In a significant step toward accelerating industrialization and boosting economic growth, Kenya has entered into a KSh128 billion ($1 billion) lease agreement with the African Export-Import Bank (Afreximbank). This deal will finance the development of the Dongo Kundu and Naivasha Special Economic Zones (SEZ), two major projects set to transform the country’s industrial landscape.
President William Ruto announced the agreement at a signing ceremony in Mombasa, highlighting its potential to fast-track development and create over 140,000 jobs. The Dongo Kundu SEZ alone will receive KSh30 billion, a critical boost for a project that has faced delays due to financial constraints.
“These projects will play a pivotal role in establishing industrial parks, strengthening intra-Africa trade, and empowering local businesses to compete on the global stage,” President Ruto said.
The SEZs have already attracted strong investor interest. According to the Kenya Ports Authority (KPA), 97 investors have applied for permits in the Dongo Kundu SEZ, requiring a total of 7,000 acres to set up operations. Among them is Taifa Gas, a Tanzanian firm that has commenced the development of a KSh20 billion facility.
Cabinet Secretaries Hassan Joho and Salim Mvurya expressed optimism that the SEZs would address Kenya’s unemployment crisis and create numerous job opportunities. The zones are expected to serve as a major industrial hub and a regional export powerhouse.
Afreximbank President Benedict Oramah praised the agreement as a vital step in Kenya’s industrial transformation. “The development of these SEZs, once uncertain, is now a reality. This will help position Kenya as a major industrial hub in the region,” he noted.
Projections suggest that exports from the Dongo Kundu SEZ alone could exceed KSh39 billion ($1.5 billion). Planned activities within the zones include manufacturing in diverse sectors such as pharmaceuticals, petrochemicals, textiles, leather production, and food processing.
As Kenya sets up additional SEZs in towns like Thika, Eldoret, Njoro, and Busia, the country stands poised to harness these industrial zones for economic diversification and job creation, ushering in a new era of prosperity and global competitiveness.
