CONCEPT OUTLINE FOR SEP PROJECTS

“A BREAKING OF THE VICIOUS CIRCLE OF POVERTY”

TABLE OF CONTENTS

PREAMBLE

EXECUTIVE SUMMARY

BACK GROUND

SPECIFIC AREAS OF INVESTMENTS/ STRATEGIES

Food Production and Processing System

As for example in Kales production

As for example about apiculture

Methodology

Beverage

Infrastructure

Develop Livestock Industry

THE EXTERNAL ENVIRONMENTAL ANALYSIS (TARGET MARKET)

SWOT- THE INTERNAL ENVIRONMENTAL ANALYSIS

THE AGRIBUSINESS “NUCLEUS” PROJECT PLAN

Name of the organization: “SEP”

TARGET

EXPECTED RESULTS

POSSIBLE RISKS

IMPLEMENTATIONS STRATEGIES

PROJECT LOGICAL FRAMEWORK

FINANCIAL STATEMENTS

PREAMBLE

The Government of Kenya committed itself at the independence to the eradication of poverty. However, hitherto the poverty scourge is still rampant and especially in Southern Nyanza (now the Homabay and Migori Counties) where 73% of the population is perpetually malnourished and deprived of basic needs. Generally basic needs can only be met at the expense of food. For example, food has to be sacrificed in order to take a sick person to hospital, school etc. Such poverty within Homabay County has been due to major factors;

  • Unbalanced strategic vision to development because of lack of commitment to bottom–up approach in decision making.
  • The Top-bottom decision making system has caused the “vicious cycle of poverty”. This backwardness in poverty creates income per-capita too low and no savings altogether. Low savings result in too low investments. This concept of vicious cycle of poverty is a countercurrent flow of low income- low savings and subsequent low investment. The concept can reasonably be related to crop production and consumption balance, and even to education. The poor produce less food and also buy less food. Alternatively, more income may lead to more consumption and less poverty.
  • It is equally important to note that in the vicious cycle the poor households are less educated and even though they would wish to take their children to schools, they cannot be able to afford the exorbitant cost of education which is why there is continuity of the vicious cycle of poverty. There is therefore urgent need to break this circle.

Agriculture is the major driving force in other regions of Kenya and the whole country in general. The agricultural sector, in particular the agri-business is indeed recognized by the government; coupled with its value addition (manufacturing, processing and marketing) systems, it is critical, if it has to realize the primary goal of poverty reduction because agriculture can be a source of food security, employment and income generation for the majority poor who live in the rural areas.

Approximately, 80% of the population in Homabay County depends on Agriculture as the main source of livelihood which means that Agribusiness would be aggressively and successively undertaken. The land fertility and subsequent productivity has continued to decline as a result of a reduced soil fertility levels, unreliable rainfall and poor living coupled with high population pressure; the land holding sizes continue to reduce and foster poverty levels to be high.

It is therefore practically meaningful that the only perfect way to reduce poverty within the Homabay County is to improve the agricultural productivity and competitiveness through intensification and crop substitution.

This works well where smallholder farmer works on his own/area of interest (self employed) and is guaranteed direct benefits from the returns and participating in the finishing process. For this reason, larger foreign investments in terms of loans (venture capital) or grants / aid can be used. Due to greater flow of capital, huge amounts can be invested to break the circle. Higher level of investment results in greater income and higher income means more savings which will result into more investments.

It is the breaking of vicious cycle of poverty that this Projectconcept is seeking for working partnership, in terms of technical assistance, venture funding, grants/Aid and good will to invest within the regions of Homabay County on the principle of “Private ownership-community participation arrangement” within the culture of entrepreneurships”.

To address these problems there is need to undertake initiatives to start Agribusiness development aimed at improving standards of the poor and the vulnerable, by creating availability and affordability of food for the local population. This Agribusiness aims to improve farming practices for poverty reduction in the area.

