Govt commences compensation for Dongo Kundu project-affected persons

Trade and Industry CS Salim Mvurya with Kenya Ports Authority Board Chairman Benjamin Tayari addressing the press in Nairobi. [Boniface Okendo, Standard]

The government has commenced compensation for Dongo Kundu project-affected persons in Mombasa and Kwale counties.

Trade and Industry Cabinet Secretary Salim Mvurya announced on Monday, August 26 that the exercise will cost the government a total of Sh1.4b

"The compensation process is set to commence this week, as part of the government's commitment to ensuring the smooth implementation of the Dongo Kundu SEZ project," Mvurya told the press.

According to the CS, 400 acres of land have been allocated for the resettlement of the affected persons, ensuring that their livelihoods are safeguarded.

97 Investors have so far expressed interest in setting up operations within the 3,000-acre SEZ, 60% of whom are local investors while 40% are international investors. 

Key sectors such as energy, pharmaceuticals, and glass manufacturing are among the industries expected to establish premises 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," Mvurya added.

Already, investors in the Desalination, Fish Processing, and pharmaceutical sectors have expressed interest as the government aims to accelerate efforts to heighten investment and business activities in the region.

At the same time, the CS further reiterated the government’s stand against dormant investors who are hoarding licenses within the SEZs. He warned that the Special Economic Zones Authority (SEZA) will be reviewing 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 If not, the licenses will be repealed by the Authority,” he said.

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The Cabinet Secretary was speaking after a harmonization meeting with the leaderships of Kenya Ports Authority led by its Chair Benjamin Tayari, LAPPSET led by its Chair Ali Mbogo, and Special Economic Zones Authority led by its Chair Fredrick Mutete.