CONCEPT OUTLINE FOR SEP PROJECTS
“A BREAKING OF THE VICIOUS CIRCLE OF POVERTY”
TABLE OF CONTENTS
PREAMBLE ........................................................................................................................... 3
EXECUTIVE SUMMARY ........................................................................................................ 5
BACK GROUND .................................................................................................................... 7
SPECIFIC AREAS OF INVESTMENTS/ STRATEGIES ............................................................... 8
Food Production and Processing System ............................................................................ 8
As for example in Kales production .................................................................................... 8
As for example about apiculture ........................................................................................ 8
Methodology....................................................................................................................... 9
Beverage ............................................................................................................................. 9
Infrastructure ...................................................................................................................... 9
Develop Livestock Industry ................................................................................................. 9
THE EXTERNAL ENVIRONMENTAL ANALYSIS (TARGET MARKET) ..................................... 10
SWOT- THE INTERNAL ENVIRONMENTAL ANALYSIS ........................................................ 11
THE AGRIBUSINESS “NUCLEUS” PROJECT PLAN ............................................................... 12
Name of the organization: “SEP” ...................................................................................... 12
TARGET .............................................................................................................................. 13
EXPECTED RESULTS ........................................................................................................... 13
POSSIBLE RISKS ................................................................................................................. 13
IMPLEMENTATIONS STRATEGIES ...................................................................................... 14
PROJECT LOGICAL FRAMEWORK ...................................................................................... 15
FINANCIAL STATEMENTS .................................................................................................. 16
2
PREAMBLE
The Government of Kenya committed itself at the independence to the eradication of
poverty. However, hitherto the poverty scourge is still rampant and especially in
Southern Nyanza (now the Homabay and Migori Counties) where 73% of the population
is perpetually malnourished and deprived of basic needs. Generally basic needs can only
be met at the expense of food. For example, food has to be sacrificed in order to take a
sick person to hospital, school etc. Such poverty within Homabay County has been due
to major factors;
 Unbalanced strategic vision to development because of lack of commitment to
bottom–up approach in decision making.
 The Top-bottom decision making system has caused the “vicious cycle of poverty”.
This backwardness in poverty creates income per-capita too low and no savings
altogether. Low savings result in too low investments. This concept of vicious cycle
of poverty is a countercurrent flow of low income- low savings and subsequent low
investment. The concept can reasonably be related to crop production and
consumption balance, and even to education. The poor produce less food and also
buy less food. Alternatively, more income may lead to more consumption and less
poverty.
 It is equally important to note that in the vicious cycle the poor households are less
educated and even though they would wish to take their children to schools, they
cannot be able to afford the exorbitant cost of education which is why there is
continuity of the vicious cycle of poverty. There is therefore urgent need to break
this circle.
Agriculture is the major driving force in other regions of Kenya and the whole country in
general. The agricultural sector, in particular the agri-business is indeed recognized by
the government; coupled with its value addition (manufacturing, processing and
marketing) systems, it is critical, if it has to realize the primary goal of poverty reduction
because agriculture can be a source of food security, employment and income
generation for the majority poor who live in the rural areas.
Approximately, 80% of the population in Homabay County depends on Agriculture as
the main source of livelihood which means that Agribusiness would be aggressively and
successively undertaken. The land fertility and subsequent productivity has continued to
decline as a result of a reduced soil fertility levels, unreliable rainfall and poor living
coupled with high population pressure; the land holding sizes continue to reduce and
foster poverty levels to be high.
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It is therefore practically meaningful that the only perfect way to reduce poverty within
the Homabay County is to improve the agricultural productivity and competitiveness
through intensification and crop substitution.
This works well where smallholder farmer works on his own/area of interest (self
employed) and is guaranteed direct benefits from the returns and participating in the
finishing process. For this reason, larger foreign investments in terms of loans (venture
capital) or grants / aid can be used. Due to greater flow of capital, huge amounts can be
invested to break the circle. Higher level of investment results in greater income and
higher income means more savings which will result into more investments.
It is the breaking of vicious cycle of poverty that this Project concept is seeking for
working partnership, in terms of technical assistance, venture funding, grants/Aid and
good will to invest within the regions of Homabay County on the principle of “Private
ownership-community participation arrangement” within the culture of
entrepreneurships”.
To address these problems there is need to undertake initiatives to start Agribusiness
development aimed at improving standards of the poor and the vulnerable, by creating
availability and affordability of food for the local population. This Agribusiness aims to
improve farming practices for poverty reduction in the area.
The poverty challenges are as shown in the chart below;
1. Poverty situation in the wider Southern Nyanza
% of poor population %
of
poor
“adult equivalent”
households
A.
FOOD POVERTY
68
65
Kenya rural-other parts
50
43
B
ABSOLUTE POVERTY
73
71
C
Kenya rural –other parts
HARDCORE POVERTY
54
56
48
62
Kenya rural-other parts
43
Source–poverty in Kenya-report (2000)
38
4
I
II
III
IV
V
VI
1. Education percentage levels of Heads of households in the District.
Rachuonyo District- Koshids Survey-2000
All
House Category
Female
Male
No. formal education
22%
35%
12%
Primary- not completed
30%
32%
28%
Primary completed
29%
23%
35%
Secondary –not completed 7%
6%
8%
Secondary completed
10%
4%
15%
College Institute
4%
2%
6%
2. Health statistics in the area
 51% sells their only property to meet quality health care.
