The government commitment to operationalize the Naivasha Special Economic Zone has received a major boost after 19 investors lined up to pump billions of shillings at the expansive zone.
According to the Principal Secretary for State Department for Investment promotion Abubakar Hassan, the Special Economic Zone Authority (SEZA) has already allocated land to 11 investors while eight are pending approval.
Abubakar said the government has allocated an additional 5,000 acres of land to the already earmarked 1,000 that was initially allocated in order to accommodate incoming investors.
The PS said the government has introduced attractive incentives including relaxed taxes and lower power tarriffs, geared towards accelerating the economic growth and development that will create jobs, wealth and reduce the country’s high import bill.
‘Once the Naivasha Special Economic Zone is fully operationalized, over 100,000 jobs will be created for locals and deserving youths,’ said the PS.
Speaking during the groundbreaki
ng ceremony for TAD Motors electric assembly plant at the Mai Mahiu zone, Abubakar said the plant will accelerate the adoption of affordable electric cars in the country, while helping to reverse the effects of climate change though reduced emissions.
In addition, the PS said the government has introduced a raft of incentives, put in place an e-mobility policy that seeks to drive the adoption of electrified motor industry and reduced the country’s high fuel import bill.
He said TAD Motors electric assembly will address the country’s demand for electric cars, which stands at 120,000 cars annually, with only 10,000 being locally produced, adding that currently there are more than 1.6 million electric cars and 1.2 million bicycles in the country.
While addressing concerns of residents over the move by a Turkish investor to close shop, which left a section people in debts over unpaid bills, the PS said the government has repossessed over 400 acres of land allocated and is engaging the Turkish embassy over unpa
id dues of Sh100 million.
On his part, James Gakuya, the chair of parliamentary committee on Trade, Investment and Cooperatives said the successful operations of the Naivasha SEZ will create jobs, grow the manufacturing sector and boost revenue collection.
According to Special Economic Zone Authority CEO Dr. Kenneth Chelule, the body has been reviewing bids from investors of Sh2B every day, thanks to attractive incentives at the zones, especially lower power tariffs.
Chelule said nine investors have committed to set up operations at the Naivasha zone by end of this year, a move that will accelerate the government manufacturing and investment agenda, while creating jobs for youths.
‘We laud the president for allocating an additional 5,000 acres of land that will help accommodate incoming investors that will invest in heavy industries, cooling facilities, warehousing and logistics sectors as well as hospitality industry,’ said Dr. Chelule.
The Nakuru County Deputy governor David Kones welcomed the investme
nt worth more than Sh1.5B, adding that the close to dozen investment interests will speed up the actualization of the Naivasha Industrial City plans.
He said the firm will have access to over 1000MW of geothermal energy from the Olkaria wells, which have been subsidized at lower costs, compared to other areas, adding that the firm will assemble more than 3,000 units every year, once complete.
According to TAD motors CEO Eng. Tadesse Tesemma, the move to invest at the Naivasha zone was driven by attractive and competitive incentives such as reduced geothermal power from Olkaria wells.
Tessema said his firm will assemble affordable electric cars for country’s consumption and for export to neighbouring countries, while creating over 1,500 jobs locally.
The CEO said the plant will source 70 percent of its parts from local manufacturing plants, promote the country’s climate change agenda, while helping owners save up to 80 percent costs of fuel.
Some of the companies that have been issued with licenses to sta
rt operations at the Naivasha zone include Accurate Steel Mill Ltd, JAFRO SEZ, Africa Global Logistics Ltd, Ceylon Energy Ltd and now Tad Moto SEZ Ltd.
In addition, the government has also earmarked other Special Economic Zones including Egerton Zone, Eldoret, Sagana, Murang’a, Busia and Ndogo Kundu in Mombasa all geared to drive the country’s industrialization agenda, increase exports and increase dollar inflows.
In a bid to attract investors to these zones, the government has instituted various fiscal and administrative incentives including exemption from stamp duty and local government’s advertisement fees and business service permits.
The firms will also enjoy preferential corporate rates of 10 per cent for the first 10 years, 15 per cent for the next 10 years and 30 per cent for the subsequent years.
Source: Kenya News Agency