| dc.description.abstract | This thesis is a study of medium-term and longterm
lending, and to a lesser extent equity investment,
contrived by public industrial development finance
institutions in Kenya, for the development of industries.
The study examines problems associated with industrial
" development, particularly as perceived through public industrial development finance institutions., problems '
such as the lack of industrial development capital, in
a developing country; the problem of public equity
potfolios measured against development loans as a public
policy; and industrial development corporations not
being truly promotional, in their role. This study
analyses as to whether the Kenya example has provided
solutions to some of these problems, and pin-points
areas where Kenya falls short in this endeavour, in
the context of the international setting.
Methods of industrial project viability appraisal
are accorded dye emphasis for purposes of broadening
the professional outlook of a Land Economist, 'the
orthodox valuer', whose professional training and
competence have been considered to be too biased in
favour of mortgage valuations, to enable him to cope,
adequately, with the broader issues of 'economics "
'development' and project appraisal techniques dictated
by the industrial development loan/investment market.
In this study it has been observed that appraisal
techniques for industrial development are normally
geared more in the direction of commercial/financial
and economic criteria. '.The land economist has not been
effective as an industrial development adviser.
Development finance institutions that have emphasised
large public equity potfolios such as the Industrial and
Cormmercial Development Corporation (ICDC) have not
re-cycled their seed capital and have as a consequence
limited their promotional roles. A factor which is
normally not listed as important for attracting foreign
aid for development that Kenya has exploited satisfact-
torily is, "good, bilateral relations with countries that
have surplus capacity to assist industrial development."
However, in the endeavour to accelerate industrial
development, Kenya has emphasised foreign sources of
capital, comparatively ignoring the need to channel
local capital resources to industrial development.
Broadly the study would be divided into two
parts. The first part 80nsists of three chapters
outlining, in chapter one, the problems of industrial
real estate lending, and a preview of project appraisal
to show how inadequately equipped the 'orthodox valuer'
has been to cope ,with these problems. Chapter two gives
the background to the Kenya Economy with the perspective
of industrial development problems. Chapter three is
devoted to mainly theoretical concepts and a review of
literature for industrial development project
viability appraisal, the emphasis being on the
commercial/financial and economic appraisals.
The second part is constituted of chapter
four with six case studies and a short concluding
chapter, number five. The case studies have been
grouped together in one chapter just for convenience,
but each one could be regarded as a chapter in its
own right. ' One case study comprises the New Projects
Committee, the parent national body for authorising
all industrial development in Kenya. The five other
case studies comprise existing major public industrial
development finance institutions, viz: the Industrial
Development Bank Ltd. (IDB) , the Industrial and
Commercial Development Corporation (ICDC), the Kenya
Industrial Estates Ltd. (KIE) , the Development Finance
Company of ,Kenya Ltd. (DFCK) and the East African
Development Bank (EADB).
All the case studies have a lot in common but
efforts have been made in discussing them to stress
only those salient aspects where a particular case
study is expected to offer a unique setting different
from the others, or, where a specific aspect of
‘industrial real estate lending' would be considered
to have been particularly well illustrated by that
particular case study. The aim has been to reflect
as many aspects of this lending as possible.
The 1ast chapter consists of the overall conclusions/
recommendations of the study | en |
