Murang'a County moots plan to put up industrial city to rival Nairobi

Kenol town in Murang'a, near the Kenol-Marua dual carriageway. [File, Standard]

Murang’a County is set to build an industrial city on tracts of land that Delmonte Kenya ceded to the Murang'a County Government, based on the proposed development activities across the 1,400 acres of land.

Through the establishment of Murang’a Industrial Park, the local county government seeks to create a city larger than Nairobi, which is 350 acres, with more than Sh 120 million raised from activities to provide additional revenue for county programmes and infrastructure development.

Governor Irungu Kang'ata, addressing investors and envoys in Nairobi, said with expected funding from development partners, Murang’a is poised to have a bigger city that will offload tens of industries from Nairobi.

Five months ago, 44 allotment letters for 99-year leases were issued to investors, most of whom began constructing industrial and warehouse facilities.

“To achieve the ambitious goal, we are attracting local and foreign investors to set up business enterprises in Murang'a and boost industrial activity. The enterprises will create employment for more than 20,000 people, which will be a major boost to the local community,” said Kang’ata.

The county is leasing land to manufacturers to revitalise the county’s economic structures at Sh7 million, against the projected value of the land at Sh35 million per acre.

In the administration of the land, EPZ would get 50 acres, Murang’a MediCity 75 acres, Light, Medium and Heavy Industries 276 acres, Technology and Innovation Hub 23 acres, Commercial Hub 43 acres, Stadium 10 acres and Recreational Area 57 acres.

Other allocations include a modern market 2.6 acres, bus station three acres, schools and colleges 16 acres, housing (12 acres, Affordable Housing 22 acres and infrastructure- roads, Sewer, Water, Internet, and power (134 acres).

Under the proposed arrangement, the county government will receive 10 per cent of corporate tax for the first 10 years of the firms' operations. The share will then increase to 15 per cent for the next 10 years and then rise to 30 per cent in subsequent years.

The Murang’a County Assembly is, in the meantime, considering a bill to establish an autonomous authority to manage the industrial park.

Should it get the assembly's nod, the proposed authority would also help create investment incentives specifically for businesses operating in the county.