The Kenyan government has issued a six-month ultimatum to investors licensed in Special Economic Zones (SEZs) to begin development or face license revocation. Trade, Investment, and Industry Cabinet Secretary Salim Mvurya stated that while some investors have held SEZ licenses for over a year, many have yet to initiate development on their allocated plots.
“We have noticed delays from some investors who, despite receiving licenses, have not even visited their sites to begin clearing or laying foundations,” Mvurya said during a groundbreaking ceremony for Phase 5 of the Nairobi Gate Industrial Park in Ruiru, Kiambu County. The Ministry plans to compile a list of non-compliant investors and reassign their spaces to other interested parties if no progress is made within the stipulated period.
Mvurya emphasized that the government is committed to ensuring the SEZ initiative’s success, saying, “We aim to fully operationalize all gazetted SEZs. Those who do not commence development within six months will forfeit their licenses.”
Currently, Kenya hosts 38 public and private SEZs. Mvurya commended private investors in the Nairobi Gate Industrial Park, who have invested close to Sh1 billion in the development and created 700 direct jobs. “These investments are crucial,” he noted. “Our youth are highly trained and ready for apprenticeship, presenting a valuable resource for investors.”
To support small and medium-sized enterprises (SMEs), the government has partnered with banks to offer accessible loans, with Sh5 billion set aside for low-interest loans via the Development Bank. Additionally, the European Investment Bank recently provided Sh32 billion to the Kenya Commercial Bank to support young entrepreneurs and women.
The government is also working on legislative amendments to address tax, energy, and fuel cost concerns to create a more favorable business environment. Furthermore, Kenyan products are now finding expanded markets through agreements with various countries across Africa and Europe, positioning Kenya as a central industrial hub for the continent.
“We have provided the frameworks, the environment, and capital access. Investors should seize these opportunities and accelerate our economic transformation agenda,” Mvurya stated.