Naivasha: The Naivasha Special Economic Zone (SEZ) is taking shape with 14 investors having signed up to set up business at the expansive zone in Maai - Mahiu area in Naivasha. Deputy Chief of Staff in charge of performance and delivery management at the Executive Office of the President, Mr. Eliud Owalo, announced that companies have been allocated land at the Naivasha SEZ, which has expanded to 6,000 acres from the initial 1,000 acres near the Inland Container Depot in Maai - Mahiu. This expansion aims to accommodate more investments and enhance job creation.
According to Kenya News Agency, one of the 14 investors, Jumbo Africa Auto Auction, has already launched a car auction business for the Kenyan market and is planning to expand into the East African market. Owalo made these remarks in Naivasha during a field inspection of key projects. The investment has revolutionized car buying by reducing time for buyers and shielding them from currency fluctuations experienced in the international market.
Construction activities are ongoing, with those investors who have not started yet scheduled to break ground by June this year. Owalo stated that 8,000 jobs are projected to be created directly and indirectly at the Naivasha SEZ once companies become fully operational. The Special Economic Zone Authority (SEZA) is coordinating with other government agencies to complete key infrastructure, including link roads, power sources, sewerage, and water, not only in Naivasha but also in the five SEZs across the country.
Owalo highlighted the progress of a key link road from the Naivasha SEZ to the Standard Gauge Railway to Metre Gauge Railway linkage, which is 80 percent complete at a cost of Sh1.2B. The project is expected to be completed in two months. Additionally, the ongoing Sh12B road project in Gilgil is on course at 17 percent, with a warning to contractors about potential blacklisting for failing to meet timelines.
Director for Roads and Infrastructure at SEZs, David Mbugua, indicated that a multi-agency team has been established to oversee the completion of basic amenities and attract investors. The SEZs are partnering with Kenya Ports Authority (KPA), Kenya Railways, and the department of investment, among others, to ensure optimal operation and timely realization of the SEZs.
Naivasha Deputy County Commissioner (DCC) Mr. Josiah Odongo assured that security measures would support the multi-agency team in delivering their mandate as part of a whole-of-government approach. Odongo noted that the facility is beneficial to local youths and communities who will gain from the jobs created by the investors.
The government plans to establish SEZs in various counties to create employment opportunities, empower the youth, and drive sustainable development. To attract investors, the government offers fiscal and administrative incentives, including exemption from stamp duty, local government advertisement fees, and business service permits. Firms will also benefit from preferential corporate rates for an initial period.
The SEZ in Naivasha is positioned as a major frontier for attracting Foreign Direct Investment, with companies also benefiting from low-cost green energy power due to proximity to geothermal wells in Olkaria by KenGen. Companies licensed to start operations at the Naivasha SEZ include Accurate Steel Mill Ltd, JAFRO SEZ Limited, Africa Global Logistics Ltd, Ceylon Energy Ltd, and Tad Motor SEZ Ltd.
Further plans include establishing SEZs in Egerton, Eldoret, Sagana, Murang'a, Busia, and Ndogo Kundu in Mombasa to stimulate industrialization, increase exports, and enhance foreign exchange. The Nakuru county government has introduced a Single Business Permit to streamline business operations and offers land at discounted rates to investors at the Naivasha Special zone.
In Kenya, SEZs are designated areas with unique economic regulations to attract both local and foreign investment, aiming to boost economic growth, create jobs, and promote industrialization through incentives like tax breaks and streamlined regulations.