Horticultural Crops Development Authority

Strategic Plan:-2009-2013[Type text]

iRevised Strategic Plan 2009:2013ForewordThe horticulture sub-sector has continued to retain its position as the fastest growing sub-sector in the Agricultural sector. It contributes 33 per cent of Kenyas agricultural GDP. Besides, it employs over 6 million Kenyans both directly and indirectly. The sub-sector also contributes immensely to the countrys foreign exchange earnings. In 2010 the amount raised was Kshs. 77 billion earned from 403 million tonnes of horticultural exports . The emerging issues such as maximum residue levels (MRLs) and social and environmental accountability in the dynamic fresh produce markets and increased drought incidences makes it necessary that Horticultural Crops Development Authority (HCDA) repositions itself so as to provide relevant, adequate, globally oriented and competitive services that meet customer requirements.Horticultural Crops Development Authority, a state corporation, was established in 1967 with the aim of uplifting smallholder production and capacities through its mandate of developing, promoting, coordinating and regulating the horticultural sub-sector in Kenya.This is the revised edition of the second Strategic Plan. It provides a framework for HCDA to focus explicitly on its core activities in order to facilitate the growth of horticulture within a global and liberalized economy. It also lays greater emphasis on specialized extension activities that focus on market driven production and greater advocacy for the development of modern fresh produce markets and a horticulture policy in Kenya. This strategic plan has taken into account key issues outlined in the Constitution of Kenya, the Kenya Vision 2030, the Agriculture Sector Development Strategy 2010-2020 (ASDS), and the National Horticultural Policy. An in-depth analysis of the Strengths, Weaknesses, Opportunities and Threats (SWOT) as well as Policy, Political, Economic, Social, Technological, Environmental and Legal (P-PESTEL) analysis was carried out in order to adequately re-align the vision, mission, core values, and strategic objectives of the authority.In an effort to be a globally competitive provider of innovative services to the horticulture sub-sector, we will embrace partnership and collaboration with all stakeholders both in the public private sectors. We will also build capacity within the authority to ensure attainment of the outlined objectives and goals.Through the implementation of the Strategic Plan, the stakeholders will be empowered to create wealth and reduce poverty while promoting and developing a vibrant horticulture sub-sector.Appreciation goes to the Board of Directors, Management, staff of HCDA and all stakeholders who gave valuable input and constructive comments. I am confident the authority will continue to serve the horticulture sub-sector to enhance competitiveness as we endeavor to accomplish our mission.Joseph G. Kibe

ChairmanBoard of Directors

PrefaceHorticultural Crops Development Authority (HCDA') is the Kenya Governments regulatory and development agency for the horticultural sub-sector. It has the mandate to develop, promote, coordinate and facilitate the horticulture sub-sector by taking into account the changing production and market requirements.To provide the services efficiently, the authority must plan diligently by prioritizing activities for resource allocation and ensuring cost effectiveness. This strategic plan gives an improved vision of HCDA and outlines six strategic objectives to be pursued to achieve this vision. It is the result of a concerted effort by the Board of Directors, Staff and Stakeholders who gave wholesome and enriching contribution during the development process and I believe it reflects the consensus reached.I am sincerely grateful to all the stakeholders who participated in the preparation of this document and hope they will find the document useful in addressing the needs of the horticultural sub-sector. First and foremost appreciation goes to the Board of Directors of HCDA under the Chairmanship of Mr. Joseph Kibe for their encouragement and guidance during the development of this document. The preparation of this document would not have been realized without the effort of the HCDA management. Special mention goes to the Technical Team that reviewed the document for coordinating the development of this Strategic Plan and their tireless effort in editing the document. I am particularly thankful to Agnes Wainaina for coordinating the exercise.Appreciation goes to members of the board who participated or took time to make constructive comments during the development of the document. Special thanks go to the Ministry of Agriculture for its support in the developments of this strategic plan. It is not possible to individually acknowledge the contributions of all the staff of HCDA and they are all thanked for their unreserved commitment to the Authority.

Dr. Alfred SeremManaging Director

Acronyms And AbbreviationsACPAfrican, Caribbean and Pacific CountriesEUEuropean Union ACUAids Control UnitAFCAgricultural Finance Corporation ASALsArid & Semi-arid LandsASDSAgricultural Sector Development Strategy BPOBusiness Process Outsourcing BSCBalanced Scorecard CEOChief Executive OfficerEPCExport Promotion CouncilEPZAExport Processing Zones Authority ERPEnterprise Resource PlanningERSEconomic Recovery Strategy FPEAKFresh Produce Exporters Association of KenyaGDPGross Domestic ProductGOKGovernment of Kenya HCDAHorticultural Crops Development Authority HIV-AIDSAcquired Immuno Deficiency SyndromeHPPFHorticultural Produce Processing FacilityHRFHorticultural Resource Fund HRMHuman Resource Management ICTInformation and Communication Technology IFADInternational Fund for Agricultural DevelopmentIFMISIntegrated Financial Management Information SystemISO International Organization for StandardizationJBICJapan Bank for International CooperationJICAJapan International Co-operation Agency KARIKenya Agricultural Research InstituteKEBSKenya Bureau of StandardsKEPHISKenya Plant Health Inspectorate ServicesKFCKenya Flower CouncilKIRDIKenya Industrial Research and Development InstituteKRAsKey Result Areas M & EMonitoring and Evaluation MDGsMillennium Development Goals MOAMinistry responsible for AgricultureMRLsMaximum Residue Levels MTPMedium Term Plan NEMANational Environmental Management Authority NGOsNon Governmental OrganizationsNIBNational Irrigation Board NRSNational Research SystemOSH Occupational Safety and HealthPCPBPest Control Products Board P-PESTELPolicy, Political, Economic, Social, Technological, Environmental and LegalPPDAPublic Procurement and Disposal ActSRAStrategy for Revitalization of Agriculture STIScience, Technology and Innovation SWOTStrengths, Weaknesses, Opportunities and ThreatsTNATraining Needs Assessment

Table Of Contents ForewordiPrefaceiiiAcronyms And AbbreviationsiExecutive SummaryiChapter 111.0Introduction11.1 Background11.2Current Mandate31.3Core Functions41.4Areas of Focus51.6Major Challenges faced51.7Justification for the Strategic Plan and the Strategic Planning Process61.8Structure of the Strategic Plan7Chapter 282.0 Linkage Of The Authority To National Challenges And Development Agenda82.1Development Challenges82.2Kenyas Development Agenda102.3Role of the Ministry responsible for agriculture in contributing towards the Kenyas Development Agenda112.4Role of horticulture in contributing towards the Kenya Development Agenda12Chapter 3133.0Situation Analysis133.1Gap Analysis133.2Lessons Learnt143.3Swot Analysis143.4P-Pestel Analysis163.5.Risk Analysis183.6.Stakeholder Analysis203.7Key Success Factors28Chapter 4294.0 Strategic Model294.1Vision294.2Mission294.3Core Values304.4Strategic Themes/Key Result Areas (KRAs)324.5Strategic Themes, Issues and Objectives32Chapter 5355.0Co-Ordination Framework And Implementation Of The Strategic Plan355.1Strategic Plan Implementation Approaches355.2Organizational Structure366.0Monitoring And Evaluation416.1Board Level416.2Management Level416.3Performance Indicators for Monitoring the Strategic Plan42Appendix I:Implementation Matrix44

