Two Rivers special economic zone eyes tech, service firms

An aerial view of Two Rivers Mall. [File, Standard]

Listed Centum Investments is targeting technology and service companies to set up at Two Rivers Financial and Innovation Centre (TRIFIC) following its gazettement as a private special economic zone (SEZ).

The 64-acre area is expected to house technology firms that seek to relocate from Asian countries and business process outsourcing (BPO) which will benefit from the Kenyan labour force.

Centum chief executive James Mworia noted that the location is ideal adding that, unlike other SEZs, Two Rivers already has developments and the necessary amenities.

Dr Mworia said the position of Two Rivers is an ideal zone for the establishment of enterprises that are seeking to tap into the global services market. And those that set up will be able to enjoy the incentives that come with SEZ.

"In the Philippines, the BPO industry employs 1.2 million people and it largely employs graduates. We have more than a million graduates every year," he said.

"There is also a trend globally because of the decline of population, there is a shortage of skills a lot of jobs are being offshored."

Mworia said Kenya has the advantage of being an English-speaking market.

"The advantage of BPO is that you have the chance of creating jobs that were not there before," said Dr Mworia.

This will then grow the payroll taxes, a major revenue for the government.

TRIFIC provides competitive incentives for enterprises to set up including business-friendly enabling policies and facilitation services, an attractive and competitive fiscal regime, among others. They'll also receive multiple tax exemptions and incentives on things like dividend repatriation, foreign inflows, Value Added Tax (VAT) and stamp duty, among others.

Businesses that set up at the SEZ would still be able to benefit from regional treaties like the East Africa Community and African Continental Free Trade Area Agreement (AfCTA).

Targeted firms include global, regional, and Kenyan service-oriented business enterprises seeking a base to access international markets competitively. These are firms in service sectors including banking and financial services, fintech and BPOs.

The SEZ covers 64 acres of the total Two River's 106 acres. Two Rivers Land Company will be the designated developer in TRIFIC.

Development bulk

"We can develop 1.2 million square metres of development bulk and so you have offtake for that and ultimately whether you are renting or selling, these products will probably find themselves in the market in the form of income REITS," said Mworia.

"We have only developed 20 per cent of the total approved development. What has been approved for use as SEZ for services is 64 acres of the 106."

Two Rivers is renowned for the Two Rivers Mall. The SEZ, however, does not cover the mall area but the North Tower.

A snapshot of how TRIFIC will look has in place a five-star hotel, a world convention centre and a hospital.

Businesses that seek to set up in the centre, according to published requirements, must have the financial capacity and technical expertise to carry out the SEZ proposed operations.

They must also own or lease land or premise within the SEZ and the company's operations must provide employment opportunities for local residents. The push for Environmental, social and governance (ESG) conscious companies setting up at TRIFIC is in addition to what Centum is doing through Centum Foundation which includes installing solar energy now at 1.2 MW that is said to have reduced carbon dioxide emissions by 535 tonnes per annum.

Trade Cabinet Secretary Moses Kuria said the TRIFIC will serve as a magnet for global investment, riding on Kenya's human capital resources, advanced digital infrastructure and attractive incentives available within the SEZ.

"This significant milestone not only solidifies Kenya's position as a hub for global investment but also as a global talent hub that generates a multitude of employment opportunities for our skilled workforce that can address the skill and talent shortage currently being faced by the developed world," said the CS.