Chaka town is lining up for economic transformation with the completion of a Sh1 billion market complex last week, and now investors are eyeing the once dead centre.
In the last five years, the town, about 150km from Nairobi on Great North Road, has benefited from key infrastructural projects touted as a game changer.
This week, about 1,200 traders who have for over a decade sold their wares and agricultural produce along the Nairobi-Nanyuki railway line will settle in the new shopping complex, which sits on seven acres.
The complex, a pet project of President Uhuru Kenyatta’s, was launched in 2016 and has a twin wholesalers’ block, a retail block and lockable kiosks.
It also has a transport terminal, financial institutions and a value addition block to complete the setting up of an industrial park.
“The Chaka market complex was a brilliant idea that is going to be a model for future projects in the country and we are so grateful that the government decided to put up such an investment,” Kieni MP Kanini Kega said.
Besides the traders who will benefit directly from the market by setting up shop in the complex, the market will also serve up to 2,500 other traders in the supply chain and up to 10,000 families from Nyeri in the overall trading chain.
The market was built in two phases, each costing Sh500 million. A third phase is in the works, with Kenya Industrial Estates acquiring more land to set up a factory, a Huduma Centre, a police post and a modern sports ground.
“We are not just looking at marketing our products locally but also beyond Kenyan borders. The third phase will focus on the manufacturing units to expand job creation for our people,” Mr Kega said.
Larger market
The market will also attract other investors in convenience shops and eateries as locals target a larger market.
While the Chaka market complex was a key project under the Jubilee administration, other infrastructural developments have been set up in the last two years to complement the market and facilitate more trade.
Key among them is the revival of the Nairobi-Nanyuki railway line after 20 years of lying in disuse and the establishment of a modern station at the heart of Chaka.
This week, about 1,200 traders who have for over a decade sold their wares and agricultural produce along the Nairobi-Nanyuki railway line will settle in the new shopping complex, which sits on seven acres.
Construction of the Chaka Railway Station has been completed and Kenya Railways is expected to open to business within weeks for both commuter and cargo trains.
Kenya Railways has been making weekly trips, ferrying thousands of passengers and tonnes of products between Nairobi and Nanyuki.
With the railway line cutting through Chaka and right outside the market complex, experts have predicted exponential economic growth for the town.
This is complemented by the Great North Road to Moyale, making Chaka a central trading point.
“This will become a central point of where Nyeri’s economy is headed. That will be the heart of business in the near future because it integrates key infrastructure which is needed for economic growth,” Kenya National Chamber of Commerce and Industry (KNCCI) Nyeri chapter chair Ibrahim Ndegwa told the Nation.
To top it all up, the town is set to benefit from the anticipated revival and commercialisation of the Nyaribo airstrip, located seven kilometres away.
The airstrip is undergoing an upgrade with the construction of a terminal.
Boost milk production
Already, Chaka is attracting more investors, mostly in the industrial and hospitality sectors.
Godowns and warehouses are coming up around the town perhaps in anticipation of increased trading.
At the same time, more hotels have come up, boosting the tourism and hospitality sector in the area.
This comes against the backdrop of the rebranding of the police training institute from Kiganjo Police College to National Police Service College Main Campus.
Companies like Brookside and New KCC are expected to boost milk production and trade in the area.
Nevertheless, there have been concerns that the growth of Chaka could dim the economic light of Nyeri town, which is set to be marginally locked out of the economic zone.
Traditionally, Nyeri was not just an administrative headquarters but also a transit town, owing to its strategic location along the northern corridor.
However, the construction of the Chaka-Kimathi road and the expected expansion of the Nyeri-Isiolo highway in the second phase of the dual-carriageway northern corridor could edge out Nyeri as the central economic hub.
This could be worsened if the government proceeds to close the Kiganjo-King’ong’o road from public and commercial use as widely predicted.
Investors, nonetheless, believe that Nyeri could still hold some economic ground in that it is the central regional administrative headquarters.
“Nyeri town could suffer economically but since most administrative units are located here, people will still need to come for business,” said Mr Ndegwa, the KNCCCI-Nyeri boss. BY DAILY NATION