Kenya: Inside Kenya's SEZ Strategy - Are Dongo Kundu, Naivasha and Tatu City Delivering?

What the report says

Capital FM, carried by AllAfrica, reports that Kenya’s Special Economic Zones strategy is under scrutiny nearly a decade after the SEZ law took effect, as manufacturing remains below the Vision 2030 target of 10% of GDP. Citing Kenya National Bureau of Statistics data, the report says manufacturing fell to 7.1% of GDP in 2025 from 7.3% in 2024, despite wider economic growth. The National Investment Strategy 2024-2028 put realized SEZ investment at about US$960.7 million by early 2024, with 4,392 jobs created against an earlier projection of 26,000.

The report focuses on Dongo Kundu, Naivasha and Tatu City. Dongo Kundu, near the Port of Mombasa and key transport corridors, is intended as a maritime-linked industrial hub, but implementation has been slowed by issues including land, compensation and financing. The government signed lease agreements with Afreximbank in February 2025 to help mobilize about US$1 billion for infrastructure at Dongo Kundu and Naivasha. Reported activity includes land applications to the Kenya Ports Authority, Afreximbank’s planned industrial park, Taifa Gas’ LPG terminal and a proposed Ruike Energy oil refinery.

Naivasha’s SEZ is positioned around inland logistics, the Standard Gauge Railway and geothermal power from Olkaria. Capital FM reports that a dedicated substation is meant to support low-cost electricity for manufacturers, while investor commitments now cover sectors including agro-processing, electric vehicle assembly, packaging, glass, logistics and energy equipment. However, the report notes limited consolidated public data on realized investment and jobs.

Tatu City is presented as a private-sector benchmark, with infrastructure developed ahead of demand. The report says the Nairobi-area zone hosts about 88 companies operational or under development, more than 25,000 jobs and investment above Sh400 billion, underscoring the importance of execution, infrastructure and logistics in turning SEZ plans into industrial output.