KCB Group PLC and the African Export-Import Bank (Afreximbank) have signed a Memorandum of Understanding to provide financial and trade facilitation support to investors operating in the Vipingo Special Economic Zone (SEZ) in Kilifi County.
Under the agreement, Afreximbank will commit US$500 million, while KCB Group will provide US$300 million in funding. The partnership was announced during the Arise Integrated Industrial Platforms (Arise IIP)–Kenya Investment Forum 2025.
Financing Framework for SEZ Enterprises
The funding will support manufacturing, agro-processing, logistics, and value-addition enterprises within the SEZ. Investors will access tailored financial instruments, including:
- Working capital facilities
- Project finance
- Trade financing
- Project preparation support
- Guarantees and advisory services
KCB Group CEO Paul Russo stated, “This agreement supports our goal to expand industrial capacity in Kenya and the region. Vipingo SEZ offers a platform for export-oriented industries to scale through shared infrastructure and market access.”
Afreximbank Managing Director for Export Development, Oluranti Doherty, added, “This partnership demonstrates Afreximbank’s commitment to expanding African trade. SEZs are key to industrialisation and regional integration.”
Strategic Investment and Infrastructure Development
Vipingo SEZ is one of 38 Special Economic Zones currently gazetted in Kenya. It is part of Afreximbank’s US$3 billion Country Programme for Kenya, signed in May 2023, which includes support for Naivasha Industrial Park, Dongo Kundu Industrial Park, and Vipingo SEZ.
Afreximbank has already disbursed US$40 million for initial development and committed an additional US$500 million to support individual investors setting up within the zone.
Government Launch and Economic Impact
President William Ruto officially launched the Vipingo SEZ on 16 September 2025. The 2,000-acre development is projected to attract investments worth KSh 390 billion and generate over 35,000 direct jobs.
The SEZ is part of Kenya’s strategy to expand industrial output, diversify the economy, and increase exports under the African Continental Free Trade Area (AfCFTA). Kenya currently hosts 38 SEZs and 111 EPZs.
President Ruto stated, “We are investing in SEZs to accelerate industrialisation, attract global investors, and create wealth. Vipingo SEZ will contribute to job creation and economic transformation in Kilifi and beyond.”
The zone is expected to leverage Kenya’s green energy resources to power industrial operations and attract sustainability-focused investors.
From Mombasa to AI Hubs: Japan’s $5.5B Vision for Africa’s Future
Overview of Kenya’s Special Economic Zones
Kenya’s SEZs are regulated by the Special Economic Zones Authority (SEZA) and are designed to attract investment through fiscal incentives, streamlined regulation, and integrated infrastructure. They fall into categories such as
- Industrial Parks
- Free Trade Zones
- ICT Parks
- Science & Technology Parks
- Agricultural Zones
- Tourism & Recreation Zones
- Business Service Parks
Key Public SEZs
| SEZ Name | Location | Sector Focus | Size / Notes |
|---|---|---|---|
| Vipingo SEZ | Kilifi County | Manufacturing, agro-processing | 2,000 acres; launched Sept 2025 |
| Dongo Kundu SEZ | Mombasa County | Industrial park, Free Trade Zone | ~3,000 acres; adjacent to Mombasa Port |
| Naivasha Industrial Park | Nakuru County | Energy-intensive manufacturing | Linked to Olkaria geothermal hub |
| Konza Technopolis SEZ | Machakos County | ICT, innovation, smart city | Part of Kenya’s Vision 2030 plan |
| Tatu City SEZ | Kiambu County | Mixed-use: residential, industrial | Privately developed, SEZ licensed |
| Athi River SEZ | Machakos County | Manufacturing, logistics | Near the Nairobi-Mombasa corridor |
| Shimoni SEZ | Kwale County | Marine, logistics, agro-processing | Multiple parcels gazetted in 2025 |
Sector-Specific Zones
- ICT Parks: Konza Technopolis, Eldoret ICT Park
- Agro-Processing Zones: Vipingo, Shimoni, Dongo Kundu
- Tourism & Recreation Zones: Coastal SEZs in Kwale and Kilifi
- Business Service Parks: Nairobi-based SEZs supporting regional HQs
- Science & Technology Parks: Linked to universities and research hubs
Licensing and Incentives
To operate within an SEZ, entities must be licensed as
- SEZ Developers/Operators: Build and manage the zone
- SEZ Enterprises: Conduct eligible business activities within the zone
Benefits include:
- 10-year tax incentives
- Exemption from certain licensing regimes
- Access to integrated infrastructure (roads, power, water, ICT)
Two Rivers: A Centre for Financial, Innovation, and Technology
