The National treasury Cabinet Secretary Amb. Ukur yatani and Chief Representative, Jica Kenya Office Mr. Katsutoshi Komori last week signed a loan agreement for the Mombasa Special Economic Zone Development Project 1 amounting to Ksh. 36.139 billion.
The credit will attract an interest rate of 0.1 % with a repayment period of 28 years and grace period of 12 years. It will be applied for development of SEZ with the aim of boosting the manufacturing sector in line with the government’s Big Four Agenda as well as creation of new jobs for Kenya citizens,
The construction of the first SEZ was launched at Dongo Kundu SEZ, which is located in Likoni last year.
The second SEZ facility is planned for construction on a 600 acre land at Miritini. This is according to the county government of Mombasa and the TradeMark East Africa (TMEA), who are partnering to actualize the project.
“We are partnering with TMEA for the construction of a SEZ in Miritini which is now at feasibility study stage” William Kingi, Mombasa County deputy governor said.
According to the county, the Miritini project will also serve to make up for business and job losses occasioned by the operationalisation of the Standard Gauge Railway (SGR) cargo transport.
”We all know that the SGR issue has negatively impacted our economy and so we must look to diversification for sustainability,” Kingi added.
The Dongo Kundu SEZ in Likoni is being designed to be a multi-sectoral zone comprises of Industrial Parks, Free Trade Zones/Free Port, Dongo Kundu Port, Tourism Zone (MICE), Business Service Parks; and Commercial and Residential Zone.
The SEZ will be developed in three phases with the first phase expected to be ready by 2023 and is projected to inject into the Kenya’s economy Sh400 billion in local and foreign direct investments and create more than 100,000 jobs.
Speaking at the groundbreaking ceremony, in October last year, President Uhuru Kenyatta said that the Dongo Kundu SEZ will herald a milestone transformation in the coastal region and will further promote the “Buy Kenya, Build Kenya” philosophy.
The Dongo Kundu SEZ is designed to support the development of the blue economy and is primed to host mega factories that will add value to Kenyan raw materials, including cash crops, fruits and vegetables.
The second phase of the Dongo Kundu Bypass, which commenced last year, will include the construction of the Mteza-Kibundani section, Miritini-Mwache-Kipevu road and Moi International Airport Access Road; and Mwache Junction-Tsunza-Mteza section.
The first phase of the now-iconic Dongo Kundu bypass has already transformed Mombasa and eased transport to and from the coastal city.
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