KABATI EPZ – MURANG’A COUNTY
Kabati Sublocation, Makenji Ward, Murang’a County,
BACKGROUND
The Export Processing Zones programme goal is to promote and facilitate export-oriented investments and the development of an enabling environment for export-oriented investments. This is through provision of advice on the removal of impediments to investors, and creation of incentives to support export-oriented production and administration of approved activities within the Export Processing Zones.
Objectives of the EPZ Program
The EPZ program was designed to achieve the following key objectives:
- Promotion and diversification of exports away from the traditional nature of Kenyan exports which were primarily raw agricultural exports. In doing so the proceeds of value addition would accrue to the country and there would be better value for exports and thereby earning additional foreign exchange and introducing new or processed export products.
- Attracting new productive investments so as to stimulate domestic and foreign investment in export-oriented manufacturing, commercial and service activities through construction of zones and investment in new capital equipment
- Generation of job opportunities. EPZs were envisaged to generate new employment opportunities, directly in EPZs and indirectly through subcontracting, contract manufacturing and through sourcing of local raw materials and services.
The EPZs can be designated as either public or private zone. In the public zones, an investor can either lease land and develop their own industrial buildings or lease industrial buildings that have been built by EPZA.
The Bottom-UP Economic Transformation Agenda (BETA) 2022–2027 has identified manufacturing as key driver for economic transformation. In line with this, the government through the Ministry of Trade Investment and Industry (MITI) has identified Kabati in Murang’a County as a viable site to establish a manufacturing hub. The identified site measures 500 acres allocated to EPZ and a further 700 acres planned for educational, housing, hospitality and health facilities. The extra facilities will offer an enabling environment for investors to thrive.
Murang’a County
Murang’a county has abundance of agricultural raw material that include: Tea, Coffee, Livestock products including dairy, cereals, Horticulture: fruits (mangoes, pawpaw, macadamia nuts) & vegetables (green beans, pepper), flowers, Cereals: rice, maize, Fish farming, Forestry products, Tourism & wildlife services-water rafting, Commercial businesses.
Each of these farming outputs has a potential to attract setting up new Agro-processing industries or can be supplied to the industries as raw material for Value addition. The location of the site off the Nyeri highway is an enabler for transporting of finished goods and delivery of raw materials.
Murang’a is also characterized with:
- Good road and rail network.
- Proximity to international airport (JKIA) in Nairobi.
- Availability of ready work force
- Favorable weather conditions
The Industrial hub is expected to attract new Investments specializing in value addition mainly in the agricultural sector and thus contributing to the GDP. Furthermore, having a factory near the source of raw materials reduces the overall production cost thus increasing profit margins and better pay to the suppliers (farmers).
The industries within the hub will generate additional employment in the rural areas of Kabati, Murang’a. This will help reduce the poverty levels in the rural areas. Once developed, the manufacturing hub is expected to create approximately 50,000 direct jobs and 250,000 indirect jobs in the support sectors such as farming, logistics, and trade among others.
The areas around the proposed zones will benefit from a multiplier effect through urbanization. This will grow the local economies in real estate, trade, construction, health care, education among other areas.
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