•“I’m also happy to note that in the last six months, 17 new enterprises joined the EPZ program and four new private zones were gazetted in the same period, injecting a total investment capital valued at Sh13.8 billion,” Miano said.
Image: GEORGE OWITI
The Export Processing Zone enterprises exported goods worth Sh105 billion in 2023 with Sh1.8 billion, total value of the domestic sales within the period of time, Trade CS Rebecca Miano has said.
Miano said the total sales made in the year 2023 amounted to Sh106.8 billion.
“This shows the supply vibrancy of the enterprises under the EPZ Program and the high demand of its products in the local, regional and international markets,” Miano said.
She spoke during the 2024 EPZ Investors Forum at Athi River in Machakos County on Tuesday.
“Additionally, in the same year, the cumulative capital investment was valued at Sh146.4 billion compared to Sh135 billion that was recorded in the year 2022. This depicts a 7.8 percent growth of investments in one year,” Miano said.
Miano said she was glad that five regions; Nairobi, Central, Eastern, Western and Rift Valley had a combined cumulative investment value of Sh88.5 billion in the year 2023.
She said that depicts a 60.5 percent contribution share of investments in the EPZ Program.
“I’m also happy to note that in the last six months, 17 new enterprises joined the EPZ program and four new private zones were gazetted in the same period, injecting a total investment capital valued at Sh13.8 billion,” Miano said.
Miano said the new investments created employment to 3,143 Kenyans and generated exports worth Sh58 billion.
“This exponential growth of the investments is also in line with the Ministry’s target of attracting investments worth USD 10 billion in the next 5 years, with 15 percent target growth for the manufacturing sector by 2025 and 30 percent by the year 2030,” Miano said.
She said the EPZ Program created employment to 75,598 Kenyans by the year 2023.
The CS said she was hopeful that the EPZ enterprises as well as the zones will continue expanding further, hence creating more job opportunities for the Kenyans.
“I’m informed that over 70 percent of the employees under the EPZ Program are women. This shows the great devotion in ensuring women across the region are provided with the opportunity to grow and prosper through the allocation of jobs to ensure they have a chance to develop their skills, careers and support their loved loves,” Miano said.
She said the Forum’s theme‘’Reach out, listen and connect with the EPZ investors’’ wasn’t only timely, but relevant for the EPZ investors and the government as they look forward to getting some insights from that engagement that could also elevate their operations as a Ministry in ensuring a competitive EPZ Program.
“This forum provides an opportunity for the EPZ investors to interact with the Ministry of Investments, Trade and Industry where Export Processing Zones Authority is domiciled,” Miano said.
Miano said the ministry was keen towards offering aftercare program for the private investments that are export-oriented.
She said, this, will enable them to retain the existing investors as they strive to bring more on board.
“This is a critical turning point in our mission to transform the manufacturing sector in the country towards ensuring sustainable EPZ investments. It’s indeed a great show of commitment towards the actualization of Kenya’s trade and investment endeavors,” Miano said.
She said on market access, the Ministry was championing for the AGOA extension post 2025.
Miano noted that the US Congress had given a green light on the possibility of extending the framework by 16 years (up to 2041).
“The EPZ firms will continue enjoying the quota-free duty-free market access to the US Market. Further, the ongoing trade negotiations between Kenya and USA will also enhance US market access. This is through the ongoing conversation in the Strategic Trade and Investment Partnership (STIP),” Miano said.
She said the Kenya-EU EPA will open opportunities for the enterprises to enjoy quota-free, duty-free market access to the European market.
Miano said that was also an ongoing conversation with the United Arab Emirates towards enhanced market access through the Kenya- UAE Comprehensive Economic Partnership Agreement.
She said other key markets that had shown interest in the Kenyan investment field included South Korea.
Miano said the Ministry was also keen on negotiating for full market access in regional markets including the vibrant Africa Continental Free Trade Area (AfCFTA), EAC, COMESA and the Tripartite Free Trade Area (TFTA).
Further, with the expansion of the EAC regional block, the Ministry is championing for the 20 percent cap to be increased to at least 50 percent (for the local sales). This will enable the investors to sell more in the EAC market thus not only increasing their sales but also contributing significantly to Kenya's export basket.
She said Kenya’s market size, diversity and its strategic position in the region offers good scope for companies to scale their investments.
“It’s in the realization of this natural and competitive business advantages for Kenya, that the government, through my Ministry, is continuously reviewing the business and investment climate,” Miano said.