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Government banks on Special Economic Zones to spur growth, create jobs
President William Ruto with Afreximbank chairman Benedict Okey Oramah on September 16, 2025 in Kilifi County during the second day of the ARISE-Kenya Investment Forum 2025.
The government is relying on Special Economic Zones (SEZs) to achieve its goals of industrialising counties and creating jobs.
President William Ruto said the government is committed to increasing industries that add value to local products. This will be achieved through tax incentives, easier access to raw materials and strong investor protections under the law.
President William Ruto (second right) arrives for the second day of the ARISE-Kenya Investment Forum 2025 in Kilifi in this photo taken on September 16, 2025.
He made these comments at the groundbreaking ceremony for the Vipingo Special Economic Zone in Kilifi County, marking a shift that aims to transform Kilifi into an industrial powerhouse.
The industrial project is expected to create jobs, boost farming and attract new industries to the coastal region. It aims to attract investments worth Sh390 billion.
“We are investing in special economic zones as engines of growth to fast-track industrialisation, attract global investors, and create wealth for our people,” he said.
Delegates during the Second day of the ARISE-Kenya Investment Forum 2025 which was officiated by President William Ruto in this photo taken on September 16, 2025.
The project, developed by Centum Investment Company and Arise IIP, is located on 2,000 acres of land within the 10,000-acre Vipingo property. It is designed to be a sustainable business hub with the necessary infrastructure.
“This grand project will also generate more than 35,000 direct jobs and spark thousands more economic opportunities across industries,” said the Head of State.
The President added that his government has enacted laws to attract more investors, including exemptions from excise and import duty, zero-rated VAT, and exemption from stamp duty. Investors will also enjoy corporate tax incentives and be offered preferential rates of 10 percent for the first 10 years, 15 percent for the next 10 years and 30 percent thereafter.
In addition, investors will enjoy a 100 percent allowance on capital expenditure, buildings and machinery, as well as exemption from local government fees, including those for advertising and business services.
Kilifi Governor Gideon Mungaro welcomes President William Ruto for the opening of the ARISE-Kenya Investment Forum 2025 at Vipingo Ridge, Kilifi County on September 16, 2025.
Other incentives include infrastructural advantages such as seamless port-rail-road-air connectivity, reliable utilities, plug-and-play industrial parcels, preferential market access under the African Continental Free Trade Area (AfCFTA), bilateral frameworks with rules of origin pathways, and a skilled, youthful workforce.
Strategically located 42 kilometres from Mombasa, the Vipingo Special Economic Zone offers direct access to major shipping routes, enhancing regional connectivity, particularly with Tanzania. The zone will focus on high-growth sectors such as automotive, pharmaceuticals and agro-processing, providing a favourable environment for industrial expansion.
Centum CEO James Mworia emphasised the project's transformative potential, while ARISE CEO Gagan Gupta highlighted its expansion of the industrial model into East Africa. The project targets companies in the construction, concrete, and material handling sectors.
President William Ruto lays a foundation stone for the Vipingo Special Economic Zone in Kilifi County.
Prof Benedict Oramah, president and chairperson of Afreximbank, which is funding the project, said that the initiative reflects Kenya’s commitment to industrialisation and economic growth and will attract large-scale investment.
“The development will feature both industrial facilities and living spaces, ensuring a well-rounded environment for businesses and workers. Once the Special Economic Zones are developed, Kenya will be among those countries in Africa that will help in exporting raw materials and reduce importation of finished goods,” said Prof Oramah.
Kenneth Chelule, the Special Economic Zones Authority CEO, said that Afreximbank will support three zones – in Naivasha, Dongo Kundu and Vipingo.
