Investors in Economic Zones given Six months to develop or Licenses be Revoked

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Investment

The government has warned investors licensed to operate special economic zones (SEZ) that they risk their licenses being revoked if they fail to develop the entities within six months.

Trade, Investment, and Industry Cabinet Secretary Salim Mvurya said despite some investors being licensed to operate in SEZs for more than a year, they are yet to utilise the spaces for the allocated purpose.  “We have noted that we give people licenses to occupy the SEZS but they take a long time to set up. Some have never visited the site to set foundation or clear bushes,” he said.

Speaking during a groundbreaking ceremony for Phase 5 of Nairobi Gate Industrial Park in Ruiru, Kiambu County Wednesday, the CS said those who fail to comply with the ultimatum will lose their licenses at the expiry of six months. He said the Ministry is in the process of compiling a list of such investors and will advertise the spaces for new and interested ones to take up their spaces.

“The government is committed to upholding the integrity of the special economic zones initiative by ensuring that all gazetted SEZs are fully operationalised. Those who will not have moved to site in six months will forfeit the licenses,” said Mvurya. He said the country has 38 SEZs both public and private and that private investors at the new industrial park have injected nearly Sh 1 billion at the site and created 700 direct jobs.

“These are the kind of investments that we want to see. Many youths in the country are well trained. They only need apprenticeship and the investors will need to tap into that advantage,” Mvurya said. On access to capital for SMEs, the CS said the government, through partnerships with banks is offering access to loans for medium level investors, youth and women.

“The government has de-risked investments to the tune of Sh5 billion within the Development Bank where investors can access loans with interest rate of a single digit to inspire their investment. Additionally, in the last one week, the European Investment Bank has given the Kenya Commercial Bank Sh32 billion to help the youth and women in areas of investment, Investors should now tap into these opportunities,” Mvurya said.

He also disclosed that the government is in the process of amending the law to address concerns raised by business people on taxation and cost of energy and fuel with a view to resolve these issues. The CS added that the government has opened markets for Kenyan products through partnership agreements both in the continent and over 27 countries in Europe in a bid to make the country the central hub for industrialisation and investment in Africa.

“Investors should tap into those opportunities and put up businesses. We have put the necessary frameworks in place, provided the necessary business environment as well as opportunities to get capital so as to accelerate the economic transformation agenda,” Mvurya said.