International Finance Corporation (IFC) is supporting Kenya’s efforts to attract at least $100 million in new investments through reforms to the country’s special economic zones (SEZs), including streamlined regulations, improved investment incentives and the development of green industrial zones.

The advisory services project, disclosed on Oct. 21, 2026, aims to strengthen Kenya’s investment generation efforts by improving the regulatory framework governing SEZ development and encouraging more enterprises to establish operations in designated zones.

The project has an estimated budget of $1.75 million and is scheduled to run from March 19, 2025, to Jan. 31, 2028. It remains active, according to the IFC’s project information.

Regulatory reforms to strengthen SEZ development

The initiative will review and update Kenya’s legal and regulatory framework for special economic zones, aligning it with the East African Community’s SEZ policy and the African Continental Free Trade Area’s regulations and guidelines for such zones.

The reforms are intended to streamline the licensing of SEZ enterprises and improve the policy environment for investors seeking to establish or expand businesses in Kenya.

By aligning its framework with regional and continental trade policies, Kenya aims to strengthen the competitiveness of its industrial zones and support efforts to generate new investment.

The project also seeks to improve the incentives available to businesses operating within the zones, with a focus on encouraging investment and productive economic activity.

New incentives and green industrialisation

The IFC will support the development of guidelines for performance-based incentives for SEZs, alongside production-linked incentives for one priority sector.

The proposed approach is intended to connect investment incentives more closely with business performance and production, although the project disclosure does not identify the priority sector or specify the financial terms of the proposed schemes.

Another component involves developing and operationalising guidelines and procedures for green special economic zones. The framework is expected to support Kenya’s transition towards green industrialisation by incorporating environmental considerations into SEZ development.

The initiative places green industrialisation alongside regulatory reform and investment promotion as part of the country’s broader effort to attract capital and strengthen its industrial base.

Investor targeting and $100 million goal

The project will also support investment promotion and targeted outreach to prospective investors, with the objective of attracting new businesses and capital into Kenya’s special economic zones.

The IFC’s stated development target is to generate at least $100 million in new investments one year after the project’s completion. Achieving that goal will depend on the effectiveness of the regulatory reforms, incentive frameworks, and investor-targeting activities.

The project’s estimated end date of Jan. 31, 2028, provides the timeline for completing the advisory work, while the investment target is measured over the following year.

The disclosure does not identify specific investors, planned investment transactions, or individual SEZs expected to benefit. Instead, it outlines a policy and investment-promotion programme designed to make Kenya’s special economic zones more attractive to domestic and international capital.