• Nairobi Gate Industrial Park has announced the launch of a new phase following the success of its fourth phase
• The Special Economic Zone (SEZ) has invested over Sh603 billion in its expansion to include agribusiness industries.
• The first phase of the Nairobi Gate Industrial Park has created over 400 permanent jobs for Kenyans after occupying 90% of businesses

Nairobi Gate Industrial Park SEZ has announced an investment of over KSh903 billion in its fifth phase.

The $7 million (KSh903.4 million, based on current exchange rate) investment aims to strengthen Kenya’s light manufacturing industries, including the agro-processing, textile and garment sectors , while expand the park customs control area (CCA).

The new phase of the Nairobi Gate Industrial Park

The new phase will include 130,000 square feet of modular warehouse units designed to accommodate local and international businesses.

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This is designed to strengthen the park’s capacity to meet the growing demands of industries including pharmaceutical, third party logistics, exporters, importers, distribution and textile and clothing industries.

These companies are poised to benefit from the financial and operational benefits offered by the Special Economic Zones (SEZ) framework, which streamlines customs processes and offers significant tax incentives.

The Mara Phase builds on the success of Phase 4, launched last year in November 2023 by the Hon. Abubakar Hassan.

Phase 4 achieved 90% occupancy, with 17 businesses operating at Nairobi Gate. Eight of them are SEZ companies benefiting from both tax and non-tax incentives offered under the SEZ program.

“Improvon has always believed in the potential of the Kenyan market. We are excited to continue our journey with this investment, which further positions Nairobi Gate as a key industrial hub not only for Kenya, but for the entire region,” said Dean Shillaw, Managing Director of Nairobi Gate Industrial Park.

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What you need to know about Nairobi Gate

Spanning 103 acres along the Nairobi Eastern Bypass, Nairobi Gate has developed approximately 23% of its site to date.

The park currently offers over 550,000 square feet of world-class warehousing and logistics facilities, serving sectors such as pharmaceuticals, chemicals, FMCG, cold chain storage, SEZ companies, exporters and humanitarian organizations such as the Red Cross.

This development has already generated 434 permanent employees jobscontributing significantly to local employment.

“To date, Nairobi Gate represents an investment of $40 million, with a planned total of $160 million by 2040. This demonstrates Improvon’s commitment to industrial growth in sub-Saharan Africa. Our facilities have the potential to reshape the way businesses operate in SEZs and provide critical support for the region’s economic development,” added Shillaw.

Developed by Impact North, a collaboration between South African real estate investment group Improvon and private equity investor Actis, Nairobi Gate Industrial Park is positioned to play a crucial role in Kenya’s manufacturing and logistics sectors, attracting more foreign direct investment (FDI), particularly for massive infrastructure projects.

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Nairobi Gate’s proximity to major logistics hubs including Jomo Kenyatta International Airport (JKIA), Inland Container Depot (ICD) and Standard gauge railway (SGR), makes it a preferred location for companies engaged in cross-border trade.

SEZ designation offers tenants numerous financial and non-financial benefits, including reductions in the corporate tax rate (from 10% to 30%), zero-rated VAT, reduced withholding taxes, tax preferential imports, excise duty exemptions, investment deductions and recent preferential benefits. electricity prices.

Government industrial park plan

As part of Kenya’s Vision 2030 and the broader AfCFTA objectives, Nairobi Gate Industrial Park provides the infrastructure for businesses to thrive in regional and global markets.

With land and capital available, the park will also meet the growing demand for dedicated and sustainable textile parks, specifically designed for companies operating in SEZs.

He is part of President William Ruto’s initiative to create industrial parks in the county’s 47 counties.

Proofread by Mercy Nyambura Guthua, journalist and editor at TUKO.co.ke

Source: TUKO.co.ke