Executive SummaryOverviewThe development of Parastatal Strategic Plans is part of the wider reforms introduced in the public sector in the year 2003 to facilitate sustainable and efficient utilization of public resources in the delivery of core Government services and attainment of National goals. The preceding Horticultural Crops Development Authority (HCDA) Strategic Plan covering the period 2005-2009 was linked to the Economic Recovery Strategy (ERS) for wealth and employment creation (2003-2007). With the expiry of the ERS, the Kenya Vision 2030: Medium-Term Plan (2008-2012) has come into effect, and it is now imperative to revise the Authority Strategic Plan by aligning it to the National Horticultural Policy, the Agricultural Sector Development Strategy 2010-2020, the Kenya Vision 2030 policy document and the Constitution of Kenya.This plan has been developed through a participatory process involving the Authoritys Board, Management, all cadres of staff and Stakeholders. The participatory approach has been useful in enriching the programmes, projects and other initiatives proposed in the Plan and ensuring that ownership of the document lies with the Authority and horticultural sub-sector to facilitate successful implementation. The preparation of this Plan was guided by the Authoritys need to pursue its Vision, uphold key operational Values, and realize its Mission.VisionA globally competitive horticulture sector in Kenya.MissionTo develop, promote, facilitate and co-ordinate growth of a commercially-oriented horticulture sub-sector through appropriate policies and technologies to enhance and sustain socio-economic development. Core values The guiding principles in the operations of the Authority are upholding values of:-(i) integrity, accountability and professionalism;(ii) teamwork, efficiency, and effectiveness(iii) customer focus; (iv) discipline and commitment in service to the people(v) objectivity and impartiality in decision making(vi) innovation and creativity;(vii) prudent environmental management; and (viii) Public participation.Milestones and Challenges facedThe Plan has recognized the key achievements of the Authority during the preceding Strategic Plan period as well as the major challenges faced. Details are given in Chapter 1.Gap Analysis and Lessons LearntThe Plan has determined the divergence between what was planned and what was been achieved during the preceding Strategic Plan period, and the lessons learnt, that would now inform future planning.Operating Environment While building on the recent positive developments, the Plan recognizes that the Authority operates in an environment dictated by external and internal socio-economic, legal and political factors, which directly and indirectly impact on its operations. The achievement of the Plans objectives will largely depend on how the Authority enhances its internal strengths, exploits the existing opportunities, manages the weaknesses, while controlling those factors that pose a threat to the achievement of planned programmes and activities. The Strengths, Weaknesses, Opportunities and Threats (Swot) analysis is outlined in Chapter 3.The Political-Policy, Environmental, Social, Technological, Economic and Legal (P-Pestel), Risk and Stakeholder Analyses are also presented in this Chapter, as well as the key success factors.The Strategic DirectionDuring the Plan period, the Authority will focus on six key result areas. These strategic themes are: (i) Policy, legal and institutional development;(ii) Marketing and Value Addition; (iii) Research and Development;(iv) Capacity Building;(v) Resource Mobilization; and(vi) Corporate image. Arising from the above strategic themes, the Authority will pursue six strategic objectives, namely: (i) To facilitate the implementation of the National Horticultural Policy and the enactment of a legal framework to facilitate continued growth, development and sustainability of the horticultural sub-sector (ii) To facilitate and coordinate the implementation of comprehensive development and marketing strategies at the national and county level for the horticultural sub-sector ; (iii) To enhance the level of research and development in the horticultural sub-sector through appropriate market information systems (iv) To build adequate capacity to provide quality, efficient and effective services to the sub-sector at national and county level;(v) To mobilize resources and develop mechanisms for efficient and effective utilization of resources; and(vi) To strengthen customer service delivery mechanisms and enhance the corporate image of the Authority.Plan ImplementationClear strategies and detailed activities have been developed to help in achieving each of the above objectives. The implementation of the proposed strategies will develop the institutional capacity of the Authority to enable it build synergies to mitigate both external and internal challenges. The Plan implementation will also provide the actual process through which the strategic goals will be achieved during the Plan period. Through their operations, the departments will translate the strategic goals into reality by developing and implementing departmental Plans, which are aligned to the Corporate Strategic Plan.

Budget and Cost EstimatesManagement of resources will be guided by prudent financial management principles, operational rationalization and modernization of key processes, while cost saving measures, including creating partnerships and strategic alliances, will be implemented to strengthen our financial resource base. While efforts will be made to prudently use the available resources in order to realize the stated objectives, the Plan acknowledges that the ability of the Authority to implement its programmes depends on the availability of adequate funding. Monitoring and Evaluation The Authority recognizes the importance of monitoring and evaluation in the achievement of the Plans intended results. Progressive monitoring will be carried out based on the measurable indicators set out in the implementation matrix. The Authority does not have a Monitoring and Evaluation unit dedicated to regular monitoring. This has been recognized as a key weakness. Therefore, its development and operationalisation needs to be included in the organizational structure of the Authority.ConclusionOverall, this Strategic Plan sets out a coherent, systematic and sustainable road-map on which to anchor the Authoritys operational initiatives for the 2009-2013. However, the plan also acknowledges that the environment is dynamic and it will have to adapt to changing circumstances. With an effective Monitoring and Evaluation framework underpinning the proposed activities and continuous refocusing and re-orientation of the strategies, the Plan will provide effective guidance to HCDAs operations over the next two years. While the Authority will ensure efficient operations through rationalization of resources and modernization of processes, the support of key stakeholders at all levels will be imperative.

Chapter 11.0Introduction1.1 Background 1.1.1 The Horticultural Sub-SectorThe horticultural sub-sector has grown in the in the recent past to become a major foreign exchange earner, employer and contributor to food needs in the country. Currently the horticulture sub-sector is the fastest growing agricultural sub-sector in the country and is among the leading foreign exchange earner from exports. In 2010, the sub-sector earned Kshs. 77 billion from 403 million tonnes of exported horticultural produce. Fruits, vegetables and cut flower production are the main aspects of horticultural production in Kenya.Kenya has a long history of growing horticultural crops for both domestic and export markets. Kenyas ideal tropical and temperate climatic condition makes it favorable for horticulture production and development. The climate is highly varied supporting the growth of a wide range of horticultural crops. Horticulture in Kenya is mainly rain fed though a number of farms, especially the ones growing horticultural crops for export, also use irrigation. The sub-sector is characterized by a tremendous diversity in terms of farm sizes, variety of produce, and geographical area of production. Farm sizes range from large-scale estates with substantial investments in irrigation and high level use of inputs, hired labour and skilled management to small-scale farms, usually under one acreThe sub-sector generates over US$300million in foreign exchange earnings. The total horticultural production is close to 3 million tones making Kenya one of the major producers and exporters of horticultural products in the world. Europe is the main market for Kenyan fresh horticultural produce with the main importing countries being United Kingdom, Germany, France, Switzerland, Belgium, Holland and Italy. Other importing countries include Saudi Arabia and South Africa.A well-developed and dynamic private sector has profitably marketed a wide range of horticultural products to diverse international markets. Government role in this sub-sector has been mainly facilitating the sectoral growth through infrastructure development, incentives and support services. Structural and macroeconomic reforms, plus the introduction of more liberal trading environment has also provided a major boost to the countrys horticultural prospects. 1.1.2 The Horticultural Crops Development AuthorityThe Horticultural Crops Development Authority (HCDA) is a Parastatal established under the Agriculture Act, Chapter 318 of the Laws of Kenya, through Legal Notice No. 229 of 1967. The statutory objective of the Authority is to promote and develop the production and marketing of horticultural produce At the time of establishing the Authority, the horticultural sub-sector was seen as a viable solution for the countrys need for cash crop diversification, enhanced food nutrition, income generation, employment creation and foreign exchange earning in addition to providing raw material for agro-processing industries. The focus of the Authority at inception was mainly the small-holder farmers who had the potential to utilize their own labour, as the production processes were labour intensive, with a view to getting high return for their limited land. The sub-sector has been the focus of most government policies, including the previous Economic Recovery Strategy (ERS), the Strategy for Revitalization of Agriculture (SRA), the Agricultural Sector Development Strategy 2010-2020 (ASDS), and the Kenya Vision 2030: First Medium-Term Plan (2008-2012). Besides, the Government has developed a National Horticultural Policy that outlines key policy interventions to revamp and reposition the sub-sector.Over the years, HCDAs functions have evolved with the changing Government policies and sub-sector demands. Initially, the focus was on development and marketing, product value-addition, opening up new production areas and markets, undertaking market promotions and marketing produce on behalf of the farmers. However, with liberalization and reduced Government involvement in direct trading, HCDAs role has been re-engineered to regulating, promoting, coordinating, developing and facilitating operations of the horticultural sub-sector to ensure smooth production and marketing environment and to advocate for policies that favor investment and enhanced performance of the sub-sector.Over the years, the horticultural sub-sector has grown to emerge as the most important sub-sector in the Agricultural sector. This has contributed enormously to the economic development of Kenya in the areas of wealth and employment creation, foreign exchange earnings, provision of raw materials for the agro-processing sub-sector, enhanced nutrition and food security and poverty alleviation.1.2Current MandateThe overall Mandate of the Authority is to facilitate the development, promotion, coordination and regulation of the horticultural sub-sector in Kenya. The roles and responsibilities of the Authority are to:(a) Provide advisory services to the government and the sub-sector to facilitate proper planning.(b) Provide marketing intelligence information to the sub-sector.(c) Facilitate provision of inputs on cost recovery basis to farmers and assist in grading, storage, collection, transportation and warehousing of products destined for overseas markets.(d) Provide specialized extension services to farmers.(e) Facilitate marketing of horticultural produce on cost recovery basis.(f) With the approval of the Minister, by order published in the Kenya Gazette:(i) Regulate and control the cultivation, picking and transportation of horticultural crops;(ii) Regulate and control the marketing of horticultural crops by growers;(iii) Impose a levy or levies on growers including levies at different rates in respect of any growers or section of growers, for the purpose of financing the operations of the Authority or its agents and for such other purposes as the Minister may approve;(iv) Fix and collect any fees and charges imposed under the provision of this order;(v) Indicate prices either generally or in reference to any particular circumstances;(vi) Provide for any other matter which is approved by the Minister as being in the furtherance of the development of horticultural crops or conducive to the exercise of any of the powers of the Authority;(vii) Raise such loans of such terms and for such purposes as may be approved by the Minister after consultation with the Minister for the time being responsible for finance;(viii) Provide loans for the purpose of developing horticultural crops;(ix) Establish, acquire and operate processing factories, enter into agreement with factories and promote and subscribe for shares in any company incorporated in Kenya for the purpose of production, processing and marketing of horticultural crops, and;(x) Investigate and research into all matters relating to the sub-sector generally and in particular production, processing and marketing of horticultural crops and products.1.3Core FunctionsArising from its mandate, the Authoritys core functions are:(a) Overall sector coordination (b) Provision of extension services to the farmer(c) Registration and inspection of fruit tree nurseries(d) Produce inspection(e) Advisory services to the Government on trends in the sub-sector(f) Registration of dealers of horticultural produce(g) Market intelligence(h) Export promotion(i) Arbitration of disputes(j) Establishment of Market linkages between producers and buyers(k) Conduct of market surveys(l) Data collection, analysis and dissemination(m) Facilitation of shows and exhibitions(n) Trade negotiations1.4Areas of Focus

