The Naivasha Special Economic Zone (SEZ) is taking shape with 14 investors having signed up to set up business at the expansive zone in Maai – Mahiu area in Naivasha.
Deputy Chief of Staff in charge of performance and delivery management at the Executive Office of the President, Mr. Eliud Owalo said companies have been given land at the Naivasha SEZ and the zone has been expanded to 6,000 acres, from the initial 1,000 acres near the Inland Container Depot in Maai –Mahiu in order to accommodate more investments and increase job creation.
One of the 14 investors who has shown interest in establishing their business at the SEZ is Jumbo Africa Auto Auction which has already opened a car auction business for the Kenyan market and is already eyeing expansion for the East Africa market.
Owalo was speaking in Naivasha on Wednesday during the field inspection of key projects in Naivasha.
The investment has already revolutionise car buying and easing time for buyers and also saved the buyers from currency fluctuations being experienced in the international market.
Constructions are ongoing at the site with those investors who haven’t started yet set to break ground by June this year.
Owalo said 8,000 jobs are set to be created both directly and indirectly at the Naivasha SEZ once companies become fully operational.
He said the Special Economic Zone Authority (SEZA) is engaging other government agencies to facilitate completion of key infrastructure including the link roads, power sources, sewerage and water not only Naivasha but also at the five SEZs in the country.
Owalo noted that a key link road from the Naivasha SEZ to the Standard Gauge Railway to Metre Gauge Railway linkage is 80 percent complete at a cost of Sh1.2B. It is expected to be completed in two months.
He at the same time said the ongoing Sh12B road project in Gilgil is on course at17 percent and cautioned contractors that the Government will restrict and blacklist those who fail to complete their works within the stipulated timelines in order to unlock the delays.
On his part, Director for Roads and Infrastructure at SEZs David Mbugua said a multi – agency team has been established to oversee completion of basic amenities and attract investors.
He added that the SEZs are partnering with Kenya Ports Authority (KPA), Kenya Railways and the department of investment among others to ensure all are operating at optimum as they are key in ensuring the SEZ are actualized on time.
On his part, Naivasha Deputy County Commissioner (DCC) Mr. Josiah Odongo said the security apparatus will ensure that the multi – agency team successfully deliver on their mandate as part of whole of government approach.
Odongo said the facility is a blessing to hundreds of youths and locals and community who are set to benefit from jobs being created by the investors.
The Government is set to establish Special Economic Zones (SEZs) in various counties across the country to create employment opportunities, empower the youth, and drive sustainable development.
In a bid to attract investors to these zones, the Government has instituted various fiscal and administrative incentives including exemption from stamp duty and local government’s advertisement fees and business service permits.
The firms will also enjoy preferential corporate rates of 10 percent for the first 10 years, 15 per cent for the next 10 years and 30 per cent for the subsequent years.
The SEZ is a major frontier for attracting Foreign Direct Investment for the country. In Naivasha, the companies are also set to benefit from low cost green energy power, thanks to its proximity to geothermal wells in Olkaria by the Kenya Electricity Generation (KenGen) company.
The some of the companies that have been issued with licenses to start operations at the Naivasha SEZ include; Accurate Steel Mill Ltd, JAFRO SEZ Limited, Africa Global Logistics Ltd, Ceylon Energy Ltd and now Tad Motor SEZ Ltd.
The Government has also earmarked other Special Economic Zones which include; Egerton in Nakuru, Eldoret, Sagana, Murang’a, Busia and Ndogo Kundu in Mombasa all geared to stimulate the country’s industrialization agenda, increase exports and increase foreign exchange.
To help attract investors, Nakuru county government has established a Single Business Permit aimed at streamlining ease of doing business adding that investors at the Naivasha Special zone now get land at discounted rates on an annual basis.
In Kenya, Special Economic Zones (SEZs) are designated areas with unique economic regulations, differing from the rest of the country, aimed at attracting both local and foreign investment to boost economic growth, create jobs, and promote industrialization.
Their sole purpose is to attract investment by offering attractive incentives, such as tax breaks and streamlined regulations, to encourage both local and foreign investment and boost economic growth by fostering investment and facilitating business operations, and spur industrialization and promote expand and diversify encourage value addition, enhance technology development and innovation and at the end create jobs for millions of jobless Kenyans.
By Mabel Keya- Shikuku
