Two Chinese firms have entered into a joint venture to set up a Sh20.43 billion ($200 million) business incubation park at the country’s Export Processing Zone in Athi River.
Shaghai-based CIFAL International and China International Investment said the proposed Sino-African Incubation Park will create 200,000 square-metres of industrial park on 60 acres of the EPZ grounds.
The park will be built in four phases over the next three years, with an estimated Sh510.95 million ($5 million) investment under the first phase. CIFAL International managing director Anna Tao said the project will be constructed by Qingjian International Group, a Chinese engineering and construction firm with annual revenue base of more than Sh786 billion ($7.7 billion).
The incubation park, she said, will help manufacturing and technological companies produce value-added products for export to global markets. An entrepreneurial hub to support women and youth set up businesses is also planned at the proposed multibillion-shilling park.
“This will be an integrated park with the functions of display, wholesale, distribution, logistics and warehousing,” Tao said in a statement yesterday. “It will also provide enterprises with supporting resources and services such as logistics and distribution, product or technology testing, catering staff meals, office supplies, marketing and advertising materials, communications and many more.”
The proposed Sino-African Incubation Park will be a bridge to connect Sino-African industries and introduce competitive edge of industries in Kenya, she added. The firm plans transfer of manufacturing expertise from China to Kenya with the goal of creating “Made in Kenya” brands, thereby creating thousands of job opportunities.
“From investment, construction, operations, industrial incubator, trade platform services, equity investment and other projects. The incubation park will also support local industries with technology, product supply and other capacity building,” Tao said.
“This will result in localised products with better quality and better prices and creation of new communication channels with successful Chinese/Kenyan enterprises in different industries.”
The production of “low-quality” products by domestic firms has been cited as a stumbling block to Buy Kenya, Build Kenya policy. President Uhuru Kenyatta directed state ministries, departments and agencies on June 1, 2015, to procure at least 40 per cent of supplies locally, but this is yet to be fully implemented.
Industry and Trade CS Adan Mohamed on November 16 asked the Kenya Association of Manufacturers to develop a list of locally made products which meet international standards, with an aim of barring their importation by state entities.