The Authoritys priority areas over this Strategic Plan period include:(a) Policy, legal and institutional framework(b) Marketing and Value Addition(c) Research and Development(d) Capacity Building(e) Resource mobilization(f) Corporate image1.5.MilestonesIn the period of the preceding Strategic Plan, key milestones of the Authority included; (i) Increased revenue base and establishment of Horticultural Research Fund [HRF];(ii) Increase in staff numbers and enhanced staff motivation; (iii) Effective utilization of the HRF; (iv) Enhancement of technological utilization; (v) Representation of HCDA in the Nairobi Market Management Board (vi) Award for Best Parastatal during the Public Service week exhibition;(vii) Operationalization of ACU and training of staff on HIV-AIDS; (viii) Development of HIV-AIDS workplace policy and undertaking of HIV-AIDS baseline survey; and(ix) Appointment as sector coordinator of occupational safety program. 1.6Major Challenges facedWhile implementing the current Strategic Plan, the Authority faced various challenges that must be addressed for this Plan to be effectively realized. The challenges included:-(i) Lack of a comprehensive legal framework to implement the National Horticultural Policy;(ii) Conflicting legal instruments and regulations governing the sub-sector;(iii) Dynamic and versatile operational environment e.g bureaucracy in decision making, currency fluctuations, regional trading challenges etc(iv) climate change; (v) Increased competition from other countries for horticultural products in the international market; (vi) Unfavorable global trade/regulatory regime and other market requirements; (vii) Un-competitiveness of the sub-sector due to high cost of farming inputs; minimal value-addition of the horticultural products , etc (viii) Inadequate financial resources to develop the sector ;(ix) Un-serviced loans due to the Government; (x) Limited capital and lack of affordable credit to horticultural farmers;(xi) Underutilization of produce handling facilities; (xii) Underutilization of the ICT facilities; and (xiii) Ineffective Monitoring and Evaluation Mechanism due to capacity building problems.1.7Justification for the Strategic Plan and the Strategic Planning ProcessDuring the period of the Economic Recovery Strategy (2003-2007), the Authority developed a Strategic Plan covering the period 2005-2009. With the expiry of the ERS, the overall Government Development Agenda is now pegged on the Kenya Vision 2030. Therefore, the Authority has found it imperative to review the current 2009-2013 Strategic Plan and align it to changes in the operational environment and the overall Government development agenda as articulated in the National Horticultural Policy, the Agricultural Sector Development Strategy 2010-2020, the Kenya Vision 2030 and the Constitution of Kenya.The Plan has been developed through a participatory process involving the Authoritys Board, staff and stakeholders. The participatory approach has been useful in enriching the programmes, projects and other initiatives proposed in the Plan and ensuring that ownership of the Strategic Plan lies with the Authority and its major stakeholders to facilitate successful implementation. 1.8Structure of the Strategic PlanThe Plan is organized into Six Chapters. Chapter one gives an introduction and background of the Authority, including its Mandate, Core Functions, Policy Priorities, Milestones and Challenges faced. Chapter two links the Authority to National Challenges and Development Agenda, and outlines the contributing component of the Ministry responsible for agriculture and the Authority in supporting the successful achievement of the countrys overall development Agenda.Chapter three presents a Situation Analysis;-GAP, SWOT, P-PESTEL, Risk and Stakeholder Analyses, Lessons learnt and the Key Success factors.Chapter four outlines the Strategic Model, articulating the Vision and Mission statements, Core Values, Strategic Themes, Issues to be addressed in each thematic area, and the strategic objectives.Chapter five gives the framework for Co-ordination and Implementation of the Plan; presenting the Implementation Approaches, Organization Structure, Mandate of Departments and the Sources of Finance.Chapter Six provides the Monitoring and Evaluation Framework; at both the Board and Management levels and the Key Indicators for Internal and National Monitoring of the Performance of the Authority.

Chapter 22.0 Linkage Of The Authority To National Challenges And Development Agenda2.1Development ChallengesKenyas long term development challenges include greater competition at the international level, minimizing institutional risks, scaling up the quantity and quality of infrastructure, promoting efficiency through adoption of new technologies, improvement in governance and reducing transaction costs to business; and raising the level of investments from the current estimate of 20% of GDP to about 30% of GDP. The Medium Term Development Challenges include poverty and inequality, underdeveloped infrastructure, inadequate attention towards science, technology and innovation, negative ethnicity and lack of national cohesion, insecurity, governance and the rule of law, and massive unemployment. The challenges facing the agricultural sector include:-(i) Inadequate legal framework:(ii) Low effectiveness of extension services;(iii) Low application of modern technology;(iv) Poor governance of agricultural institutions;(v) Inadequate quality control systems;(vi) Multiplicity of taxes;(vii) Low availability of capital and limited access to affordable credit;(viii) Inadequate market and marketing infrastructure;(ix) High cost, adulteration and low application of key inputs;(x) Pests and diseases;(xi) Climatic change;(xii) Frequent droughts and floods;(xiii) Lack of storage and processing facilities;(xiv) Poor infrastructure; and (xv) Increasing incidence of HIV/AIDS, malaria and waterborne diseases.The Challenges facing the horticultural sub-sector include: (a) Inadequate legal framework to regulate and develop the horticultural sub-sector and to enforce the National Horticultural Policy. .(b) Inadequate and ineffective extension services: The level and effectiveness of extension services has been inadequate due to inappropriateness of the extension approaches, collapse of extension institutions and low budgetary allocations. (c) Low adoption of modern technology: Use of modern science and technology in production is limited. (d) Inadequate food safety and quality control systems: horticultural products are faced with poor food safety measures, poor packaging and handling during transportation. These challenges affect the domestic market as well. While some progress has been achieved, there still remains much to be done in this area.(e) Inadequate market and domestic markets infrastructure: Horticultural marketing information and domestic infrastructure is poorly organized. The dependence on external market outlets makes horticultural exports very vulnerable to changes in the demand of horticultural products and unexpected non-trade barriers by foreign markets.(f) Multiplicity of taxes: Horticultural sub-sector has been subjected to a multiple number of taxes at both national and local level in the form of cess and other levies. This has contributed to a reduction of the net farm incomes and created distortions in marketing structures. Besides, the numerous taxes have increased the cost of doing business in the sub-sector.(g) Limited access of affordable credit: Low productivity in horticulture is partly due to inadequate credit to finance purchase of inputs and capital investment. Besides, horticulture being a high risk business has discouraged commercial banks to lend to farmers. Moreover, high interest rates make it impossible for horticultural farmers to access the credit. (h) High cost of input: The cost of agricultural inputs has escalated in the recent past making them unaffordable by many horticultural farmers. This has increased the unit cost of production resulting in low application of key inputs, and reduced productivity.(i) Pests and diseases: Waste due to pre-harvest and post-harvest losses occasioned by pests and diseases continue to be extremely high. This has affected the cost of production and the safety of the products.(j) Climate change: unpredictable weather pattern occasioned by climate change has affected production of horticultural crops.(k) Inadequate storage and processing facilities: Inadequate and unaffordable storage facilities constrain marketability of horticultural products. Lack of horticultural processing facilities close to the sources of produce has also limited the extent of exploitation of the sector-potential.(l) Poor infrastructure: Underdeveloped rural roads and other key physical infrastructure have led to high costs for transporting horticultural products to the markets and farm inputs. This has continued to reduce competitiveness of the Kenyan horticultural produce. In addition, electricity in rural areas is expensive and often not available, reducing investment in cold storage facilities, irrigation, and agro-processing.(m) Research and development:-there is limited applied research that is responsive to the needs of the horticultural sector. Besides, the dissemination of existing research findings is challenging.(n) Increasing incidence of HIV/AIDS, malaria and waterborne diseases: The rapid spread of these diseases and the corresponding deaths have resulted in the loss of productive manpower and diversion of investible resources to the treatment of the diseases.2.2Kenyas Development AgendaFollowing the expiry of the Economic Recovery Strategy (2003-2007), Kenyas Development Agenda is now anchored on the Kenya Vision 2030. The aim of Kenya Vision 2030 is to create a globally competitive and prosperous country with a high quality of life by 2030. It aims to transform Kenya into a newlyindustrializing, middle-income country providing a high quality of life to all its citizens in a clean and secure environment. Simultaneously, the Vision aspires to meet the Millennium Development Goals (MDGs) for Kenyans by 2015. The Vision is anchored on three key pillars: economic, social and political. The economic pillar aims to achieve an average economic growth rate of 10 per cent per annum by 2012 and sustain the same till 2030 in order to generate more resources to meet the MDGs and Vision goals. The social pillar seeks to achieve a just, cohesive and equitable social development in a clean and secure environment. The political pillar aims for an issue-based, people-centered, results-oriented and accountable democratic system.2.3Role of the Ministry responsible for agriculture in contributing towards the Kenyas Development AgendaThe agricultural sector is the backbone of the national economy, contributing directly 24% of GDP and 65% of the export earnings. Moreover, through links with manufacturing, distribution and service-related sectors, agriculture indirectly contributes a further 27% of the countrys GDP. Empirical evidence shows an extremely positive correlation between agriculture and non-agricultural activities.The Kenya Vision 2030 has identified agriculture as one of the key sectors to deliver the 10 per cent annual economic growth rate envisaged under the economic pillar. To achieve this, transformation of small-holder agriculture from subsistence to an innovative, commercially-oriented, and modern agricultural sector is critical. This Ministry responsible for Agriculture will play its contributing component towards achievement of Kenya Vision 2030 by:-(a) transforming key institutions to promote agricultural growth;(b) enhancing Agricultural productivity;(c) introducing land use policies for better utilization of high and medium potential lands; (d) developing more irrigable areas in arid and semi-arid lands for agricultural production; (e) improving market access for farmers through better supply chain management; and (f) Adding value to farm and produce before they reach local and international markets.2.4Role of horticulture in contributing towards the Kenya Development AgendaThe horticultural sub-sector is one of the fastest growing agricultural sub-sectors in the Kenyan economy, recording an average growth of 15-20% per annum. It is the most vibrant sub-sector in the agricultural sector and contributes immensely to socio-economic development. The sub-sector contributes more than 10% of total agricultural production and employs approximately 4.5 million people countrywide directly in production, processing and marketing while 3.5 million people benefit indirectly through trade and other activities. The sub-sector contributes positively to wealth creation, poverty alleviation and gender equity especially in the rural areas. It contributes to the Kenyan economy through income generation, creation of employment opportunities for rural people and foreign exchange earnings, in addition to providing raw materials to the agro-processing sub-sector. Therefore, horticulture contributes enormously to the realization of the National Development Agenda through interventions in the following areas:-(a) Wealth and employment creation;(b) Foreign exchange earnings;(c) Provision of raw materials for the agro-processing sub-sector;(d) Enhancing nutrition and food security; and (e) Poverty alleviation.

