Kenya has signed a Sh12 billion agreement to develop a 535-acre Special Economic Zone (SEZ) in Mombasa, with the first phase expected to create about 10,000 jobs and strengthen the country’s manufacturing and export capacity.
The agreement was signed by the Mombasa County Government, Mombasa Free Zone Ltd and DP World, with President William Ruto witnessing the signing at State House, Nairobi.
Located in Jomvu, the project is expected to host businesses involved in manufacturing, processing, assembly and value addition, allowing companies to produce finished and semi-finished goods locally for regional and international markets.
Mombasa positioned as manufacturing hub
The project is part of the government’s broader push to shift Kenya from exporting raw and minimally processed commodities towards a production-driven economy.
Ruto said SEZs would play an important role in expanding industrial activity, increasing exports and creating employment opportunities.
“Special economic zones are central to our Bottom-Up Economic Transformation Agenda. They provide the platform to build industries, expand exports, create jobs and link our farmers, entrepreneurs and manufacturers to domestic, regional and global value chains,” he said.
The President said Kenya needed to capture more value from products produced locally by increasing domestic processing and manufacturing.
“We must move away from exporting raw and minimally processed commodities,” Ruto said.
“We must process more of what we produce, manufacture more of what we consume, and export competitive, finished products.”
SEZ to tap Mombasa’s strategic location
The Mombasa SEZ will be connected to the Standard Gauge Railway (SGR) and major regional transport corridors, giving manufacturers access to the Port of Mombasa and markets across East Africa and beyond.
The location is expected to strengthen Mombasa’s role beyond its traditional function as a transit point for goods entering Kenya and neighbouring countries.
Once operational, the zone is expected to support production and distribution serving the East African Community, COMESA and wider African markets.
The project could also create opportunities for local suppliers, service providers, manufacturers and entrepreneurs to participate in regional and global value chains.
Government targets more value from exports
The investment comes as Kenya intensifies efforts to attract industries capable of producing goods for both domestic consumption and export.
Special Economic Zones provide dedicated infrastructure and an investment environment designed to encourage manufacturing, processing and other productive activities.
The government expects such developments to help expand Kenya’s industrial base while creating employment and increasing the value of exports.
For Mombasa, the SEZ is expected to leverage the county’s port, railway and road infrastructure to attract manufacturers seeking efficient access to regional and international markets.
10,000 jobs expected in first phase
The first phase of the Mombasa SEZ is projected to generate 10,000 jobs, while creating additional opportunities through businesses operating within and around the zone.
The development is also expected to strengthen links between manufacturers and local producers, particularly through value addition and supply-chain opportunities.
The Sh12 billion investment therefore represents a major component of Kenya’s push for export-led manufacturing, with Mombasa positioned to become an important production, logistics and distribution centre for the region.
