Rwanda to construct logistic hub in Mai Mahiu SEZ

In a bid to streamline the transportation of goods from the Port of Mombasa, Rwanda has pledged to construct a logistics hub in the Special Economic Zone (SEZ) in Mai Mahiu, Naivasha. The hub's establishment aims to accelerate the movement of cargo via the Standard Gauge Railway (SGR). As international and local investors' interest in the industrial park has surged to 24 from 15 early in the year, Rwanda's Minister for Trade and Foreign Affairs, Dr Usta Kayitesi, expressed gratitude to the Kenyan government for donating the land for the project.

Kayitesi highlighted that the Northern Corridor has been instrumental in facilitating trade and easing business processes. The logistics hub, she added, will reduce the distance and simplify the movement of cargo from Mombasa to Rwanda. The facility is expected to benefit Rwanda, which currently receives substantial exports from Kenya, exceeding $300 million.

Dr Kenneth Chelule, the CEO of SEZ Authority, reported that over 24 investors have shown interest in the industrial park, with the number anticipated to rise further. The SEZ is attracting investors at a rate of four per quarter, attributing this growth to the SGR, ample electricity and water supply. For workers, 600 units of housing, a school, a hospital, a security unit, and a commercial center are being constructed.

Investment incentives include a 10% corporation tax for the first decade, 15% for the subsequent decade, and a 30% rate thereafter. Dr John Diir, the Executive Director for Northern Corridor, mentioned feasibility studies predicting significant growth in cargo transport. Cargo handling at the port of Mombasa is anticipated to rise from the current 15 million metric tonnes annually to 40 million metric tonnes within five years.