The Ministry of Trade and Industries has issued a directive to investors who have acquired land Special Economic Zones (SEZ) to embark on development within six months or their licenses will be cancelled.
The Ministry noted an increase in cases where investors were for years hoarding land for speculative purposes in all the 38 SEZ in the country.
This came as the government moved in to gazette an extra 5,000 acres at the Mai Mahiu SEZ in Naivasha as more investors sought land at the facility.
According to the CS in charge Salim Mvurya, some investors were yet to invest on land allocated to them years down the line.
He noted that from now henceforth, any license issued to such investors would be revoked within six months and the land allocated to another company.
“We have seen cases where some investors are hoarding land for speculation purposes and from now henceforth they will have six months to start investment or the license will be revoked,” he said.
The CS was speaking in Mai Mahiu SEZ during the ground breaking of the Sh365m Crystal Potatoes processing plant that on completion will employ over 350 workers.
Mvurya said that to date, 19 investors had applied for land in the SEZ with 11 already licensed in the 1,000 acres located off the Mai Mahiu-Narok road.
“Demand for extra land in this industrial park has risen and the government has gazetted 5,000 acres for incoming investors,” he said.
The CS revisited the issue of a Turkish investor who left without paying contractors and workers at the SEZ adding that the government had taken over the matter with the Turkish government.
The CEO Special Economic Zones Authority (SEZA) Ken Chelule said that currently there were 38 gazzeted SEZ in the country with 62 confirmed investors.
He said that due to incentives like cheap electricity and lower taxes, tens of local and international investors had continued to show interests in the SEZ.
“Following the budgetary cuts, we are engaging the national government as funds are urgently required to address the issues of roads, electricity and water supply,” he said.
The CEO Crystal Potato processing plant Kihuyu Mungai said that they were targeting processing over 1m Kgs of potatoes every month once the facility was ready in less than a year.
“We will be working with farmers in procuring the potatoes and our projection is to process 5m Kgs of potatoes every month in the next five years,” he said.
Others who spoke were Naivasha MP Jane Kihara who called for a liaison committee that would work with investors in the SEZ in addressing job and business opportunities.
