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State fronts four export processing zones to investors

These are Sagana (Kirinyaga county), Kabati (Murang’a) Eldoret and Nasewa in Busia.

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by MARTIN MWITA

Business22 August 2024 - 15:18

In Summary


  • •The term of land leases are set at 30 years renewable on a case-by-case basis while the term of building or office unit leases will be six years renewable. 
  • •The government targets to attract investments worth $10 billion (Sh1.3 trillion) in the next five years.
Workers at a cashew nuts processing plant at the Export Processing Zone in Vipingo, Kilifi county.

The government has opened four Export Processing Zones (EPZs) to investors, in the latest push to increase the country’s manufacturing capacity and improve the balance of trade through exports.

Sagana (Kirinyaga county), Kabati (Murang’a) Eldoret and Nasewa in Busia are the four areas that the Export Processing Zones Authority (EPZA) is keen to have investors, both local and international, pump in funds.

Interested companies will be required to lease buildings or land for the construction of production spaces on a long-term lease.

According to EPZA, construction must commence within three months of leasing EPZ land and receiving the EPZ licence and must be completed within 12 months.

The term of land leases are set at 30 years renewable on a case-by-case basis while the term of building or office unit leases will be six years renewable. These leases require a 90 days termination notice from either party.

“The benefits of investing in the Export Processing Zones programme is retention of productive capital investment portfolio, job creation, technology and skills transfer, diversification and value addition of exportable products and creation of backward intergration with the domestic economy,” CEO Richard Omelu said.

President William Ruto’s Bottom-up Economic Tranformation Agenda 2022-2027 envisages that by establishing EPZ flagship manufacturing hubs in the counties, there shall be an increase in manufacturing sector growth and direct job opportunities.

At least 17 new enterprises have joined the EPZA programme in the last six months.

EPZA is a State Corporation that promotes and facilitates export-oriented investments and developes an enabling environment for such investments.

At least Sh13.8 billion has so far been injected in several EPZs over the last one year, with about 3,143 local jobs and generated exports worth Sh58 billion.

There are now more than  90 gazetted EPZs across the country with Mombasa hosting the majority.

The government targets to attract investments worth $10 billion (Sh1.3 trillion) in the next five years and 15 per cent growth for manufacturing by 2025 and 30 per cent by the year 2030.

To create employment, the government has also given special focus to investments in Special Economic Zones (SEZs) and County Aggregation and Industrial Parks; diversification of export markets and market access of goods and services from Micro, Small and Medium Enterprises.

The zones have been instrumental in ensuring Kenya continues to tap opportunities under the African Growth and Opportunity Act (AGOA).

Textile and apparel remains key investments in these zones, with the value of monthly exports estimated at Sh4.5 billion, or Sh150 million per day, according to a study by London-based Institute of Economic Affairs (IEA).


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