Delay in allocating Dongo Kundu SEZ land raises questions
A tunnel along the Dongo Kundu Bypass.
The delay in allocating 3000 acres of Dongo Kundu Special Economic Zone land for development despite an offer in February last year continues to raise more questions as allegations of land grabbing by senior government officials and some business people emerge.
The process coupled with the delay in relocating more than 1,648 residents from Dongo Kundu, Mwangala, Mrongondoni, Kaya Mtongwe, Mbuta and Siji villages will be resettled on a 357-acre of land to pave the way for the project has since affected investors with only three companies confirmed to have moved in the area to develop it.
Unlike in Naivasha where five international companies are already on the site with 16 others already confirming plans to invest in different projects, Mombasa SEZ continues to drag its feet despite Kenya Ports Authority (KPA) giving an offer in January last year calling private companies wishing to lease the land.
Despite hundreds of developing interests, the authority is yet to make public companies which it leased with Mombasa Women Representative ZamZam Mohamed writing to different government officials including KPA to share details.
In a letter dated 1st August 2024, the MP requested KPA to share details on the applications received and those approved by the authority’s board of directors and if any communication/acknowledgement letters were made to individuals who have requested a lease of Dongo Kundu land.
“As a follow-up on the information provided, I shall be glad to receive further information in your records on the number of requests for leasing land from private entities that KPA has received since the inception of the Dongo Kundu project to date. Kindly share any communication with those companies,” said Ms ZamZam.
The Mombasa legislator also wants information on whether the authority had received any payment from individuals for the lease of land in Dongo Kundu and if so provide detailed records of such payment.
“Noting that article 227 of the Constitution of Kenya (2010) directs that public procurement should be undertaken ‘in accordance with a system that is fair, equitable transparent, competitive and cost-effective,’ has there been total compliance with the law in any of the approvals given for leasing land in Dongo Kundu that reason am requesting for information,” said the legislator.
On the request, KPA has maintained that all procedures are being followed and soon squatters will be relocated to pave the way for the development of the SEZ.
In an earlier interview, KPA Managing Director Captain William Ruto said they have received many applications from investors eager to establish businesses at the SEZ, and he encourages more investors to join.
"The government's directive is for the zone to be operational. While we are slightly behind, we have addressed all issues hindering progress," Captain Ruto stated.
The Dongo Kundu SEZ is being developed on 3,000-acre land and will comprise a free port, industrial parks, free trade zones, logistics and warehousing, energy project areas, tourism, and MICE among other developments.
Last month, Japan agreed to pump Sh260 billion into the development of the project’s infrastructure ecosystem, and the Mombasa Gateway Bridge
This is part of the financial agreements worth Sh350 billion signed during President Ruto’s visit to Japan early this month
According to the finance proposal, the whole project will be under a Jica loan scheme structured as a Sh6 billion grant and a Sh50 billion concessional loan payable within 30 years
The project is part of Kenya’s industrialization plan, boosted by the revised draft SEZ Regulations (2019), which offer incentives to companies operating in the zone
Incentives covered in the new regulations include exemption from VAT; corporate tax reduced from 30 per cent to 10 per cent for the first 10 years, and 15 per cent for the next 10; exemption from taxes and duties; and county-level advertisement and license fees.
