Ruto presides over signing of lease agreement with Afrexim Bank, KPA, EPZ

President William Ruto speaking in Mombasa on February 28, 2025.

The government has signed lease agreements between the Kenya Ports Authority, the Special Economic Zones Authority, and Afrexim Bank.

The agreement is for the development of the Mombasa Special Economic Zone at Dongo Kundu alongside the Naivasha Special Economic Zone.

President William Ruto, who oversaw the signing ceremony, said with the two special economic zones taking shape, the country is fast tracking progress towards Vision 2030 - Kenya’s blueprint for national growth—and the Bottom-Up Economic Transformation Agenda.

The President said the agreements signed are part of a $3 billion MoU between Kenya and Afrexim Bank.

It is aimed at unlocking private-sector participation in strategic infrastructure development.

“This partnership enhances economic sustainability through the Public-Private Partnership framework, strengthens Kenya’s resilience to climate change, shields the economy from external supply shocks, and boosts food production,” Ruto said.

He said it plays a vital role in economic recovery by ensuring a stable supply of essential commodities such as fuel, fertiliser, grains, and edible oils.

“Beyond infrastructure, this agreement fuels industrialization, manufacturing, and agro-processing, reinforcing Kenya’s position as a regional export powerhouse. It facilitates the development of industrial parks, strengthens intra-Africa trade, and empowers micro, small, and medium enterprises to compete under the Africa Continental Free Trade Area,” Ruto added.

Ruto said the agreements promote modern infrastructure, creative industries, and youth employment, unlocking opportunities for the next generation of entrepreneurs, innovators, and visionaries.

“I take this opportunity to express our deep appreciation to Afrexim Bank’s leadership for their steadfast commitment to Kenya’s economic ambitions. We look forward to witnessing the transformation of the Mombasa and Naivasha Special Economic Zones, which will drive industrial growth, business expansion, and job creation - a true testament to the power of strategic investment,” he added.

Ruto said the Mombasa Special Economic Zone is more than a development project; it is a gateway to prosperity, a bridge to industrial competitiveness, and a launch pad for regional trade.

By leveraging the strategic position on the East African coast, the President said, Kenya is herself as a hub where goods, ideas, and capital converge to drive economic progress.

“Our gratitude also extends to the government of Japan and the Japan International Cooperation Agency for their steadfast partnership. The 2016 MoU laid the foundation for this collaboration, and today, we celebrate its tangible benefits,” he said.

According to the President, they invested a Sh37 billion concessional loan and a Sh6 billion grant.

He said Japan’s support has been instrumental in developing critical infrastructure at the Mombasa Special Economic Zone.

He stated that Kenya Ports Authority has received 97 applications for land allocation, requiring close to 7,000 acres, while Afrexim Bank has secured 500 acres for an integrated industrial park.

“The signing of this lease agreement is more than a legal formality - it is a declaration of intent and a commitment to building an industrial hub that fuels economic growth, generates employment, and enhances Kenya’s manufacturing capacity,” he said.

Ruto said Kenya remains committed to the welfare of communities affected by the project.

He said the Resettlement Action Plan is underway to ensure fair and timely compensation.

To date, the President said, Sh1.2 billion has been disbursed, benefiting 1,712 households as of January 2025.

Additionally, Sh316 million has been allocated to fisherfolk in 10 Beach Management Units, recognising their vital role in the coastal economy.

“I call upon our development partners, investors, and experts to continue supporting this vision through technical expertise, financial backing, and knowledge-sharing,” he added.