Kenya bets $92.7 million on Mombasa to drive jobs, manufacturing and exports

Kenya is investing $92.7 million in a new special economic zone in Mombasa as it seeks to attract manufacturers, create thousands of jobs and increase exports of higher-value products across Africa. 

The 12 billion Kenyan shilling($92.7 million) agreement brings together the Mombasa County government, Mombasa Free Zone Ltd and global logistics group DP World to develop the Jomvu Special Economic Zone. The deal, announced Tuesday, September 8, by the Special Economic Zones Authority (SEZA), positions Mombasa for a bigger role in Kenya’s industrial and export ambitions. 

The 535-acre, or about 217-hectare, project will have direct access to the Standard Gauge Railway and the Northern Corridor, providing manufacturers with links to Kenya’s domestic market and regional trade routes. 

Its first phase is expected to create 10,000 jobs, while the wider development is designed to support manufacturing, value addition, assembly, brand development and exports. 

For businesses targeting African markets, the location could be significant. Products manufactured in the zone will have access to markets across the East African Community, the Common Market for Eastern and Southern Africa and the wider continent.

Kenya targets manufacturing and export growth 

The project comes as President William Ruto’s administration pushes to reduce Kenya’s reliance on exports of raw and minimally processed commodities. 

“This project will help transform Kenya from an agricultural economy into a production and export-oriented economy,” Ruto said. 

The Mombasa development is part of Kenya’s Fourth Medium-Term Plan for 2023-2027, which implements the Bottom-Up Economic Transformation Agenda (BETA). The strategy targets job creation, lower living costs, a broader tax base and more inclusive economic growth. 

Kenya is also seeking to strengthen its appeal to investors. In May, Ruto signed three laws aimed at encouraging investment and creating a more favourable business environment.

SEZs become key to Kenya’s investment strategy 

SEZA said special economic zones can connect farmers, small and medium-sized businesses and manufacturers with regional and global markets, supporting industrial growth and export development. 

SEZA Chief Executive Kenneth Chelule said the authority will facilitate investment through faster licensing, tax and non-tax incentives, modern infrastructure and dedicated investor support. 

For Mombasa, the Jomvu zone adds another major industrial development to the coastal city’s role as a gateway for trade, with the potential to bring manufacturing, jobs and export activity closer to Kenya’s main seaport.