The KENYA INSTITUTE for PUBLIC POLICY RESEARCH and ANALYSIS No. 16/2021-2022 Thinking Policy Together Employment Creation Opportunities for Youths in the Fisheries Sector Value Chain By Mujuri Bonface Munene and Abraham Wanjiku Introduction The Kenya Vision 20301 recognizes fish farming and Government’s efforts to improve the performance aquaculture as a source of food security, poverty of the sector include instituting relevant policies reduction, and employment creation. The various such as the Kenya Fisheries Policy 2005. The Kenya National Bureau of Statistics (KNBS) economic policy majorly seeks to promote responsible and surveys show that there has been an increase in sustainable utilization of fisheries resources taking domestic consumption of fish, which has resulted into account environmental concerns. The National in the country’s fish imports to rise from 0.3 tonnes Oceans and Fisheries Policy, 2008 is particularly in 2000 to 2.5 tonnes in 2017. Further, the maximum important in addressing youth employment as it sustainable yield of Kenya’s marine and coastal seeks to enhance the fisheries sector’s contribution waters Exclusive Economic Zone (EEZ), which is to wealth creation, increased employment for youth majorly for commercial fishing, is between 15,000 and women, food security, and revenue generation. and 300,000 metric tonnes. That said, freshwater fish In 2009, the Government introduced a policy account for close to 98% of Kenya’s aquaculture fish. focusing on increasing fish production in the country. The policy targeted most counties in the country The fisheries and aquaculture sector contributes and was followed by interventions such as building about 0.8% to Gross Domestic Product (GDP), of fish cages, ponds and supply of fingerings to providing direct employment opportunities to over various farmers in the country. In central Kenya, for 500,000 people and supporting over two million example, the intervention included teaching farmers people indirectly2. The number of people supported and residents not only how to take care of the fish, indirectly by the sector as traders, processors, but also how to prepare fish. The intervention did input suppliers, merchants of fishing accessories, not only increase the number of fish produced in the or providers of related services is much higher. The country but also the number of people who started sector is also important for the preservation of culture consuming fish. The most recent policy in the sector and national heritage, including related industries is the Fisheries Management and Development Act, such as tourism, and for recreational purposes, creating jobs for people involved in the activities (Kenya Marine Fisheries Research Institute - KMFRI, Table 1: Actors involved in the fish value chain by age in 2017)3. Therefore, full exploitation of fresh water years (in percentage) lakes, rivers and coast waters and addressing the challenges in the fishing sector holds the potential to 15-34 35-59 60 and Totalabove create jobs particularly for the unemployed youth in Kenya KMFRI (2017)4. Boat 2.59 0.36 4.44 2.31 Repairing 1 Kenya: Vision 2030. 1st ed. Nairobi: Government of the Republic Fish Scaling 1.91 0.36 0.00 1.65 of Kenya, Ministry of Planning and National Development and the National Economic and Social Council NESC, Office of the President, Fish cooling 2.34 0.00 0.00 1.95 2007. Print. Fish monger 88.83 92.11 95.56 89.46 2 https://www.kmfri.co.ke/images/pdf/Kenya_Aquaculture_Brief_2017. pdf Fish 0.68 0.72 0.00 0.67 3 KMFRI (2017), Kenya’s aquaculture brief 2017: Status, trends, processor challenges and future outlook. Kenya Marine and Fisheries Research Institute, Mombasa, Kenya. Fisher 3.64 6.45 0.00 3.96 4 KMFRI (2017), Kenya’s aquaculture bBrief 2017: Status, trends, challenges and future outlook. Kenya Marine and Fisheries Research Source: KHIBs 2015/2016 Institute, Mombasa, Kenya. KIPPRA Policy Brief No. 16/2021-2022 1 2016 which has created several institutions in the chain. The value chain nodes, actors, activities and sector. This includes the Kenya Fisheries Services labour skills gap are as shown in Figure 1. (KFS), Kenya Fisheries Advisory Council, Fish Marketing Authority, and the Fisheries Research and Opportunities and Constraints across Development Fund. the Fisheries Value Chain Generally, the fisheries sector has great potential of creating employment for the youth along the value a) Production chain. This is possible if the constraints established At the input stage, there are several actors who within the value chain are addressed. Table 1 supply the inputs required in fish production. These presents results of the different actors involved in include: research and extension services; supply the fish business disaggregated by age and fish of fishing nets; supply of fish feeds; fishing boats; market. Majority of the individuals are involved at the fishing hooks and fingerings. The actors