The Ministry of Agriculture has revealed plans to gazette Galana Kalalu as a Special Economic Zone (SEZ), a move that is aimed at boosting the country's agricultural potential.
Agriculture Cabinet Secretary Mutahi Kagwe said that this will be fundamental in providing favourable investment avenues for both foreign and domestic agricultural investors, and promoting large-scale production of edible oils, cereals, horticulture, livestock and industrial crops.
A SEZ is a designated geographical area that operates under different economic rules and offers specific incentives to attract investment.
These zones provide a business-friendly environment, offering benefits such as tax exemptions, customs duty waivers and relaxed foreign ownership regulations, all aimed at promoting industrialization, boosting exports and creating jobs.
Galana Kalalu is a 1.8 million-acre irrigation project located in the coastal region of Kenya, spanning across the Kilifi and Tana River counties. The project's primary objective is to improve food security through large-scale commercial farming.
"CS Kagwe said the move to designate Galana Kulalu as an SEZ will offer strong investment incentives, attract global agribusiness players, and fast-track value addition in cash crops," the Ministry of Agriculture said, in a statement on Tuesday, December 2.
"The SEZ status will also enable tax benefits, simplified regulatory approvals, and enhanced infrastructure support for investors working within the expansive block," it added.
Kagwe further noted that the government is in the process of expanding the Land Commercialization Initiative (LCI) to include land in counties, prison farms and other government institutions, to ensure that all idle public land is utilised for national food security.
“Kenya cannot afford idle land while we are importing food. All counties must bring forward land that can be productive, and we will partner with private investors to unlock its full value,” Kagwe said.
To eliminate delays in agricultural investment, the ministry has also established a one-stop LCI office, which will handle all approval processes for agricultural investment is public land.
According to the CS, the LCI office will enable investors to acquire land for agricultural investment within a month.
"Through this mechanism, CS Kagwe confirmed that investors will be able to acquire land for agricultural ventures within a month, a move expected to dramatically increase Kenya’s competitiveness as an agri-investment destination," the statement read.
