The Government of Kenya has confirmed that it set aside Ksh1.4 billion to compensate 1,648 persons affected by the Dongo Kundu Special Economic Zone in Mombasa and Kwale counties.
The project occupies approximately 3,000 acres and is adjacent to the Port of Mombasa, Standard Gauge Railway (SGR) and Moi international airport with the adjacent Southern Bypass Road making it a highly competitive venue for logistical considerations.
The project is being implemented by Kenya Ports Authority (KPA) and funded by the Japan International Cooperation Agency which developed the project masterplan.
The 1,648 affected persons of Dongo Kundu, Mwangala, Mrongondoni, Kaya Mtongwe, Mbuta and Siji villages will be relocated on 357 acres of land to pave the way for the project.
Confirming the verification of beneficiaries listed by Kenya Ports Authority, Cabinet Secretary for Trade and Industry, Hon. Salim Mvurya, affirmed that the relevant stakeholders will work together to unlock all bottlenecks to ensure the project comes to fruition.
97 Investors have declared interest in the project as per government communique, with 60% being local investors. Key industries such as energy, pharmaceuticals and glass manufacturing are expected to establish premises in the zone.
The CS cracked the whip on dormant investors who are hoarding licences within the SEZ warning that the Special Economic Zones Authority will be reviewing the list of investors with possibility of revoking licences.
CS Mvurya held a harmonisation meeting with the top brass at Kenya Ports Authority led by its Chair Benjamin Tayari, LAPPSET boss Ali Mbogo and Special Economic Zone Authority don Fredrick Mutete.
JICA issued a loan scheme for the project during President Ruto's trip to Japan in March 2024. The concessional loan of Ksh50 billion is payable to 30 years.
Earlier in the year, parliamentarians turned up the heat on Kenya Ports Authority (KPA) over the speed of implementation of the seaside birth to the project.
Further, President Ruto asked the ministry to ratify the names of all beneficiaries afresh delaying the compensation schedule further.
In the country’s economic blueprint Kenya Vision 2030, the creation of Special Economic Zones in Mombasa, Lamu and Kisumu were identified as part of economic drivers to the economic pillar.
The Dongo Kundu area was identified as ideal for the development of the Mombasa Special Economic Zone.
