernatorial aspirant, come 2022 general election.


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