28 Special Economic Zones gazetted so far, PS reveals

The government has gazetted 28 Special Economic Zones (SEZs) in its plan to attract foreign investment worth Sh1 trillion annually.

Principal Secretary of State Department for Investment Abubakar Hassan says the SEZs are spread across the country with Murang’a County’s being the latest to be gazetted.

He said Kiambu County will also soon get a Special Economic Zone on a portion of land previously under Delmonte company.

The PS was speaking when he officially launched the Nairobi Gate Industrial Park’s first Special Economic Zone (SEZ), off the Eastern Bypass, on the border of Nairobi and Kiambu counties.

“Out of the 28 SEZs, seven are already gazetted as custom controlled and three of them including the Nairobi Gate, are operational. Four of them are publicly developed and 24 are private,” said Abubakar.

He said that in the Finance Act 2023, the government had removed withholding tax on dividends and interests previously charged on investors.

Regulatory agencies

The PS commended the Nairobi Gate investors noting that they had pumped in US dollars 40 million into the project in the last one-and-a-half years and will spend US dollars 160 million more in the next five years to complete the industrial zone.

“So far 500 jobs have been created and by the time the SEZ is completed there will be 10,000 direct jobs which will have a huge impact on the country’s economy,” he observed.

The SEZ which has a gazetted customs control area in East Africa is expected to allow businesses operating from Nairobi Gate additional efficiencies including a one-stop shop for regulatory agencies including the Kenya Revenue Authority, Kenya Ports Authority, customs and the Special Economic Zones Authority (SEZA).

The PS underscored the importance of industrial parks in driving investment within the country in addition to accelerating manufacturing in and promoting skills exchange, noting that the industrial park has already created 434 direct and indirect jobs, and is expected to generate at least 10,000 job opportunities as it progresses.

“This inauguration is in alignment with the Kenyan government’s vision and commitment to developing and implementing investment policies, and to coordinate the promotion of private investment into the Kenyan economy, including both foreign and domestic investment. It signals to us, and to the world at large, that Kenya remains an attractive investment destination,” said the PS.

Kenneth Chelule, CEO of the Special Economic Zones Authority (SEZA), emphasized the significance of Nairobi Gate, saying it is the first SEZ to fully integrate customs control provisions within the zone.

“As SEZA, we believe that the Nairobi Gate Industrial Park represents the flagship SEZ that will unlock significant economic growth opportunities and create multiple jobs, positioning Kenya to compete not only regionally but on the international stage as a manufacturing destination of choice,” said Chelule.