The $1 billion Dongo Kundu and Naivasha Special Economic Zones development lease agreement will accelerate Kenya’s industrial growth, President William Ruto has said.
He said the agreement will not only position Kenya as a manufacturing hub, but also create over 40,000 jobs in Dongo Kundu and 100,000 jobs in Naivasha.
He was speaking in Mombasa on Friday February 28 during the signing of lease agreements between the Kenya Ports Authority, the Special Economic Zones Authority, and Afreximbank for the development of Dongo Kundu and Naivasha special economic zones
“This agreement fuels industrialisation, manufacturing, and agro-processing, reinforcing Kenya’s position as a regional export powerhouse,” he said.
“It facilitates the development of industrial parks, strengthens intra-Africa trade, and empowers micro, small and medium enterprises to compete under the Africa Continental Free Trade Area framework.”
Ruto said the initiative will fast-track the realisation of Vision 2030, the blueprint for national growth, and the Bottom-Up Economic Transformation Agenda, driving inclusive development.
“The target for these two investments will be here in Dongo Kundu, focusing on footwear, agro-processing and medical and pharmaceutical supplies, including petro-chemical industries,” he said.
“We will also target the textile industry, e-mobility and glass manufacturing, among others.”
He said the government has initiated six new special economic zones to spur industrialisation in the country.
“The government has invested Sh3 billion in six new Special Economic Zones. These are Dongo Kundu in Mombasa, Sagana (Kirinyaga), Thika (Kiambu), Naivasha (Nakuru), Eldoret (Uasin Gishu) and Busia,” he said.
He pointed out that the lease agreements are part of a $3 billion MoU between the Government of Kenya and Afreximbank in 2023, aimed at unlocking private-sector participation in strategic infrastructure development.
He said the partnership strengthens economic sustainability through the Public-Private Partnership framework, fortifies Kenya’s adaptation to climate change, shields the economy from external supply shocks, and enhances food production.
President Ruto commended Afreximbank’s leadership for its commitment to Kenya’s economic ambitions.
He also thanked the government of Japan and the Japan International Cooperation Agency for their steadfast partnership in the project.
“With an investment that includes Sh37 billion concessional loan and a Sh6 billion grant, Japan’s support has been instrumental in developing critical infrastructure at the Mombasa Special Economic Zone,” he said.
He explained that the government is revamping infrastructure at the Coast to support the Dongo Kundu Special Economic Zone and the Port of Mombasa.
He said such infrastructure development will position Kenya as the beating heart of trade and investment where goods, ideas and capital converge to fuel economic progress.
Ruto also noted that the government’s implementation of operational efficiency has borne fruit, with KPA now making profits and giving dividends to the Treasury.
And Dongo Kundu has already attracted the attention of investors, with the President announcing that the Kenya Ports Authority has received 97 applications for land allocation of close to 7,000 acres, while Afreximbank has secured 500 acres for an integrated industrial park.
He urged Kenyans to be good ambassadors of the country, saying it is the only way to retain the confidence of investors. He cautioned those bent on tarnishing Kenya’s reputation.
“We must believe in our country. You cannot badmouth your country from morning to evening and expect others to believe in it,” he said.
Afrexim Bank President and Chairman of the Board of Directors Benedict Oramah said the agreements signed will actualise the long-awaited Dongo Kundu and Naivasha Special Economic Zones.
He said the project puts Kenya on the path to massive industrial transformation.
“Across Africa, citizens are tired of promises and fed up with dreams of better lives that are soon shattered,” he said.
He added: “Today, the promise of Dongo Kundu Industrial Park and Naivasha Special Economic Zone, which had become uncertain for decades, has found a safe landing, thanks to President Ruto’s efforts.”
Earlier, at Njukini, President Ruto launched the construction of the 65-km Ilasit-Rombo-Njukini-Taveta Road linking Kajiado and Taita-Taveta counties.
He said the Sh9.4 billion project underscores the government’s commitment to improving infrastructure, especially in rural and marginalised areas, to promote balanced development in the country.
The road will reduce travel time from Illasit to Taveta from two hours to under 45 minutes, facilitating tourism, trade, and access to essential services in the region.
President Ruto directed the contractor to rehabilitate flood-prone sections of the road before the onset of the long rains expected in a month’s time.
He further noted that the government is spending Sh800 million to connect more than 10,000 households to electricity in Taita-Taveta County.
Ruto also launched the construction of the 468-unit Voi Affordable Housing Project, and inspected the Sh50 million Maungu Fresh Produce Market, which comprises 200 trader spaces, to provide a conducive work environment for business.
