Nairobi: The government has allocated Sh74.1 billion to expedite the development of essential infrastructure for the Mombasa Special Economic Zone (SEZ) in Dongo Kundu. This investment aims to unlock the zone’s potential for attracting investment, creating jobs, and boosting exports.
According to Kenya News Agency, the Principal Secretary for Transport, Mohamed Daghar, emphasized the government’s commitment to completing critical infrastructure such as berths, roads, railways, power, water, and sewerage systems to make the SEZ appealing to investors. The SEZ, spanning 3,000 acres, will feature a free port, industrial parks, free trade zones, and facilities for logistics, warehousing, energy projects, tourism, and Meetings, Incentives, Conferences and Exhibitions (MICE).
The development has already attracted interest from over 90 investors, including Taifa Gas, a Tanzanian firm, which is nearing completion of a Sh16 billion Liquefied Petroleum Gas (LPG) terminal. The SEZ is under the management of the Kenya Ports Authority (KPA) PLC, which is executing the Sh41.1 billion port component by constructing seven berths and yards on 1,300 acres, highlighting its crucial role in trade facilitation.
PS Daghar, along with 14 government agencies, recently inspected the progress of the SEZ and Dongo Kundu Berth One, which is currently 16 per cent complete. The berth, a 300-metre-long structure, began construction in October 2025 and is slated for completion in December 2028. It will allow docking of post-Panamax and other large vessels, linked by a 4.6-kilometre road and a 2.8-kilometre ramp.
The SEZ is projected to create 40,000 jobs and will be connected to a seaport, railway, and road networks for efficient goods movement. Daghar noted the inclusion of a dedicated standard gauge railway that will traverse the SEZ, linking it to Mombasa, Nairobi, Naivasha, Kisumu, and Malaba.
To ensure a steady electricity supply, Sh6.5 billion has been allocated for a 50-kilometre, 220 kV double-circuit transmission line from Mariakani substation to the SEZ, supported by two 75 MVA transformers and a dedicated substation. Water will be supplied from Tiwi and the nearly completed Mwache Dam.
Last year, a lease agreement was signed between the African Export-Import Bank (Afreximbank), KPA, and the Special Economic Zone Authority to develop the Mombasa and Naivasha SEZs, aligning with the Bottom-Up Economic Transformation Agenda. Afreximbank pledged $1 billion (approximately Sh128.5 billion) for developing these industrial parks through value addition.
PS Daghar highlighted President William Ruto’s commitment to positioning Kenya as a manufacturing hub to create millions of jobs. He likened the development to Singapore’s economic journey. KPA PLC CEO, Capt. William Ruto, noted that the berth’s construction has already created 700 jobs, with more anticipated. He urged investors to focus on value addition, projecting the SEZ as a major logistics and manufacturing center.
Mr Joseph Busiega, Chief of Staff in the Prime Minister’s Cabinet Secretary Office, remarked on the project’s significant impact on employment and manufacturing, affirming the government’s determination to complete the project on schedule by September 2028.
