Cabinet Approves Sh420B Fund for SEZs

The Cabinet has approved 100 percent equity investments of Sh420 billion to kickstart the Mombasa-based Special Economic Zone (SEZ) alongside others proposed in Naivasha, Isiolo, and the Export Processing Zones in Sagana, Del Monte, Eldoret, and Busia.

The Dongo Kundu SEZ, one of the region’s major projects for Vision 2030, will be set up with an injection of funds from the African financial institution AFREXIM Bank, among others.

“The government will continue to accelerate investments with a view to growing manufacturing and exports, create jobs and achieve inclusive growth,” read a statement from the Executive Office of the President yesterday.

The Dongo Kundu Special Economic Zone (SEZ) is recognised as a strategic site with great development potential and strong competitiveness in terms of infrastructure and logistics.

“The SEZ is being developed with support from the Japanese Government from Master Planning (2015) to ongoing on-site infrastructure development. Construction of phase two of the Dongo Kundu Bypass and 8.96-km dual carriageway project is underway,” states the SEZ Authority website.

President William Ruto presided over the groundbreaking ceremony for the Taifa Gas plant at the Dongo Kundu in February of this year, making the gas plant one of the first foreign companies permitted to establish a base at the 3,000-acre Dongo Kundu SEZ.

CEO of the Special Economic Zone Authority Kenneth Chelule announced that the Japanese government granted the project a grant of Sh6 billion to help with the building of the Free Port Area’s foundational infrastructure, administration construction, and leveling artwork.