The national government has issued a stern warning to investors hoarding licences within the Special Economic Zones, saying their permits will be revoked if they remain inactive.
Speaking on Monday, Investments Cabinet Secretary for Salim Mvurya emphasised the government's commitment to ensuring that SEZs are fully operational.
He warned that the Special Economic Zones Authority will conduct a thorough review of all investors.
“I strongly urge investors to comply within the six-month grace period. Failure to do so will result in the cancellation of their licences by the authority,” Mvurya said.
He also revealed that 97 investors have already expressed interest in establishing operations within the 3,000-acre Dongo Kundu SEZ, with 60 per cent being local investors and 40 per cent international.
Key industries expected to be set up in the zone include energy, pharmaceuticals and glass manufacturing.
In a related development, the government has allocated Sh1.4 billion to compensate 1,648 project affected persons (PAPs) in Mombasa and Kwale counties as part of the Dongo Kundu SEZ project.
According to the CS, the compensation process, set to begin this week, underscores the government's dedication to ensuring the smooth implementation of the SEZ.
The Kenya Ports Authority has successfully verified and streamlined the list of PAPs, and 400 acres of land have been earmarked for their resettlement to safeguard their livelihoods.
“The compensation will commence this week. We are working closely with relevant stakeholders to eliminate any bottlenecks and ensure the successful realisation of this project,” Mvurya added.
The government is also preparing to gazette the Lamu Port South Sudan-Ethiopia Transport Corridor Development Authority SEZ.
Investors in sectors such as desalination, fish processing and pharmaceuticals have already shown interest, with the government aiming to boost investment and business activities in the region.
“The Lapsset SEZ represents a new frontier for robust investment, contributing significantly to the sustainability and increased activity at the Lamu port,” the CS said.
He made these remarks following a harmonisation meeting with the leadership of the KPA, Lapsset and the SEZ Authority.
The meeting, attended by KPA chairperson Benjamin Tayari and his Lapsset and SEZA counterparts Ali Mbogo Fredrick Mutete, respectively, highlighted the need for coordinated efforts and policy harmonisation to overcome challenges and expedite these critical economic projects.
