Kenya’s Special Economic Zones create 7,000 jobs, contribute Sh91b to GDP

JOSEPH NG’ANG’A-KNA

Special Economic Zones (SEZs) in Kenya have significantly contributed to the country’s economic growth, creating over 7,000 direct jobs, including 3,000 jobs in the past 12 months alone.

The zones have also contributed approximately Sh91 billion to Kenya’s Gross Domestic Product (GDP), demonstrating the critical role SEZs play in the nation’s economic development, said Dr. Juma Mukhwana, the Principal Secretary for the State Department of Industry.

The impressive results are largely attributed to the incentives provided to investors by the government, which has created a conducive environment for growth and development within these zones, he added.

He observed that the government’s initiatives are designed to maximize the potential of SEZs, further driving employment and economic output.

Speaking at the opening of the ninth African Special Economic Zone Organization (AEZO) Annual Meeting at the Kenyatta International Conference Centre (KICC), Dr. Mukhwana emphasized the government’s commitment to ensuring SEZs achieve their full potential.

“We are working around the clock to ensure that Special Economic Zones succeed in this country, with the help of the Special Economic Zones Authority. We understand the immense potential these economic zones hold for job creation and their contribution to Kenya’s revenue and GDP,” Dr. Mukhwana said. 

The annual meeting, which gathers SEZs from across the African continent, serves as a platform to exchange success stories, identify challenges, and promote greater collaboration among African countries.

One key discussion point at this year’s meeting was the harmonization of operations across borders. Dr. Mukhwana also highlighted Kenya’s leadership on issues such as minimum wage standards, urging other African nations to align their minimum wage policies to create a more competitive environment for investment.

“Kenya has been ahead of many African countries in setting minimum wage standards. While this is an achievement, it sometimes positions Kenya as a more expensive investment destination. We encourage other African countries to also set minimum wage benchmarks to ensure a level playing field for all,” he added.

He said Special Economic Zones play a pivotal role in supporting small and medium-sized enterprises (SMEs), enabling them to integrate into global value chains.

With a growing emphasis on environmental sustainability, the SEZs in Kenya are adopting green practices, including clean energy initiatives positioning Kenya as a leader in sustainable industrialization.

The PS said the Special Economic Zones Authority (SEZA) is focused on making Kenya’s SEZs an example of sustainable industrialization, responding to the global shift toward environmentally responsible practices.