Investment in the Dongo Kundu Special Economic Zone (SEZ) has received a major boost after the Indian High Commissioner to Kenya pledged to mobilise more Indian investors to set up operations in the flagship project.
Last year, a lease agreement was signed between the African Export-Import Bank (Afreximbank), the Kenya Ports Authority, and the Special Economic Zones Authority (SEZA) for the development of the Dongo Kundu and Naivasha SEZs, strengthening Kenya’s industrialisation and export manufacturing agenda. Afreximbank is financing the development of the two integrated industrial parks in line with the Bottom-Up Economic Transformation Agenda, with $1 billion (approximately Sh128.5 billion) allocated for value-addition initiatives.
High Commissioner of India to Kenya, Dr Adarsh Swaika, during an inspection of the 3,000-acre site, expressed satisfaction that an Indian firm is constructing the integrated industrial park. He noted that over 200 Indian companies have invested in Kenya, significantly contributing to the country’s economic development.
“They have invested in telecom, banking, automobiles, or fast-moving consumer goods. Indian companies are looking positively at the investment climate in Kenya, particularly with upcoming SEZs and EPZs. Dongo Kundu is one of the prime SEZs which the Government of Kenya is focusing on,” said the High Commissioner.
He highlighted that the SEZ is strategically located near the Port of Mombasa, facilitating logistics operations, and stated that Indian investors are mainly interested in warehousing, pharmaceuticals, and textiles.
The High Commissioner also visited the state-of-the-art Revital Healthcare (EPZ) in Kilifi, describing it as a model win-win partnership between India and Kenya. “Machinery made in India, employment generated in Kenya, capital investment by an Indian of Kenyan origin,” he said.
SEZA CEO Dr Kenneth Chelule said Dongo Kundu is a prime hub of investments and emphasised efforts to attract more Indian companies to Kenya through the India and Kenya Chambers of Commerce.
Out of the 3,000 acres, 500 acres have been allocated to Arise, an Indian company, to construct an integrated industrial park, three acres to Taifa Gas, 20 acres to Revital, and 15 acres to Millyglass. Currently, over 100 investors have applied for space, with four companies already vetted and operating, while SEZA expects more by year-end after due diligence.
The initiative is expected to increase foreign direct investment, create jobs, and enhance Kenya’s industrial and export capacity.
By Sadik Hassan
