Thursday, October 2, 2014

Viewing Nairobi through the city competitiveness lens

  
                                                          Perspective View of Nairobi City
In Summary


By KWAME OWINO
More by this Author
In August 2014, the World Economic Forum published a detailed study, the Competitiveness of Cities Report.
Its authors reviewed the ideas that have been implemented in a variety of successful and less successful cities and distilled them into principles for city managers and leaders to consider. These principles derive from a number of case studies.
City planners for Nairobi and those with views about development at county level ought to bear its lessons in mind because some of its findings point to early identification that is necessary to reduce the danger of waste of resources that will result from some of the huge works that both national and county government are considering in Kenya today.
The first lesson that is clear is that the County of Nairobi will be required to improve its service quality levels. Water quality, transport infrastructure and management of refuse in Nairobi depend greatly on location.
Creating sophisticated traffic management systems and digitizing records at the county offices is good, but the main idea is that the county must concentrate on the basics.
This is especially difficult for elected leaders who think their electoral mandate is to deliver shiny buildings and large highways. All that does not matter if water does not flow to ensure that the diseases that come from poor sanitation infrastructure are prevented.  
In spite of the advantage that comes from the highest population density in Kenya, Nairobi has not taken advantage of its scale to build cost-effective, clean water supplies and drainage systems for the city.
The result of this is a disparity in quality of water supplies and drainage and a threat to public health, with strong conspiracy theories stating that a number of city politicians, directors and their partners are direct controllers of trade in potable water within low-income neighbourhoods.
COMPETITON BETWEEN COUNTIES
The city is losing income while being unable to provide standard services for its residents. That is not the path to city greatness.  
There is no doubt that Nairobi’s dominance in the economic landscape in Kenya has been driven by the centralization of the government of Kenya. Devolution means that the partiality from the national government to one urban area is going to be less salient and the competition between counties more important for success.
A running theme of the Competitiveness of Cities report is that cities that seek to sustain their success must be areas of new business activity. The competitive city, in essence, must facilitate formation of new business and provide services that sustain them.
That the leadership and bureaucrats working for Nairobi are unable to get the pricing and collection of city parking right leads to the suspicion that its policy development is not well considered and competently executed.  
LOW URBAN DENSITY
Data from the Statistical Abstract 2013 shows that approximately 60 per cent of individual Kenyans with a monthly income of Sh60000 and above are based in Nairobi, yet this comparatively affluent group would struggle to afford the mortgages for a city flat that would require 16 years of income.
The result of this is the spread of the city outside the county borders, towards neighbouring counties where land is cheaper and more abundant.
Growth and sustenance of cities requires high urban density that is undermined by the spread away from the epicentre of Nairobi. If this horizontal growth continues, it will be even more difficult for city to provide cost-effective services.
The Constitution of Kenya has neatly attempted to divide role between the county and national governments. Economic diplomacy is largely in the domain of the national government, but one which the leadership of Nairobi should watch keenly.
Business process regulation is important at the city level because the national government determines policies such as profit taxation, immigration and registration of businesses.
IRRATIONAL RESTRICTIONS
A more restrictive immigration policy may not concern counties with a lower level of urbanization but should greatly be watched by the leadership of Nairobi and Mombasa, primarily because these cities are the entry points for foreigners and other investors into the country.
Any irrational restriction to immigration and foreign participation in business in Kenya harms the city disproportionately.
Nairobi County should conduct an audit of national laws and policies in order to determine whether these are consistent with the interest of urban residents who are not as dependent on agriculture and other sectors.
Despite the distinct roles anticipated by the Constitution, the governor of Nairobi must understand that the city needs its own unit for economic policy and investment, both foreign and local.
Kwame Owino is the chief executive officer of the Institute of Economic Affairs (IEA-Kenya), a public policy think tank based in Nairobi. Twitter: @IEAKwame

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