Sh12bn Mombasa SEZ to create 10,000 jobs as Kenya targets export-led manufacturing

Nairobi, Kenya, September 8 — The Kenyan government has inked a tripartite pact to establish a Sh12 billion Special Economic Zone in Mombasa, with the inaugural phase slated to generate 10,000 jobs and metamorphose the coastal city from a mere transit hub into a thriving manufacturing and export powerhouse.

The County Government of Mombasa, Mombasa Free Zone Ltd, and DP World inked the agreement, with President William Ruto presiding over the signing ceremony at State House, Nairobi. The 535-acre undertaking in Jomvu is envisioned to lure industries engaged in manufacturing, processing, assembly, and value addition, enabling goods to be produced within Kenya and subsequently exported to regional and international markets.

Ruto emphasized that the project forms a crucial component of the government's strategy to transition Kenya away from relying on exports of raw and minimally processed commodities toward a production and export-centric economy. "Special economic zones are at the heart of our Bottom-Up Economic Transformation Agenda," Ruto stated.

"They serve as the platform to establish industries, expand exports, create employment opportunities, and integrate our farmers, entrepreneurs, and manufacturers into domestic, regional, and global value chains."

The President called for a surge in domestic processing and manufacturing to reap greater value from Kenya's products. "We must shift away from exporting raw and minimally processed commodities," Ruto stressed. "We must process more of what we produce, manufacture more of what we consume, and export competitive, finished products."

The Mombasa Special Economic Zone will enjoy seamless connectivity to the Standard Gauge Railway (SGR) and regional transport corridors, providing manufacturers with unhindered access to Kenya's port infrastructure and neighboring markets. The first phase of the zone is projected to create 10,000 jobs, positioning Mombasa as a production and distribution center for the East African Community (COMESA) and the broader African market.

This development underscores Kenya's strategic utilization of Mombasa's advantageous location and transport infrastructure beyond its conventional role of handling goods destined for Kenya and neighboring nations. The project also aims to offer a platform for manufacturers and entrepreneurs to connect with regional and global value chains while creating avenues for local suppliers and service providers.

The government has been actively promoting Special Economic Zones as engines for industrialization, offering dedicated infrastructure and an investment climate to attract businesses involved in production and export.