Direct employment within the Economic Processing Zones (EPZs) will significantly increase this year, acting Export Processing Zones Authority (EPZA) CEO Hussein Adan Mohamed has assured.
Mohammed said the number will increase following the creation of five new EPZs this year in Busia, Uasin Gishu, Kirinyaga, Kwale, and Kilifi counties.
“Furthermore, the new EPZs will help to promote industrialisation by providing an environment that is conducive to the growth of new industries and the expansion of existing ones,” he said.
He noted that direct employment within the EPZs increased by 25.3 per cent last year to 82,764 persons compared to 66,053 persons in 2021.
Mohamed added that the performance of EPZ firms under the US African Growth and Opportunity Act (AGOA) programme, hitting a four-year high in 2022, is a clear indication that the customs areas are playing a vital role in the growth of the country's economy.
He noted that the value of exports under AGOA expanded from Sh48.8 billion in 2021 to Sh54.1 billion in 2022.
“The value of capital investment increased by 7.2 per cent to Sh24.9 billion in 2022, while the number of direct jobs in the sub-sector grew significantly by 31.5 per cent to 66,300 workers in 2022,” he said in a statement.
Mohamed further said EPZs are also important for the economy because they promote exports, which are critical to the country's balance of payments.
“By promoting exports, EPZs help to reduce the country's trade deficit and improve its foreign exchange earnings,” he stated.
Economic Survey 2023 showed that the total value of sales from EPZs grew to Sh115.3 billion last year, up from Sh98.9 billion in 2021.
The growth was largely attributed to increased exports of apparel, agro-processing, food processing, pharmaceuticals, medical supplies, and edible oil.
