State now banks on special economic zones, EAC to boost trade

The government, through the Special Economic Zones Authority (SEZA), is calling on neighbouring countries to collaborate in fast-tracking infrastructure development within designated zones in the country for mutual benefit.

The move aims to revive regional trade amid global uncertainties driven by factors such as currency fluctuations and supply chain disruptions, which ultimately affect ordinary citizens.

Speaking in Nairobi, the Chief Executive Officer of the authority Ken Chelule, said Kenya has allocated land within the Naivasha Special Economic Zone (SEZ) to East African Community (EAC) countries, including Uganda, Rwanda, Burundi and South Sudan to establish dry ports and logistics hubs.

According to Chelule, the initiative is intended to boost regional trade, enhance utilisation of the Standard Gauge Railway (SGR) and accelerate cargo handling.

“Naivasha project is already up and running. We had initially started with 1,000 acres where we have a number of partners. SEZA is the host, alongside the Kenya Ports Authority, Kenya Railways and by default, the Kenya Revenue Authority, among other state departments,” he said.

Chelule emphasised that inter-agency coordination will be critical to the success of the initiative.

The authority is already collaborating with South Sudan and other agencies to fast-track the completion of the Naivasha Inland Container Depot (ICD) and the Dongo Kundu Container Freight Station (CFS) on behalf of the Government of South Sudan.

“We’ve got National Environment Management Authority (NEMA) for purposes of physical planning, the State Department of Physical Planning, Kenya Roads agencies and others. The approach we’ve taken as an authority is to bring together an inter-agency team to accelerate this project,” he said.

He noted that the government is giving the process special attention, revealing that in 2025, an additional 5,000 acres of land were allocated for the project, mainly due to growing investor interest.

“As we speak, we have a total of 6,000 acres, with the initial 1,000 acres already taken. One company is fully operational,” he added.

One of the investors who eagerly awaits for the completion of the SEZ is Panda Freight International and Logistics which is currently moving cargo from Kenya through the economic zones on behalf of South Sudan Government.

"By South Sudan’s authority, Panda acts as the government clearing agent for cargo moving through Kenya’s SEZ nodes while Universal Standard Agencies ensures documentation, compliance and process engineering. Together we are the single face to KRA, KPA, Kenya Railways and SEZ for South Sudan cargo,” said Panda CEO Emmanuel Mayeng.

He added that within the next three months, they plan to deliver a joint Panda-Universal control desk at the Naivasha ICD, enable pre-lodgment of customs entries and facilitate rail-linked cargo movement to Juba via the A1 corridor.

At the Dongo Kundu CFS, Universal will complete permits and standard operating procedures while Panda deploys equipment and bay management, with the first vessel slots expected to be contracted before the end of the month.

“We carry consortium funding on infrastructure. Our request today is for coordination, not money. A single-window customs waiver for official South Sudan cargo and monthly corridor performance reviews,” he said.

Panda Operations Manager David Majur said the company has complied with all Kenyan government requirements and is ready to begin operations.

Kenya currently has 38 Special Economic Zones and 111 Export Processing Zones (EPZs), supported by abundant green energy, a dynamic young workforce and rich natural resources for value addition.

However, investors have raised concerns over water connectivity, saying such challenges are slowing the commencement of projects.

To address this, the authority has contracted Africa Water Infrastructure Development (AWID), WaterConnect and the Private Infrastructure Development Group (PIDG) to develop, finance, construct and operate a water supply and wastewater treatment project in Naivasha, while other stakeholders handle complementary infrastructure.

“We’ve got water brought to Naivasha to the tune of 450 cubic meters, and more than 10,000 up in Longonot, so the flow of water is there. We’ve got the railway station, ICT infrastructure and other facilities on site to support the ecosystem. We’ve done about 1.6 kilometers to date and should be adding another 1.6 kilometers in the next three months,” he said.