 46% gets assistance from relatives and friends for quality health care
 3% can afford to pay for quality health care, but painfully.
All these occur despite the existence of National Hospital Insurance Fund Scheme.
EXECUTIVE SUMMARY
Society Empowerment Project (SEP) is a community based organization focused on
empowering youth and women, and subsequently promoting community development
in the areas of Oyugis Town and the rural environs of Homa-bay County through
football. The region is characterized by vicious circle of poverty and food insecurity.
Society Empowerment Project (SEP) uses agriculture as a means of empowering the
communities for attainment of sustainable food security and income generation
stability. This is done by involving the community members, groups (in particular
women and youth groups) and the stakeholders who on collaboration with SEP get
knowledge and subsequently adopt better agricultural practices. Agricultural crop
rotation with other short term crops like, Kales, Tomatoes, Watermelon, etc is carried
out to give the best use of land and prevent crop diseases. In fact SEP uses the best
Agricultural crop husbandry for example by making and using decomposed organic
manure for planting (also to reduce global warming effect from gases e.g. methane) The
application of economic efficiency, optimal resource utilization and adoption of
environmentally friendly methods are the SEP guiding principles and targets. These
practices impact a strong influence over the rural poor around Oyugis Town for
subsequent poverty alleviation. In the situations where good crops yields are
experienced, Society Empowerment Project from time to time subsidizes school fees for
their members from the sales of agricultural products.
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The Society Empowerment Project primarily uses football as a tool for informing and
mobilizing the community to address the many social ills and challenges they face.
Hitherto and so far, SEP has had successful economic development programs in
promoting agriculture through foot ball activities in Homabay County. These activities
subsequently enhance economic peace building amongst the youth, whilst targeting
both micro and macro level issues with the aim of creating opportunities for the young
stars and ensures that the basic needs of the community are met. For this reason, SEP
has enjoyed recognition for the success in its football activities by receiving the Global
Barcelona Sports Award (GBS) for the best practices through football in 2012. In the
same year 2012, SEP received yet another global award- Sports for Peace Award given
by the principality of Monaco for the best use of football for peace building and peace
keeping. SEP also works with FIFA’s Football for Hope (FFH), Street Football World,
GIZ/YDF, the Two Wheeled Foundation, and continues to build a strategic partnership
with the Boston based Cambridge Kenya Football for Development programs through
football activities. In the course of football activities promotion, identification of selfefficacy for subsequent self-efficiency that would meet basic human needs and build
positive relationships in the society is identified and undertaken including market
information exchange. In order to ensure a situation of securing sustainable Agriculture,
capacity development through training by the staff of the District Agricultural line
Ministry and often consultations to ascertain that proper knowledge is acquired, is
occasionally carried out.
At the same time SEP also continue collaborating with NGOs and like minded
institutions in the aspects of agricultural developments. However, SEP has an advantage
of having qualified and competent personnel within its structure, some of whom have
vast and practical experience in Agribusiness management practices.
Majority of agricultural produce that supplies Homabay County come from the
neighboring Kericho, Kisii, Rongo and Migori Districts. In fact, the agricultural production
by SEP is planned to take advantage of the overwhelming markets needs. The sales of
the produce are done at the SEP center through business women and youth who also
add value by transporting them to other markets, particularly to Oyugis Market. The
youth and women are the major collaborators whilst subsequently forming a bigger
centre for marketing the farm produce. In fact the agricultural production would not
even suffice the local market.
SEP uses its subscriptions as a seed capital for these project developments though this is
quite minimal. FFH, Friends, well-wishers, Constituency Development Funds and None
Governmental Organizations have from time to time supported the SEP programs. And
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an average of Kenya Shillings 120,000 (US$ 1412) has been used annually for these
programs with a subsequent average production turnover of Kshs.300, 000. SEP is still a
young project and its assets are only worth Kshs 1,194,800 (US$ 14056) - (SEP
inventory Record 2012.)
It is the purpose of this Project concept details to provide information that should be
used to develop more plans for improvement of the SEP project schemes. Funding
normally covers both the technical aspects as outlined in this report, capacity building
and the SEP management schemes that must be put in place to lay the foundation for
sustainability.
BACK GROUND
Society Empowerment Project is a community based organization in Rachuonyo South
District, Kasipul Division, and Kowidi Location at Ruga Market in Homabay County in
the Republic of Kenya. The District is divided into two divisions namely, Kasipul and
Kabondo divisions, comprising of 22 locations with a population of 230,000 people,
highly concentrated.
Human Development Indicators (HDI) are generally low compared with the rest of the
country, compounded by unemployment, poor health including food insecurity, in fact
experiencing absolute vicious cycle of poverty. The area is also being rated to be the
highest in HIV/AIDS incidences in the country (Kenya).
Further, the general profile of the area is as follows;
 Average HIV/AIDS prevalent is 24% and the area being rated among the highest
affected in the country, Kenya, (UNICEF details 2003)
 Average poverty level is 73% ,(UNICEF details 2003)
 Climatic and physical features are inland equatorial with local temperatures
comparatively lower, with two rainy seasons. Long rains start from late February–
March and are 60% reliable. Short rains start as early as August–November. These
are not steady because of global warming effects. Agricultural activities are always
promising with substantial production towards the southern part of the District.
 The District is semi-Arid despite bestriding the vast Lake Victoria water mass and
the local people’s livelihood system revolves around subsistence farming, petty
trade and livestock rearing using traditional subsistence methods of production.
Community mobilization and sensitization is normally carried out through thematic SEP
Soccer gatherings. SEP Annual Soccer and Educational Tournament and youth capacity
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building are held during the month of August annually. This generates several ideas
which make the engagement of the line ministries possible by promoting the bottom up
approach within the prevailing policies of demand driven targets.
SPECIFIC AREAS OF INVESTMENTS/ STRATEGIES
Food Production and Processing System

