Kilifi free trade zone project will create 50,000 jobs, says President

The construction of the 2,000-acre Vipingo Free Trade Zone (VFTZ) in Kilifi County is expected to commence next year.

Yesterday, President William Ruto announced that the Ministry of Industry, Trade, and Investment had gazetted the 2,000-acre VFTZ as a Special Economic Zone (SEZ), in preparation for the assembly of industries in 2025.

The SEZ forms part of a 600-acre master plan developed through a partnership between Centum PLC, a publicly listed company with over 36,000 shareholders, and Arise Integrated Industrial Platforms.

Ruto explained that the VFTZ will accommodate over 200 industries spanning various sectors, including agro-processing, manufacturing, IT, logistics, green energy, and pharmaceuticals. It is projected to create 50,000 jobs over the next decade.

“This zone offers fiscal incentives, sustainable energy solutions, and state-of-the-art infrastructure, empowering SMEs, fostering local supply chains, and advancing Kenya’s industrialisation,” he said.

Ruto made the remarks in Kilifi during the official opening of the three-day Kilifi County International Investment Conference, which has attracted over 700 local and international investors.

“The VFTZ is projected to create 50,000 jobs over the next decade. Additionally, Kenya has licensed 39 SEZs, with ten located within the coastal economic bloc,” he said.

The President added that his government had initiated flagship Export Processing Zone (EPZ) projects in Busia, Eldoret, Murang’a, and Kirinyaga to increase the value of export products.

He highlighted Kilifi’s growing role as a hub for successful EPZ enterprises, such as Nuts and More Processing (EA) Ltd, which employs 405 workers to process cashew nuts for export. Other businesses include Kenya Tropical Sea Life EPZ Ltd, employing 31 Kenyans to export exotic and ornamental marine fish, and Fuhua Kenya EPZ Ltd, which produces knitted fabrics and undergarments, employing 747 workers.

The President reaffirmed his government’s commitment to revitalising the tourism sector, noting that tourism arrivals in 2024 are expected to reach 2.5 million visitors, up from 1.4 million two years ago.

He explained that his administration is implementing innovative policies, such as the Visa-Free Entry Programme, to ease access for visitors and strengthen Kenya’s position as a premier global destination.

“Here in Kilifi, the resurgence of tourism is evident, with the refurbishment of hospitality facilities, ensuring the sector continues to support thousands of families while reinforcing Kenya’s place on the global tourism map,” he added.

Kilifi Governor Gideon Mung’aro, his deputy Flora Chibule, Senate Speaker Amason Kingi, Cabinet Secretaries Hassan Ali Joho (Mining) and Salim Mvurya, among other leaders, attended the event.

Governor Mung’aro said that over 3,000 acres of land had been made available to investors, along with a one-stop centre for business permits and business-friendly laws.

The conference is focused on investment opportunities in agriculture, health, manufacturing, the blue economy, tourism, renewable energy, as well as real estate, education, ICT and water and sanitation.

The conference was also attended by Coast region governors Abdulswamad Sharif Nassir (Mombasa) and Fatuma Achani (Kwale).

Ruto promised to collaborate with the Kilifi County Government to improve the business environment, reduce barriers, and position the county as a model for investment and growth.

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