Chapter 33.0Situation Analysis3.1Gap Analysis The Authority recognized a variance between what was planned and what was achieved during the preceding Strategic Plan period. The following are the major gaps witnessed by the Authority:(a) The legal framework governing the horticultural sub-sector creates a regulatory and institutional framework that is not responsive to the needs of the sub-sector. The preparation of the Horticultural Bill which was in the Authoritys preceeding Strategic Plan was not initiated.(b) Staff capacity building that was planned during the preceding Strategic Plan period still needs to be enhanced because certain departments have inadequate staff numbers while skills gaps need to be bridged through appropriate training intervention.(c) The need to review the organizational structure of HCDA in the light of the new Constitutional dispensation. (d) The level of research and development within the sub-sector needs to be enhanced to facilitate adoption of appropriate marketing and value-addition strategies. (e) Continuous training of exporters and other stakeholders needs to be undertaken to enable them become more responsive to market needs and changes in the operational environment.(f) Although it was recognized in the preceding Strategic Plan that monitoring and evaluation is fundamental to successful implementation of the Strategic Plan, there is still no structured mechanism of monitoring and evaluation. Monitoring and evaluation framework therefore needs to be strengthened.(g) There is under-utilization of produce handling facilities due to inability to keep up with changing business environment;(h) Although formation of commodity-based associations has been initiated, it needs to be enhanced during the next phase of the Strategic Plan period.3.2Lessons LearntKey lessons for building future successes and replicating current ones in other places include:(a) A stable political and economic environment is important for investors in the horticultural sub-sector.(b) Disseminating Institutional innovation promotes the growth of the horticultural sub-sector.(c) Linking small-scale farmers to high-value urban and export markets is an important strategy for raising rural incomes, reducing poverty and potentially maintaining export competitiveness as well.(d) Facilitating the enforcement of contracts between buyers and growers contributes significantly to more widespread use of contract farming and would expand the participation of small farmers in high-value horticulture production and export.(e) Adoption of appropriate technologies has important spill-over effects to the horticultural sub-sector.3.3Swot AnalysisThe Authority recognizes that it operates in an environment dictated by external and internal socio-economic, legal and political factors, which directly and indirectly impact on its operations. Such an environment creates demands and challenges on the part of the Authority, which must be addressed. The achievement of the Plans objectives will largely depend on how the Authority enhances its internal strengths, exploits the existing opportunities, and manages the weaknesses in its operations, while controlling those factors that pose a threat to the achievement of its planned programmes and activities. In developing this Plan, the Authority conducted an extensive situation analysis of its Strengths, Weaknesses, Opportunities and Threats (SWOT), which is summarized below:3.3.1 StrengthsThe Strengths of the Authority are those endowments, including resources and capabilities that enable us to accomplish our mandate and achieve our Strategic objectives. These include, among others:(a) advanced information resources(b) well-trained and competent staff (c) improved countrywide presence(d) available research funding through HRF(e) improved financial base(f) implementation and adoption of quality management systems according to ISO 9001:2008(g) Existence of horticultural produce handling facilities.3.3.2 WeaknessesThe weaknesses of the Authority comprise deficiencies in resources and capabilities, which must be contained in order to realize the strategic objectives during the Plan period. These include:(a) Financial constraints;(b) Inadequate staff establishment;(c) Inefficient organization structure;(d) Limited public knowledge on the authoritys role and services; and (e) Weak sector facilitation and co-ordination3.3.3 OpportunitiesThe opportunities are the operational potentials and external factors that the Authority will take advantage of in order to enhance its ability to achieve its stated goals and objectives. They include:(a) Unexploited legal mandate;(b) Globalization and liberalization;(c) Potential in agro-processing and value-addition;(d) Favorable agro-ecological zones ;(e) Public-private partnership linkages;(f) Technological advancement;(g) Product development and promotion(h) Advocacy3.3.4ThreatsThe threats are the external operational challenges that make it difficult to realize the Authoritys set objectives. These include:a) Lack of substantive legal framework establishing the Authority;b) Economic recession;c) Competition in international horticultural markets;d) Impact of HIV/AIDS;e) Market access threats e.g. international trade agreements on the horticulture sub-sector;f) High cost of agro-inputs and credit;g) Un-serviced loan from the Government meant for construction of horticulture produce handling facilities.h) Uncertainty on land ownership of some HCDA depots.3.4P-Pestel Analysis3.4.1Policy frameworkPolicy formulation by the Government will affect operations and programmes of the Authority because the Authority must align itself to the overall Government Policy framework and Constitution. To align itself and operations to the Kenya Vision 2030, the Authority needs to address challenges in the areas of:-(a) Productivity;(b) Unexploited Land use in ASAL;(c) Market access; and(d) Value Addition.The achievement of the above will require HCDA to:-(a) Implement the National Horticultural Policy;(b) Initiate legal, institutional and regulatory reforms;(c) Enhance productivity levels in the sub-sector through provision of technical services; (d) Facilitate better utilization of land through crop enterprise mapping and other land use strategies ;(e) Enhance the utilization of ASAL by promoting low cost irrigation technologies;(f) Increase market access through promotion of value-addition in collaboration with other stakeholders; and (g) Facilitate and participate in market development in collaboration with other stakeholders.3.4.2Political factorsPolitical environment will affect the implementation of the Strategic Plan. A stable political environment is necessary to promote investment levels and enhance productivity and portray a good image in the international market. Agreements on trade issues that the Government enters into regionally or internationally affect the horticulture sub-sector.3.4.3 Economic factorsSlow economic growth may result in reduced budgetary allocations to the Authority, thus affecting the implementation of HCDA planned activities and affect service delivery as a result of job cuts. High rate of inflation will raise cost of inputs, resulting in high cost of production and would make horticultural products expensive and therefore less competitive in the international market. Due to the orientation of horticultural exports to the key markets in Europe, there may be spill-over effects from the global financial crisis. Business malpractices by various players in the chain affect credibility and stability of horticultural business and may result into increased cost of doing business due to litigation, defaulted payments etc.3.4.4Social factorsHIV & AIDS pandemic affects the horticultural workforce. An increase in this will affect staff productivity leading to loss of skilled labour and diversion of resources for investment in the sector to addressing health care. Levels of education, training skills and capacity building will affect the operations and performance of HCDA and the horticulture sub-sector.3.4.5 Technological factorsThe rate of technological changes is likely to affect the Authoritys discharge of its regulatory and development mandate for the subsector. The Authority shall be required to adopt appropriate technologies in horticultural development to fully develop horticulture in Kenya. 3.4.6Environmental factorsEnvironmental degradation and climatic change affects the operations of the horticultural sub-sector, leading to high cost of production and low productivity levels. Production without due regard to the impact of farming practices on the environment will result in diminishing productivity. Additionally, pollution of the environment through horticultural activities can affect the eco-system and consumer safety e.g. Plant protection products residues and worker safety as required in the market. Global warming affects the pattern of rainfall and water availability. HCDA shall build capacity in climate change mitigation projects/programs.3.4.7 Legal factorsThere is need for establishment of HCDA by an Act of Parliament. Besides, a number of legislation are being enacted to beef up the existing legal order. These laws shall affect the operations of the Authority. Moreover, the Constitutional creation of County Governments with exclusive jurisdiction over crop husbandry will pose significant challenges to the mandate of the Authority. 3.5. Risk Analysis3.5.1 Liquidity riskThe Authority has over time been making losses and currently has negative reserves. The Authority is therefore unable to replace its assets as they age especially the horticultural produce handling facilities such as the trucks and cold rooms. The continued loss making streak if not broken will in the near future exhaust the cash savings and the going concern concept is in doubt.

