Gov't to revoke SEZ licenses if Investors fail to commence operations within one year

Speaking on Wednesday during the foundation stone laying ceremony for Crystal Frozen and Chilled Foods Limited's SEZ in Naivasha, Cabinet Secretary for Investments, Trade, and Industry Salim Mvurya, emphasized the government’s commitment to ensuring prompt investment and development within these zones.

CS Mvurya directed the Special Economic Zones Authority to strictly enforce this directive, making it clear that investors must establish their presence on the ground within six months or risk losing their licenses.

“We are giving every investor six months to report to the ground, and if they don’t, we will move on to the next person,” he warned.

At the Naivasha SEZ, 19 companies have expressed interest in setting up operations, with 11 already granted licenses. The CS attributed this progress to the government's ongoing efforts to streamline the business process and urged investors to take advantage of the available incentives.

Additionally, CS Mvurya highlighted the importance of collaboration between investors and local communities. He emphasized that employment opportunities should be prioritized for local residents, and the process must be structured to ensure full representation from the grassroots level.

The CS also addressed past issues, such as a Turkish investor who had failed to pay local youth employed at his facility. Mvurya assured that the government is working with the Turkish Embassy to ensure the outstanding dues are paid.

The upcoming Crystal Frozen and Chilled Foods Limited facility, which will focus on producing frozen fries and vegetables, represents a significant advancement in Kenya’s agro-processing sector. 

Expected to produce at least 13.8 tons of vegetables, this development will contribute to meeting the high demand in the hospitality industry, which requires up to 1 million kilograms of produce. This initiative is set to bolster food security and significantly contribute to Kenya’s agricultural value chain.