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Dongo Kundu industrial hub will be investor ready by July — Kuria

 Dongo Kundu industrial hub will be investor ready by July — Kuria

Ministry of Trade Cabinet Secretary Moses Kuria during a briefing following a multi-agency meeting this afternoon with Mombasa County government chiefs where they settled on a groundwork solution for the Dongo Kundu Special Economic Zone.

The Special Economic Zone (SEZ) being set up in Mombasa’s Dongo Kundu area will be ready for investor entry a year and a half earlier than formerly anticipated as the government races to wind up a project vital to Kenya’s economic development in President William Ruto’s first term in office.

In a Twitter update on Monday, Trade Cabinet Secretary Moses Kuria noted: “The Dongo Kundu Special Economic Zone will be operational as of July 1st 2023 instead of earlier reports of December 2024.”

Yesterday, the cabinet secretary chaired a Technical Coordination Committee meeting at the Kenya Ports Authority headquarters comprising project partners and stakeholders to expedite the operationalization of the 3,000-acre flagship project in the next five months.

CS Kuria outlined several key initiatives being undertaken by the government to make the site investor ready, including a resettlement action plan for locals affected by the project as well as demarcation and titling of land for lease to investors.

Also, auxiliary infrastructure to prop up the SEZ including the Dongo Kundu Bypass, the zone’s administration building, Dongo Kundu Berth 1 and Port Access Road should be done before July according to Mr Kuria.

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The State Department for Investment Promotion under the Ministry of Industrialization, Trade and Investment will undertake local, regional and international promotions to attract and facilitate early investor entry into the Dongo Kundu SEZ.

The SEZ is set to transform Mombasa into a manufacturing hub presenting opportunities for investment in value addition to activate the Kenyan economy from the dormancy of exporting primary goods, and thrust it into the realm of exporting better-earning intermediate and finished goods.

To enhance the zone’s appeal to domestic and foreign investors and attract more Foreign Direct Investment into the country, Dongo Kundu will operate under a more lenient tax regime.

According to the updated SEZ regulations (2019), companies stationed in the zone will not be subject to Value Added Tax (VAT). Additionally, these businesses will also enjoy lower corporate taxes capped at 10 percent instead of 30 percent for the first 10 years.

newsroom@maudhui.co.ke

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