President William Ruto has put the Sh12.954 billion Mombasa Special Economic Zone on a six-month deadline, directing project partners to fast-track construction and prepare the site for investors, factories and thousands of jobs.
The President said the industrial zone should become a key part of Mombasa's economic transformation by expanding manufacturing, processing, storage, logistics and export activities.
Ruto spoke on Tuesday after the signing of a tripartite agreement between the County Government of Mombasa, Mombasa Free Zone Ltd and DP World.
The project, which is valued at more than US$100 million (Sh12.954 billion), is being developed with the involvement of Gulfcap Group, chaired by businessman Suleiman Shahbal.
Located on a 535-acre site in Jomvu Sub-County, the zone is expected to accommodate 67 companies involved in manufacturing, warehousing, assembly, processing and other businesses targeting local and export markets.
Ruto said the government wanted to attract investors who would contribute to the country's economy through capital, technology, skills, jobs and stronger local businesses.
“Our economic policy is clear; Kenya is open for business. We welcome investors prepared to conduct legitimate and transparent business; investors who bring productive capital, transfer technology, develop skills, strengthen local suppliers, create decent jobs, and expand opportunity while earning a fair return on their investment," he said.
The President said the project would also help tackle a long-standing problem where Kenya exports raw materials and later buys back finished goods at higher prices.
“For too long, Kenya and Africa have exported raw and minimally processed commodities, only to import them later as expensive finished products. In doing so, we export not only our raw materials, but also the jobs, skills, industries, and enterprises embedded in their processing and commercialisation," he said.
Ruto said Kenya's focus should now be on adding value to products locally before they reach international markets.
“Our policy is to reverse this pattern by processing more of what we grow, manufacturing more of what we consume, and exporting more competitive, finished Kenyan products. We will continue to trade with the world, but increasingly, what leaves our shores must carry Kenyan value, Kenyan enterprise, and Kenyan labour."
He said Mombasa had the right conditions to support a large industrial and logistics centre because of its access to the Indian Ocean, the Port of Mombasa and the Northern Corridor.
Companies based at the SEZ will also have access to Kenya's domestic market and wider regional markets, including the East African Community and COMESA, as well as opportunities created by the African Continental Free Trade Area.
The government plans to support the project by putting in place infrastructure needed to make the zone ready for business. This includes roads, power, water, railway connections and logistics facilities.
Ruto pointed to the Dongo Kundu Bypass as one of the projects that had improved movement between Mombasa, the airport and the South Coast.
He also said completion of Mwache Dam would improve water security in Mombasa and Kwale counties.
“Through the National Infrastructure Fund, my administration is establishing a durable mechanism for financing strategic roads, power, water, rail, and logistics infrastructure. Our intention is clear; investors must find serviced locations ready for investment and operation, not industrial zones that exist only on paper," he said.
Mombasa Governor Abdullswamad Sheriff Nassir, President William Ruto, businessman Suleiman Shahbal after the signing of a tripartite agreement between the County Government of Mombasa, Mombasa Free Zone Ltd and DP World at State House, Nairobi on September 8, 2026.
PHOTO/PCS
The President said the economic benefits of the SEZ should spread beyond companies setting up inside the industrial park.
He said farmers would get opportunities to supply businesses, while transporters, contractors and small and medium-sized enterprises would also benefit from the expected increase in economic activity.
The wider development is projected to create tens of thousands of direct and indirect jobs, including 7,972 direct positions.
Ruto said young people at the Coast should be among the main beneficiaries, with opportunities expected in engineering, technical services, logistics, manufacturing and entrepreneurship.
“Our young people must not stand outside the gates of industrial transformation. They must design it, build it, operate it, and prosper from it," he said.
The President also welcomed the participation of DP World, citing its experience in ports, logistics and connecting businesses to markets.
He said the company's involvement would help the Mombasa zone compete for investment at the international level.
Ruto also acknowledged Mombasa Free Zone Ltd for developing the project and the County Government of Mombasa for making the land available and supporting planning and community participation.
The land, which covers 535 acres, was previously used by the Kenya Meat Commission as a cattle staging ground.
Ruto further said the government was working to bring together the Export Processing Zones and Special Economic Zones programmes in a bid to improve coordination and make it easier for investors to establish and run businesses.
With the tripartite agreement now signed, the President called on all parties involved to move without delay into the implementation phase and meet the six-month deadline for completing the project.