The Naivasha Special Economic Zone (SEZ) has received a shot in the arm after another investor moved to the ground to set up a potato processing firm.
The company, Crystal Frozen and Chilled Foods limited has committed an investment of sh. 645 million (USD 5 million) to set up a chilled or frozen potatoes (fries) at Naivasha SEZ.
Crystal Frozen and Chilled Foods limited which seeks to address wastage of produces that has for years affected farmers in Nakuru and neighbouring Nyandarua County and the gap that has existed in the market for frozen potatoes with only two countries; South Africa and Egypt leading the pace on the continent.
This is the third company that’s broken ground to kick-start operations targeting processing of potato through freezing for longer shelf life. The establishment of this facility is expected to create 359 direct employment opportunities, particularly for the youth and women, who are at the heart of our economic agenda.
Speaking during the ground breaking ceremony for the company at Naivasha SEZ, the Cabinet Secretary (CS) for Investment, Trade and Industry Salim Mgala Mvurya reiterated that the Government of Kenya is fully committed to creating a business environment that is conducive to investment, innovation, and sustainable growth.
“Over the past few years, we have implemented a series of reforms aimed at improving the ease of doing business in our country. These reforms include simplifying business registration processes, enhancing access to credit, reducing bureaucratic red tape, and modernizing our infrastructure to support efficient trade and logistics. Our efforts have borne fruit,” Mvurya said.
He noted that Kenya has consistently improved its ranking in the World Bank’s Ease of doing Business Index, and is forging ahead to become a preferred destination for both local and international investors.
The CS hailed effort’s by Crystal Frozen and Chilled Foods limited to add value to potatoes and added that these efforts are not just about attracting investment; but are also are closely aligned to the government’s Bottom-up Economic Transformation Agenda (BETA) which focuses on empowering the ordinary Kenyan by creating opportunities for employment, enhancing access to resources, and ensuring that the benefits of economic growth are felt at the grassroots level.
“By fostering a favourable business environment, we are enabling enterprises like Crystal Frozen and Chilled Foods to flourish, which in turn creates jobs and generates income for our citizens,”.
Mvurya noted by supporting industries that add value to our agricultural produce, like Crystal Frozen, we are not only boosting our economy but also ensuring that our farmers and producers receive better returns for their efforts.
This, he said in turn, translates to higher incomes and improved livelihoods for families across the country. Moreover, as we continue to attract investments into the manufacturing and processing sectors, we are creating a ripple effect that benefits the wider economy.
The director of the company Mr. Mungai Kihuyu said they plan to work with research institutions such as Egerton University to provide high quality seeds and train farmers on the best practices so that they can produce high quality seeds and maximize on the yields.
“We are already working with Egerton University to speed research on potatoes breeds that address the shortages in the market in order to accelerate the industrial processing of frozen potatoes for local and export markets,” he said.
Mungai said they they start by processing one million tons of frozen potatoes per month before eventually moving to five tons as they venture into freezing other vegetables.
The commercial entity will enhance food security and local economies, handling as well as nutritional value while supporting thousands of farmers in the region through ready market for their produce.
In a speech read on her behalf by her deputy Davis Korir, Nakuru Governor Susan Kihika was elated about this investment, saying Naivasha was chosen by the Government to host the SEZ due to the ready availability of high voltage power; more than 1,000 kilowatts of power are generated around this locality, strategic location transport-wise and the availability of raw materials.
“That is why, Nakuru is the ONLY county in Kenya that the Special Economic Zone Authority (SEZA) has gazetted the lowest tariff of Kshs5 per kilowatt/hour for our Special Economic Zones (SEZ) and Export Processing Zones (EPZ),” Kihika observed.
The Governor said the factory is timely and aptly fits in the value chains of the food crops our farmers are producing across the County. Nakuru is a leading producer in potato farming in Kenya with a proximately 75,000 farmers in nine Sub Counties producing more than 20,007 metric tons per year.
“It is my expectation that this factory will contribute towards the stabilization of producer prices which range between Kshs1, 500 per bag during the glut season. It is also our hope that this processing factory will act as a catalyst to increase farming in the respective crops by providing a ready market,” Kihika stated.
Kihika said Nakuru County was able to produce 31,255 tonnes of vegetables worth Kshs 11,384,606,000 and is a hub for various types of vegetables such as carrots, potatoes and green leafy vegetables among others.
“Further, the county government, through the provision of avocado seedlings and capacity building of farmers, the processing factory will act as a catalyst to increase farming in the respective crops by providing a ready market,”.
To this end, the Governor said the launch of this facility marks a significant milestone for the Naivasha SEZ, demonstrating its ability to attract investors and drive the economic growth of Nakuru County. This is the third investor at the SEZ after TAD Motors inaugurated a new Electric Vehicles assembly plant in July.
Kenya SEZ Chief Executive Officer (CEO) Dr. Kenneth Chelule said 38 Special Economic Zones have been set up in the country and 63 companies have already been licensed to start operations and noted that these investments will go a long way in improving food security, livelihoods and partnerships.
He advised all investors coming to these zones to engage communities through the governments liaison with community committees or other machinery that have been set up instead of going directly to the community.
“Let’s endeavour to do value addition to our agricultural products because that is what will change our communities.
According to data from the Ministry of Agriculture in Kenya, potato ranks second most important crop after maize as a food and economic crop with two to three million tons produced against a potential of eight to ten million tons annually.
Potatoes farming are primarily done in the Highland areas of Kiambu, Nakuru, and Uasin Gishu. It is also done in Nyandarua, Nyeri, West- pokot, and Keiyo Marakwet.
The government commitment to operationalize the Naivasha Special Economic Zone has received a major boost after 19 investors lined up to pump billions of shillings at the expansive zone as Government allocated extra 5,000 acres.
By Mabel Keya – Shikuku
