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Sagana EPZ to boost growth, manufacturing in rural areas

The project is expected to be fully operational by December, bringing investors across the globe.

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by STAR REPORTER

Siasa24 November 2024 - 12:27
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In Summary


  •  Once the industrial heart of Kenya during the 1970s and 80s, Sagana in Kirinyaga County declined with the collapse of critical infrastructure.
  • This decline, however, is now giving way to a resurgence marked by strategic industrial investments.

Sagana EPZ and County Aggregation & Industrial Park in Kirinyaga county / HANDOUT

ARTICLE BY NANIS KIRUGARA

Sagana, a town rich in history and potential, stands poised to reclaim its status as a beacon of industrial innovation.

With the Kenya Kwanza government driving initiatives to rejuvenate the economy, the establishment of an Export Processing Zone in Sagana is a bold leap towards transforming not only the local landscape but also the nation’s economic fabric.

The Export Processing Zones Authority has opened four EPZs across the country, attracting a tide of investors eager to tap into Kenya’s burgeoning manufacturing sector, thereby boosting exports and improving the balance of trade.

The project is expected to be fully operational by December, bringing investors and businesses from across the globe. Once the industrial heart of Kenya during the 1970s and 80s, Sagana in Kirinyaga county declined with the collapse of critical infrastructure.

This decline, however, is now giving way to a resurgence marked by strategic industrial investments. Spearheaded by the Bottom-up Economic Transformation Agenda for 2022-2027, the government prioritises manufacturing as a pillar for economic growth and job creation.

Like many towns built on the back of infrastructure, Sagana’s fortunes faltered when the railway system collapsed in the 1980s, leading to the gradual downturn of the industrial landscape.

Today, however, Sagana is on the brink of resurgence. A symbol of hope for traders and residents alike, the Kenya Kwanza government aims to transform this once-sleepy town into a modern industrial hub by establishing an Industrial Park comprising an EPZ.

This ongoing EPZ project is a major initiative to boost Kenya’s manufacturing capacity, foster economic growth, and generate employment.

The Export Processing Zones Authority was established under the EPZ Act, Cap 517 of 1990, to promote export-oriented investments and create an environment conducive to them. The EPZ covers 75 acres within a 242-acre industrial park.

The land for the Sagana EPZ is Plot Title Number Kiine/Thigirichi/3747. It was gazetted for EPZ use in May 2023 and the EPZA has received approval from the National Lands Commission for a 50- year lease.

The government has designated the establishment of five EPZ flagship hubs in Murang’a, Kirinyaga, Busia, Uasin Gishu and Nakuru counties.

The investments aim to boost manufacturing, employment, and enhance the country’s export capabilities. The Sagana EPZ promises to restore the town to its former industrial glory and unlock the region’s economic potential.

During their entral regional tour, members of the Office of the Government Spokesman witnessed the project’s progress.

Deputy spokesperson Mwanaisha Chidzuga said upon completion, it is expected to create about 3,000 direct and more than 120,000 indirect jobs.

The first phase is expected to be fully operational by December. “This is a life-changing project, not just for Kirinyaga county but for the entire Mt Kenya,” Chidzuga said. “It marks a significant shift towards realising Kenya’s long-term goal of industrialising rural areas and expanding our manufacturing sector.”

The Sagana EPZ has already attracted considerable investor interests. Focused on agro-processing, the zone will process fruits, coffee, tea, macadamia and avocados.

It will also manufacture textiles and leather products. This zone is ideally located due to direct linkage to the Nairobi-Nanyuki railway line, Jomo Kenyatta International Airport, the standard gauge railway and tarmacked roads connecting to Meru, Nyeri, Embu, Nyahururu in Laikipia, among other areas. The site is well-connected to major towns, including Thika ( 73km), Nairobi ( 100km), and Kutus ( 20km).

Essential services such as electricity, water and fibre connections need to be extended to the site. Banking and financial services are available in nearby towns. Investors have already registered to lease space.

The project management says the first phase of construction is progressing steadily, with more than 25 per cent of the project completed.

More than 1,000 workers are employed at the site, the majority from surrounding areas. The EPZ is expected to significantly increase employment and contribute to the GDP by increasing value addition and regional exports. For residents, the EPZ project is more than an economic development — it is a lifeline.

Peter Wambugu, a young worker from nearby Kagio town, said, “When I joined the construction team, I had zero skills. But now, I have learnt so much.

My only request to the government is to help us get certification to find better opportunities in the future.” Catherine Kairuthi, a mother of three, works at the EPZ site and highlights the project’s role in gender inclusivity.

“This project has dismantled the belief that construction is a job for men. As women, we can now fully support our families. Our lives have improved, and we are proving we can do just as much as men,” she said.

The Sagana EPZ provides bi-weekly wages for both skilled and unskilled labourers, helping to alleviate unemployment. Youths from towns such as Sagana, Karatina, Kagio, Kiangwachi and Kamuthaga are finding new opportunities close to home, as most of the project’s workforce is drawn from nearby communities.

This has provided much-needed income for hundreds of families and improved livelihoods, fostering a sense of ownership and pride.

The writer is an official in office of the Government Spokesperson

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