State in bid to unlock potential of Dongo Kundu SEZ

The government has renewed the push to unlock the potential of the multi-billion shilling Dongo Kundu Special Economic Zone (SEZ) in Mombasa county.

The project is expected to create 100,000 jobs in its first phase.

Only Taifa Gas from Tanzania has set base at Dongo Kundu since October 2019 when former President Uhuru Kenyatta presided over the groundbreaking ceremony of the project.
Speaking after a meeting with the project implementing agencies and political leaders from Mombasa and Kwale counties at the port of Mombasa Monday, Trade Cabinet Secretary Salim Mvurya said that 97 investors are expected to invest at the SEZ.

Mvurya revealed that an automotive assembly firm, a pharmaceutical firm and blue economy company have completed all procedures and are ready to move to the ground.
“We have 97 applications and three investors are ready to move to the ground,” he said.

But political leaders took issue with the government for secretly dishing out land to investors and called for transparency in the allocation.

Mombasa Senator Mohamed Faki said they were concerned that the government allocated huge chunks of land to Taifa Gas without consulting residents.

Faki noted that other investors now have to compete for 2000 acres out of 3000 acres owned by Kenya Ports Authority (KPA).

“Taifa Gas land was allocated secretly and what is remaining is 2000 acres,” he said, adding that a foreign bank has applied for 500 acres.

He said some firms may be allocated land for speculation unless that process was made more transparent.

Mvurya assured that going forward, the government will consult leaders and residents on the Dongo Kundu project.

“Going forward, we will have consultative forums and committees to address emerging challenges,” he said.

Mvurya however admitted that only Taifa Gas was setting up business at Dongo Kundu after getting land while the others were waiting to get space.

The CS said potential investors who get land at the SEZs but fail to establish businesses will lose the parcels after six months.

Mvurya admitted that the government has faced challenges with the compensation of the Project Affected Persons (PAPs) to free the 3,000 acre land for investors.

The CS said KPA begun the compensation of 1648 PAPs last week and is set to complete the exercise in the next one month.

He said squatters will be settled on 430 acres to pave way for investors at the SEZ.

“It is important to note that this has been holding development in that area. We need to have roads, water and power in that area,” he said.

Mvurya said universities will be brought on board to address critical skills that Kenyans need to benefit from jobs at the Dongo Kundu SEZ.

“We need skills for Kenyans to benefit from Dongo Kundu investments and hence will bring our universities on board,” Mvurya said.

Mvurya was accompanied by Investment Promotion Principal Secretary Hassan Abubakar, KPA chairman Benjamin Tayari and Managing Director William Ruto.

Also present were MPs Gonzi Rai (Kinango), Omar Mwinyi (Changamwe), Rashid Bedzimba (Kisauni), Mangale Chiforomodo (Lunga Lunga), Owen Baya (Kilifi North), Kwale Senator Issa Juma, Kwale Women Represnetative, Fatuma Masito and Kwale deputy governor Chirema Kombo.