The Government of Kenya is set to begin the allocation of Kshs 1.4 billion to compensate 1,648 Project Affected Persons (PAPs) under the Dongo Kundu Special Economic Zone (SEZ) in Mombasa and Kwale Counties. The compensation process is scheduled to commence this week as part of the government’s commitment to ensuring the smooth implementation of the Dongo Kundu SEZ project.
Cabinet Secretary for Investments, Trade, and Industry, Hon. Salim Mvurya, confirmed that the Kenya Ports Authority (KPA) has successfully verified and streamlined the list of PAPs. Additionally, 400 acres of land have been allocated for the resettlement of the affected individuals, ensuring that their livelihoods are safeguarded.
“The compensation will begin this week. We have agreed to work together with relevant stakeholders to unlock all bottlenecks and ensure this project comes to fruition,” stated CS Mvurya.
So far, 97 investors have expressed interest in setting up operations within the 3,000-acre SEZ, with 60% being local investors and 40% international. Key sectors such as energy, pharmaceuticals, and glass manufacturing are among the industries expected to establish a presence in the zone.
In a parallel effort to boost Kenya’s economic growth, the government will also gazette the Lamu Port South Sudan-Ethiopia Corridor Development Authority (LAPSSET) SEZ. Investors in the desalination, fish processing, and pharmaceutical sectors have already shown interest as the government aims to accelerate efforts to heighten investment and business activities in the region. “The LAPSSET SEZ is a new frontier for robust investment, which will contribute significantly to the sustainability and increased activity at the Lamu Port,” noted CS Mvurya.
He further reiterated the government’s stance against dormant investors who are hoarding licenses within the SEZs. He warned that the Special Economic Zones Authority (SEZA) would review the list of investors, with the possibility of revoking licenses. “I firmly urge investors to tow the line within the six-month grace period. If not, the licenses will be repealed by the Authority,” he asserted.
The Cabinet Secretary made these remarks after a harmonization meeting with the leadership of the Kenya Ports Authority, led by its Chair Benjamin Tayari; LAPSSET, led by its Chair Ali Mbogo; and the Special Economic Zones Authority, led by its Chair Fredrick Mutete, where he called for coordinated efforts and policy harmonization to address any challenges and ensure the expedited realization of these critical economic projects.
