Project News

Japan, Kenya Sign Sh5bn Deal for Mombasa SEZ Project

Phase one of the Mombasa Special Economic Zone to begin in July.

Updated on

June 24, 2022

Mombasa port — An official supervises cargo handling at Mombasa Port. PHOTO | FILE

The much-awaited implementation of the Mombasa Special Economic Zone is set to kick off next month following the signing of a Sh5.23 billion grant aid agreement for the execution of phase one of the project in Dongo Kundu area.

According to the Japan International Cooperation Agency (Jica), the money will be used to improve water supply facilities, rainwater drainage channels, and land situated within the Mombasa Special Economic Zone Development Master Plan that is formulated with the cooperation of the agency.

“This project is expected to increase private investment and promote logistics in Africa, and will contribute to the achievement of SDGs (Sustainable Development Goals) Goal 8 (Decent work and economic growth),” Jica said in a press statement.

30 months

The Kenya Ports Authority (KPA) acting managing director John Mwangemi and Jica officials led by Naota Mukai signed the deal earlier this month, marking the start of the project that will be completed in 30 months.

Mr Mwangemi said the project will, among other things, include construction of new road infrastructure and linking of the standard gauge railway to the port of Mombasa to improve transportation of cargo to and from the harbour.

KPA is the executing agency for the Mombasa Special Economic Zone, which is also known as the Dongo Kundu Special Economic Zone.

Concessional loan

The Mombasa Special Economic Zone (SEZ) Development project will be implemented with funding from Jica – structured as a Sh6.6 billion grant and a Sh5.5 billion concessional loan that is payable in 30 years.

The project will include the creation of a free trade zone, a free port, logistics centre, and a super industrial zone where large freight companies will be allocated land to set up yards.