The government is calling on local and international investors to establish manufacturing industries in the country by taking advantage of existing infrastructure and investment incentives to boost local production and create employment opportunities.

Acting Secretary at the State Department for Investment and Promotion Stephen Odua said the government had introduced incentives to encourage investors to process locally available raw materials into finished products rather than exporting them in their raw form.

Odua said equipment imported into the country for value addition had been zero-rated to lower the cost of establishing manufacturing industries and promote local production.

“We have also come up with a policy that we will be procuring as a priority what has been locally manufactured,” he said.

Speaking during the Vipingo Export Processing Zone investment roundtable forum organised by ARISE Kenya in Kilifi County, Odua said the government was also improving infrastructure and the business environment to create a conducive environment for investment.

He urged local and international investors to take advantage of the facilities at Vipingo Export Processing Zone (EPZ) to establish manufacturing plants and expand their operations.

“Our running call to investors is to take up opportunities such as the one Vipingo is giving here, with world-class infrastructure, to come up and set up their manufacturing bases in the country,” he said.

Odua noted that Kenya had a large pool of skilled young people but faced challenges in providing adequate employment opportunities, adding that increased investment in manufacturing would help bridge the gap through job creation.

Vipingo EPZ Project Director George Olaka who is also the CEO ARISE Kenya said the facility would open up opportunities for small and medium-sized enterprises (SMEs) seeking to venture into export trade and expand their businesses.

He said the project would provide a platform for both established companies and emerging enterprises to access export opportunities.

“The bigger issue is not just taking care of what is available, but opening up the space to SMEs that want to export and companies that want to expand,” said Olaka.

The project is expected to create about 50,000 direct jobs and support up to 250,000 additional jobs through related economic activities in agriculture, transport, logistics and other support services once fully operational.

Kenya National Chamber of Commerce and Industry (KNCCI) Mombasa Chapter Director Hasnain Meghji said the EPZ would provide local enterprises with an opportunity to link up with international investors, expand their operations and access export markets.

He said incentives targeting manufacturers, including tax benefits and affordable electricity, would make the facility attractive to investors.

“The incentives, the tax benefits and the rate of power that will be available to investors and manufacturers setting up here are going to be a game changer, especially for the export market,” said Meghji.

The Vipingo Export Processing Zone is located approximately 45 kilometres from the Port of Mombasa and has essential infrastructure in place to support manufacturing and export activities, offering investors a ready platform to establish and expand their businesses.

By Queen Wanzia and Stephen Mrira