Kenyans Urged to Join Cooperatives to Conduct Business with Special Economic Zones

Mbungu Harrison & George Otieno

Email, thecoastnewsnewspaper@gmail.com

Kenyans have been encouraged to form cooperative societies to supply raw materials and services to businesses operating within the country’s Special Economic Zones (SEZs), as the government intensifies efforts to stimulate local economic growth through industrialization.

Speaking during the launch of the Vipingo Special Economic Zone in Kilifi County, Dr.Kenneth Chelule, CEO of the Special Economic Zones Authority, emphasized the immense opportunities available for local residents and entrepreneurs.

“We are urging Kenyans, especially those in areas where SEZs are located, to form cooperatives and take advantage of the opportunity to supply raw materials and services to these zones,” said Chelule.

He highlighted that local suppliers will be prioritized, noting that the policy of giving first consideration to residents surrounding SEZs is aimed at stimulating grassroots economic development.

“These companies require unique skills, therefore we need people to reposition themselves to take up these opportunities. The first project in Vipingo will be textile milling and the companies are ready to employ the locals, “he said.

Chelule also revealed that a Chinese investor, Linglong Tyres, plans to train over 200 Kenyan youths in tyre manufacturing.The official said there is money available to support kenyans who are interested in investing in the special economic zone.

A section of kilifi County government officials led by Health CeC Peter Mwarogo attending the Investment Forum at Vipingo Ridge in Kilifi County. (photo By Mwakwaya Raymond)

“The company has made it clear that in the first six months, 200 people will be taken to China to undergo training on tyre manufacturing,” he said adding that hundreds of jobs will be created.So far 41,000 jobs have been created since the establishment of the Authority.

This, he added, is part of a broader strategy to equip Kenyans with specialized skills that will be in high demand as SEZs grow and attract more industrial investment.

The SEZ Authority CEO also noted that goods and services supplied to companies within the zones are zero-rated for tax purposes, a government policy designed to support and grow local businesses.

“The zero-rating of goods supplied to SEZs is a deliberate policy to ensure local suppliers are not left behind. It’s about building a robust supply chain that starts with Kenyan producers,” Chelule said.

According to the CEO, more than 41,000 jobs have already been created within the SEZs across the country. Over 100 companies have so far invested in the zones, injecting more than $2.5 billion USD into the Kenyan economy.

“These companies are building from the ground up a process involving 145 different steps and in doing so, they are creating employment and industrial capacity,” Chelule stated.

In his speech during the event, President William Ruto reaffirmed the government’s commitment to expanding industrial infrastructure, announcing plans to launch additional SEZs in Dongo Kundu and Naivasha.

A section of members in attendance at the Investment Forum at Vipingo Ridge in Kilifi County. (photo By Mwakwaya Raymond)

“These economic zones are critical to our transformation agenda. They will boost manufacturing, create jobs, and grow our exports,” President Ruto said.

The Vipingo SEZ is part of Kenya’s larger national strategy to position itself as an investment hub in the region, enhance local manufacturing, and reduce the country’s reliance on imports.