Liaising with the already defined sweet potatoes, passion fruits, pineapples,
Watermelon, Kales, Honey production, Dairy production, poultry farming etc
growers to add value to their produces thus processing, manufacturing, packing,
branding and marketing through improved sustainable agricultural production
methods.
As for example in Kales production
Sustainable Horticulture is a “holistic” production management system which promotes
and enhances agro-ecosystem health, including biodiversity, biological cycles, and soil
biological activity. It emphasizes on the use of management practices in preference the
use of off-farm inputs, taking into account that regional conditions require locally
adapted system. This is accomplished by using, where possible, agronomic, biological,
and mechanical methods, as opposed to using synthetic materials, to fulfill any specific
function within the system. This system will therefore provide a technology based
means of promoting the efficient use of natural resources, provide an opportunity for
environmentally sound economic sufficiency and ensures maximization of production of
the land cultivated. This may possibly be concentrated in a Green House in which
Horticultural Kales production will steadily be grown. Knowledge and skills will be
acquired from the line Ministries, particularly in composting, soil cultivation, crop
rotation etc.
As for example about apiculture
Bee keeping is becoming popular and there are challenging needs to keep bees as a new
livestock. There will be subsequent training on the basic husbandry on the management
techniques of the Apiculture business programmes which will include construction of
Bee Hives, extraction of Honey etc. This is meant to enhance the basic knowledge and
skills on rearing bees in order to maximize production.
 Agro-forestry would be major activity to restore development of a forestation and
rainfall potentiality.
1. Infrastructure Development
 Improved quality seeds and tools
 Processing plant
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


