The community in Vipingo is set to benefit significantly from the development of Special Economic Zones (SEZs), following new investments by the government in partnership with ARISE Integrated Industrial Platforms (ARISE IIP) and the Africa Export-Import Bank (Afreximbank).
Speaking during the launch, SEZ’s Authority Chief Executive Officer (CEO) Ken Chelule said Vipingo is one of the three major SEZs being developed under the partnership.
“With the launch, we now add to Kenya’s growing network of 38 Special Economic Zones. Already, close to 100 companies are operating in these zones, with investments of over Sh144 billion ($1.12 billion) and the creation of more than 41,000 jobs in just the past five years,” he said.
He explained that government reforms to the SEZ law in 2023 introduced a local content framework to ensure that host communities benefit directly.
Locally sourced raw materials processed in SEZs can now be sold back into the Kenyan market without import duties, lowering production costs and spurring value addition.
To strengthen community participation, the CEO encouraged cooperative societies to scale up their operations and supply raw materials to SEZ industries.
He also highlighted the need for new skills, citing Chinese firm Linglong Tire, which has committed to training 200 Kenyans in China on tyre manufacturing.
In Vipingo, the first major project will focus on textiles, with construction scheduled to begin within three months.
The project is expected to attract up to Sh390 billion in investment over the next decade. Afreximbank, in partnership with local financial institutions such as Kenya Commercial Bank (KCB), will provide financing to Kenyan enterprises seeking to invest in the SEZs.
“SEZs are about jobs, skills, and community growth. As we develop these zones, we will first look at talent within local communities before extending opportunities nationwide,” Chelule emphasised.
Kenya’s SEZ programme has already created between 11,000 and 12,000 direct jobs, with an additional 30,000 projected as current projects mature. Officials say the sector is still in its early stages, with only five per cent of the planned developments rolled out.
“With 95 per cent of the journey ahead, we are preparing Kenya for massive job creation and industrial transformation. Vipingo is just the beginning,” said Chelule.
By Chari Suche
