Gov't pumps Ksh.4 billion into second phase of county industrial parks
President William Ruto speaks ahead of the signing of 16 Interg-Governmental Participation Agreements on the establishment of CAIPs at State House Nairobi, on May 28, 2026. PHOTO | PCS
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The national and county governments have signed a Ksh.4
billion agreement on phase two of the establishment of 16 County Aggregation
and Industrial Parks (CAIPs).
President William Ruto, who witnessed the signing ceremony,
said the government has disbursed a total of Ksh.8.5 billion for CAIPs at Ksh.250
million to each of the 34 participating counties.
Additionally, the President said, the government is investing
Ksh.2.4 billion in common user facilities for the CAIPs programme, with Ksh.150
million allocated to each facility to support specific value-addition
priorities of every county.
He noted that the programme is transforming counties into engines
of industrialisation, innovation, job creation, and economic transformation and
moving Kenya "from a consumption economy to a production economy".
“Once operational, these industrial parks will significantly
expand value addition to agricultural and natural resources at the county
level, reduce post-harvest losses, create jobs for thousands of young people,
expand market access for local products, attract private investment into
manufacturing and agro-processing, strengthen exports, and enhance the competitiveness
of our counties and our country,” he said.
Speaking during the signing ceremony at State House Nairobi on
Thursday, President Ruto noted that 10 out of the first 18 CAIPs are now
complete and ready for investors.
Governors, led by Council of Governors Chairman Ahmed
Abdullahi and Trade Cabinet Secretary Lee Kinyanjui, among others, were
present.
The President noted that the programme has taken industry
closer to the people, unlocked the productive potential of counties, and will
ensure that every part of Kenya participates meaningfully in national growth
and prosperity.
He explained that countries that have succeeded in exporting
products started from the grassroots.
“The County Aggregation and Industrial Parks programme is one
of the most consequential economic transformation initiatives under our
Bottom-Up Economic Transformation Agenda,” he said.
He urged implementing counties to fast-track infrastructure
development, strengthen governance and accountability systems, ensure prudent
utilisation of public resources, prepare for investor onboarding and
operationalisation, and work closely with the Ministry of Investment, Trade and
Industrialisation and relevant agencies in resolving any emerging issues.
“The ministry remains fully committed to providing the policy
direction, technical support, and coordination necessary for the successful
implementation of this programme,” he said.
Governor Abdullahi pointed out that counties will continue
cooperating with the government to fully implement the CAIPs.
Additionally, Abdullahi, who is also the Governor of Wajir,
noted that the Affordable Housing Programme is among the biggest estate
development projects in the counties.
“On behalf of the governors, I thank you for the effort you
continue to make to change Kenya for the better,” Abdullahi said.
He confirmed that counties have already contributed their
co-funding while the National Government has disbursed its contribution.
Cs Kinyanjui said the CAIPs reflect President Ruto’s vision of
a nation that produces for itself, adds value, and creates jobs.
“The programme was a good example of how a nation can be
self-reliant,” he said.

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