Revolving loan funds
Farm tools and Equivalent
Locally made Green Houses
Methodology



Individual small holder farmers to work on his /her own farm on collaboration with
the organization.
Farmers to be trained
Marketing strategies to be developed and improved and many more. It is believed
that with proper agricultural husbandry and management of the farms, higher yields
would be realized.
Beverage




Production (mineral and fruit juices)
Juices
Protection of existing water springs for bottled water production
Assorted fruit juices-pineapples and passion fruits
Methodology
 Working with small holder farmers within farms to produce fruits/crops on improved
methods.- Mainly the youth and women groups.
 Putting up plant for the same
 Processing, packing and marketing
 Paying farmers on their deliveries
 All training and back ups to be given to the farmers
Infrastructure



Technical experts etc.
Technological developments
Cottage industries
Develop Livestock Industry

The Homabay County boasts of local livestock breeds: cattle, goats, sheep and
chicken which at the moment have very little economic contribution into the
livelihood of the poor households; if integrated into modern farming particularly;
local chicken hybrid for meat and eggs production using locally available foods. Local
cattle hybrid for milk production etc; quality of life would considerably change in
terms of food nutrition and increases income.
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Note:
The whole idea is to use locally available resources (commonly used at present) known
to the people and which they can easily maintain and understand. Then integrate such
traditional technology with modern ones to become Appropriate Technology to
enhance production. Appropriate Technology is the most supported approach to
improve production.
Infrastructure / Technology
 Set up a breeding system (where indigenous and hybrid are bred/mixed up).
 Set up diseases control centre
Expectations
 The “SEP” project is planned to reduce poverty levels by 47% from its present level
of 73%, and at households to 30% within a period of 5 years of these projects
implementation.
 It would benefit about 100,000 people within the catchments – Homa/Bay County
 It would employ about 5,000 people directly
 It would employ about 30, 000 people within the catchments/county
THE EXTERNAL ENVIRONMENTAL ANALYSIS (TARGET MARKET)
The intended Agribusiness intends to enjoy favorable cultural good will from the local
opinion leaders and the influential class in the area and this would contribute to credible
performance of the business process. Also there are favorable opportunities to enhance
further collaboration strategies with the relevant government department in these
products.
Homa-Bay County is among those that have continued to record the highest poverty
index. The numbers of unemployed youth remain high with most of them remaining
dependent on the few who are employed. Insufficient rains and erratic weather
conditions make farming realize low farm produce. (In the Northern part of Rachuonyo
District). The preference of Sustainable Organic Horticulture (Green House) to high
external input agriculture presents the intended business projects with a major
opportunity to influence good production.
The social environment remains dynamic and challenged with educational and health
needs at local levels, also coupled with high HIV/AIDS prevalence rates which remain
real constrains. High numbers of orphans resulting from parents succumbing to them
with basic health and educational needs. These are challenges to any local project
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development projects as they remain constant unique needs of the local people and the
people of the entire Rachuonyo South District.
The area where the project is intended to be located is rural setting with minimal access
to internet and other technical services. However, use of mobile telephone broadband
has enabled access of internet services in most rural areas allowing use of e-mail
services. This presents opportunity to improve the communication and documentations
with prosperous customers. SEP will also be able to use other social media such as face
book, Skype, twitter and YouTube during project implementation.
Oyugis is the nearer Town center and is approximately 5 Kms a way from SEP project
office. The Town is poised for growth. A number of commercial banks including the
Agricultural Finance Cooperation have opened their businesses in the area. It is the
gateway for further marketing as it is on the Kisii-Kisumu highway road.
SWOT- THE INTERNAL ENVIRONMENTAL ANALYSIS
The extent of the perception or belief that this project plan will be productive is
anchored on the intended good management practices to support accountability and
high level of transparency for efficient production. The Executive Managing Director is
self motivated and perceives that effective and efficient performance will definitely lead
to a desired reward. Also the employees will be inducted by the relevant line Ministry
Departments to enable them have knowledge and skills to implement this project
development program.
However, this project may face the challenge for having to employ a skilled labor
because of limited funds, as employment of skilled labor to manage this project is a tall
order.
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SWOT ANALYSIS CHART
STRENGTHS
WEAKNESSES
1. Existing Networks with the Ministry 1. High poverty levels
Departments
2. Retrogressive cultural practices e.g.
2. Available Human Resource (skilled
people refusing to take up the
labor)
technology
3. Availability of arable land and 3. Poor infrastructure
favorable conditions for Agribusiness 4. Disease burden due to HIV/AIDS
4. Available resources e.g. water, land
5. High dependency due to a large
5. Proximity to and passage through
unemployed population
rural access roads.
6. Limited entrepreneurship skills
6. Rich Culture and Traditions
7. Lack of storage facilities
7. Committed,
focused
and
development conscious Managing
Director.
OPPORTUNITIES
THREATS
1. Favorable climate conditions for 1. HIV/AIDS pandemic
Agribusiness
2. Rising poverty levels
2. Available arable land
3. Increasing unemployment
3. Proximity to main highway to Kisumu 4. Insecurity
City
5. Expensive Farm inputs
4. Market for Agricultural produce in 6. High population growth
Oyugis and the neighboring Homabay 7. Lack of labor force
and Kisii Towns
8. Rural urban migration.
5. Availability of ICT infrastructures.
THE AGRIBUSINESS “NUCLEUS” PROJECT PLAN
Name of the organization: “SEP”

The Vision: To enable the Youth and Women in the society to secure and enjoy a
sustainable, healthy, prosperous livelihood, living in dignity with hope for the future

The Mission: Agribusiness Project to raise social economic living standards.

