Ruto: Afreximbank to offer Sh30bn for Dongo Kundu SEZ project

The government is poised to sign an agreement with the African Export-Import Bank this Friday towards the establishment of the Dongo Kundu Special Economic Zone (SEZ) in Mombasa.

President William Ruto revealed on Monday that the Bank will contribute Sh30 billion for the project under the initial phase.

The Bank’s President Benedict Okechukwu, he said, will be in the county Friday to oversee the signing of the deal.

“This Friday, we shall begin the journey towards development of a SEZ by signing the agreement that will see the first tranche of Sh30 billion released,” he said.

Ruto expressed optimism that the project which has over the years become a pipe dream is finally becoming a reality.

The project, Ruto said, will transform the coastal region into a regional logistics and manufacturing hub, boosting the country's economic growth under the Vision 2030 development blueprint. 

A free port, industrial parks, free trade zones, logistics and warehousing facilities, energy projects, and areas for conferences and tourism are all planned features of the 3,000-acre SEZ. 

Under the direction of a master plan created by the Japan International Cooperation Agency (JICA), this ambitious project is anticipated to boost economic activity in the coastal region and connect Kenya to international markets.

Initially overseen by the Special Economic Zones Authority (SEZA), the project has already achieved notable milestones since it was transferred to the Kenya Ports Authority (KPA) in August 2024 by an Executive Order. 

One of them is Tanzania's Taifa Gas Company, which is currently building a 30,000-ton LPG facility worth Sh20.8 billion. 

The development of the SEZ is divided into multiple phases, each targeting critical infrastructure.

Package 1, valued at Sh42 billion, includes the construction of a berth, container and vehicle yards, navigation channels, and security infrastructure. 

Package 2, worth Sh3.4 billion, involves the procurement of cargo handling equipment, while Sh7.538 billion is being allocated to the development of port access roads. 

The power transmission component, at Sh 7 billion, will establish a 220KV power line from Mariakani to Dongo Kundu, ensuring a reliable electricity supply to the zone. 

Additionally, Sh6 billion has been earmarked for land formation, administrative buildings, and utilities under a grant component. 

Other initiatives include a fisheries compensation fund of Sh316 million and a comprehensive resettlement action plan for project-affected persons (PAPs).