- Kenya is pioneering steps towards integrating the concept of the Blue Economy within its governance structure
- Blue Economy has the potential to create direct jobs in the shipping and fishing sectors while indirectly creating jobs
- According to Kenya Maritime Authority (KMA), the industry regulator, Kenya exploits just 8 per cent of the potential of its marine fisheries.
Kenya’s marine potential is vital for social and economic growth and development of the country. Kenya is pioneering steps towards integrating the concept of the Blue Economy within its governance structure have set a precedent for sustainable development in the African continent. With the establishment of the Ministry of Blue Economy, the nation has showcased its commitment to harnessing the vast potential of its marine resources. This move signifies a crucial shift in prioritising the preservation and utilisation of the ocean’s bounty, in line with global sustainability goals.
Kenya has a long coastline that remains underutilised. Its Marine resources are yet to benefit the country. Compared to other global economic powerhouses , it has just scratched the surface of Marine potential.
The lack of an industrial fish landing port with cold storage, processing, and canning facilities is preventing Kenya from taking advantage of opportunities in the marine sector.
According to Kenya Maritime Authority (KMA), the industry regulator, Kenya exploits just 8 per cent of the potential of its marine fisheries.
KMA’s acting director for maritime trade and development said the country lands 24,580 metric tonnes of marine fisheries annually valued at Sh5 billion.
This is a paltry 8 per cent of Kenya’s potential to land about 300,000 metric tonnes of marine fisheries valued at Sh42 billion.
Challenges in Achieving a sustainable blue economy in Kenya
Despite the promising future of the Kenya’s marine industry, it faces challenges of unregulated fishing practices, degradation of marine ecosystem through oil spills, dumping of waste, and illegal sand harvesting that destroy coral reefs and coastal forests.
Kenya also suffers from poor management of the coastal areas, lack of capacity and technical skills, lack of capital, minimal participation by citizens, unclear benefit-sharing regime, and loss of biodiversity, amongst others.
Additinally, Kenya is faced with border disputes with Somalia over maritime boundaries. Through these challenges, Kenya incurs loses to foreign exploitation due to lack of capacity and knowledge as well as degraded and dwindling resources within its waters, attributable to environmental degradation, as already highlighted.
Notably, Kenyas marine fisheries are mostly run by foreign fishing equipments which rarely land or attribute their catches in the country, thereby denying the country revenue from fishing in their waters and processing jobs as well.
Benefit from exploiting ocean resources
Blue Economy has the potential to create direct jobs in the shipping and fishing sectors while indirectly creating jobs in shipbuilding and repairs, port services, insurance, bunkering services, and ship-related financial and legal services.
A well-networked and supported Blue Economy will potentially promote growth in domestic tax revenues through increased employee income taxes, employee and employer social security contributions, corporate tax, and value-added tax on employees’ consumption, thereby immensely contributing towards the growth of Kenya’s economy. A developed maritime cluster has the potential to increase productivity along the entire supply chain.
The role of the private sector in Blue economy investment
The private sector has a profound role in catalysing and accelerating the transition to an inclusive, sustainable blue economy. It is evident that private sector-led Inclusive Sustainable Blue Economy (ISBE) solutions cover a broad spectrum of initiatives and sectors such as circular economy, financing, especially for small-scale to medium enterprises (SMEs), and technology development, among others.
Additionally, it drives diverse ISBE solutions, demonstrating a commitment to a sustainable environment and responsible business practices. It contributes knowledge and resources to drive participation in the blue economy.
Consequently, it invests in maritime training to unlock the industry’s potential. Kenya`s Blue Economy training institutions need to develop an adequate capacity to offer training as per the required standards, and considering the huge number of resources needed, this is an area in which the private sector has a hand to play.
Fostering ISBE Proposed strategies like promoting Environmental, Social, and Governance (ESG) compliance as well as models of best practice, technical assistance packages, tax incentives, and compromises on the size of investments is a trajectory that will improve sustainability of the marine economy.
To ensure that private sector financing institutions integrate environmental considerations into their business operations and lending procedures, the proposed strategies include implementing sustainability principles, adopting Environmental, Social, and Governance (ESG) policies, employing reporting frameworks, utilizing scorecards, and aligning with the International Sustainability Standards Board (ISSB). In order for private sector financing institutions to align with and implement UNEP‘s sustainable finance principles, there should be documented and available best practice case studies, active engagement in bilateral discussions and advocacy for adoption, as well as the establishment of an Information Technology platform dedicated to sustainable finance.
Also Read: Blue Economy Investments to Earn Kenya $921m Annually In Revenue Boost
Harnessing Sustainability in Kenya’s Marine potential
There have been definite steps, albeit slow ones, in exploring into the enormous resources in the marine industry.
For effective development of the blue economy Kenya needs to build human resource capacity through investing in marine education and training, boost marine scientific research, support the traditional industries of fisheries, aquaculture, tourism, blue biotechnology, ports and shipping, develop blue economy database.
Marine cargo insurance (MCI) also plays a huge role. Its overall performance has undoubtedly improved since the National Treasury ordered the enforcement of Section 20 of the Insurance Act that came into effect on January 1, 2017, which requires the compulsory purchase of (MCI) from local underwriters.
Conclusion
The sustainable development agenda calls for economic development that is both inclusive and environmentally sound, and undertaken in a manner that does not affect the natural resources that societies depend on in the long-term, this includes the oceans, making it a key component of the marine potential in Kenya.
Kenya can reap from the marine industry. It can harness the blue economy resources to achieve sustainable developments and specifically address questions of eradication of poverty, provision of food security, and generally raising the people’s standards of living.
Therefore, Kenya has not yet fully utilised its economic potential of marine resources, yet it has a vast maritime territory. It has not yet invested in this potentially lucrative area, thus accruing loss of income and opportunities for its citizens.
Moreover a potential solution to the food insecurity problem through investing more in seafood harvesting is needed. For Kenya to fully enjoy these resources, there must be collaborative efforts aimed at tackling the challenges related to environmental sustainability, maritime security and inclusive development.