The poverty challenges are as shown in the chart below;

  1. Poverty situation in the wider Southern Nyanza

% of poor population “adult equivalent” / % of poor households
A. / FOOD POVERTY
Kenya rural-other parts / 68
50 / 65
43
B / ABSOLUTE POVERTY
Kenya rural –other parts / 73
54 / 71
48
C / HARDCORE POVERTY
Kenya rural-other parts / 56
43 / 62
38

Source–poverty in Kenya-report (2000)

  1. Education percentage levels of Heads of households in the District.

Rachuonyo District- Koshids Survey-2000

All / House Category
Female / Male
I / No. formal education / 22% / 35% / 12%
II / Primary- not completed / 30% / 32% / 28%
III / Primary completed / 29% / 23% / 35%
IV / Secondary –not completed / 7% / 6% / 8%
V / Secondary completed / 10% / 4% / 15%
VI / College Institute / 4% / 2% / 6%
  1. Health statistics in the area
  2. 51% sells their only property to meet quality health care.
  3. 46% gets assistance from relatives and friends for quality health care
  4. 3% can afford to pay for quality health care, but painfully.

All these occur despite the existence of National Hospital Insurance Fund Scheme.

EXECUTIVE SUMMARY

Society Empowerment Project (SEP) is a community based organization focused on empowering youth and women, and subsequently promoting community development in the areas of Oyugis Town and the rural environs ofHoma-bay County through football.The region is characterized by vicious circle of poverty and food insecurity. Society Empowerment Project (SEP) uses agriculture as a means of empowering the communities for attainment of sustainable food security and income generation stability. This is done by involving the community members, groups (in particular women and youth groups) and the stakeholders who on collaboration withSEP get knowledge and subsequently adopt better agricultural practices. Agricultural crop rotation with other short term crops like, Kales, Tomatoes, Watermelon, etc is carried out to give the best use of land and prevent crop diseases. In fact SEP uses the best Agricultural crop husbandry for example by making and using decomposed organic manure for planting (also to reduce global warming effect from gases e.g. methane)The application of economic efficiency, optimal resource utilization and adoption of environmentally friendly methods are the SEP guiding principles and targets.These practices impact a strong influence over the rural poor around Oyugis Town for subsequent poverty alleviation. In the situations where good crops yields are experienced, Society Empowerment Projectfrom time to time subsidizes school fees for their members from the sales of agricultural products.

The Society Empowerment Project primarily uses football as a tool for informing and mobilizing the community to address the many social ills and challengesthey face. Hitherto and so far, SEP has had successful economic development programs in promoting agriculture through foot ball activities in Homabay County.These activities subsequently enhance economic peace building amongst the youth, whilst targeting both micro and macro level issues with the aim of creating opportunities for the young stars and ensures that the basic needs of the community are met.For this reason, SEP has enjoyed recognition for the success in its football activities by receiving the Global Barcelona Sports Award (GBS) for the best practices through football in 2012.In the same year 2012, SEPreceived yetanother global award- Sports for Peace Award givenby the principality of Monaco for the best use of football for peace building and peace keeping.SEP also works with FIFA’s Football for Hope (FFH), Street Football World, GIZ/YDF, the Two Wheeled Foundation, and continues to build a strategic partnership with the Boston based Cambridge Kenya Football for Development programs through football activities.In the course of football activities promotion, identification of self-efficacy for subsequent self-efficiency that would meet basic human needs and build positive relationships in the society isidentified and undertaken including market information exchange.In order to ensure a situation of securing sustainable Agriculture, capacity development through training by the staff of the District Agricultural line Ministryand often consultations to ascertain that proper knowledge is acquired, isoccasionally carried out.

At the same time SEP also continue collaborating with NGOs and like minded institutions in the aspects of agricultural developments. However, SEP has an advantage of having qualified and competent personnel within its structure, some of whom havevast and practical experience in Agribusiness management practices.

