The State is fast tracking the
establishment of three Economic Zones (SEZ’s) in Kisumu, Mombasa , Lamu. The
manufacturing facilities to be set up within these zones, including textile factories,
are expected to create a million jobs yearly. Parliament is to be set up within
these zones by the end of this month. In addition to providing land, tax
holidays, duty free imports and waivers on value-added tax to potential
clients, the government is hoping that
the zones will create 10 million jobs over the next 30 years. About 2000 sq km
of land has already been set aside in Mombasa, Lamu and Kisumu for the project.
SEZs will have new levels of
taxation and fewer regulatory hurdles and will focus primarily on industrial
activity , in particular textile production. Industrialization and Enterprise
Development Cabinet Secretary Adan Mohammed said early this year that the new
economic zones will mainly target foreign textile firms from textile industries
in Myanmar, China, Vietnam and South Africa Government Estimates the zones to
be ready for investors in two to three years.
Kenya has a single free trade
zone in Mombasa, aimed at boosting the manufacturer sector this is in addition
to established Export Processing Zones (EPZ’s), which contribute $543 Million
(Sh 46.1 Billion) to the economy last year. EPZ Authority Chief Executive
Cyrill Nabutola said the zones account
for 10 Per Cent of Kenya’s exports – the bulk of which are textiles and are apparel
sent to the U.S As of 2012, garment
manufacturers accounted for 29 per Cent of EPZ Companies, 56% of EPZ Exports
and 30% of EPZ private investments.
The SEZs are expected to boost the country’s
industrial output that has been experiencing steady growth in recent years.
According to the Economic Survey 2013, the sector grew by 4.6% in the third
quarter of last year, compared to 2.6% in the same quarter of 2012. Growth in
the first second quarters in 2013 was 4.2 % and 4.3 % compared to 2.1% and 1.4%
respectively in the previous years. World bank Estimates that value – added manufacturing
focusing on food textiles machinery and chemical processing grew by 5% in 2013
compared to 3.3% in 2012.
Vision 2030 plans to transform
Kenya into a middle –income State with manufacturing accounting for 20% of the
GDP by 2030.
