Kenya is poised for a major industrial transformation following the signing of a $1 billion development lease agreement for the Dongo Kundu and Naivasha Special Economic Zones (SEZs).
Speaking in Mombasa on Friday during the signing ceremony between the Kenya Ports Authority (KPA), the Special Economic Zones Authority, and Afreximbank, President William Ruto stated that the deal will position Kenya as a manufacturing hub while creating over 140,000 jobs—40,000 in Dongo Kundu and 100,000 in Naivasha.
“This agreement fuels industrialisation, manufacturing, and agro-processing, reinforcing Kenya’s position as a regional export powerhouse,” Ruto said.
He emphasised that the initiative will drive the development of industrial parks, enhance intra-Africa trade, and support micro, small, and medium enterprises under the Africa Continental Free Trade Area framework.
The President noted that the deal aligns with Kenya’s Vision 2030 and the Bottom-Up Economic Transformation Agenda, ensuring inclusive economic growth.
“The Dongo Kundu SEZ will focus on key industries such as footwear, agro-processing, medical and pharmaceutical supplies, as well as petrochemical industries,” Ruto announced. “We will also target textile production, e-mobility, and glass manufacturing, among others.”
In a broader effort to accelerate industrialisation, the government has allocated KSh 3 billion for the establishment of six new SEZs across the country, including Dongo Kundu (Mombasa), Sagana (Kirinyaga), Thika (Kiambu), Naivasha (Nakuru), Eldoret (Uasin Gishu), and Busia.
These investments are part of a larger $3 billion Memorandum of Understanding (MoU) signed in 2023 between the Kenyan government and Afreximbank, aimed at facilitating private-sector participation in strategic infrastructure projects.
“This partnership strengthens economic sustainability, enhances Kenya’s climate change resilience, shields the economy from external supply shocks, and boosts food production,” Ruto explained.
The President also acknowledged the support of the Government of Japan and the Japan International Cooperation Agency (JICA), which has been instrumental in the development of the Dongo Kundu SEZ.
“With an investment that includes a KSh 37 billion concessional loan and a KSh 6 billion grant, Japan’s support has been crucial in building critical infrastructure at the Mombasa Special Economic Zone,” he noted.
The government is also improving infrastructure along the Coast to support the Dongo Kundu SEZ and the Port of Mombasa, strengthening Kenya’s position as a strategic trade and investment hub.
Ruto revealed that the Dongo Kundu project has already attracted substantial investor interest. The Kenya Ports Authority has received 97 applications for land allocation covering nearly 7,000 acres, while Afreximbank has secured 500 acres for an integrated industrial park.
He urged Kenyans to be positive ambassadors for their country, warning against negativity that could deter investors.
“You cannot badmouth your country from morning to evening and expect others to believe in it,” he remarked.
Afreximbank President and Board Chairman Benedict Oramah praised Kenya’s commitment to industrialisation.
“Across Africa, citizens are tired of empty promises and shattered dreams,” Oramah said. “Today, the long-awaited Dongo Kundu Industrial Park and Naivasha Special Economic Zone have finally found a safe landing, thanks to President Ruto’s efforts.”
Earlier in the day, President Ruto launched the construction of the 65-km Ilasit-Rombo-Njukini-Taveta Road, a key project linking Kajiado and Taita-Taveta counties.
The KSh 9.4 billion project is expected to reduce travel time between Ilasit and Taveta from two hours to under 45 minutes, boosting trade, tourism, and access to essential services in the region.
Ruto directed contractors to prioritise flood-prone sections of the road ahead of the long rains expected in a month.
Additionally, the government is investing KSh 800 million to connect over 10,000 households to electricity in Taita-Taveta County.
In Voi, the President launched the construction of a 468-unit affordable housing project and inspected the KSh 50 million Maungu Fresh Produce Market, which will provide 200 trader spaces, creating a more conducive business environment.
