Ruto: Special Economic Zones Will Boost Employment

President William Ruto has officially launched construction of the Vipingo Special Economic Zone (SEZ) in Kilifi County, a major industrial development expected to attract Sh390 billion in investment and create over 35,000 direct jobs.

Located 42 kilometres north of Mombasa, the Vipingo SEZ covers 2,000 acres within a larger 10,000-acre parcel. The project is led by Centum Investment Company in partnership with Arise Integrated Industrial Platforms (IIP) and aims to boost manufacturing in key sectors such as automotive assembly, pharmaceuticals, and agro-processing.

The SEZ forms part of the government’s broader strategy to accelerate industrialisation by offering targeted fiscal incentives and improving infrastructure. Investors in the zone will benefit from a reduced corporate tax rate of 10 percent for the first ten years, followed by gradual increases. Additional benefits include exemptions from import and excise duties, zero-rated VAT, and full capital allowances on machinery and buildings.

President Ruto described SEZs as “engines of growth” and reaffirmed his administration’s commitment to enhancing the business environment through legislative and policy reforms. He highlighted the role of such zones in advancing value addition and reducing dependence on imported goods.

The Vipingo SEZ is designed with integrated infrastructure and multimodal transport connections, including road, rail, port, and air access. The developers plan to deliver a ready-to-use industrial hub with reliable utilities and streamlined regulatory processes. Its strategic location and access to the African Continental Free Trade Area (AfCFTA) are expected to attract international manufacturers targeting regional markets.

Centum CEO James Mworia called the project a key milestone in Kenya’s industrial journey, while Arise IIP’s Gagan Gupta noted its role in the company’s East African expansion. The initiative has also received support from Afreximbank, whose president, Prof Benedict Oramah, pledged further backing for SEZ projects in Vipingo, Naivasha, and Dongo Kundu.

According to SEZ Authority CEO Kenneth Chelule, the expansion of SEZs across counties reflects a shift towards decentralised industrial development. He noted that these zones are central to Kenya’s efforts to move from exporting raw materials to producing value-added goods for regional and global markets.