The Naivasha Special Economic zone has bagged the first of major investment deals from a Turkish industrial group.
Turkish Industry Holdings will set up six factories that will employ 2,800 Kenyans at a total investment of $760 million (Sh90 billion).
According to the vice president of the Turkish conglomerate, Abdulhakim Alici, the factories are earmarked for the manufacture of ceramics and granite tiles, sanitary towels, toilet paper and towel napkins, MDF and parquet tiles, iron and aluminum profile manufacturing.
"Our investment cost $760 million and will take place in an open area of 1,3500,000 m2 and a closed area of 385,000 m2. It will include six factories, administration buildings, auxiliary businesses anda technical school," he said.
He also said the factory will directly employ 2,860 people with an additional 45,000 benefiting indirectly.
"It is estimated that our investment will add $550 million in economic value to the Kenyan economy annually."
The Turkish industrial group has tapped Kenyan-based entrepreneur Mr Mwaniki Munuhe to the position of Vice President of Turkish Ceramic, Granite and Tiles SEZ Project.
"Mr Munuhe is the first African to be appointed to this position in our corporation’s history. He has been an important part of our journey to Kenya and will henceforth lead the work that is ahead of us in Africa. We have full confidence that Mr Munuhe is more than equal to the task that we are bestowing on him today," said Mr Alici.
Meanwhile, President Uhuru Kenyatta has welcomed the entry of Turkish group saying it will boost investments and grow jobs.
“Through this ground-breaking ceremony for six factories driven by new innovation and technology, we are now on the cusp of a true industrial take-off. A single aggregate investment of Sh90 billion is set to usher in a new era of accelerated economic development; characterized by greater visibility of the magical tag, Made-in-Kenya,” President Kenyatta said.
The President added that once the construction of the factories at the Naivasha SEZ is completed, Kenya will dramatically increase her industrial export profile by taking to international markets high quality and competitively priced products.
Domestically, President Kenyatta said the factories will create thousands of direct and indirect jobs and provide dignity, pride and a better future for millions of Kenyans.
Observers have raised concerns that Kenya is falling behind other countries in the region like Ethiopia and Rwanda in winning investment from companies moving supply chains out of China to escape higher tariffs amid the US-China trade war, despite it being East Africa’s largest economy.
Local and foreign investors have been seeking licences to put up 100 SEZs, the ministry said. The ministry earlier said the applications are being scrutinised, with priority given to those eyeing production with locally produced raw materials.
In July 2019, the government designated 9,000 acres of land in Naivasha, Mombasa and Machakos as SEZs in efforts to boost manufacturing.
Then Trade and Industrialisation Cabinet Secretary Peter Munya gazetted the zones meaning they enjoy special tax and infrastructure that facilitate a wide range of activities such as storage, export and re-export.
The zones are normally popular with multinational corporations that set up factories to produce goods such as textiles.
In building such zones, Kenya will join others such as Dubai whose economy rides on goods distributed to other parts of the world.