involved lower point of value chain, which is fish mongering include landing site managers, fishermen, equipment where they make about 80% of the total players in constructors and repairers, fingerings experts, boat the sector. Fish processors, mostly manufacturers, owners and repairers. Youths can be engaged at this make the least of actors in the chain by having only level in breeding of fingerlings, as fish farm managers, 0.63% of the total individuals in the value chain. This supplying fish feed bearing in mind that in Kenya we is consistent with the expectation since the country import most of the fish feeds, making fishing nets and has only a few processors. It also important to note other fishing gears, fishermen, boat construction and that of the 88%, majority are youths (those between boat repair. 15-34 years). However, there are constraints that hinder the sector Informed by analysis of secondary data obtained from growing and absorbing more youths. These from KNBS, that is, the Kenya Integrated Household include: lack of quality fish feeds, poor management Budget Survey (KIHBS) 2015/16 and Micro, Small of ponds and breeding of fingerlings, and high cost and Medium Enterprises (MSMEs) Survey 2016, of equipment and feeds, thus making the cost of the study used a value chain approach to assess the constraints and skills gaps in the fisheries value Figure 1: Summary of fish value chain and job creation in Kenya Transport, Research and Development Production Transformation Marketing and Distribution Stage Fish landing sites experts Artisanal processors Retailers Fingerlings providers Packagers Nutritionists Wholesalers Actors Boat owners/repairer Fish mongers Fish trader’s association Suppliers of Feeds, fingerlings, machine operators Fish manufacturers fishing nets, hooks Fish butchers Fishermen, Fish farmers, scouts Engineers Drying and cold storage of fish. Preparation and Management of fish landing sites Descaling, degutting, grading, Marketing packaging, deep frying, Distribution Boats repairing stewing Retailing Activities Supply of fishing nets, boats, fishing Packaging Wholesale hooks, R&E services Transforming fish products into different forms such fish Exporting Fishing oil, fish glue. Making shoes and belts. Researchers Machine operators Training fish mongers on their rights Boat repairers Cold room managers Training fish trader’s associations Labor Trained Nutritionists on required quality in markets Skills Gap fishermen Public health officers Training manufacturers on Pond managers Engineers international market requirements Source: Authors’ own construction 2 KIPPRA Policy Brief No. 16/2021-2022 breeding fish to be high. High cost of fish feeds is d) Transport, and research and development a key constraint as it accounts for more than 75% of These two stages cut across the value chain. Transport the cost. Currently, most of the fish feed is imported. is capable of creating employment to the youths if However, local production of fish feeds has picked increased activities and production of fish is achieved. up with the Kenya Marine and Fisheries Research There are people involved in transportation of the fish Institute (KEMFRI) setting up a fish feed processing from the lakes, rivers and ponds to the storage place. factory aimed at providing feeds at low prices. In Others are also involved in transporting the fish to the addition, there are no enough people with experience processing place and then to the market. The main in producing fingerlings, hence leading to poor quality challenge here was found to be poor road networks of breed. Aggravating the situation is over-reliance in the regions practicing fishing, and youth inability to on donor funding and other development partners, afford expensive means of transport such as reefers hence lacking initial capital in starting fish business. (vehicles fitted with coolers). This makes farmers not to be keen enough since the money used in fish farming is a donation and they do On the other hand, research and development not bear the loss even if the project fails. also cuts across the value chain since research is done from the starting point during the breeding b) Transformation of fingerlings. Research is also carried out on the This node involves preparing fish for final local market production pattern in the landing sites, the quality of or export. At this node, youths can be engaged as fish produced and consumed in the market, demand fish mongers, artisanal processors, nutritionists, of fish in the market, and prevailing challenges. All public health workers, cold room managers, machine these activities were found to create employment operators, fish butchers, sterilizers, fish freezing opportunities for the youth. Youth are also employed machine operators, packagers and graders. For the at various research institutions such as KEMFRI and youths to be fully incorporated in this node, a number various