The African Export-Import Bank (Afreximbank) has signed a series of agreements with Kenya to finance the development of industrial parks and special economic zones (SEZs) with KSh 387.5 million (US$3 billion) over the next three years.
- •The agreements include the development of two major industrial projects: the Dongo Kundu Integrated Industrial Park in Mombasa and the Naivasha Special Economic Zone II, a 5,000-acre site located along the Northern Corridor Transport System.
- •The projects will be executed in collaboration with Arise Integrated Industrial Platforms, an Afreximbank affiliate specializing in SEZ development across Africa.
- •Special Economic Zones (SEZs) are attractive for both local and foreign investors due to their tax incentives, streamlined customs policies, and better regulation environment.
“The signing of these agreements today marks a significant milestone in Kenya’s development, expanding opportunities to enhance our manufacturing sector and create a more conducive environment for investment. We convene here today to sign an investment – and not a loan – undertaken by people whose faith in this country and its possibilities motivates their decision,” President William Ruto said during the signing ceremony.
The Dongo Kundu Industrial Park, situated within the Mombasa SEZ, is expected to enhance the region’s role as a trade and manufacturing hub. Meanwhile, Naivasha II’s proximity to key transport and logistics infrastructure — including the Standard Gauge Railway and the Naivasha Inland Container Depot — positions it as a gateway for trade across East and Central Africa.
“For decades, we have watched others reap the rewards of our natural resources, leaving us tethered to a cycle of dependency exchanging our riches for aid and loans that kept us on the fringes of the global breadbasket,” The President of Afreximbank, Benedict Oramah said.
“Today, Kenya takes a bold step to reshape this story in a profound and impactful manner. These Parks are an integral part of the Government’s plan to boost the country’s economic growth under the Vision 2030 development blueprint,” he added.
The government says the projects will create jobs, attract foreign investment, and help shift the economy from reliance on raw commodity exports toward value-added manufacturing. Both projects are included in the Fourth Medium Term Plan (2023-2027) of the Kenyan government’s Vision 2030 intended to accelerate Kenya’s trade position.
SEZs are specifically designed to boost a country’s capacity for exports and cluster related industries within an area to enhance economic efficiency.