3.5.2 Human Resource RiskThe Authoritys nature of activities necessitates specialized knowledge hence the authoritys ability to attract and retain quality human resources is vital. Additionally, the Authority should ensure that there is adequate knowledge for all specialized job requirements by investing significantly in human resource development in form of capacity building and practical exposure.3.5.2 Organizational RisksAn inappropriate organizational structure limits effective delivery of services and implementation of the Plan. The organizational culture of reactive approach to issues as opposed to strategic approach hinders implementation of the plan. Ineffective communication framework is likely to affect decision-making processes.3.5.3 Operational RisksBureaucratic government procedures and processes slow down effective delivery of services. Change management on emerging management practices such as ISO 9001:2008, Enterprise Resource Planning, Strategic plan review, and development of service charter may affect implementation, ownership and adherence of organizational operations. Insecurity in the operational environment can affect performance. Lack of Monitoring and Evaluation framework has resulted in the inability to effectively monitor and evaluate the implementation of the Plan that would form a basis for corrective actions during the implementation cycle of the plan.3.5.4 Financial risksDwindling revenue base may affect implementation of programmes and activities. Resistance to payment of levies by stakeholders will affect financial operations of the Authority. Frequent fluctuation in inflation rates will affect our operations and will interfere with planning. Repayment of the Government of Kenya loan on-lend from JBIC will impact negatively on the financial resource base of the Authority. Poor linkage of planning and budgetary processes will affect successful implementation of the Plan.3.5.5 Technological risksRapid changes in technology may render existing technological equipment obsolete. Resistance to change may inhibit adoption of modern technology. Inability to manage secure information due to inadequate back-up system may also lead to loss of vital information. The Authority may also fail to keep pace with modern technological development.3.6. Stakeholder AnalysisThese are individuals, groups, organizations and institutions that have an interest in the Authority or are impacted on by the Authority activities. Table 3.6 provides an analysis of the Authoritys stakeholders; their expectations from the Authority, how the Authority can meet their expectations and what the stakeholders should do to assist the Authority deliver its mandate.

4

Table 3.6: Summary of Stakeholder Analysis

NOName of stakeholderRole of the stakeholderStakeholders Expectations from the authorityWhat the authority should do to meet stakeholder expectationsWhat stakeholders should do to assist the authority

1.Farmers Production of horticultural crops.

Utilization of HCDA services.

Delivery of effective and efficient services.

Provide information on the services offered by the Authority.

Provide specialized extension services.

Provide efficient and effective services.

Advocacy on market infrastructure.

Provide market information. Goodwill and participation in HCDAs programmes and activities.

Compliance with the guidelines provided by HCDA.

Provide support and feedback on HCDA programmes and services.

2.Ministry responsible for Agriculture(MOA) Policy formulation

Provision of financial support and linkages with donors.

Supervision of performance of the sub-sector Execution of the Mandate of developing, promoting, coordinating and facilitation of the horticultural sub-sector.

Effective and efficient delivery of services. Prudently execute HCDAs mandate.

Provide effective and efficient services. Provide enabling policy, legal and regulatory framework, technical and financial support.

3.Exporters Grow and export horticultural products.

Provision of an enabling environment and opportunities to enable them undertake their activities.

Provision of guidelines and information on emerging export market requirements. Be impartial in registration and licensing of exporters.

Collect and disseminate current market information.

Quality inspection.

Addressing emerging issues and challenges.

Advocacy on fiscal issues. Seek registration/licensing from HCDA.

Pay export cess.

Comply with market regulations and meet the required standards.

Cooperation in information sharing on their operating environment

4.Exporters associations e.g.Kenya Horticultural Council(KHC) Representation of exporters and liaison with relevant public, private local and international organizations and trade associations.

Promotion of exports through overseas exhibitions, trade and buyers missions

Provision of market information on export products and their destinations

Training/sensitization of members Liaison with the association

Provision of an enabling environment

Dissemination of export market information

Market linkages and net-working

Awareness creation/capacity building of members of the association Liaise with the association on export-related matters

Provide an enabling environment to facilitate export of horticultural produce

Disseminate export-market information

Create awareness on emerging issues and build the capacity of association members Effectively represent members of the association both locally and internationally

Support and participate in export marketing initiatives of the Authority

Collaborate with the Authority in export market information sharing

Cascade training and capacity building initiatives

5. Promotes and safeguards the interests of their members

Ensures the safety and welfare of workers in flower farms

Ensures high quality of flower produce Creation of an enabling environment

Setting and enforcing sub-sector occupational health and safety standards

Setting sub-sector quality standards Create an enabling environment

Set and enforce sub-sector occupational health and safety standards

Set sub-sector quality standards Enforce adhere to sub-sector rules and guidelines by flower growers

Promote adherence to sub-sector occupational health and safety standards by flower growers

Ensure farmers meet minimum quality standards

6.Kenya Plant Health Inspectorate Service(KEPHIS) Inspection of exports and imports and issuance of phytosanitary certificates Disease and Pest Control

Sensitization of the public on safe use of chemicals

Registration of fruit tree nurseries/exporters and provision of a list of licensed exporters and registered nurseries

Support for sensitization programmes/Partnerships

Provision of information on exports and imports Establish a credible traceability system Coordination of production of good quality seedlings.

Partnership in initiatives related the horticulture sub-sector.

Promote disease and pest control within the horticultural sub-sector

Consistent and timely inspection of imports and exports and fruit tree nurseries

7.Export Promotion Council(EPC) Export development and Promotion Creation of an enabling environment

Business support through provision of sub-sector information

Create an enabling environment

Provide accurate and reliable sub-sector information

Ensure high quality of produce Enhance Value-Addition to export produce

Provide Export Market Information

Aggressively market horticultural produce

8.Kenya Bureau of Standards(KEBS) Standardization

Quality Control

Certification Participation in horticultural standards committee.

Setting of horticultural sub-sector quality standards

Promotion of the adoption of prudent systems and processes in the sub-sector Participate in horticulture standards committee.

Set, disseminate and enforce set quality standards.

-Promote adoption of prudent systems and processes in the sub-sector Enforce operational and output quality standards

Regularly and consistently Inspect and certify institutions adhering to set system and operational standards

9.Kenya Agricultural Research Institute(KARI)

Conduct of research in agriculture

Collaboration with other research institutions to promote horticultural research Participate in determination of priority research areas for horticulture Dissemination and promotion of research findings within the sub-sector Provide information on priority research areas.

Disseminate and promote research findings Provide research support to HCDAs programmes and activities.

Collaborate with other research institutions to promote horticultural research

10.Kenya Industrial Research and Development Institute(KIRDI) Conduct of research and development in industrial and allied technologies

Partnership with other research institutions in promotion of horticultural research

Collaboration in technological development Provision of industrial and allied research requirements

Dissemination and promotion of research findings within the sub-sector Provide industrial and allied priority research areas

Disseminate and promote research findings within the sub-sector

Agro processing equipment Provide industrial and allied research support to HCDAs programmes and activities.

