Kenya Announces Plan to Attract Investors to Special Economic Zones.
President Dr William Ruto witnesses the signing in of MOU between the government and a section of the investors. (Photo/ Courtesy)
By Mbungu Harrison
Email, thecoastnewspaper@gmail.com
President William Ruto has announced a raft of revised tax incentives and strategic infrastructure plans aimed at attracting large-scale investors to Kenya’s Special Economic Zones (SEZs), marking a significant step in the country’s ambitious journey toward industrialization.
Speaking during the Arise IIP-Kenya Investment Forum 2025 held at the picturesque Vipingo Ridge in Kilifi County, President Ruto pledged to create a more predictable, investor-friendly economic environment.
He emphasized his administration’s long-term commitment to fostering investment through streamlined regulations and robust infrastructure development.
“We have predictable policies backed by law. We are not here for the short term. As a government, I want to assure investors that you can have confidence in the investment infrastructure we are putting in place,” President Ruto stated.
The President highlighted the government’s plan to boost energy production to over 10,000 megawatts in order to meet industrial demand, especially within the SEZs. Key infrastructure projects were also outlined, including the dualling of the Mombasa-Kilifi Highway and expansion of railway networks to enhance logistics and trade.
President Ruto reiterated the government’s commitment to revitalizing Kenya’s textile and apparel industry, identifying it as a cornerstone for industrial growth.
He noted that Kenya possesses eight textile value chains that, if fully developed, could revolutionize the sector and stimulate significant job creation.
“We have focused on textiles because we have seen eight value chains that can breathe life into the manufacturing sector. We have the raw materials, and now we must drive growth in this space,” he said.
This strategic focus aligns with Kenya’s goal to reduce reliance on imports and foreign debt by leveraging local resources and creating home-grown solutions.
One of the most significant announcements at the forum was made by the President of Afri-Exim Bank, Professor Benedict Oramah, who confirmed a $500 million (approximately KSh 62 billion) investment to support the development of special economic zones across Kenya.
This funding will play a critical role in establishing key infrastructure, including industrial parks, roads, and utilities within the SEZs, ultimately attracting global and regional manufacturers to set up operations in Kenya.
A flagship project under this initiative is the establishment of a state-of-the-art textile mill at the Vipingo Special Economic Zone (VSEZ). The facility is expected to create at least 30,000 direct jobs, with thousands more indirectly through the supply chain, thereby uplifting grassroots economies in Kilifi and surrounding counties.
The investment forum culminated in a symbolic foundation stone-laying ceremony for the VSEZ, a moment hailed as historic by local leaders and stakeholders. The ceremony marked the official launch of the industrial park, underscoring the government’s commitment to building a world-class industrial ecosystem in Kenya.
Kilifi Governor Gideon Mung’aro praised the initiative, calling it a “game-changer” for the county. He emphasized the readiness of county governments to work closely with investors to accelerate development and improve the livelihoods of local communities.
“As counties, we are ready to work hand in hand with investors to ensure local and national economic growth,” said Governor Mung’aro.
The 2025 Arise IIP-Kenya Investment Forum brought together local and international investors, government officials, development finance institutions, and private sector leaders, all focused on unlocking Kenya’s industrial potential.
President Ruto concluded his address with a call to action for increased local participation in industrialization efforts, stressing the need to mobilize domestic resources to address Kenya’s development challenges and reduce overdependence on external borrowing.
With the renewed policy direction, financial backing from strategic partners like Afri-Exim Bank, and foundational infrastructure projects underway, Kenya’s vision of becoming an industrial hub for Africa is beginning to take shape.
