Cabinet nods to Sh7b injection into Naivasha special economic zone
The Cabinet has approved Sh6.9 billion to develop four infrastructure projects that will support the Naivasha Special Economic Zone (SEZ).
They include an inland container depot (ICD), railway marshaling yard, logistics zone and a public utility area.
Nakuru county governor Lee Kinyanjui welcomed the cabinet decision, saying the approval marked a critical milestone in the journey towards value addition and more employment opportunities for Nakuru residents.
“We are working to ensure we have an organised and vibrant commercial hub that will redefine the economy of the region,” he said.
He said the county government has been engaging with potential investors, both local and international, to invest in the park, terming the response “overwhelming.”
SEZs are zones intended to facilitate rapid economic growth by leveraging tax incentives to attract foreign currency and technological advancement. While many countries have set up SEZs, China has been the most successful in using SEZs to attract foreign capital and has even declared an entire province of Hainan an SEZ.
The approval to develop the SEZ comes in the wake of Kenya’s decision to offer Uganda and South Sudan land at the zone to construct dry ports and gain from the ICD, that will be served by the Standard Gauge Railway (SGR) which will terminate at the facility.
SGR Phase 2A
Already, phase 2A of the 120-kilometre SGR to Naivasha is nearing completion and will be the first of three sections that make up the second phase of the railway expected to extend to Kisumu and terminate at Malaba. The segment will be completed at a cost of Sh150 billion.
The dry port will enable Uganda play a more crucial role for the hinterland countries, including Rwanda and Democratic Republic of Congo (DRC), and also ease the movement of goods to South Sudan by reducing the journey that it makes to Mombasa to collect and clear goods destined to Juba.
ICD’s are an integral part of the government’s plans to make the Northern Corridor a multimodal trade route linking the landlocked countries of the Great Lakes Region with the Kenyan maritime sea port of Mombasa.
They were formed to bring port services closer to its customers and reduce port congestion. The depots are located at Nairobi, Kisumu and Eldoret, and linked to the Mombasa Port container terminal by a rail-tainer service. – Noel Wandera