Collaborate with other research institutions to promote industrial and allied horticultural research Collaborate with HCDA in sub-sector technological development

11.Pest Control Products Board (PCPB) Regulation of the importation, exportation, manufacture, distribution and use of pest control products

Enforcement of relevant and prudent rules and guidelines Enforce the relevant and prudent rules and guidelines Provide a sound regulatory framework

12.National Irrigation Board (NIB) Production of irrigated crops, including horticultural crops

Provision of irrigation infrastructure Collaboration and Partnership in irrigation initiatives Collaborate and Partner with NIB in relevant irrigation initiatives Advocacy of horticultural irrigation programmes. Support irrigation-fed production of horticultural produce

Provide irrigation infrastructure

13.Local Authorities (City, Municipal, Town, Urban and County Councils). Development of Markets and Market Infrastructure Collection and disposal of garbage Provision of sanitary facilities Land allocation for marketing facilities Collaboration and partnership Collaborate and partner with the local authorities Offer infrastructural support

14.Other line ministries e.g. Health, Roads, Public Works, Information, Transport, Finance, Trade, Labour, Environment, Co-operative, culture. Collaboration Co-operation Participate in joint initiatives and provide effective co-ordination. Provide support to HCDAs programmes and activities.

15.Suppliers of farm inputs Supply of farm inputs.

Collaboration in extension and other services. Co-operation, provision of market information and effective co-ordination Co-operate, provide market information and offer effective coordination Promptly and efficiently deliver farm inputs and collaborate with the authority

16.Other Parastatal e.g. NEMA, AFC, EPZA, KEN INVEST, etc Collaboration and enforcement of statutory obligations. Co-operation, collaboration and adherence to statutory requirements. Cooperate, collaborate and adhere to statutory obligations. Support for HCDAs programmes and activities.

17.Suppliers of goods and services Supply of required goods and services Timely payment for goods and services.

Transparent and fair processes as per PPDA (Public Procurement and Disposal Act) Effect prompt payment for goods and services.

Be impartial in awarding of tenders Provide quality goods and services.

Timely deliver the right quantities of goods and meet required timelines in service delivery.

18.

NGOs,Civil society Collaboration Lobbying Advocacy Capacity building Cooperation Provision of information Enabling environment Participate in joint initiatives and provide coordination framework Provide fora for the civil society to air their views. Support for HCDAs programmes and activities. Participate in stakeholders for a and offer constructive suggestions

19.Development partners e.g. JICA, IFAD Technical and financial support Conducive environment and good corporate governance Offer facilitation, coordination and networking and exercise good corporate governance Adhere to the local policy and legal framework.

20.Members of Parliament and Opinion leaders Legislative support and advocacy Collaboration and facilitation of the formulation of appropriate policies and bills Collaborate, facilitate, the formulation of appropriate polices and bills and offer the necessary information Offer legislative support and advocacy

21.Employees Execution and implementation of HCDAs mandate Provision of conducive working environment, tools and equipment and opportunities for training and career development and appropriate structures Provide a conducive working environment, appropriate organizational structure and motivate staff. Be committed, professional and offer quality, effective and efficient services to the stakeholders.

22.Domestic Consumers Provide domestic market for horticultural produce High quality of horticultural products Prudent pricing of horticultural products Maintain high quality standards Ensure prudent pricing within the sub-sector Maintain loyalty to local horticultural produce

23.The Public Taxpayers Good Corporate Governance Compliance with the service charter Information and update on the services provided by the Authority Embrace Good Corporate Governance. Offer efficient and effective services as per the service charter. Provide timely and sufficient information Adhere to statutory obligations Provide feedback on services offered by the Authority.

24.Public universities and other training institutions. Provision of trained manpower Feedback on horticulture sub-sector training needs Hold regular consultations and forums Inform the authority on current training needs and trends.

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3.7Key Success FactorsArising from the challenges faced, GAP Analysis and the lessons learnt, the following have been identified as the key success factors for the Authority:(a) Teamwork and staff motivation;(b) Effective Planning and Performance Management;(c) Capacity building;(d) Effective Monitoring and Evaluation framework;(e) Effective Market Research;(f) Enhanced sector co-ordination mechanisms;(g) Appropriate Organizational Structure;(h) Effective linkages and partnerships;(i) Effective documentation ;(j) Effective communication;(k) Acceptance and effective management of change;(l) Advocacy; and (m) Effective information management;

Chapter 44.0 Strategic ModelWe recognize that as an Authority, we must anchor our operations on certain principles and values. The implementation of our objectives, proposed strategies and activities will be guided by our Vision, Mission and Core Values.4.1Vision

Our vision

A globally competitive horticulture sub-sector in Kenya

4.2Mission

To develop, promote, facilitate and co-ordinate the growth of a commercially-oriented horticulture sub-sector through appropriate policies and technologies to enhance and sustain socio-economic developmentOur Mission

4.3Core Values We are committed to upholding the following Core Values as the guiding principles for the operations of the Authority in the medium and long-terms:

We commit ourselves to attaining the highest standards in our service delivery to all stakeholders in the sub-sector.Customer Focus

We will be a learning organization that embraces and introduces change in our business processesWe undertake to carry out our operations in a fair manner and serve all without any form of discrimination. Rationalization of costs and productivity improvement will be major hallmarks in our implementation approach.Innovation And CreativityImpartiality Efficiency And Effectiveness

We shall comply and advocate adherence to all statutory environmental obligation in the horticultural sub-sector to ensure in a clean, safe and secure environment.Prudent Environmental Management

We undertake to consult and involve key stakeholders in the exercise of the regulatory and development of the horticultural sectorWe are committed to acting in an honest, impartial, fair and transparent manner and be guided by professional ethics while implementing our programmesWe will work together at all levels and embrace a participatory approach in implementing our programmes and activities We undertake to generally comply with all national values and principles of governance contained in the ConstitutionIntegrity and Transparency Team work National Values In The Constitution Public Participation

4.4Strategic Themes/Key Result Areas (KRAs)The Authority has identified the following as key areas of focus to implement the Strategic Plan:-(a) Policy, legal and institutional development; (b) Marketing and Value Addition;(c) Research and Development;(d) Capacity Building;(e) Resource mobilization;(f) Corporate image; and (g) Advocacy.4.5Strategic Themes, Issues and Objectives Focusing on the six key result areas, the Authority will endeavor to achieve results through the implementation of the following objectives. The strategies and associated activities for each strategic theme are detailed in the implementation matrix. 4.5.1Strategic Theme 1: Policy, Legal And Institutional Development Strategic issue 1: Need to implement the National Horticultural Policy and to develop a legal framework that allows for effective coordination and development of the sub-sector. The legal framework shall accord to the Vision 2030 policy document and the Constitution.Strategic Objective 1: To develop a legal framework in the form of a national Horticultural Bill in consultation with key stakeholders.Strategic direction 1: The Authority will facilitate the development of substantive legal framework in the form of a national Horticultural Bill to implement the National Horticultural Policy. The proposed legal framework shall also comply with the provisions of the Vision 2030 policy document and the underlying values, principles and institutions in the Constitution of Kenya.

4.5.2Strategic Theme 2: Marketing And Value-AdditionStrategic Issue 2: Inadequate marketing strategies to enhance market access and limited value addition to increase profitability.Strategic Objective 2: HCDA shall facilitate and coordinate the implementation of comprehensive development and marketing strategies for the horticultural sub-sector.Strategic direction 2: The Authority will enhance market access through value-addition, adoption of technologies and market research. The Authority will also enhance and promote proper produce handling in the domestic market to ensure quality and food safety. The Authority shall further undertake market promotion to sustain the existing markets and create new markets.4.5.3Strategic Theme 3: Research And DevelopmentStrategic Issue 3: Inadequate research and development in the horticultural sub-sector.Strategic Objective 3: To enhance research and development in the horticultural sub-sector.Strategic direction 3: The Authority will undertake research with a view of promoting efficient production systems, value addition and market intelligence. Besides, the Authority shall undertake technological research to enhance market access.4.5.4Strategic Theme 4: Capacity BuildingStrategic Issue 4: Inadequate capacity to facilitate provision of quality and efficient services to the sub-sector and to respond to emerging issuesStrategic Objective 4: To build adequate capacity to provide quality, efficient and effective services to the sub-sector.Strategic direction 4: The Authority will enhance its capacity through staff training and development. In addition, it will offer focused extension services to farmers and create awareness to stakeholders on emerging issues. Besides, the Authority will strengthen the performance management framework, establish a sound monitoring and evaluation framework and enhance good corporate governance. Moreover, it will enhance the integration of ICT in business processes, establish optimal staffing levels, enhance the infrastructural capacity and strengthen the resource centre.4.5.5 Strategic Theme 5: Resource MobilizationStrategic Issue 5: Inadequate resources to facilitate execution of the Authoritys mandate.Strategic Objective 5: To mobilize resources and develop mechanisms for efficient and effective utilization of resources.Strategic direction 5: The Authority will enhance its financial capital and sustainability by implementing various task force reports related to cess, processing levy and cold chain facilities and lobbying for additional funding from the Agricultural Sector Development Strategy kitty. It will also prioritize resource allocation to key activities, diversify sources of funding and rationalize operational costs.4.5.6Strategic Theme 6: Corporate ImageStrategic issue 6: Ineffective customer service and need to enhance public image of the Authority.Strategic Objective 6: To strengthen customer service delivery mechanisms and enhance the corporate image of the Authority.Strategic direction 6: The Authority will ensure efficient and effective customer service delivery and build its corporate image by re-engineering its business processes and undertaking appropriate corporate social responsibility and image-building activities.

