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Government begins relocation and compensation for Dongo Kundu SEZ

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Investment, Trade and Industry Cabinet Secretary Salim Mvurya. Photo cartesy Nipashe biz

The Kenyan government has commenced the process of relocating landowners displaced by the construction of the Dongo Kundu Special Economic Zone (SEZ) in Mombasa and Kwale counties.

Investments Cabinet Secretary Salim Mvurya announced that the Kenya Ports Authority has allocated 1.4 billion shillings to compensate 1,648 landowners, facilitating their transition to new 400-acre plots of land.

The Dongo Kundu SEZ is poised to be a transformative project for Mombasa County, aiming to establish the region as a major logistics hub. With a projected cost of 50 billion shillings, the SEZ is strategically located near the Port of Mombasa, the Standard Gauge Railway, and Moi International Airport. The project is anticipated to be completed by 2026.

In addition to the relocation efforts, Mvurya revealed that 97 investors have shown interest in the Dongo Kundu SEZ, with 60 percent being local and 40 percent foreign investors. The government plans to review the list of investors, with licenses potentially being revoked for those who fail to invest within six months.

Mvurya also highlighted ongoing plans to gazette the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) SEZ. Investors in sectors such as desalination, fish processing, and pharmaceuticals have already expressed interest in the LAPSSET area. The government aims to facilitate business operations in neighboring countries, including Ethiopia, as part of this initiative.

In related developments, updates were provided on the Naivasha SEZ, where out of 19 investors, 11 have been cleared. The government is focusing on unlocking key investments in the area to further drive economic growth.

Overall, the government’s strategic investments in these SEZs underscore its commitment to enhancing Kenya’s logistical and industrial capacities, while also ensuring that affected landowners are adequately compensated and supported during the transition.

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