DP Kindiki: Dongo Kundu SEZ to transform Mombasa into regional trade hub

A free port, industrial parks, free trade zones, logistics and warehousing facilities, energy projects, and areas for conferences and tourism are all planned features of the 3,000-acre SEZ. 

Under the direction of a master plan created by the Japan International Cooperation Agency (JICA), this ambitious project is anticipated to boost economic activity in the coastal region and connect Kenya to international markets.

A multi-agency team tasked with resolving significant operationalisation bottlenecks provided Deputy President Kithure Kindiki with an update on the SEZ's progress on Thursday.

 Senior government representatives and business executives, including Cabinet Secretary for Roads and Transport Davis Chirchir, Principal Secretaries Abubakar Hassan Abubakar (Investments), Salim Dokota (Cabinet Affairs), and Teresia Mbaika (Devolution), attended the meeting at his Karen residence.

 Top officials were also present, including Gershom Otachi from the National Land Commission, Humphrey Wattanga from the Kenya Revenue Authority, Dr. Kenneth Chelule from the Special Economic Zones Authority, and Capt. William Ruto from the Kenya Ports Authority.

Initially overseen by the Special Economic Zones Authority (SEZA), the project has already achieved notable milestones since it was transferred to the Kenya Ports Authority (KPA) in August 2024 by an Executive Order. 

One of them is Tanzania's Taifa Gas Company, which is currently building a 30,000-ton LPG facility worth Ksh 20.8 billion. 

The development of the SEZ is divided into multiple phases, each targeting critical infrastructure. 

Package 1, valued at Ksh 42 billion, includes the construction of a berth, container and vehicle yards, navigation channels, and security infrastructure. 

Package 2, worth Ksh 3.4 billion, involves the procurement of cargo handling equipment, while Ksh 7.538 billion is being allocated to the development of port access roads. 

The power transmission component, at Ksh 7 billion, will establish a 220KV power line from Mariakani to Dongo Kundu, ensuring reliable electricity supply to the zone. 

Additionally, Ksh 6 billion has been earmarked for land formation, administrative buildings, and utilities under a grant component. 

Other initiatives include a fisheries compensation fund of Ksh 316 million and a comprehensive resettlement action plan for project-affected persons (PAPs).

Despite these advancements, several challenges remain. 

Taxation issues, a significant hurdle, have been resolved following an intervention by the National Treasury, which agreed to shoulder the taxes for the project. 

However, the slow compensation of PAPs continues to delay progress, even as a mechanism for payouts has been established by the KPA and the National Land Commission. 

Investor onboarding remains another bottleneck, with 97 requests for land allocation from potential investors pending due to lengthy approval processes involving multiple agencies, including the National Treasury and the Attorney General’s office. T

he recent development of a land policy for Dongo Kundu is expected to expedite this process and attract more investment.

Deputy President Kindiki, while acknowledging the progress made, urged stakeholders to address these challenges with urgency, emphasizing the strategic importance of the project in positioning Kenya as a regional economic powerhouse