Chapter 55.0Co-Ordination Framework And Implementation Of The Strategic Plan5.1Strategic Plan Implementation Approaches The implementation of the Plan will employ the following approaches:5.1.1Phasing and sequencingImplementation of this Strategic Plan will be in tandem with the government planning cycle. The Authority will therefore develop subsequent annual work plans from the Strategic Plan. The work plans will take into consideration the financial, human and other resources available to the Authority in each financial year. The corporate annual work plans will be actualized by the departmental work plans, which will focus specific responsibility to individual members of staff. This approach will enhance performance appraisal at individual, departmental and corporate levels. 5.1.2Quick wins In each annual work plan, the Authority will identify activities that guarantee quick wins. The quick wins approach will enable the Authority achieve rapid results in line with the Rapid Results Initiative. This is expected to motivate and make members of staff enthusiastic to implement other strategic initiatives. 5.1.3 Performance Management FrameworkWhile developing the Plan, the Authority will adopt the Balanced Scorecard (BSC) to translate its Vision and Goals into Strategies and Activities. As indicated below, the BSC Framework, which focuses on institutional performance towards key deliverables, will be used to guide the implementation of all the strategic objectives. The Proposed BSC framework will also be used to align departmental operations towards the achievement of the corporate strategic objectives during the Strategic Plan period.5.1.5 Implementation FrameworkThe implementation of the Strategic Plan will comply with the wider public service reforms framework including performance contracting. The Managing Director, with the support of heads of departments will provide overall guidance for the implementation of the Strategic Plan. Regular departmental meetings will be utilized to support the implementation of the Strategic Plan. The Authority will also establish appropriate linkages with other relevant Government initiatives to enhance synergy as it seeks to realize the goals and objectives set out in the Plan.5.2Organizational StructureFor effective implementation of the Strategic Plan, the Authority shall review and develop an organizational structure that enhances delegation, management processes and facilitates information flow. The review should also take into account lessons learnt in the implementation of the previous Strategic Plan, the mandate of the Authority and its core business. Further, the structure should incorporate the requirements of the Constitution of Kenya e.g devolution. Figure 5.2.1 shows the Authoritys current organizational structure.

Fig. 5.2.1 Organization Structure

Board Of Directors

Managing Director

TECHNICAL & ADVISORY SERVICES DEPARTMENTFINANCE, HR & ADMINISTRATIONMARKETING, STRATEGIC PLANNING & SYSTEMS DEVELOPMENT

EXTENSION & TRAINING DIVISIONQUALITY CONTROL/ CONSULTANCY SERVICES DIVISION

FINANCE & ADMIN DIVISIONHUMAN RESOURCE DIVISIONSTRATEGIC PLANNING & SYSTEM DEV. T DIVISIONMARKETING DIVISION

INTERNAL AUDIT

PUBLIC RELATIONS

5.3Departmental Functions 5.3.1Technical and Advisory Services DepartmentThis department has the following responsibilities:-(a) Organizing smallholders into production and marketing groups;(b) Capacity building for horticultural growers;(c) Encouraging commercialization of farming;(d) Promoting production innovation ;(e) Regulating fruit tree nursery operators ;(f) Supporting availability of planting materials;(g) Collaborating with other players in the sub-sector on issues related to Maximum Residue Levels (MRLs), EU regulations, sanitary and phytosanitary requirements and Codes of Practice ;(h) Collaborating with research and training institutions to generate new technologies and develop curriculum;(i) Promoting local utilization and consumption of horticultural products;(j) Packhouses.(k) Produce conformity inspections; and (l) Developing quality standards for produce in the local market in collaboration with relevant stakeholders.5.3.2Finance, Human Resources and Administration Department This is a service department composed of the following divisions:(a) Finance, (b) Human Resources; and (c) Administration 5.3.2.1Finance Division The division has the following responsibilities:(a) Formulating and implementing financial policy;(b) Budgeting and budgetary control;(c) Formulating, implementing and reviewing accounting systems to ensure efficient data capture, processing and timely reporting;(d) Keeping accurate and updated records of the Authoritys assets, and safeguarding them;(e) Ensuring timely preparation and presentation of accurate periodical financial statements and final accounts;(f) Formulating, implementing and reviewing the Authoritys credit policy.5.3.2.2 Human Resources Division.The division has the following responsibilities:(a) Planning, coordinating and directing all human resources in accordance with the Terms and Conditions of Services of the Authority;(b) Enforcing the Public Service Code of Regulation;(c) Coordinating the development of job specifications and descriptions;(d) Ensuring that performance targets are developed and that periodic performance appraisal is carried out;(e) Coordinating staff training and development programmes based on training needs analysis;(f) Administration of staff salaries and emoluments;(g) Recruitment and selection on need basis.(h) Providing for career and succession planning; and (i) Promoting good labour relations and staff welfare.5.3.2.3 Administration Division.The division has the following responsibilities:(a) Coordinating all administrative functions of the Authority including security, procurement, reception, transport, secretarial, registry, telephone services, and office accommodation; and (b) Ensuring compliance with occupational health and safety standards5.3.3Marketing, Strategic planning and systems development department This department is a critical link between the Authority and other key stakeholders. It has two sections:(i) Marketing; and (ii) Strategic planning and systems development.The department performs the following functions:(a) Registering and monitoring the exporters, ship-chandlers and processors;(b) Collection, analysis and dissemination of horticultural export data;(c) Developing the Authoritys short and long-term strategic plans;(d) Monitoring market prices for export and local produce;(e) Carrying out market intelligence in the local and export market;(f) Disseminating market information;(g) Negotiating and interpreting of WTO agreements and other trade policies and agreements;(h) Maintaining and updating the website with relevant production and marketing information for the sub-sector;(i) Coordinating, organizing and participating in local and international shows, trade fairs and exhibitions;(j) Diversifying markets through participating in international shows and fairs in liaison with Kenya Embassies and High Commissions; and (k) Establishing an information resource centre to provide relevant production and marketing information to the sub-sector.5.3.4.Internal AuditThe division has the following responsibilities:(a) Ensuring effective internal control systems; and (b) Reviewing the Authoritys operational procedures.5.3.5 Public Relations The mandate of the Public Relations Unit is to promote the corporate image and execute and coordinate public relations activities of the Authority. The key functions include:(a) Corporate affairs and image;(b) Corporate Social Responsibility; and (c) Media Watch and Guest Relations.

Chapter 66.0Monitoring And EvaluationThe purpose of Monitoring and Evaluation is to ensure that the implementation of the Strategic Plan is according to schedule and if there is any deviation, appropriate and timely action is taken. The Monitoring and Evaluation process will be undertaken at both the Board and Management levels.6.1 Board LevelThe implementation of the Strategic Plan will be closely monitored to ensure its accomplishment. The monitoring process will help determine whether the implementation is on course. Monitoring, follow-up and control systems will be established at all levels. These will include review meetings, budgets and budgeting control systems and progress reports from the organizations Monitoring and Evaluation Committee, through the Managing Director. Quarterly review meetings will be held between the Management and the Board. During these meetings, the Board will receive and review progress reports from the Managing Director indicating overall progress made on key strategic objectives. The nature and scope of reporting will include: (a) Progress made against Plan;(b) Causes of deviation from Plan if any;(c) Challenges and proposed solutions to issues that adversely affect implementation; and (d) Corrective measures.The input of these quarterly Board meetings will be the output from the Monitoring and Evaluation Committee Reports and fortnightly Management meetings. 6.2Management LevelMonitoring and evaluation will provide the back-up necessary to ensure that objectives are achieved. During the formulation of the Strategic Plan, the implementation plan indicators and projections were partly based on past experiences. These however, may change in the course of the implementation and thus a management control system will be necessary to ensure the Plan stays on course.