Goal of the project: To contribute towards reduction of extreme poverty (breaking
of the vicious cycle poverty) and hunger
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
Purpose of the project: The purpose of this project is;
1. To contribute towards reduction of food insecurity by applying holistic
Agribusiness practices. (Pama Culture methodology)
2. To increase the amounts of food produced by 70%.
3. To improve the nutritional and health status.
4. To improve the economic and asset base
5. To contribute to the promotion of education.
TARGET



The Agribusiness in Horticulture (Green House Farming) means crop production in
order to improve sustainable food security at the house holds level through the
kitchen gardens and small scale farming. This will be enhanced effectively and
efficiently through appropriate empowerment by the line Ministries to enable
coping up with the dynamic agricultural techniques.
Bee keeping is a new livestock. Honey is a life time favorable food to the society.
In summary the key elements under these Agribusiness activities include; Crop
rotation, bedding, diversification, Intercropping, Mulching, Use of farm manure and
Introduction of herbicide to control disease and pests.
EXPECTED RESULTS
In five years of Agribusiness Enterprise, the following results are expected to be realized:
 Increased production in honey and Kales.
 Increased knowledge on integrated Agribusiness management
 Improved soil fertility and raised sustainability of crop production in the Green
House Agribusiness Farming.
 Increased capacity to enable the implementation of a long term Agribusiness
Enterprise – pamaculture
 Increased collaboration and partnerships with the line Ministries for continued
developments in Agribusiness
 The Agribusiness will offer a platform for lessons learned for further larger
investments
POSSIBLE RISKS
The above mentioned results which are to be achieved might be adversely affected by
potential risk factors. The following are the main threats, as well as the strategies to
cope with them;
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 The outbreak of unforeseen diseases
 Adverse effects of pests are real risk factors
 Drought is another factor
These risks may be overcome by;
 Collaborating with line Ministries and likeminded NGOs in order to provide
technological support.
 Establishment of rainwater catchments and drilling of water bore hole would be
ideal whenever rain fed water becomes limited.
IMPLEMENTATIONS STRATEGIES
Net working and collaboration
There is need to collaborate and net work with the government line Ministries and
Development Partners at both local and international levels as follows;
No
1.
Name of collaborators
GOK- Ministry of Agriculture.
2.
GOK- Ministry of Livestock
3.
Bank
4.
Local Community
5.
6.
Football For Hope (FFH)
Streetfootballworld (sfw)
7.
8.
Constituency Development Fund (CDF)
Like minded NGO/CBOs
Area(s) for collaboration
1. Capacity building on
Horticulture development
2. Capacity building
in
Apiculture- Bee keeping
and honey production
3. Agricultural Finance
Cooperation - Oyugis
4. Target groups for the
project
Financial Support
Networking and visibility
platform
Financial Support
Skills development and
funding support.e.g. the
DIG project
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PROJECT LOGICAL FRAMEWORK
The logical framework below explains how the objectives of the project will be
implemented including verifiable indicators, means of verification and the important
assumptions.
PROPOSED 1 YEAR BUDGET AND ACTIVITIES IN US$- Attached as Annex I
PROPOSED ACTIVITIES PLAN FOR ONE YEAR – Attached as Annex II.
SEP Organizational Structure
• SEP ‘s defined management structure to manage growth, efficiently allocate
resources, and to develop and retain future leadership and organizational
sustainability
Advisory Board
Project Director
Program Coordinator/
Coach 4*
Ag Region 1
Ag Region 2
Ag Region 3
Community
Rep. (2)
Community
Rep. (2)
Community
Rep. (2)
Coach 1
Coach 2
Coach 3
2
Schools
2
Schools
2
Schools
Youth
Volunteers
SEP Youth Members
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*Program Coordinator also has the same coaching responsibilities and oversight as Coach 1-3.
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FINANCIAL STATEMENTS
Income statements – Surplus calculation at the peak of two years
Refer to the attached Honey and water Melon budgets.
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