Public transportation

Public transportation

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Public transportation
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Transportation
Land Transportation
Business Model Description

Establish efficient public bus transportation systems in the biggest cities and create linkages between city centers and suburban areas.

Expected Impact

Increase the quality of life for Kenyan citizens who suffer from informal and unsafe transport modes.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
4.36% urbanization rate, motorized transport annual revenue of USD 386 - 420 million.
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Industry, Innovation and Infrastructure (SDG 9) Sustainable Cities and Communities (SDG 11)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Reduced Inequalities (SDG 10) Climate Action (SDG 13)
Sector Sources
  • 1) Kenya Association of Manufacturers (KAM) (2020). SDGs Readiness Report: A Policy, Legislative and Institutional Review of the 17 SDGs in Kenya. https://kam.co.ke/kam/wp-content/uploads/2020/05/SDGs-Readiness-Report-2020.pdf 2) Kenya National Bureau of Statistics (2020). Quarterly Gross Domestic Product Report – First Quarter. https://www.knbs.or.ke/?wpdmpro=quarterly-gross-domestic-product-report-first-quarter&wpdmdl=5953&ind=Ul8csrxqeTBNMidZyvE8iLiddV-cGGqQWfgmjJWgaRmLWCfZ61tquMMPmBFY4k-E5oklNyRoibW2ZYrHFakEng 3) Robinson, B. (2018). Nairobi, Kenya: Accelerating Change In The Transport Sector. TUMI/ICLEI. https://www.transformative-mobility.org/assets/publications/TUMI-winner_City-profile-and-story_Nairobi.pdf 4) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. 5) World Bank. Kenya: National Urban Transport Improvement Project. Implementation, Completion And Results Report. http://documents1.worldbank.org/curated/en/702181563299068935/pdf/Kenya-National-Urban-Transport-Improvement-Project.pdf 6) Kenya National Bureau of Statistics (2020). Kenya Economic Survey 2020. https://www.knbs.or.ke/?wpdmpro=economic-survey-2020 7) Republic of Kenya. Third Medium Term Plan 2018 – 2022 Transforming Lives: Advancing Socio-economic Development Through The 'Big Four'.
IOA Sources
  • 8) Construction Review Online (2020). Construction of Bus Rapid Transit (BRT) system in Kenya to begin next month. https://constructionreviewonline.com/news/kenya/kenya-construction-of-bus-rapid-transit-brt-system-to-begin-next-month/ 9) Salon, D. and Gulyani, S. (2019). 'Commuting In Urban Kenya: Unpacking Travel Demand In Large And Small Kenyan Cities', MDPI, Sustainability, vol. 11. https://www.mdpi.com/2071-1050/11/14/3823 10) Cartenì, A., Henke, Il, Molitierno, C. and Di Francesco, L. (2020). Strong Sustainability in Public Transport Policies: An e-Mobility Bus Fleet Application in Sorrento Peninsula (Italy). https://doi.org/10.3390/su12177033 11) World Bank (2018). Implementation completion and results report: Hanoi urban transport development project. Report no: ICR00004011. http://documents1.worldbank.org/curated/ru/598911517844600614/Implementation-Completion-and-Results-Report-ICR-Document-01312018.docx 12) Asian Development Bank (2011). Tool Kit for Public–Private Partnerships in Urban Bus Transport for the State of Maharashtra, India. https://www.adb.org/sites/default/files/publication/28657/ppp-bus-transport.pdf 13) Hosa, S. and Magrinya, F. (2018). 'Patchwork In An Interconnected World: The Challenges Of Transport Networks In Sub-Saharan Africa', Transport Reviews vol. 38. https://www.tandfonline.com/doi/full/10.1080/01441647.2017.1414899 14) Demirel, H. (2008). 'Exploring Impacts of Road Transportation on Environment: a Spatial Approach, Desalination, 226(1–3). https://www.sciencedirect.com/science/article/abs/pii/S0011916408001604 15) Kenya Private Sector Alliance (2017). President signs executive order to set up Nairobi Metropolitan Area Transport Authority. https://kepsa.or.ke/president-signs-executive-order-to-set-up-nairobi-metropolitan-area-transport-authority/ 16) Nairobi City County Public Road Transport And Traffic Management Bill. Nairobi City County. https://nairobiassembly.go.ke/ncca/wp-content/uploads/bills/2017/The-Nairobi-City-County-Public-Road-Transport-And-Traffic-Management-Bill-2017.pdf 17) Nairobi City County Transport Act 2019. http://nairobiassembly.go.ke/ncca/wp-content/uploads/bill/2020/Nairobi-City-County-Transport-Bill-2019.pdf 18) Kenya Investment Authority (2020). Infrastructure - Kenya Investment Authority. http://www.invest.go.ke/infrastructure/ 19) KENIvest. Investment Incentives. http://www.invest.go.ke/starting-a-business-in-kenya/investment-incentives/ 20) Salon, D. and Gulyani, S. (2019). 'Commuting In Urban Kenya: Unpacking Travel Demand In Large And Small Kenyan Cities', MDPI, Sustainability, vol. 11. https://www.mdpi.com/2071-1050/11/14/3823 21) Carter, L., Kishiue, A. and Dominguez Gonzalez, K. (2020). Gender in Urban Transport in Nairobi, Kenya : Volume 2. Employment. World Bank. https://openknowledge.worldbank.org/handle/10986/34610 22) SDG Tracker (2021). End poverty in all its forms everywhere. https://sdg-tracker.org/no-poverty