Nairobi: The government’s initiative to relax regulations, reduce taxes, and lower power tariffs at the Naivasha Special Economic Zone has successfully attracted 19 investors who have commenced their operations in the area. The zone, strategically located in Mai Mahiu near the Inland Container Depot, has been allocated more than 6,000 acres to accommodate the increasing number of investors interested in acquiring land there.
According to Kenya News Agency, the Naivasha Special Economic Zone is part of a network of 38 zones established across the country with the objective of boosting local investments, reducing import bills, and creating job opportunities for Kenyans. Cabinet Secretary for Investment, Trade and Industry Lee Kinyanjui stated that the government aims to have the zone 40 percent operational by the end of next year. He highlighted plans to transform the area into a major industrial and business hub, supported by affordable housing and social amenities, which is projected to create over 50,000 jobs in the next decade.
Kinyanjui emphasized the government’s commitment to supporting both heavy and light industries within the zone to stimulate local manufacturing and decrease the nation’s import expenses. He remarked, “The government is spending billions of shillings to import products into the country and we aim to support local investments to lower this bill and save our forex.”
Furthermore, Kinyanjui encouraged investments in sectors such as data centers, electric vehicles, used car auctions, and pharmaceuticals, noting that the government is adjusting its policies to facilitate their operations. He also mentioned the zone’s advantageous proximity to cost-effective geothermal energy in Olkaria and its railway linkages, which would help reduce production and transportation costs for investors.
The government is also focused on enhancing the capacity of local TVET institutions to align their training with the job market demands. However, Kinyanjui acknowledged the challenges posed by bureaucratic processes that have previously hindered investor operations, assuring that the government is actively working to address these issues. “We are supporting the completion of connecting infrastructure such as link roads, water, power and other amenities that will ease operations at this zone,” he added.
Dr. Ken Chelule, CEO of the Special Economic Zones Authority, revealed that they have requested over Sh1 billion from the Exchequer to expedite the completion of essential infrastructure within the zone. He noted that the growing demand from investors prompted the government to increase land allocations from the initial 1,000 acres to 6,000 acres. Among the investors is the Kenya Bureau of Standards, which plans to establish a regional testing center for imported used cars for both local and neighboring countries’ users.
Chelule disclosed that one investor has already secured over 2,000 acres to develop an integrated industrial park designed to accommodate established businesses. He projected that once fully operational, the zone would offer numerous job opportunities for the youth and attract billions of dollars in investments, with 40 percent of the investors being Kenyans.
Nakuru County Chief Executive Member for Lands John Kihagi stated that the county has streamlined its business permit processes to expedite investor operations. He added that Mai Mahiu has been designated as a major industrial hub with the necessary amenities to stimulate investments and create numerous job opportunities for local youth and communities.