Majority of agricultural produce that supplies Homabay County come from the neighboring Kericho, Kisii, Rongo and Migori Districts. In fact, the agricultural production by SEP is planned to take advantage of the overwhelming markets needs. The sales of the produce are done at the SEP center through business women and youth who also add value by transporting them to other markets, particularly to Oyugis Market. The youth and women are the major collaborators whilst subsequently forming a bigger centre for marketing the farm produce. In fact the agricultural production would not even suffice the local market.

SEP uses its subscriptions as a seed capital for these project developments though this is quite minimal.FFH, Friends, well-wishers, Constituency Development Funds and None Governmental Organizations have from time to time supported the SEP programs.And an average of Kenya Shillings120,000 (US$ 1412) has been used annually for these programs with a subsequent average production turnover of Kshs.300, 000. SEP is still a young project and its assets are only worth Kshs 1,194,800 (US$ 14056) - (SEP inventory Record 2012.)

It is the purpose of this Project conceptdetails to provide information that should be used to develop more plans for improvement of the SEP project schemes. Fundingnormally covers both the technical aspects as outlined in this report, capacity building and the SEP management schemes that must be put in place to lay the foundation for sustainability.

BACK GROUND

Society Empowerment Project is a community based organization in Rachuonyo South District, Kasipul Division, and KowidiLocation at Ruga Market in Homabay County in the Republic of Kenya. The District is divided into two divisions namely, Kasipul and Kabondo divisions, comprising of 22 locations with a population of 230,000 people, highly concentrated.

Human Development Indicators (HDI) are generally low compared with the rest of the country, compounded by unemployment, poor health including food insecurity, in fact experiencing absolute vicious cycle of poverty. The area is also being rated to be the highest in HIV/AIDS incidences in the country (Kenya).

Further, the general profile of the area is as follows;

  • Average HIV/AIDS prevalent is 24% and the area being rated among the highest affected in the country, Kenya, (UNICEF details 2003)
  • Average poverty level is 73% ,(UNICEF details 2003)
  • Climatic and physical features are inland equatorial with local temperatures comparatively lower, with two rainy seasons. Long rains start from late February–March and are 60% reliable. Short rains start as early as August–November. These are not steady because of global warming effects. Agricultural activities are always promising with substantial production towards the southern part of the District.
  • The District is semi-Arid despite bestriding the vast Lake Victoria water mass and the local people’s livelihood system revolves around subsistence farming, petty trade and livestock rearing using traditional subsistence methods of production.

Community mobilization and sensitization is normally carried out through thematic SEP Soccer gatherings. SEP Annual Soccer and Educational Tournament and youth capacity building are held during the month of August annually. This generates several ideas which make the engagement of the line ministries possible by promoting the bottom up approach within the prevailing policies of demand driven targets.

SPECIFIC AREAS OF INVESTMENTS/ STRATEGIES

Food Production and Processing System

  • Liaising with the already defined sweet potatoes, passion fruits, pineapples, Watermelon, Kales, Honey production, Dairy production, poultry farming etc growers to add value to their produces thus processing, manufacturing, packing, branding and marketing through improved sustainable agricultural production methods.

As for example in Kales production

Sustainable Horticulture is a “holistic” production management system which promotes and enhances agro-ecosystem health, including biodiversity, biological cycles, and soil biological activity. It emphasizes on the use of management practices in preference the use of off-farm inputs, taking into account that regional conditions require locally adapted system. This is accomplished by using, where possible, agronomic, biological, and mechanical methods, as opposed to using synthetic materials, to fulfill any specific function within the system. This system will therefore provide a technology based means of promoting the efficient use of natural resources, provide an opportunity for environmentally sound economic sufficiency and ensures maximization of production of the land cultivated. This may possibly be concentrated in a Green House in which Horticultural Kales production will steadily be grown. Knowledge and skills will be acquired from the line Ministries, particularly in composting, soil cultivation, crop rotation etc.

