Compensation for 1,648 people affected by Dongo Kundu project has began – CS Mvurya

The government is set to disburse Sh1.4 billion in compensation to 1,648 people affected by the Dongo Kundu Special Economic Zone (SEZ) in Mombasa and Kwale counties.

The compensation of the Project Affected Persons (PAPs) will commence this week, as part of the government's commitment to ensuring the smooth implementation of the programme.

“The compensation will begin this week. We have agreed to work together with relevant stakeholders to ensure that we unlock all the bottlenecks to have the project come to fruition,” Investments, Trade, and Industry CS Salim Mvurya said.

The CS added Kenya Ports Authority (KPA) has successfully verified and streamlined the list of PAPs.

“Additionally, 400 acres of land have been allocated for the resettlement of the affected persons, ensuring that their livelihoods are safeguarded,” he added.

Mvurya made the remarks on Monday after holding a meeting with KPA led by its chair, Benjamin Tayari, Lamu Port-South Sudan-Ethiopia-Transport (LAPSSET) Corridor project chair Ali Mbogo, and Special Economic Zones Authority chair Fredrick Mutete.

A total of 97 investors have so far expressed interest in setting up operations within the 3,000-acre SEZ.

Of those, 60 per cent are residents while 40 per cent are international investors.

Key sectors such as energy, pharmaceuticals, and glass manufacturing are among the industries expected to establish premises in the zone.

To boost Kenya's economic growth, the government will also gazette the Lamu Port South Sudan-Ethiopia Corridor Development Authority (LAPSSET) SEZ.

Already, investors in the desalination, fish processing, and pharmaceutical sectors have expressed interest as the government moves to accelerate efforts to heighten investment and business activities in the region.

The LAPSSET SEZ is expected to contribute significantly to the sustainability and increased activity at the Lamu Port.

Mvurya further reiterated the government’s stand against dormant investors who are hoarding licenses within the SEZs.

He warned that the Special Economic Zones Authority (SEZA) will be reviewing the list of investors, with the possibility of revoking licenses.

“I firmly urge investors to tow the line within the six-month grace period. If not, the licenses will be repealed by the authority,” he asserted.

On August 21, Mvurya has issued a stern warning to investors hoarding licences within SEZs.

The CS emphasised the government’s commitment to ensuring timely investment and development within the SEZs.

He directed the Special Economic Zones Authority to enforce this mandate, stressing that investors must report to their designated sites within six months or risk losing their licences.