colleges and universities offering training on of constraints need to be eliminated. These include fisheries. high cost of electricity used in the drying and cooling of the fish, thus making preservation unprofitable. Policy Recommendations Other challenges include lack of value addition of the farmed fish and those caught from the lakes and i) To reduce high cost of production, the Government rivers. Most of the farmers and fishermen harvest through the Ministry of Agriculture, Livestock and fish, which they sell at individual level without adding Fisheries needs to subsidize the cost of fish feeds any value to them. Lack of value addition leads to and fishing equipment. This can also be done low gains from sales and post-harvest losses due through tax reduction for fish feeds and creating spoilage of unsold fish. At this level, more youths an enabling environment for the private sector to are expected to be employed at the various stages establish more fish feeds production industries in of value addition. In addition, the machines used the country. This can include both tax incentives in the processing require huge capital and are not and providing low cost electricity tariffs for such affordable, hence making the youths to shy away firms, given that electricity cost forms a huge cost from engaging in fish value addition. for the manufacturing sector. This will reduce the c) Marketing and distribution cost of feeds, hence encouraging more youths to join the sector at production node in the value At this stage, youths can be involved in marketing and chain. distribution of fish finished products. They can play roles such as retailers (fish mongers), wholesalers ii) To deal with poor management of ponds and and fish trader’s associations. The main challenge at capture fishing, there is need to capacity build this level is information asymmetry. Small scale fish fish farmers and fishermen through the Ministry traders tend to lack information about the market of Agriculture. This is possible by recruiting more demand, hence end up being exploited by those extension officers and dispersing them to train fish traders buying fish in bulk for export5. In addition, low farmers and fishermen on how to produce quality volumes of fish produced make it difficult to access fish needed in the market while at the same time large international markets, while low quality of fish observing environmental conservation. Majority produced ends up being rejected in the market. This of these officers should be youths, since they can could be because the fish are harvested prematurely, cover large areas over a short time and are more therefore not meeting the required size and weight. active. This presents an opportunity for knowledgeable youths who can be employed to train and sensitize iii) To deal with the problem of post-harvest losses, farmers of the market expectations in terms of quality the Ministry of Agriculture, Livestock and Fisheries and prices. needs to ensure strict adherence of the 40% 5 Aura C.M., Nyamweya C.S. and Njiru J. M.(2019), “Using fish landing requirement of value addition to fish landed in sites and markets information towards quantification of the blue Kenya before export as stipulated in the Fisheries economy to enhance fisheries management”. Fish Management Ecology. Management and Development Act of 2016. This 26:141–152. https://doi. org/10.1111/fme.12334. KIPPRA Policy Brief No. 16/2021-2022 3 can spur creation of employment opportunities for the youth involved in the activities of value addition and at the same time reducing losses among producers and traders. Additionally, producers need to be supplied with storage facilities and coolers through cooperatives in collaboration with the Ministry of Trade and Cooperatives. The fishers can pay some agreed affordable storage fee for fish to meet the running costs of the storage facilities. This will enable them cut down losses due to poor storage and at the same time speculate with fish stock, which can be sold when prices are high. ABOUT THIS POLICY BRIEF This policy brief is based on Discussion Paper No. 233 of 2020, “Contribution of fisheries to job creation among the youths in Kenya 2020”, by Mujuri Bonface Munene and Abraham Wanjiku About KIPPRA Policy Briefs For More Information Contact: KIPPRA Policy Briefs are aimed at a wide dissemination of the Institute’s policy research findings. The findings are Kenya Institute for Public Policy Research and Analysis expected to stimulate discussion and also build capacity Bishops Road, Bishops Garden Towers in the public policy making process in Kenya. P.O. Box 56445-00200, NairobiTel: 2719933/4, Cell: 0736712724, 0724256078 KIPPRA acknowledges generous support from the Email:admin@kippra.or.ke various partners who have continued to support the Website: http://www.kippra.org Institute’s activities over the years. Twitter: @kippra.kenya 4 KIPPRA Policy Brief No. 16/2021-2022