Monitoring will involve routine data collection and analysis on the progress of the Strategic Plan implementation. The results from the analysis will then be used to inform decision-making, including taking corrective action where deviations in implementation have been noted. The Planning Unit will recast the Strategic Plan as per the recommendations of the M&E Committee. The M&E Committee will provide capacity building to the departments to ensure the implementation of the plan. Funds will be allocated for M & E activities.The M & E Committee will submit quarterly and annual reports to the Planning Unit. These reports will be reviewed regularly against the targeted indicators to measure progress. 6.2.1 Management Control FunctionIn carrying out the management control function, the following measures will be considered:(a) Performance Targets and Achievements;(b) Budgets allocation ;(c) Management Reports;(d) Implementation Programme/Matrix; and(e) Strategic Plan Review Meetings.6.2.2Strategic control mechanismThe control mechanism will include:(a) Action plans.(b) A check on whether results produced by the implemented activity were those forecasted as outputs and, whether they were achieved according to stated Performance Standards/Measurement. 6.3Performance Indicators for Monitoring the Strategic PlanThe implementation of the Strategic Plan will be monitored using the following indicators:-(a) Development of the National Horticultural Bill ;(b) Advocacy for increased value addition of horticultural produce;(c) Maintaining existing markets and expansion to new destinations;(d) Advocacy for infrastructure development and adoption of product quality and safety standards.(e) Increased horticultural production under irrigation;(f) Increased compliance to market standards; (g) Customer satisfactory surveys;(h) Responsive organizational structure of the Authority;(i) Development of a Horticultural Information Resource Centre;(j) Number of promotions undertaken annually horticultural products;(k) Number of market surveys for horticultural produce undertaken;(l) Number of value chain analysis for horticultural products carried out annually ;(m) Compliance to statutory regulations and adherence to policies and legal requirements;(n) Implementation of the Enterprise Resource Planning (ERP) system; and (o) Introduction of corporate social responsibility

Appendix I:Implementation Matrix Strategic Theme 1: Policy, Legal And Institutional Development Strategic issue 1: Need to implement the National Horticultural Policy and to develop a legal framework that allows for effective coordination and development of the sub-sector. The legal framework shall accord to the Vision 2030 policy document and the Constitution.Strategic Objective 1: To develop a legal framework in the form of a national Horticultural Bill in consultation with key stakeholders.

StrategiesActivitiesInputsExpected output Responsibility Centre/ ActorsTime FrameOutput Indicators

Strategy 1.1:-Develop the Horticultural Bill.

Convene an internal team to oversee the process.

Terms of Reference

Technical Team constituted

MD1 monthsTechnical Team

Hire a consultant to develop the draft Horticulture BillHiring of the ConsultantTerms of reference

The draft Horticulture BillMD /HR4 months Draft Horticulture Bill

Hold consultations with key stakeholders to validate draft bill.Workshop venueBackground study reportStakeholders inputs captured in the draft BillThe Technical and the Consultant 6 monthsStakeholders Workshop Report

Forward the Bill to the Ministry responsible for Agriculture to send to the Attorney-General for consideration Forwarding Letter

Bill send to the Attorney General MD1 yearAttorney Generals comments on the Bill

Develop a Cabinet Memorandum on the draft Bill Cabinet Memorandum

Consideration of the inadequacies of the draft policy and the legal framework by CabinetConsultant 1 yearCabinet Memorandum drafted

Strategy 1.2:Create public awareness on the draft BillDisseminate the draft Horticulture Bill

Nil

Stakeholders sensitization on the Horticulture Bill

MD1 year Nil

Strategic Theme 2:Marketing And Value-AdditionStrategic Issue 2: Inadequate marketing strategies to enhance market access and limited value addition to increase profitability.Strategic Objective 2: HCDA shall facilitate and coordinate the implementation of comprehensive development and marketing strategies for the horticultural sub-sector.Strategies

ActivitiesInputsExpected outputResponsibility Centre/ ActorsTime FrameOutput Indicators

Strategy 2.1: Undertake market research on horticultural products and servicesIdentify target products and services in the value chainmarket survey instrumentsresourcesProducts and services identified in the value chainsMarketing and TASAnnually Report of products and services in the market chains identified

Conduct market surveys on products and servicesmarket survey instruments resourcesproducts and servicesMarketing and TASQuarterlyNo. of market surveys on products and services conducted

Strategy 2.2: Enhance marketing capacity

Disseminate the market survey finding to stakeholdersMarket survey reportsDissemination programresourcesStakeholders educated on the market survey findingsMarketing and TASAnnuallyNo. of dissemination initiatives undertaken

Facilitate the establishment of marketing channelsresourcesImproved marketing of horticultural produceMarketingAnnuallyNo. of marketing channels established

Strategy 2.3: Undertake Research on product value addition

Undertake research on product value addition Analytical ReportResource personsinvestment resourcesValue addition for horticultural products and activitiesMarketing & TASAnnuallyEncourage Implementation of the analytical findings

Disseminate the findingsDissemination programmeAnalytical reportInvestment resourcesStakeholders educated on value addition initiativesMarketing & TASAnnuallyDisseminate the findings

Strategy 2.4: Promote the establishment of partnerships and linkagesOrganize business to business meetings Resources personsWorkshop venuesEnhanced linkages and collaboration in the sectorMarketingAnnuallyA partnership and MOU in practicethe number of MOUs with partners in the sub-sector

Liaise with Kenya missions abroad to market horticultural products and servicesSteering committeeConsultative forumsIncreased export volume of horticultural productsMDAnnually Report on the number products marketed.

Participate in bilateral and multi lateral trade arrangementsMembership participation to the steering committee.Events calendarEnhanced participation in trade related issues.MD & MarketingAnnuallyReport on results of trade participated

collaborate with other stakeholders in development of physical market infrastructureInfrastructure development plan

Improved infrastructure of horticultural productsMD & MarketingContinuously No. of physical market infrastructures developed

Strategy 2.5: Promote value addition of horticultural produce

Promote the setting-up of cottage industries/value adding industries.Resources Improved incomes

Marketing & TASAnnuallyCottage sub-sector development planNo. of technologies promoted

Train stakeholders on value-addition technologiesResources

Stakeholders trained on value-addition technologiesMarketing & TASQuarterlyNo. of stakeholders trained

Strategy 2.6:Create awareness on emerging issues

Identify and sensitize stakeholders emerging issues.

Various information sourcesMatter arising during consultative stakeholder forumsResourcesDocumentation of emerging issuesSensitize on the emerging issues in the sectorTAS AND MARKETINGQuarterly-Sector emerging issues identified and documented

-No. of stakeholders sensitized on emerging issues in the sector

Strategy 2.7: Provide focused extension services to stakeholders

Undertake needs analysis

Resources Survey instruments

Training GAPS identifiedTAS and MarketingQuarterlyNeeds analysis report

Develop training materialsResources

Training materials

TAS and MarketingAnnualNo. of training materials developed

Undertake stakeholders capacity buildingResources

Trained stakeholders

TAS and MarketingQuarterlyTraining report

Strategy 2.9: Ensure produce quality conformity, traceability and food safety

Undertake inspections and registration of fruit tree nurseriesResources

Improved quality of fruit seedlingsTASQuarterlyNo. of fruit tree nurseries registered

Undertake inspection of horticultural produce for conformity.Resources

Improved quality of produce TAS WeeklyInspection certificate issued

Awareness creation on food safety Resources AwarenessTASContinuous Inspection reports

Produce harvest indices research Resources Harvesting indices TASContinuousHarvesting indices reports

Developing codes of practices Resources Compliance to GAP TAS Continuous Codes of Practices

Registration of produce dealers Resources Traceability TASContinuous Register

Strategic Theme 3: Research And DevelopmentStrategic Issue 3: Inadequate research and development in the horticultural sub-sector.Strategic Objective 3: To enhance research and development in the horticultural sub-sector.Strategies

ActivitiesInputsExpected output Responsibility Centre/ ActorsTime FrameOutput Indicators

Strategy 3.1: Promote horticultural research

Identify research priority research areas.Resources Identified research areas.Marketing and TASAnnuallyReports.

Funding of researchReport on input of priority areas.Resources.Research findings.TAS Annually-Reports

Strategy 3.2: Provide focused extension services to stakeholders

Undertake needs analysis

ResourcesSurvey instruments

Training GAPS identifiedTAS and MarketingQuarterlyReports on priority areas.

Develop training materialsResources

Training materials

TAS and MarketingAnnualReport

Undertake stakeholders capacity buildingResources

Trained stakeholders

TAS and MarketingQuarterlyReport

Undertake monitoring and evaluation to assess the impact of extension servicesResources

Improved servicesTAS and MarketingQuarterlyReport

Organizing producers groups Resources Improved services TASContinuous Reports

Strategic Theme 4: Capacity BuildingStrategic Issue 4: Inadequate capacity to facilitate provision of quality and efficient services to the sub-sector and to respond to emerging issuesStrategic Objective 4: To build adequate capacity to provide quality, efficient and effective services to the sub-sector.Strategies

ActivitiesInputsExpected output Responsibility Centre/ ActorsTime FrameOutput Indicators

Strategy 4.1: Ensure staff are adequately trained and developed

Conduct training needs assessmentResourcesStaff Appraisal reportsRelevant InformationTraining Needs Assessment (TNA) ReportHR DivisionAnnuallyTraining Needs Assessment (TNA) ReportTraining programmes

Implement the training programmesTraining programmesResource PersonsTraining FacilitiesTraining MaterialsStaff Staff trained

HR DivisionAnnuallyNo. of staff trained annually

Evaluate impact of trainingResource personsAppraisal ReportsTraining ReportsEvaluation reports on impact of trainingHR Division /Planning UnitBiannuallyPercentage improvement in performance

Strategy 4.2: Strengthen the performance mana