As for example about apiculture

Bee keeping is becoming popular and there are challenging needs to keep bees as a new livestock. There will be subsequent training on the basic husbandry on the management techniques of the Apiculture business programmes which will include construction of Bee Hives, extraction of Honey etc. This is meant to enhance the basic knowledge and skills on rearing bees in order to maximize production.

  • Agro-forestry would be major activity to restore development of a forestation and rainfall potentiality.
  1. Infrastructure Development
  • Improved quality seeds and tools
  • Processing plant
  • Revolving loan funds
  • Farm tools and Equivalent
  • Locally made Green Houses

Methodology

  • Individual small holder farmers to work on his /her own farm on collaboration with the organization.
  • Farmers to be trained
  • Marketing strategies to be developed and improved and many more. It is believed that with proper agricultural husbandry and management of the farms,higher yields would be realized.

Beverage

  • Production (mineral and fruit juices)
  • Juices
  • Protection of existing water springs for bottled water production
  • Assorted fruit juices-pineapples and passion fruits

Methodology

  • Working with small holder farmers within farms to produce fruits/crops on improved methods.- Mainly the youth and women groups.
  • Putting up plant for the same
  • Processing, packing and marketing
  • Paying farmers on their deliveries
  • All training and back ups to be given to the farmers

Infrastructure

  • Technical experts etc.
  • Technological developments
  • Cottage industries

Develop Livestock Industry

  • The Homabay County boasts of local livestock breeds: cattle, goats, sheep and chicken which at the moment have very little economic contribution into the livelihood of the poor households; if integrated into modern farming particularly; local chicken hybrid for meat and eggs production using locally available foods. Local cattle hybrid for milk production etc; quality of life would considerably change in terms of food nutrition and increases income.

Note:

The whole idea is to use locally available resources (commonly used at present) known to the people and which they can easily maintain and understand. Then integrate such traditional technology with modern ones to become Appropriate Technology to enhance production. Appropriate Technology is the most supported approach to improve production.

Infrastructure / Technology

  • Set up a breeding system (where indigenous and hybrid are bred/mixed up).
  • Set up diseases control centre

Expectations

  • The “SEP” project is planned to reduce poverty levels by 47% from its present level of 73%, and at households to 30% within a period of 5 years of these projects implementation.
  • It would benefit about 100,000 people within the catchments – Homa/Bay County
  • It would employ about 5,000 people directly
  • It would employ about 30, 000 people within the catchments/county

THE EXTERNAL ENVIRONMENTAL ANALYSIS (TARGET MARKET)

The intended Agribusiness intends to enjoy favorable cultural good will from the local opinion leaders and the influential class in the area and this would contribute to credible performance of the business process. Also there are favorable opportunities to enhance further collaboration strategies with the relevant government department in these products.

Homa-Bay County is among those that have continued to record the highest poverty index. The numbers of unemployed youth remain high with most of them remaining dependent on the few who are employed. Insufficient rains and erratic weather conditions make farming realize low farm produce. (In the Northern part of Rachuonyo District). The preference of Sustainable Organic Horticulture (Green House) to high external input agriculture presents the intended business projects with a major opportunity to influence good production.

The social environment remains dynamic and challenged with educational and health needs at local levels, also coupled with high HIV/AIDS prevalence rates which remain real constrains. High numbers of orphans resulting from parents succumbing to them with basic health and educational needs. These are challenges to any local project development projects as they remain constant unique needs of the local people and the people of the entire Rachuonyo South District.

The area where the project is intended to be located is rural setting with minimal access to internet and other technical services. However, use of mobile telephone broadband has enabled access of internet services in most rural areas allowing use of e-mail services. This presents opportunity to improve the communication and documentations with prosperous customers. SEP will also be able to use other social media such as face book, Skype, twitter and YouTube during project implementation.